SB300 Alabama 2024 Session

Summary

Primary Sponsor

Kirk HatcherSenator

Democrat

Session

Regular Session 2024

Title

ERS, benefit increase for certain retirees of on October 1, 2024

Summary

SB300 would provide a 3% cost-of-living increase (minimum $15 per month) to certain Employees' Retirement System retirees and beneficiaries starting Oct 1, 2024, with funding and eligibility rules taken from local governments and state appropriations.

What This Bill Does

It grants a 3% cost-of-living increase to eligible ERS retirees whose retirement date was before Oct 1, 2023 and to eligible beneficiaries, provided their employers participate and appropriate funding is made. The increase is paid from the employer’s funds, in proportion to active salaries, and annual costs are determined by the ERS Board and contingent on separate funding appropriations in the State General Fund. The bill also extends similar potential increases to certain local-government retirees and their beneficiaries if their employer elects to fund under this section, with rules about survivor benefits and retroactivity. Medicaid eligibility rules exclude individuals whose benefits would be impaired by the increase, and the act becomes effective on Oct 1, 2024.

Who It Affects

• ERS retirees and beneficiaries with retirement or death dates prior to October 1, 2023, whose employers participate in the Employees' Retirement System, who would receive a 3% increase (minimum $15) starting Oct 1, 2024 if funding is provided.
• Retirees and beneficiaries from local governments (cities, towns, counties, or public/quasi-public organizations) who joined ERS later or whose prior benefits were not ERS-administered, who may receive the increase only if their local employer elects to fund it, with costs borne by the employer and subject to annual appropriations.

Key Provisions

• Section 1(a): Eligible ERS retirees with retirement date before Oct 1, 2023 shall receive a 3% increase in gross monthly benefits, not less than $15, per month, starting Oct 1, 2024, if their employer participates and funding is provided.
• Section 1(b): Beneficiaries of deceased ERS members/retirees with relevant pre-Oct 1, 2023 dates shall receive the same 3% increase (min $15) as the retirees they benefited, subject to funding.
• Section 1(c): Any future survivor allowances shall be adjusted consistent with the retiree's original option or applicable law.
• Section 1(d): The ERS Board must annually determine the amount needed to fund the increases and notify each employer of the required contribution rates, with funding distributed from the same source as other ERS employer costs and proportionate to active salaries.
• Section 1(e)-(g): Commencing Oct 1, 2024, certain local-government retirees and their beneficiaries may receive the 3% increase if the employer elects to come under this section and funds the increase; this includes retirees who joined ERS later and cases where years of service are unknown, as well as those with non-ERS-administered benefits prior to joining ERS.
• Section 2(a)-(d): Similar eligibility and funding structure for local-government-related retirees and beneficiaries starting Oct 1, 2024, with increases contingent on the employer electing to participate and funding being provided; survivor and beneficiary provisions mirror Section 1.
• Section 3: Individuals whose Medicaid eligibility would be impaired by the COLA are not entitled to receive the increase, and new Medicaid applicants are not eligible to receive the increase if their eligibility would be impaired.
• Section 4: The act becomes effective on October 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