SB338 Alabama 2022 Session

Updated Apr 15, 2022

Senate Bill

In Committee

Current Status

Regular Session 2022

Session

2

Summary

Primary Sponsor: Del Marsh Senator
Republican
Co-Sponsor: Bobby D. Singleton
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: 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.
Subjects: Retirement Systems

Read for the first time and referred to the Senate committee on Finance and Taxation General Fund