SB311 Summary

• Provides a supplemental four percent cost-of-living adjustment for Teachers' Retirement System retirees effective October 1, 2016, applicable to those who retired before October 1, 2015, and eligible survivor beneficiaries.

• Excludes individuals receiving Medicaid benefits whose eligibility would be impaired by the increase, including those who subsequently apply for Medicaid after the adjustment takes effect.

• Appropriates $41,000,000 from the Education Trust Fund for fiscal year 2016-2017 to offset the cost of the adjustment, with distribution to state agencies and institutions as determined by the Director of Finance.

• Beginning October 1, 2017, the Board of Control of the Teachers' Retirement System shall annually determine the required funding amount and notify employers of the percentage rates of earnable compensation needed to pay for the increase.

• Becomes effective immediately upon passage and Governor approval.