HB440 Summary

• Provides a 3% cost-of-living increase in monthly benefits for Employees' Retirement System (ERS) retirees who retired before October 1, 2023, effective October 1, 2024, with a minimum increase of $15 per month.

• Extends the same 3% increase to beneficiaries of deceased ERS members and retirees, subject to the same minimum of $15 per month.

• Makes the benefit increase conditional on annual appropriation in the State General Fund by a separate employer rate; increases are suspended in any fiscal year where funding is not appropriated and may resume if later appropriated.

• Allows employers participating under Sections 36-27-6, 36-27-7, and 36-27-7.1 of Alabama Code to voluntarily elect to provide the same 3% increase if they bear the full cost themselves.

• Excludes individuals whose Medicaid eligibility would be impaired by the increase and those who subsequently apply for Medicaid if the increase would affect their eligibility.