The bill provides a cost-of-living increase of two percent for all state employees, including those in classified and unclassified services, judicial and legislative personnel, and certain county health department employees, effective from the first payday on or after October 1, 2026. It specifies that this increase will not apply to local supplements for judges or employees tied to state employee salaries, nor to those covered by labor agreements. The Director of the State Personnel Department and other designated officials are tasked with revising pay schedules to reflect this increase, which will be funded through appropriations made in the annual budget act.

Additionally, the bill introduces a one-time longevity bonus for retirees and beneficiaries of the Employees' Retirement System, calculated at one dollar per month for each year of service, provided they meet specific eligibility criteria. Employers participating in the Employees' Retirement System can opt to fund this bonus for their retirees, and the bonuses are to be paid in October 2026. The bill also includes provisions regarding the impact of the longevity bonus on Medicaid eligibility and outlines the responsibilities of the Board of Control of the Employees' Retirement System in determining and notifying employers of the costs associated with the bonuses. The act is set to take effect immediately upon passage and approval.

Statutes affected:
Introduced: 36-26-10
Enrolled: 36-26-10