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AL HB437
Bill
Status
5/4/2023
Primary Sponsor
Randall Shedd
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AI Summary
HB437 Summary
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Establishes a "pay as you go" procedure requiring benefit increases for retirees under the Employees' Retirement System and Teachers' Retirement System to be included in annual appropriation acts with actual costs estimated by the system actuary.
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Prevents any benefit increase from being paid in a fiscal year unless the required funding amount is identified and appropriated in that year's State General Fund Budget Act or Education Trust Fund Budget Act.
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Allows previously approved benefit increases to be resumed in subsequent years if funding is included in those years' appropriation acts, but requires any new benefit increase to be established by separate legislative act.
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Applies the same funding requirements to local units under the Employees' Retirement System that are authorized to provide benefit increases.
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Exempts previous cost-of-living increases and one-time bonuses provided under earlier legislative acts from these new requirements.
Legislative Description
Relating to the Retirement Systems of Alabama; to provide for an annualized benefit adjustment procedure for the funding of future benefit increases to retirees of the State Employees' Retirement System and the Teachers' Retirement System which will not increase the unfunded liability of either system due to the provisions which require the actual annual cost of any increase to be authorized and funded one year at a time with no authorization or liability for the benefit increase beyond the fiscal year for which the appropriations are made.
Retirement Systems of Alabama, procedure for funding benefit increases for retirees under TRS and ERS estab
Last Action
Introduced and Referred to House Ways and Means Education
5/4/2023