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AlabamaHB1582025 Regular SessionHouseWALLET

RSA, procedure established for funding benefit increases of ERS and TRS retirees

Sponsored By: Steve Clouse (Republican)

Enacted

Retirement

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 0 benefits, 1 costs, 0 mixed.

Alabama retirees face new pension increase limits

Beginning October 1, 2026, Alabama’s Employees’ and Teachers’ Retirement Systems face new rules for retiree and beneficiary increases. Each increase requires a separate law stating its amount and eligible groups; this law grants no increase itself. Each year, lawmakers must fund the pension actuary’s estimated annual cost through a separate employer payment rate. Employee-system funding must appear in the State General Fund budget; teacher-system funding must appear in the Education Trust Fund budget. Employers must pay from the same sources and in the same way as active workers’ salaries. Employee-system employers participating under Alabama Code Sections 36-27-6, 36-27-7, and 36-27-7.1 are exempt from that payment requirement. Without the required rate and funding in that year’s budget, the system owes no increase for that year. Payments can resume in a later year with the required funding. Beginning November 4, 2026, the law limits increases under this process to one per four-year legislative period. Prior cost-of-living increases and one-time bonuses are not covered by these rules.

Sponsors & Cosponsors

Sponsor

  • Steve Clouse

    Republican • House

Cosponsors

  • Rex Reynolds

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 365 • No: 2

House vote • 5/6/2025

Clouse Concur In and Adopt - Adopted Roll Call 1189

Yes: 100 • No: 0 • Other: 3

Senate vote • 5/6/2025

Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 949

Yes: 34 • No: 0

Senate vote • 5/6/2025

Barfoot motion to Adopt - Adopted Roll Call 948

Yes: 34 • No: 0

House vote • 2/27/2025

Motion to Read a Third Time and Pass - Adopted Roll Call 266

Yes: 97 • No: 2 • Other: 4

House vote • 2/27/2025

Third Reading in House of Origin

Yes: 100 • No: 0 • Other: 1

Actions Timeline

  1. Enacted

    5/14/2025House

  2. Signature Requested

    5/7/2025Senate

  3. Delivered to Governor

    5/7/2025House

  4. Finance and Taxation General Fund 1st Amendment Offered

    5/6/2025Senate

  5. Barfoot motion to Table - Adopted Voice Vote

    5/6/2025Senate

  6. Barfoot 1st Amendment Offered

    5/6/2025Senate

  7. Barfoot motion to Adopt - Adopted Roll Call 948

    5/6/2025Senate

  8. Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 949

    5/6/2025Senate

  9. Clouse Concur In and Adopt - Adopted Roll Call 1189

    5/6/2025House

  10. Ready to Enroll

    5/6/2025House

  11. Enrolled

    5/6/2025House

  12. Read for the Second Time and placed on the Calendar

    4/24/2025Senate

  13. Finance and Taxation General Fund 1st Amendment

    4/23/2025Senate

  14. Reported Out of Committee Second House

    4/23/2025Senate

  15. Read for the first time and referred to the Senate Committee on Finance and Taxation General Fund

    3/4/2025Senate

  16. Pending Committee Action in Second House

    3/4/2025Senate

  17. Third Reading in House of Origin

    2/27/2025House

  18. Motion to Read a Third Time and Pass - Adopted Roll Call 266

    2/27/2025House

  19. Read for the Second Time and placed on the Calendar

    2/20/2025House

  20. Reported Out of Committee House of Origin

    2/19/2025House

  21. Read for the first time and referred to the House Committee on Fiscal Responsibility

    2/4/2025House

  22. Pending Committee Action in House of Origin

    2/4/2025House

Bill Text

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