The bill establishes a new procedure for granting annual benefit increases to retirees and beneficiaries of the Employees' Retirement System and the Teachers' Retirement System in Alabama, effective October 1, 2026. It stipulates that no benefit increase will be paid unless it is authorized by a separate legislative act that specifies the amount and eligible classes of retirees. Additionally, the annual cost of the increase must be included and appropriated in the respective State General Fund or Education Trust Fund appropriation acts. If the required funding is not appropriated in a given fiscal year, eligible retirees will not receive the increase, although it may be resumed in subsequent years if included in future appropriations.

The bill also includes legislative findings that assert any benefit increases will not increase the unfunded liability of the retirement systems, provided they are fully funded as required. It specifies that only one increase may be granted per legislative quadrennium starting November 4, 2026, and clarifies that the act does not affect any previous cost-of-living increases or bonuses granted under prior legislation. The bill's provisions aim to ensure fiscal responsibility while allowing for potential benefit increases for retirees.

Statutes affected:
Introduced: 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
Enrolled: 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