This bill pertains to the Retirement Systems of Alabama, specifically addressing the procedure for providing annualized benefit increases to retirees of the Employees' Retirement System and the Teachers' Retirement System. The bill stipulates that starting from the fiscal year beginning October 1, 2024, any benefit increase for retirees must be granted by a separate legislative act, which will define the amount of the increase and the class of eligible retirees and beneficiaries. The bill ensures that these increases do not add to the unfunded liability of the retirement systems by requiring that the cost of the increase, as estimated by the system's actuary, must be included and appropriated in the respective State General Fund or Education Trust Fund appropriation act for that fiscal year. If the required funding is not appropriated, the increase will not be paid out for that fiscal year but may resume in subsequent years if included in that year's appropriation act.

The bill also includes legislative findings that assert any benefit increases granted under this act will not increase the unfunded liability of the retirement systems due to the annual authorization and full annual funding required. It further states that any accounting standards that do not recognize the language of this act should be disregarded in audits of the Retirement Systems of Alabama's finances. The act is not applicable to any previous cost-of-living increases or one-time bonuses provided to retirees and will become effective on June 1, 2024. There are no insertions or deletions marked in the provided text of the bill.

Statutes affected:
Introduced: 36-27-6, 36-27-7, 36-27-7, 36-27-6, 36-27-7, 36-27-7
Engrossed: 36-27-6, 36-27-7, 36-27-7, 36-27-6, 36-27-7, 36-27-7, 36-27-6, 36-27-7, 36-27-7