HB534 Alabama 2022 Session

Under existing law, there is no formal procedure for funding an increase in the pension benefits earned by state and local government employees who have retired under the Retirement Systems of Alabama

This bill would establish a procedure for the funding of benefit increases provided to retirees under the Employees' Retirement System and the Teachers' Retirement System by the Legislature by requiring the actual annual cost to be identified and provided for in the annual State General Fund Budget Act and the Education Trust Fund Budget Act

In the event the amounts are not identified and appropriated or provided for, there will be no increased benefit provided for that fiscal year

This pay as you go procedure shall be considered a one year benefit adjustment that does not affect the unfunded liability of the Retirement Systems of Alabama as the benefit increase will only be paid if the actual cost is included in the annual appropriation acts and the funds collected from the covered entities in the same month that the increase is to be paid to the retiree each month

Relating to the Retirement Systems of Alabama; to provide for an annualized benefit adjustment procedure for the funding of future benefit increases to retirees of the State Employees' Retirement System and the Teachers' Retirement System which will not increase the unfunded liability of either system due to the provisions which require the actual annual cost of any increase to be authorized and funded one year at a time with no authorization or liability for the benefit increase beyond the fiscal year for which the appropriations are made.