SB300INTRODUCED
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SB300
VABFVPL-1
By Senators Hatcher, Coleman-Madison, Smitherman, Stewart,
Beasley, Coleman, Singleton
RFD: Finance and Taxation General Fund
First Read: 04-Apr-24
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6 VABFVPL-1 04/03/2024 KMS (L)cr 2024-1397
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First Read: 04-Apr-24
SYNOPSIS:
This bill would provide for a benefit increase
for certain retirees of the Employees' Retirement
System on October 1, 2024.
A BILL
TO BE ENTITLED
AN ACT
Providing for a benefit increase for certain retirees
and beneficiaries of the Employees' Retirement System
effective October 1, 2024.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. (a) Commencing October 1, 2024, and subject
to the provisions of HB201 of the 2024 Regular Session, each
individual, except those whose employer participated in the
Employees' Retirement System pursuant to Sections 36-27-6,
36-27-7, and 36-27-7.1, Code of Alabama 1975, whose effective
date of retirement for purposes of receiving benefits from the
Employees' Retirement System is prior to October 1, 2023, and
who is receiving or is entitled to receive a monthly allowance
from the Employees' Retirement System, shall receive a
cost-of-living increase of three percent in their gross
monthly benefit, but not less than fifteen dollars ($15) per
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monthly benefit, but not less than fifteen dollars ($15) per
month.
(b) Beneficiaries of deceased members or deceased
retirees, except where the deceased member or deceased retiree
retired from an employer participating in the Employees'
Retirement System pursuant to Sections 36-27-6, 36-27-7, and
36-27-7.1, Code of Alabama 1975, provided the date of death
for the deceased member, or the effective date of retirement
for the deceased retiree for purposes of receiving benefits
from the Employees' Retirement System was prior to October 1,
2023, shall receive the cost-of-living increase in the amount
attained by the retiree. In no case shall the cost-of-living
increase be less than fifteen dollars ($15) per month.
(c) Any future survivor allowance shall be adjusted as
provided in the member's original option selection for those
eligible retirees who have selected a monthly survivor
allowance payable to a designated beneficiary upon the death
of the retiree, or as otherwise provided by law in the case of
a qualifying member who dies prior to October 1, 2024.
(d) The Board of Control of the Employees' Retirement
System shall determine annually the amount required to pay the
cost of the increased allowance provided under this section
and shall notify the chief fiscal officer of each employer of
the per centum rates of earnable compensation of the members
required to be paid to the retirement systems. Each employer
of members of the Employees' Retirement System shall pay on
account of the increases provided in this section in the same
manner and from the same source of funds as provided in
Section 36-27-24, Code of Alabama 1975, it being the intent of
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Section 36-27-24, Code of Alabama 1975, it being the intent of
the Legislature that the cost of providing the increases in
this section shall be distributed from all funds in proportion
to the salaries paid therefrom for active members.
(e) Pursuant to HB201 of the 2024 Regular Session, the
Employees' Retirement System shall pay the benefit increase to
the eligible retirees and beneficiaries provided for in this
section only if the annual cost of the increase as estimated
by the actuary of the system is included and appropriated in
the State General Fund appropriation act for each fiscal year
by a separate employer rate. In any fiscal year in which the
required separate employer rate is not identified and
appropriated in the appropriation act, eligible retirees and
beneficiaries shall not receive, and the Employees' Retirement
System shall not be required to pay, the increase in that
fiscal year. The benefit increase may be resumed in any
subsequent fiscal year if included in that year's
appropriation act.
Section 2. (a) Commencing October 1, 2024, each
individual whose employer participated in the Employees'
Retirement System pursuant to Sections 36-27-6, 36-27-7, and
36-27-7.1, Code of Alabama 1975, whose effective date of
retirement for purposes of receiving benefits from the
Employees' Retirement System is prior to October 1, 2023, and
who is receiving or is entitled to receive a monthly allowance
from the Employees' Retirement System, may receive a
cost-of-living increase of three percent in their gross
monthly benefit, but not less than fifteen dollars ($15) per
month, if the employer elects to come under this section. Any
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month, if the employer elects to come under this section. Any
employer making the election to come under this section shall
bear the cost of the cost-of-living increases paid to its
employees pursuant to this section. Any employer participating
under Section 36-27-6, 36-27-7, and 36-27-7.1, Code of Alabama
1975, may elect to come under this section at any time and
have this section become effective on October 1, 2024, or on
October 1 of any subsequent fiscal year and the employer shall
not be required to pay this cost-of-living increase
retroactively unless the employer elects to fund the increase.
(b) If the employer elects to come under this section,
beneficiaries of deceased members or deceased retirees retired
from an employer participating in the Employees' Retirement
System pursuant to Section 36-27-6, 36-27-7, and 36-27-7.1,
Code of Alabama 1975, shall receive the same cost-of-living
increase provided in Section 1, but not less than fifteen
dollars ($15) per month.
(c) Any future survivor allowance shall be adjusted as
provided in the member's original option selection for those
eligible retirees who have selected a monthly survivor
allowance payable to a designated beneficiary upon the death
of the retiree, or as otherwise provided by law in the case of
a qualifying member who dies prior to October 1, 2024.
(d) If the employer elects to come under this section,
the Board of Control of the Employees' Retirement System shall
determine annually the amount required to pay the cost of the
increased allowance provided under this section and shall
notify the chief fiscal officer of each employer of the per
centum rates of earnable compensation of the members required
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centum rates of earnable compensation of the members required
to be paid to the retirement systems. Each employer of members
of the Employees' Retirement System shall pay on account of
the increases provided in this section in the same manner and
from the same source of funds as provided in Section 36-27-6
and 36-27-7, Code of Alabama 1975, it being the intent of the
Legislature that the cost of providing the increases in this
section shall be distributed from all funds in proportion to
the salaries paid therefrom for active members.
(e) Commencing October 1, 2024, any retired employee
who retired from a city, town, county, or public or
quasi-public organization of the state before the city, town,
county, or public or quasi-public organization of the state
became a member of the Employees' Retirement System, and who
is receiving a monthly benefit prior to October 1, 2024,
administered by the Employees' Retirement System, and whose
years of creditable service have not been made known to the
Employees' Retirement System, may receive an increase in
benefits of three percent, except that no pensioner shall
receive an increase of less than fifteen dollars ($15) per
month, provided the retired employee retired prior to October
1, 2023, and the employer elects to come under this section.
(f) Commencing October 1, 2024, beneficiaries of
Employees' Retirement System pensioners described in
subsection (a) shall receive an increase of three percent of
their gross monthly benefit, but not less than fifteen dollars
($15) per month, provided the date of death for the deceased
pensioner, or the effective date of retirement for the
deceased pensioner was prior to October 1, 2023, and the local
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deceased pensioner was prior to October 1, 2023, and the local
units elect to fund the increase.
(g) Commencing October 1, 2024, any pensioner or
annuitant who retired prior to October 1, 2023, from a city,
town, county, or public or quasi-public organization of the
state before the city, town, county, or public or quasi-public
organization of the state became a member of the Employees'
Retirement System and is receiving a monthly benefit not
administered by the Employees' Retirement System shall receive
an increase of three percent of their gross monthly benefit,
but not less than fifteen dollars ($15) per month, provided
the city, town, county, or public or quasi-public organization
of the state elects to fund the increase.
Section 3. Any individual who received benefits under
the Medicaid Program and whose eligibility for Medicaid
benefits would be impaired by the cost-of-living increase
provided by this act shall not be entitled to receive the
aforementioned increase. Any individual who subsequently
applies for benefits under the Medicaid Program and that
individual's eligibility to receive benefits is impaired by
the cost-of-living increase provided by this act, shall not be
entitled to receive the increase subsequent to the date that
the member files application for benefits under the Medicaid
Program.
Section 4. This act shall become effective on October
1, 2024.
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