AL SB315

Provides a 2% cost-of-living increase to gross monthly retirement benefits for eligible state and local retirees and beneficiaries of the Employees' Retirement System who retired before October 1, 2025, with a minimum increase of $15 per month, effective October 1, 2026

Provides a 2% cost-of-living increase for eligible Teachers' Retirement System retirees and beneficiaries who retired before October 1, 2025 and have 25 or more years of service, effective October 1, 2026

Requires annual legislative appropriation of the increase through a separate employer rate in the State General Fund (for ERS) or Education Trust Fund (for TRS) appropriation acts; benefit increases will not be paid in years without appropriation

Local government employers participating in ERS may elect to provide the increase to their retirees at the local employer's cost

Excludes individuals from receiving the increase if it would impair their eligibility for Medicaid benefits