House Bill 339 Alabama 2026 Session

Summary

Primary Sponsor

Kenyatte HassellRepresentative

Democrat

Session

2026 Regular Session

Title

Retirement Systems of Alabama; to provide a benefit increase for certain retirees of the Teachers Retirement System

Summary

HB339 would grant a 4% cost-of-living increase to certain Teachers' Retirement System retirees and eligible survivors starting October 1, 2026, with specific eligibility and funding conditions.

What This Bill Does

The bill provides a 4% increase in gross monthly benefits for TRS retirees who retired before October 1, 2025, have 25+ years of service, and receive $25,000 or less annually. It also extends the same increase to eligible beneficiaries of deceased TRS members where the death occurred before October 1, 2026, the deceased had 25+ years of service, and the benefit was $25,000 or less, with survivor payments adjusted according to the original option. The increase is contingent on annual funding in the Education Trust Fund and will be paid via employer rates starting in fiscal year 2027; if funds aren’t identified, the increase won’t be paid that year but could resume if appropriated. Medicaid-related exclusions apply, and actuarial calculations must determine the cost and notify employers.

Who It Affects

• TRS retirees who have 25+ years of service and an annual benefit of $25,000 or less (eligible to receive a 4% increase starting 10/01/2026).
• Beneficiaries/survivors of deceased TRS members who meet the same service and benefit thresholds (and survivor allowances adjusted per the original option), with eligibility and timing tied to the deceased member’s facts and the bill’s provisions.

Key Provisions

• 4% cost-of-living increase for eligible retirees starting October 1, 2026, for those with 25+ years of service and <= $25,000 annual benefit.
• Eligible beneficiaries of deceased members/retirees meeting the same criteria receive the increase, with survivor payments adjusted as provided by the original option.
• Funding depends on annual appropriation in the Education Trust Fund; cost determined by TRS actuarial analysis and communicated to employers; separate employer rate used for funding beginning October 1, 2027.
• If appropriation or separate employer rate is not identified in a given fiscal year, the increase is not paid that year but may resume in a future year if appropriated.
• Medicaid eligibility rules may exclude individuals if the increase would impair eligibility.

AI-generated summary using openai/gpt-5-nano on Feb 12, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Retirement