|
Getting your Trinity Audio player ready...
|
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.
