SB301 Alabama 2024 Session

Summary

Primary Sponsor

Kirk HatcherSenator

Democrat

Session

Regular Session 2024

Title

TRS, benefit increase for certain retirees on October 1, 2024

Summary

SB301 would provide a 3% cost-of-living increase (minimum $15 per month) to certain Teachers' Retirement System retirees and survivor beneficiaries, effective October 1, 2024.

What This Bill Does

It would give a 3% increase to eligible TRS retirees whose retirement date was before October 1, 2023, and to certain beneficiaries of deceased members or retirees receiving survivor benefits with similar dates. The increase is limited to retirees whose TRS participation was based on Section 36-27-6 and who worked for a local board of education or a state-supported higher education institution. Future survivor allowances may be adjusted according to the retiree's original option; funding and administration depend on appropriations and employer contributions, and Medicaid eligibility that would be impaired by the increase is not allowed to receive it.

Who It Affects

• TRS retirees whose retirement date was before October 1, 2023 would receive a 3% increase (minimum $15) to their current gross benefit.
• Certain beneficiaries receiving TRS survivor benefits for deceased retirees/members with retirement or death before October 1, 2023 would receive the same 3% increase (minimum $15).
• Employers funding TRS (local boards of education and state-supported higher education institutions) would be responsible for funding the increases through separate employer rates, distributed proportionally to active salaries.
• Medicaid recipients whose eligibility would be impaired by the increase would not receive the increase, and those who later apply for Medicaid with impairment would remain ineligible.

Key Provisions

• Section 1(a): Commences October 1, 2024, provides a 3% cost-of-living increase to eligible retirees and certain survivor beneficiaries, with a minimum of $15 per month.
• Section 1(b): Provides the same 3% increase (minimum $15) to eligible individuals described, for benefits from the Teachers' Retirement System.
• Section 1(c): Future survivor allowances shall be adjusted per the retiree's original option selection for those with a monthly survivor benefit.
• Section 1(d): TRS Board shall annually determine the amount needed and notify employers of the per-centum rates; funding comes from the same source as 16-25-21 and is distributed proportional to active salaries.
• Section 1(e): Individuals eligible for Medicaid whose eligibility would be impaired by the increase are not entitled to the increase.
• Section 1(f): TRS shall pay the increase only if the annual cost is included and appropriated in the Education Trust Fund by a separate employer rate; if not identified/appropriated, the increase is not paid that year but may resume in a later year if appropriated.
• Section 2: Effective date is 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