Alabama 2024 Regular Session

Alabama Senate Bill SB339 Compare Versions

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

Old	New	Differences
1	1	SB339INTRODUCED
2	2	Page 0
3	3	SB339
4	4	NK6VT8T-1
5	5	By Senators Carnley, Orr
6	6	RFD: Finance and Taxation Education
7	7	First Read: 23-Apr-24
8	8	1
9	9	2
10	10	3
11	11	4
12	12	5 NK6VT8T-1 04/24/2024 KMS (L)cr 2024-1597
13	13	Page 1
14	14	First Read: 23-Apr-24
15	15	SYNOPSIS:
16	16	This bill would provide for a benefit increase
17	17	for certain eligible retirees of the Employees'
18	18	Retirement System and the Teachers' Retirement System
19	19	on October 1, 2024.
20	20	A BILL
21	21	TO BE ENTITLED
22	22	AN ACT
23	23	Relating to the Retirement Systems of Alabama; to
24	24	provide a benefit increase for certain retirees and
25	25	beneficiaries of the Employees' Retirement System and the
26	26	Teachers' Retirement System to become effective on October 1,
27	27	2024.
28	28	BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
29	29	Section 1. (a) Commencing October 1, 2024, each
30	30	individual, except any individual whose employer participated
31	31	in the Employees' Retirement System pursuant to Sections
32	32	36-27-6, 36-27-7, and 36-27-7.1, Code of Alabama 1975, whose
33	33	effective date of retirement for purposes of receiving
34	34	benefits from the Employees' Retirement System is prior to
35	35	October 1, 2015, who is receiving or is entitled to receive a
36	36	monthly allowance from the Employees' Retirement System, who
37	37	1
38	38	2
39	39	3
40	40	4
41	41	5
42	42	6
43	43	7
44	44	8
45	45	9
46	46	10
47	47	11
48	48	12
49	49	13
50	50	14
51	51	15
52	52	16
53	53	17
54	54	18
55	55	19
56	56	20
57	57	21
58	58	22
59	59	23
60	60	24
61	61	25
62	62	26
63	63	27
64	64	28 SB339 INTRODUCED
65	65	Page 2
66	66	monthly allowance from the Employees' Retirement System, who
67	67	has 25 years or more of service, and who receives an annual
68	68	benefit amount of twenty-five thousand dollars ($25,000) or
69	69	less, shall receive a cost-of-living increase of two percent
70	70	in his or her gross monthly benefit.
71	71	(b) Beneficiaries of deceased members or deceased
72	72	retirees, except where the deceased member or deceased retiree
73	73	retired from an employer participating in the Employees'
74	74	Retirement System pursuant to Sections 36-27-6, 36-27-7, and
75	75	36-27-7.1, Code of Alabama 1975, if the date of death for the
76	76	deceased member was prior to October 1, 2024, the effective
77	77	date of retirement for the deceased retiree for purposes of
78	78	receiving benefits from the Employees' Retirement System was
79	79	prior to October 1, 2015, the deceased retiree had 25 years or
80	80	more of service, and the deceased retiree received an annual
81	81	benefit amount of twenty-five thousand dollars ($25,000) or
82	82	less, shall receive the cost-of-living increase in the amount
83	83	attained by the retiree.
84	84	(c) Any future survivor allowance shall be adjusted as
85	85	provided in the member's original option selection for those
86	86	eligible retirees who have selected a monthly survivor
87	87	allowance payable to a designated beneficiary upon the death
88	88	of the retiree, or as otherwise provided by law in the case of
89	89	a qualifying member who dies prior to October 1, 2024.
90	90	(d) The Board of Control of the Employees' Retirement
91	91	System shall determine the amount required to pay the total
92	92	cost of actuarial liability of the increased allowance
93	93	provided this section as a per centum rate of earnable
94	94	compensation of the member and shall notify the chief fiscal
95	95	29
96	96	30
97	97	31
98	98	32
99	99	33
100	100	34
101	101	35
102	102	36
103	103	37
104	104	38
105	105	39
106	106	40
107	107	41
108	108	42
109	109	43
110	110	44
111	111	45
112	112	46
113	113	47
114	114	48
115	115	49
116	116	50
117	117	51
118	118	52
119	119	53
120	120	54
121	121	55
122	122	56 SB339 INTRODUCED
123	123	Page 3
124	124	compensation of the member and shall notify the chief fiscal
125	125	officer of each employer of that cost. In the fiscal year
126	126	beginning October 1, 2025, only, employers shall pay the full
127	127	cost as an increase in the employer rate in the same manner
128	128	and from the same source of funds as provided in Section
129	129	36-27-24, Code of Alabama 1975.
130	130	Section 2. (a) Commencing October 1, 2024, each
131	131	individual, whose effective date of retirement for purposes of
132	132	receiving benefits from the Teachers' Retirement System is
133	133	prior to October 1, 2015, who is receiving or is entitled to
134	134	receive a monthly allowance from the Teachers' Retirement
135	135	System, who has 25 years or more of service, and who receives
136	136	an annual benefit amount of twenty-five thousand dollars
137	137	($25,000) or less, shall receive a cost-of-living increase of
138	138	two percent in his or her gross monthly benefit.
139	139	(b) Beneficiaries of deceased members or deceased
140	140	retirees, if the date of death for the deceased member was
141	141	prior to October 1, 2024, the effective date of retirement for
142	142	the deceased retiree for purposes of receiving benefits from
143	143	the Teachers' Retirement System was prior to October 1, 2015,
144	144	the deceased retiree had 25 years or more of service, and the
145	145	deceased retiree received an annual benefit amount of
146	146	twenty-five thousand dollars ($25,000) or less, shall receive
147	147	the cost-of-living increase in the amount attained by the
148	148	retiree.
149	149	(c) Any future survivor allowance shall be adjusted as
150	150	provided in the member's original option selection for those
151	151	eligible retirees who have selected a monthly survivor
152	152	allowance payable to a designated beneficiary upon the death
153	153	57
154	154	58
155	155	59
156	156	60
157	157	61
158	158	62
159	159	63
160	160	64
161	161	65
162	162	66
163	163	67
164	164	68
165	165	69
166	166	70
167	167	71
168	168	72
169	169	73
170	170	74
171	171	75
172	172	76
173	173	77
174	174	78
175	175	79
176	176	80
177	177	81
178	178	82
179	179	83
180	180	84 SB339 INTRODUCED
181	181	Page 4
182	182	allowance payable to a designated beneficiary upon the death
183	183	of the retiree, or as otherwise provided by law in the case of
184	184	a qualifying member who dies prior to October 1, 2024.
185	185	(d) The Board of Control of the Teachers' Retirement
186	186	System shall determine the amount required to pay the total
187	187	cost of actuarial liability of the increased allowance
188	188	provided under this section as a per centum rate of earnable
189	189	compensation of the member and shall notify the chief fiscal
190	190	officer of each employer of that cost. In the fiscal year
191	191	beginning October 1, 2025, only, employers shall pay the full
192	192	cost as an increase in the employer rate in the same manner
193	193	and from the same source of funds as provided in Section
194	194	16-25-21, Code of Alabama 1975.
195	195	Section 3. This act shall become effective on October
196	196	1, 2024.
197	197	85
198	198	86
199	199	87
200	200	88
201	201	89
202	202	90
203	203	91
204	204	92
205	205	93
206	206	94
207	207	95
208	208	96
209	209	97
210	210	98