HB515 Alabama 2022 Session

Summary

Primary Sponsor

Danny GarrettRepresentative

Republican

Session

Regular Session 2022

Title

Retirement Systems, Tier II members of Employees' Retirement System or Teachers' Retirement System who begin participation on or after October 1, 2022, with at least 30 years of service, to receive annual automatic cola adjustment

Summary

HB515 would give eligible Tier II members who start after Oct. 1, 2022 and retire with at least 30 years of service a yearly automatic cost-of-living adjustment (COLA) of 1% of their gross retirement benefit.

What This Bill Does

Provides, upon retirement, an annual automatic COLA of 1% of gross retirement benefits for Tier II members who first participate on or after October 1, 2022 and have at least 30 years of creditable service. Survivor allowances will be adjusted according to the retiree's original option. Excludes individuals whose Medicaid eligibility would be impaired by the COLA, meaning they would not receive the increase if on Medicaid or if applying would affect eligibility. The act takes effect immediately after passage and Governor approval.

Who It Affects

• Tier II plan members who first become eligible on or after October 1, 2022 and retire with at least 30 years of creditable service will receive a 1% annual COLA on their gross benefit.
• Survivor allowances under the retiree's original option will be adjusted; individuals on Medicaid or whose Medicaid eligibility would be impaired by the COLA will not receive the increase.

Key Provisions

• Annual automatic cost-of-living adjustment of 1% of gross retirement benefit for eligible Tier II retirees (initial participation on/after Oct 1, 2022) with at least 30 years of creditable service.
• Survivor allowances will be adjusted as provided in the retiree's original survivor option.
• Individuals on Medicaid or whose Medicaid eligibility would be impaired by the COLA are not eligible to receive the COLA.
• Effective immediately upon passage and governor's approval.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Retirement Systems