AL HB201

Beginning October 1, 2024, benefit increases for Employees' Retirement System (ERS) retirees require a separate legislative act specifying the increase amount and eligible retiree classes, with annual costs estimated by the system's actuary and appropriated through the State General Fund by a separate employer rate.

Participating ERS employers must pay the separate employer rate from the same funding source as active member salaries; if the required rate is not appropriated in any fiscal year, eligible retirees receive no increase that year and may resume increases in subsequent years if funded.

Beginning October 1, 2024, benefit increases for Teachers' Retirement System (TRS) retirees follow the same procedures as ERS increases but are funded through the Education Trust Fund appropriation act instead of the State General Fund.

The Legislature declares that benefit increases under this act shall not increase the unfunded liability of either retirement system due to annual authorization and full funding requirements; accounting standards that contradict this must be disregarded in audits.

Act does not apply to previous cost-of-living increases or one-time bonuses already provided to retirees; becomes effective June 1, 2024.