HB534 Alabama 2022 Session
In Committee
Bill Summary
Sponsors
Session
Regular Session 2022
Title
Retirement Systems, Employees Retirement System, procedure for funding benefit increases for retirees provided, actual annual cost identified in annual appropriation act
Description
<p class="bill_description"> 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</p><p class="bill_description">
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</p><p class="bill_description">
In the event the amounts are not identified
and appropriated or provided for, there will be no
increased benefit provided for that fiscal year</p><p class="bill_description">
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</p><p class="bill_entitled_an_act"> 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.
</p>
Subjects
Retirement Systems
Bill Actions
| Action Date | Chamber | Action |
|---|---|---|
| April 6, 2022 | H | Read for the first time and referred to the House of Representatives committee on Ways and Means General Fund |
Bill Text
Bill Documents
| Type | Link |
|---|---|
| Bill Text | HB534 Alabama 2022 Session - Introduced |