HB534 Summary

• Establishes a "pay-as-you-go" procedure requiring benefit increases for retirees of the Employees' Retirement System and Teachers' Retirement System to be funded annually through appropriations in the State General Fund Budget Act and Education Trust Fund Budget Act.

• Prohibits any benefit increase from being paid in a fiscal year unless the actual cost estimated by the system's actuary is identified and appropriated in that year's budget.

• Requires the Retirement Systems of Alabama to collect required employer rates from covered entities in the same month the benefit increase is paid to retirees, and entities without appropriated funds must transfer the required amount.

• Provides that suspended benefit increases may be resumed in subsequent years if funding is appropriated, and requires any new benefit increase to be established by separate legislative act.

• Does not apply to previously approved cost-of-living increases or bonuses, and becomes effective on the first day of the third month following passage and gubernatorial approval.