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SB 315

Employees' Retirement System and Teachers' Retirement System; retirees and beneficiaries, two percent cost-of-living benefit increase

2026 Regular Session Introduced by Vivian Figures

Alabama bill would grant two percent cost-of-living increases to public employees' and teachers' retirement system retirees, raising long-term pension liabilities.

Read for the first time and referred to the Senate Committee on Finance and Taxation Education
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Bill Summary · SB 315

Legislative bill overview

SB 315 would provide a two percent cost-of-living adjustment (COLA) increase to current retirees and beneficiaries of Alabama's Employees' Retirement System (ERS) and Teachers' Retirement System (TRS). This is a one-time or recurring benefit enhancement designed to help retired public employees and teachers maintain purchasing power against inflation.

Why is this important

Retirees on fixed pension incomes are particularly vulnerable to inflation, as their benefits often don't automatically adjust. A COLA increase directly affects the financial security of thousands of Alabama retirees and their families who depend on these pension payments. This also has significant state budget implications, as it increases long-term pension liabilities for both systems.

Potential points of contention

  • Fiscal Impact: Expanding pension obligations increases future state budget commitments; the cost depends on whether this is one-time or permanent and affects the funded status of both retirement systems
  • Equity Concerns: Questions about whether a 2% increase is adequate given inflation rates, and whether some retirees receive larger benefits than others based on retirement timing
  • Sustainability: Debate over whether Alabama's pension systems have sufficient reserves to fund ongoing COLA increases without requiring higher employer contributions or reduced benefits for future retirees

Compiled from official sources — confirm details with the bill’s official record.

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