Alabama 2024 Regular Session

Alabama Senate Bill SB300 Compare Versions

Only one version of the bill is available at this time.

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1	1	SB300INTRODUCED
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3	3	SB300
4	4	VABFVPL-1
5	5	By Senators Hatcher, Coleman-Madison, Smitherman, Stewart,
6	6	Beasley, Coleman, Singleton
7	7	RFD: Finance and Taxation General Fund
8	8	First Read: 04-Apr-24
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14	14	6 VABFVPL-1 04/03/2024 KMS (L)cr 2024-1397
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16	16	First Read: 04-Apr-24
17	17	SYNOPSIS:
18	18	This bill would provide for a benefit increase
19	19	for certain retirees of the Employees' Retirement
20	20	System on October 1, 2024.
21	21	A BILL
22	22	TO BE ENTITLED
23	23	AN ACT
24	24	Providing for a benefit increase for certain retirees
25	25	and beneficiaries of the Employees' Retirement System
26	26	effective October 1, 2024.
27	27	BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
28	28	Section 1. (a) Commencing October 1, 2024, and subject
29	29	to the provisions of HB201 of the 2024 Regular Session, each
30	30	individual, except those whose employer participated in the
31	31	Employees' Retirement System pursuant to Sections 36-27-6,
32	32	36-27-7, and 36-27-7.1, Code of Alabama 1975, whose effective
33	33	date of retirement for purposes of receiving benefits from the
34	34	Employees' Retirement System is prior to October 1, 2023, and
35	35	who is receiving or is entitled to receive a monthly allowance
36	36	from the Employees' Retirement System, shall receive a
37	37	cost-of-living increase of three percent in their gross
38	38	monthly benefit, but not less than fifteen dollars ($15) per
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68	68	monthly benefit, but not less than fifteen dollars ($15) per
69	69	month.
70	70	(b) Beneficiaries of deceased members or deceased
71	71	retirees, except where the deceased member or deceased retiree
72	72	retired from an employer participating in the Employees'
73	73	Retirement System pursuant to Sections 36-27-6, 36-27-7, and
74	74	36-27-7.1, Code of Alabama 1975, provided the date of death
75	75	for the deceased member, or the effective date of retirement
76	76	for the deceased retiree for purposes of receiving benefits
77	77	from the Employees' Retirement System was prior to October 1,
78	78	2023, shall receive the cost-of-living increase in the amount
79	79	attained by the retiree. In no case shall the cost-of-living
80	80	increase be less than fifteen dollars ($15) per month.
81	81	(c) Any future survivor allowance shall be adjusted as
82	82	provided in the member's original option selection for those
83	83	eligible retirees who have selected a monthly survivor
84	84	allowance payable to a designated beneficiary upon the death
85	85	of the retiree, or as otherwise provided by law in the case of
86	86	a qualifying member who dies prior to October 1, 2024.
87	87	(d) The Board of Control of the Employees' Retirement
88	88	System shall determine annually the amount required to pay the
89	89	cost of the increased allowance provided under this section
90	90	and shall notify the chief fiscal officer of each employer of
91	91	the per centum rates of earnable compensation of the members
92	92	required to be paid to the retirement systems. Each employer
93	93	of members of the Employees' Retirement System shall pay on
94	94	account of the increases provided in this section in the same
95	95	manner and from the same source of funds as provided in
96	96	Section 36-27-24, Code of Alabama 1975, it being the intent of
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126	126	Section 36-27-24, Code of Alabama 1975, it being the intent of
127	127	the Legislature that the cost of providing the increases in
128	128	this section shall be distributed from all funds in proportion
129	129	to the salaries paid therefrom for active members.
130	130	(e) Pursuant to HB201 of the 2024 Regular Session, the
131	131	Employees' Retirement System shall pay the benefit increase to
132	132	the eligible retirees and beneficiaries provided for in this
133	133	section only if the annual cost of the increase as estimated
134	134	by the actuary of the system is included and appropriated in
135	135	the State General Fund appropriation act for each fiscal year
136	136	by a separate employer rate. In any fiscal year in which the
137	137	required separate employer rate is not identified and
138	138	appropriated in the appropriation act, eligible retirees and
139	139	beneficiaries shall not receive, and the Employees' Retirement
140	140	System shall not be required to pay, the increase in that
141	141	fiscal year. The benefit increase may be resumed in any
142	142	subsequent fiscal year if included in that year's
143	143	appropriation act.
144	144	Section 2. (a) Commencing October 1, 2024, each
145	145	individual whose employer participated in the Employees'
146	146	Retirement System pursuant to Sections 36-27-6, 36-27-7, and
147	147	36-27-7.1, Code of Alabama 1975, whose effective date of
148	148	retirement for purposes of receiving benefits from the
149	149	Employees' Retirement System is prior to October 1, 2023, and
150	150	who is receiving or is entitled to receive a monthly allowance
151	151	from the Employees' Retirement System, may receive a
152	152	cost-of-living increase of three percent in their gross
153	153	monthly benefit, but not less than fifteen dollars ($15) per
154	154	month, if the employer elects to come under this section. Any
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184	184	month, if the employer elects to come under this section. Any
185	185	employer making the election to come under this section shall
186	186	bear the cost of the cost-of-living increases paid to its
187	187	employees pursuant to this section. Any employer participating
188	188	under Section 36-27-6, 36-27-7, and 36-27-7.1, Code of Alabama
189	189	1975, may elect to come under this section at any time and
190	190	have this section become effective on October 1, 2024, or on
191	191	October 1 of any subsequent fiscal year and the employer shall
192	192	not be required to pay this cost-of-living increase
193	193	retroactively unless the employer elects to fund the increase.
194	194	(b) If the employer elects to come under this section,
195	195	beneficiaries of deceased members or deceased retirees retired
196	196	from an employer participating in the Employees' Retirement
197	197	System pursuant to Section 36-27-6, 36-27-7, and 36-27-7.1,
198	198	Code of Alabama 1975, shall receive the same cost-of-living
199	199	increase provided in Section 1, but not less than fifteen
200	200	dollars ($15) per month.
201	201	(c) Any future survivor allowance shall be adjusted as
202	202	provided in the member's original option selection for those
203	203	eligible retirees who have selected a monthly survivor
204	204	allowance payable to a designated beneficiary upon the death
205	205	of the retiree, or as otherwise provided by law in the case of
206	206	a qualifying member who dies prior to October 1, 2024.
207	207	(d) If the employer elects to come under this section,
208	208	the Board of Control of the Employees' Retirement System shall
209	209	determine annually the amount required to pay the cost of the
210	210	increased allowance provided under this section and shall
211	211	notify the chief fiscal officer of each employer of the per
212	212	centum rates of earnable compensation of the members required
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242	242	centum rates of earnable compensation of the members required
243	243	to be paid to the retirement systems. Each employer of members
244	244	of the Employees' Retirement System shall pay on account of
245	245	the increases provided in this section in the same manner and
246	246	from the same source of funds as provided in Section 36-27-6
247	247	and 36-27-7, Code of Alabama 1975, it being the intent of the
248	248	Legislature that the cost of providing the increases in this
249	249	section shall be distributed from all funds in proportion to
250	250	the salaries paid therefrom for active members.
251	251	(e) Commencing October 1, 2024, any retired employee
252	252	who retired from a city, town, county, or public or
253	253	quasi-public organization of the state before the city, town,
254	254	county, or public or quasi-public organization of the state
255	255	became a member of the Employees' Retirement System, and who
256	256	is receiving a monthly benefit prior to October 1, 2024,
257	257	administered by the Employees' Retirement System, and whose
258	258	years of creditable service have not been made known to the
259	259	Employees' Retirement System, may receive an increase in
260	260	benefits of three percent, except that no pensioner shall
261	261	receive an increase of less than fifteen dollars ($15) per
262	262	month, provided the retired employee retired prior to October
263	263	1, 2023, and the employer elects to come under this section.
264	264	(f) Commencing October 1, 2024, beneficiaries of
265	265	Employees' Retirement System pensioners described in
266	266	subsection (a) shall receive an increase of three percent of
267	267	their gross monthly benefit, but not less than fifteen dollars
268	268	($15) per month, provided the date of death for the deceased
269	269	pensioner, or the effective date of retirement for the
270	270	deceased pensioner was prior to October 1, 2023, and the local
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300	300	deceased pensioner was prior to October 1, 2023, and the local
301	301	units elect to fund the increase.
302	302	(g) Commencing October 1, 2024, any pensioner or
303	303	annuitant who retired prior to October 1, 2023, from a city,
304	304	town, county, or public or quasi-public organization of the
305	305	state before the city, town, county, or public or quasi-public
306	306	organization of the state became a member of the Employees'
307	307	Retirement System and is receiving a monthly benefit not
308	308	administered by the Employees' Retirement System shall receive
309	309	an increase of three percent of their gross monthly benefit,
310	310	but not less than fifteen dollars ($15) per month, provided
311	311	the city, town, county, or public or quasi-public organization
312	312	of the state elects to fund the increase.
313	313	Section 3. Any individual who received benefits under
314	314	the Medicaid Program and whose eligibility for Medicaid
315	315	benefits would be impaired by the cost-of-living increase
316	316	provided by this act shall not be entitled to receive the
317	317	aforementioned increase. Any individual who subsequently
318	318	applies for benefits under the Medicaid Program and that
319	319	individual's eligibility to receive benefits is impaired by
320	320	the cost-of-living increase provided by this act, shall not be
321	321	entitled to receive the increase subsequent to the date that
322	322	the member files application for benefits under the Medicaid
323	323	Program.
324	324	Section 4. This act shall become effective on October
325	325	1, 2024.
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