HB201 Alabama 2024 Session

Summary

Primary Sponsor

Steve ClouseRepresentative

Republican

Session

Regular Session 2024

Title

RSA, procedure established for funding benefit increases of ERS and TRS retirees

Summary

HB201 creates a funded, annual process to grant future ERS and TRS retiree benefit increases only when the annual cost is identified and appropriated in the budget, otherwise withholding increases for that year.

What This Bill Does

The bill requires the actual annual cost of any retiree benefit increase for the Employees' Retirement System (ERS) and Teachers' Retirement System (TRS) to be identified and included in the State General Fund and Education Trust Fund appropriation acts. If the cost is not identified and funded in a given year, no increase is paid that year. Increases, when approved, must be enacted by separate legislative acts and funded through a dedicated employer rate; the increases do not change the systems' unfunded liability.

Who It Affects

• ERS retirees and beneficiaries would receive increases only if the annual cost is identified and funded in the General Fund appropriation act; otherwise, no increase in that year (employers participate via a separate ERS employer rate).
• TRS retirees and beneficiaries would receive increases only if the annual cost is identified and funded in the Education Trust Fund appropriation act; otherwise, no increase in that year (employers participate via a separate TRS employer rate).

Key Provisions

• ERS: Beginning in fiscal year 2024-25 (Oct 1, 2024), no ERS benefit increase is paid unless a separate legislative act grants the increase, sets the amount and eligible class, and funds it via a separate ERS employer rate in the General Fund appropriation act.
• ERS: Participating employers must pay the separate employer rate to fund the ERS benefit increase from the same source as active salaries; if the rate is not identified and appropriated in a given year, eligible retirees do not receive the increase, but it may resume in a future year if funded.
• TRS: Beginning in fiscal year 2024-25 (Oct 1, 2024), no TRS benefit increase is paid unless a separate legislative act grants the increase, sets the amount and eligible class, and funds it via a separate TRS employer rate in the Education Trust Fund appropriation act.
• TRS: Participating employers must pay the separate employer rate to fund the TRS benefit increase from the same source as active salaries; if the rate is not identified and appropriated in a given year, eligible retirees do not receive the increase, but it may resume in a future year if funded.
• funding of increases under this act does not increase the unfunded liability of ERS or TRS, and any applicable accounting standards recognizing otherwise are disregarded.
• The act does not apply to or affect any previous cost-of-living increases or one-time bonuses.
• The act becomes effective June 1, 2024.

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