SB339INTRODUCED
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SB339
NK6VT8T-1
By Senators Carnley, Orr
RFD: Finance and Taxation Education
First Read: 23-Apr-24
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5 NK6VT8T-1 04/24/2024 KMS (L)cr 2024-1597
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First Read: 23-Apr-24
SYNOPSIS:
This bill would provide for a benefit increase
for certain eligible retirees of the Employees'
Retirement System and the Teachers' Retirement System
on October 1, 2024.
A BILL
TO BE ENTITLED
AN ACT
Relating to the Retirement Systems of Alabama; to
provide a benefit increase for certain retirees and
beneficiaries of the Employees' Retirement System and the
Teachers' Retirement System to become effective on October 1,
2024.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. (a) Commencing October 1, 2024, each
individual, except any 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, 2015, who is receiving or is entitled to receive a
monthly allowance from the Employees' Retirement System, who
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monthly allowance from the Employees' Retirement System, who
has 25 years or more of service, and who receives an annual
benefit amount of twenty-five thousand dollars ($25,000) or
less, shall receive a cost-of-living increase of two percent
in his or her gross monthly benefit.
(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, if the date of death for the
deceased member was prior to October 1, 2024, the effective
date of retirement for the deceased retiree for purposes of
receiving benefits from the Employees' Retirement System was
prior to October 1, 2015, the deceased retiree had 25 years or
more of service, and the deceased retiree received an annual
benefit amount of twenty-five thousand dollars ($25,000) or
less, shall receive the cost-of-living increase in the amount
attained by the retiree.
(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 the amount required to pay the total
cost of actuarial liability of the increased allowance
provided this section as a per centum rate of earnable
compensation of the member and shall notify the chief fiscal
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compensation of the member and shall notify the chief fiscal
officer of each employer of that cost. In the fiscal year
beginning October 1, 2025, only, employers shall pay the full
cost as an increase in the employer rate in the same manner
and from the same source of funds as provided in Section
36-27-24, Code of Alabama 1975.
Section 2. (a) Commencing October 1, 2024, each
individual, whose effective date of retirement for purposes of
receiving benefits from the Teachers' Retirement System is
prior to October 1, 2015, who is receiving or is entitled to
receive a monthly allowance from the Teachers' Retirement
System, who has 25 years or more of service, and who receives
an annual benefit amount of twenty-five thousand dollars
($25,000) or less, shall receive a cost-of-living increase of
two percent in his or her gross monthly benefit.
(b) Beneficiaries of deceased members or deceased
retirees, if the date of death for the deceased member was
prior to October 1, 2024, the effective date of retirement for
the deceased retiree for purposes of receiving benefits from
the Teachers' Retirement System was prior to October 1, 2015,
the deceased retiree had 25 years or more of service, and the
deceased retiree received an annual benefit amount of
twenty-five thousand dollars ($25,000) or less, shall receive
the cost-of-living increase in the amount attained by the
retiree.
(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
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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 Teachers' Retirement
System shall determine the amount required to pay the total
cost of actuarial liability of the increased allowance
provided under this section as a per centum rate of earnable
compensation of the member and shall notify the chief fiscal
officer of each employer of that cost. In the fiscal year
beginning October 1, 2025, only, employers shall pay the full
cost as an increase in the employer rate in the same manner
and from the same source of funds as provided in Section
16-25-21, Code of Alabama 1975.
Section 3. This act shall become effective on October
1, 2024.
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