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HB 158 Alabama House · 2025 Regular Session

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

HB 158 establishes a new procedure for funding future pension benefit increases for retirees of Alabama's Employees' Retirement System and Teachers' Retirement System. Under this bill, any future benefit increase must be approved by a separate legislative act, and its full annual cost must be specifically included and funded in the state's annual appropriation acts. If the annual cost is not identified and appropriated, the benefit increase will not be paid for that fiscal year. This process aims to ensure that any approved benefit increases do not add to the unfunded liability of the retirement systems.
Issues: ✓ Budget & TaxesSupports Budget & TaxesRequires explicit annual funding for pension increases, ensuring fiscal responsibility by preventing unfunded liabilities through appropriation mandates.90% confidence
Bill status signed all 5 stages cleared
Introduction
Feb 2025
Committee Review
Apr 2025
House Passage
May 2025
Senate Passage
May 2025
Signed into Law
May 2025
Introduced Feb 4, 2025 Signed May 14, 2025
Maddy AI version diff · 1 comparison

What changed between versions

Introduced → Enrolled · 4 edits · May 14, 2025
MODERATE
The bill was finalized and enrolled after passing both legislative chambers. Key substantive changes include shifting the effective date for benefit increases from October 1, 2025 to October 1, 2026, adding a limit of one retiree benefit increase per legislative quadrennium, and clarifying funding procedures for both the Employees' and Teachers' Retirement Systems.
Scope change
The bill's scope was expanded to include a new limitation on the frequency of benefit increases (one per quadrennium) and clarified that participating employers must pay separate rates to fund these increases.
TIMELINE

Effective date for benefit increases changed from October 1, 2025 to October 1, 2026, giving the state more time to prepare funding.

REQUIREMENT

Added a new requirement limiting benefit increases to one per legislative quadrennium to prevent frequent changes to retirement benefits.

FISCAL

Clarified that participating employers must pay separate employer rates to fund benefit increases, with specific provisions for both the Employees' and Teachers' Retirement Systems.

ELIGIBILITY

Maintained exclusions for retirees whose employers participate under specific sections of the Code of Alabama 1975 from receiving increased benefits under this act.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).
Full legislative history

Actions timeline

Total actions
22
Key actions
9
Committee
4
Amendments
3
May 6, 2025
Lower · Passed
Clouse Concur In and Adopt - Adopted Roll Call 1189
lower
May 6, 2025
Upper · Passed
Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 949
upper
May 6, 2025
Upper · Passed
Barfoot motion to Adopt - Adopted Roll Call 948
upper
May 6, 2025
Introduced
Barfoot 1st Amendment Offered
upper
May 6, 2025
Upper · Passed
Barfoot motion to Table - Adopted Voice Vote
upper
May 6, 2025
Introduced
Finance and Taxation General Fund 1st Amendment Offered (Finance and Taxation General Fund)
upper
Apr 23, 2025
Upper · Passed
Reported Out of Committee Second House
upper
Apr 23, 2025
Introduced
Finance and Taxation General Fund 1st Amendment (Finance and Taxation General Fund)
upper
Mar 4, 2025
Upper · Passed
Pending Committee Action in Second House (Finance and Taxation General Fund)
upper
Feb 27, 2025
Lower · Passed
Motion to Read a Third Time and Pass - Adopted Roll Call 266
lower
Feb 19, 2025
Lower · Passed
Reported Out of Committee House of Origin
lower
Feb 4, 2025
Lower · Passed
Pending Committee Action in House of Origin (Fiscal Responsibility)
lower
1 primary · 0 co-sponsors

Sponsors

Role
Legislator
Party
State
District
P
Photo of Steve Clouse
Steve Clouse
RRepublican
AL
93