AL HB338

Provides a 4% cost-of-living increase for state and local retirees and beneficiaries of the Employees' Retirement System, with a minimum increase of $15 per month, effective October 1, 2026

Applies to individuals whose retirement date was prior to October 1, 2025, and who are currently receiving or entitled to receive monthly benefits

Requires the Legislature to appropriate funding through a separate employer rate in the State General Fund appropriation act each fiscal year; if not funded, the increase will not be paid that year

Local government employers (cities, towns, counties, public/quasi-public organizations) may elect to participate and must bear the cost of increases for their retirees

Excludes individuals whose Medicaid eligibility would be impaired by the benefit increase from receiving the cost-of-living adjustment