Senate Bill 315 Alabama 2026 Session

Summary

Primary Sponsor

Vivian Davis FiguresSenator

Democrat

Session

2026 Regular Session

Title

Employees' Retirement System and Teachers' Retirement System; retirees and beneficiaries, two percent cost-of-living benefit increase effective October 1, 2026

Summary

SB315 would grant a 2% cost-of-living increase to eligible ERS and TRS retirees and beneficiaries, with a $15 minimum, starting October 1, 2026, under defined funding and eligibility rules.

What This Bill Does

It would provide a 2% increase to eligible retirees and beneficiaries of the Employees' Retirement System and Teachers' Retirement System, beginning October 1, 2026, with a floor of $15 per month. Eligibility depends on retirement dates and years of service, including specific rules for survivors and beneficiaries under certain conditions. The increase is funded either through state appropriations or by employers who elect to fund it, with costs allocated via employer rates; if funding is not identified in a given year, the increase is not paid, but may resume in a future year if appropriations exist. Medicaid recipients whose eligibility would be impaired by the increase are excluded from receiving the COLA.

Who It Affects

• Eligible ERS and TRS retirees and beneficiaries who meet the specified retirement-date and service criteria would receive the monthly COLA increase.
• City, town, county, and public or quasi-public employers participating in ERS or TRS may elect to fund the COLA starting in 2026, with costs borne through employer rates (and full funding by employers beginning in fiscal year 2027).

Key Provisions

• A 2% cost-of-living increase is provided to eligible retirees and beneficiaries, with a minimum of $15 per month, effective October 1, 2026.
• Eligibility includes ERS retirees with an effective retirement date before October 1, 2025 and TRS retirees with 25+ years of service and an effective retirement date before October 1, 2025 (plus survivor benefits under certain conditions); Medicaid-related exclusions apply.
• Funding can come from annual appropriations or from employers that elect to fund the increase, with costs distributed based on active member salaries; if funding is not identified in an appropriation year, the increase is not paid but may resume when appropriations exist.
• For local units and employers that elect to fund, the increase is handled as an employer-rate cost, with full funding phased in by fiscal year 2027 and calculated as an actuarial liability; eligibility and funding rules apply similarly to ERS and TRS provisions.

AI-generated summary using openai/gpt-5-nano on Feb 17, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Retirement