AL HB158

Beginning October 1, 2025, benefit increases for Employees' Retirement System (ERS) and Teachers' Retirement System (TRS) retirees require separate legislative acts that specify the increase amount and eligible classes of recipients.

Benefit increases may only be paid if the annual cost is estimated by the system actuary and appropriated in the State General Fund (ERS) or Education Trust Fund (TRS) appropriation act through a separate employer rate.

Participating employers must pay the separate employer rate for benefit increases from the same funding source as active member salaries; if the rate is not appropriated in any fiscal year, eligible retirees do not receive the increase and the systems are not required to pay it.

Legislature declares that benefit increases under this act shall not increase the unfunded liability of either retirement system due to the required annual authorization and full funding.

Beginning November 4, 2026, only one retiree and beneficiary increase may be granted per legislative quadrennium; act becomes effective October 1, 2026.