SB339 Alabama 2024 Session

Summary

Primary Sponsor

Josh CarnleySenator

Republican

Session

Regular Session 2024

Title

Retirement Systems of Alabama; to provide a benefit increase for certain retirees of the ERS and the TRS

Summary

SB339 would provide a 2% cost-of-living increase to certain ERS and TRS retirees and their eligible beneficiaries starting October 1, 2024, with the cost shifted to employers starting in 2025.

What This Bill Does

The bill adds a 2% increase to the gross monthly benefits for eligible ERS and TRS retirees beginning October 1, 2024. It covers retirees who retired before October 1, 2015, have 25+ years of service, and receive an annual benefit of $25,000 or less, and it also extends the same increase to eligible beneficiaries or survivors of deceased retirees who died before October 1, 2024 and meet similar criteria, with survivor allowances adjusted according to the original option. The act requires the cost of this increase to be determined as an actuarial liability and funded, and in fiscal year 2025 only, employers must pay the full cost through increased employer rates funded from the usual sources.

Who It Affects

• ERS retirees who retired before October 1, 2015, with 25+ years of service and annual benefits of $25,000 or less, who will receive a 2% increase to their monthly benefit starting October 1, 2024.
• Beneficiaries or survivors of deceased ERS members/retirees who died before October 1, 2024 and who had 25+ years of service and annual benefits of $25,000 or less, who will receive the 2% increase (survivor allowances adjusted per the retiree's original option).
• TRS retirees who retired before October 1, 2015, with 25+ years of service and annual benefits of $25,000 or less, who will receive a 2% increase to their monthly benefit starting October 1, 2024.
• Beneficiaries or survivors of deceased TRS members/retirees who died before October 1, 2024 and who had 25+ years of service and annual benefits of $25,000 or less, who will receive the 2% increase (survivor allowances adjusted per the retiree's original option).
• Employers that participate in ERS and TRS, who would bear the full cost of the increase starting in fiscal year 2025 through higher employer contribution rates.

Key Provisions

• ERS: Provides a 2% cost-of-living increase to eligible retirees (retired before 10/1/2015, 25+ years of service, annual benefit ≤ $25,000) beginning 10/01/2024.
• ERS: Extends the 2% increase to eligible beneficiaries/survivors of deceased ERS members/retirees who died before 10/01/2024 and meet the same service/benefit thresholds; survivor allowances adjusted as per original option.
• ERS: The Board of Control shall determine the actuarial cost of the increased allowance as a percent of earnable compensation and notify the chief fiscal officer; in FY 2025, employers pay the full cost as an employer-rate increase funded from the usual sources.
• TRS: Mirrors the ERS provisions for TRS retirees (2% increase for those with 25+ years and ≤$25,000 annual benefit) and for TRS beneficiaries/survivors who died before 10/01/2024, with survivor allowances adjusted per the original option; actuarial cost determined and funded similarly; employer-funded cost starting 10/01/2025.
• Effective date: The act becomes effective 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