Employees' Retirement System; state and local retirees four percent cost-of-living benefit increase

HB 338 would provide a 4% cost-of-living increase (minimum $15 monthly) for state and local retirees and beneficiaries under Alabama's Employees' Retirement System who retired before October 1, 2025. This applies to retirees from most state/local employers, excluding those whose employers participated under specific sections (36-27-6, 7, or 7.1) unless those employers elect to participate. The increase is subject to legislative appropriation, and Medicaid recipients whose eligibility would be impaired by the increase are excluded. Funding would be distributed from employer contributions based on active member salaries.