Connect with us

Hi, what are you looking for?

State

State retirees could see cost-of-living adjustment

Employees who retired before October 2023 could see a 3 percent cost-of-living-adjustment.

The Alabama Capitol in Montgomery

Employees who retired from the state before October 2023 could see a 3 percent cost-of-living-adjustment.

The House Ways and Means General Fund committee on Wednesday approved HB440 by Rep. Randall Shedd, R-Fairview, that would enact the adjustment.

Local governments could opt in, but would have to fund the COLA with local funds. 

The bill is estimated to cost about $17.1 million in 2025, steadily declining about 3.6 percent each year.

“Not to be morbid, but the expense would go down every year due to death,” said Neah Scott, legislative counsel for RSA.

The bill is a companion to HB201 by Rep. Steve Clouse, R-Ozark, that creates an employer contribution rate increase of about 1.05 percent to help fund COLA raises for retirees.

The bill now moves to the Alabama House of Representatives for consideration.

Advertisement. Scroll to continue reading.

Jacob Holmes is a reporter at the Alabama Political Reporter. You can reach him at [email protected]

Advertisement
Advertisement

More from APR

Legislature

Aggravated theft of employee retirement benefits would constitute a Class C felony, carrying a sentence of up to 10 years in prison.

Congress

The bill aims to equalize 403(b) retirement plans with 401(k)s, expanding investment options for non-profit employees.

Congress

"A true trailblazer, Dr. Steele has an accomplished career in both public service and civil rights advocacy," Sewell said.

Education

Senate Bill 8 would establish a certification for completing coursework centered around promoting pride in the United States.