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AL SB310
Bill
AI Summary
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Establishes a "pay as you go" funding procedure requiring benefit increases for Employees' Retirement System and Teachers' Retirement System retirees to be included in annual appropriation acts before payment is authorized.
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Requires the Retirement Systems of Alabama actuary to estimate the actual annual cost of any benefit increase, which must be identified as a separate employer rate in the appropriation acts.
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Benefit increases will not be paid in any fiscal year unless the actual cost is identified and funded in that year's appropriation acts; unfunded increases may be resumed in subsequent years if included in future appropriations.
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Entities whose appropriations are not included in budget acts must transfer required amounts to the retirement systems in the same manner as normal employer contributions.
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Does not apply to previously enacted cost-of-living increases or one-time bonuses and becomes effective immediately upon passage and gubernatorial approval.
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.
RSA, procedure established for funding benefit increases of ERS and TRS retirees
Last Action
Introduced and Referred to Senate Finance and Taxation Education
5/11/2023