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HB339 INTRODUCED
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HB339
MSXQVWW-1
By Representatives Hassell, Bracy, Lawrence, Gray, Hollis,
Travis, McCampbell, Morris, Datcher, Moore (M)
RFD: Ways and Means Education
First Read: 27-Jan-26
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MSXQVWW-1 01/27/2026 KMS (L)cr 2026-459
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First Read: 27-Jan-26
SYNOPSIS:
This bill would provide for a benefit increase
for certain eligible retirees of the Teachers'
Retirement System on October 1, 2026.
A BILL
TO BE ENTITLED
AN ACT
Relating to the Retirement Systems of Alabama; to
provide a benefit increase for certain retirees and
beneficiaries of the Teachers' Retirement System to become
effective on October 1, 2026, subject to the annualized
benefit increase procedure for retirees and beneficiaries
under the Teachers' Retirement System.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. (a) Commencing October 1, 2026, and subject
to Section 16-25-35, Code of Alabama 1975, each individual,
whose effective date of retirement for purposes of receiving
benefits from the Teachers' Retirement System is prior to
October 1, 2025, who is receiving or is entitled to receive a
monthly allowance from the Teachers' Retirement System, who
has 25 years or more of service, and who receives an annual
benefit amount of twenty-five thousand dollars ($25,000) or
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benefit amount of twenty-five thousand dollars ($25,000) or
less, shall receive a cost-of-living increase of four percent
in his or her gross monthly benefit.
(b) Beneficiaries of deceased members or deceased
retirees, if the date of death for the deceased member was
prior to October 1, 2026, the effective date of retirement for
the deceased retiree for purposes of receiving benefits from
the Teachers' Retirement System was prior to October 1, 2017,
the deceased retiree had 25 years or more of service, and the
deceased retiree received an annual benefit amount of
twenty-five thousand dollars ($25,000) or less, shall receive
the cost-of-living increase in the amount attained by the
retiree.
(c) Any future survivor allowance shall be adjusted as
provided in the member's original option selection for those
eligible retirees who have selected a monthly survivor
allowance payable to a designated beneficiary upon the death
of the retiree, or as otherwise provided by law in the case of
a qualifying member who dies prior to October 1, 2026.
(d) If funded by the Legislature pursuant to the
provisions of Section 16-25-35, Code of Alabama 1975, the
Board of Control of the Teachers' Retirement System shall
determine the amount required to pay the total cost of
actuarial liability of the increased allowance provided under
this section as a per centum rate of earnable compensation of
the member and shall notify the chief fiscal officer of each
employer of that cost. In the fiscal year beginning October 1,
2027, only, employers shall pay the full cost as an increase
in the employer rate in the same manner and from the same
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in the employer rate in the same manner and from the same
source of funds as provided in Section 16-25-21, Code of
Alabama 1975.
(e) Any individual who received benefits under the
Medicaid Program and whose eligibility for Medicaid benefits
would be impaired by the cost-of-living increase provided by
this section shall not be entitled to receive the
aforementioned increase. Any individual who subsequently
applies for benefits under the Medicaid Program and that
individual's eligibility to receive benefits is impaired by
the cost-of-living increase provided by this section shall not
be entitled to receive the increase subsequent to the date
that the member files an application for benefits under the
Medicaid Program.
(f) Pursuant to Section 16-25-35, Code of Alabama 1975,
the Teachers' Retirement System shall pay the benefit increase
to the eligible retirees and beneficiaries provided for in
this section only if the annual cost of the increase as
estimated by the actuary of the system is included and
appropriated in the Education Trust Fund appropriation act for
each fiscal year by a separate employer rate. In any fiscal
year in which the required separate employer rate is not
identified and appropriated in the appropriation act, eligible
retirees and beneficiaries shall not receive, and the
Teachers' Retirement System shall not be required to pay, the
increase in that fiscal year. The benefit increase may be
resumed in any subsequent fiscal year if included in that
year's appropriation act.
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Section 2. This act shall become effective on October
1, 2026.
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