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Summary

Updated 4/11/2025

The Legislature convened for the nineteenth, twentieth, and twenty-first legislative days of the Regular Session this week.

The Senate passed the Education Trust Fund budget, which fully funds TRS at the requested rate and fully funds PEEHIP’s requested employer rate increase to $904 per member per month, which equates to an additional $124 million. The budget now heads to the House for its consideration.

HB309, by Rep. Garrett, which allows PEEHIP to renegotiate retiree healthcare contracts every five years, received final passage in the Senate. The bill has been sent to the Governor for her signature.

Two new bills impacting RSA were filed this week:

HB542, by Rep. Shaver, would make changes to the District Attorneys’ Plan, to include increasing the benefit multiplier for DAs to 4% and moving assistant district attorneys to the plan on the same terms as DAs, but with a 3% multiplier.
HB556, by Rep. Treadaway, would add higher education law enforcement officers to the temporary return to work exception for SROs and correction officers and would extend the sunset to 2030.

Bill Chart

House Bills
Bill/Sponsor	Companion	Summary	Status
HB44/Hill	n/a	Authorizes the St. Clair County DAY Program to participate in TRS.	Read Second Time in Second House; Pending Third Reading.
HB136/Collins	n/a	Creates a DROP program for classroom teacher and sunsets the program in 2031.	Re-Referred to Ways and Means Education; Pending Consideration by Ways and Means Education.
HB158/Clouse	n/a	Establishes a procedure for granting and funding TRS and ERS retiree benefit increases.	Read First Time in Second House; Pending Consideration by Finance and Taxation General Fund.
HB186/Reynolds	n/a	General Fund budget; fully funds ERS.	Read Third Time in House of Origin; Pending First Reading in Second House.
HB279/Pettus	n/a	Authorizes the Lauderdale Teacher’s Credit Union to participate in TRS.	Read First Time in House of Origin; Pending Consideration by Ways and Means Education.
HB309/Garrett	SB195/Orr	Allows PEEHIP to renegotiate retiree healthcare contracts every five years.	Pending the Governor's Signature.
HB388/Garrett	n/a	Increases state income tax exemption for taxable retirement income for taxpayers who are 65 years of age or older from $6,000 to $12,000.	Read Second Time in House of Origin; Pending Third Reading.
HB394/Lawrence	SB208/Hatcher	Proposes a constitutional amendment to allow Montgomery City Council members to participate in ERS.	Read Third Time in House of Origin; Pending First Reading in Second House.
HB504/Stadthagen	SB69/Jones	Prohibits ERS and TRS from investing with restricted entities affiliated with certain Chinese companies.	Read First Time in House of Origin; Pending Consideration by House Fiscal Responsibility.
HB542/Shaver	n/a	Increases the DA retirement benefit multiplier from 3% to 4%; adds ADAs to the DA plan on the same terms as DAs but with a 3% benefit multiplier; allows supernumerary DAs to draw both supernumerary benefits and retirement benefits.	Read First Time in House of Origin; Pending Consideration by Ways and Means General Fund.
HB556/Treadaway	n/a	Adds higher education police officers to the temporary return to work exception for correction officers and SROs and extends the sunset to 2030.	Read First Time in House of Origin; Pending Consideration by Ways and Means General Fund.

Senate Bills

Bill/Sponsor	Companion	Summary	Status
SB69/Jones	HB504/Stadthagen	Prohibits ERS and TRS from investing with restricted entities affiliated with certain Chinese companies.	Read Second Time in House of Origin; Pending Third Reading.
SB112/Orr	HB169/Garrett	Education Trust Fund budget; fully funds TRS and fully funds PEEHIP at the requested rate of $904 per member per month.	Read First Time in House of Origin; Pending Consideration by Finance and Taxation Education.
SB195/Orr	HB309/Garrett	Allows PEEHIP to renegotiate healthcare contracts every five years.	Read Third Time in House of Origin; Pending First Reading in Second House.
SB208/Hatcher	HB394/Lawrence	Proposes a constitutional amendment to allow Montgomery City Council members to participate in ERS.	Read Second Time in House of Origin; Pending Third Reading.
SB216/Chambliss	n/a	Adds fire medics to the temporary return to work exception that allows retirees to return to work as correctional officers and school resource officers with an increased compensation cap of $52,000.	Read Second Time in House of Origin; Pending Third Reading.
SB244/Melson	n/a	Creating the crime of theft of employee retirement benefits.	Read First Time in House of Origin; Pending Consideration by Senate Judiciary.
SB252/Beasley	n/a	Requiring health insurance plans to reimburse independent pharmacies at Medicaid reimbursement rates to sunset in October 2027, providing for further enforcement of PBMs by DOI, creating a private right of action against PBMs, and prohibiting a PBM from charging certain fees to pharmacists. Amended in committee to remove the private right of action and the sunset.	Read Second Time in Second House; Pending Third Reading.
SB286/Hatcher	n/a	Proposes a constitutional amendment to allow Montgomery City Council members to participate in ERS.	Read First Time in Second House; Pending Consideration by Montgomery County Legislation.
SJR45/Butler	n/a	Directing LSA to retain a consultant to study and report on the effects of pharmacy benefits manager practices in Alabama.	Pending the Governor's Signature.

2/7/2025

2/14/2025

2/21/2025

2/28/2025

3/7/2025

3/21/2025

4/4/2025

Neah Mitchell Scott has served as Legislative Counsel for the Retirement Systems of Alabama (RSA) since September 2013. Before joining the RSA, Neah practiced civil litigation and healthcare law as an associate with Balch & Bingham LLP. Neah obtained a Juris Doctorate from the University of Alabama in 2008 and a B.A. in History from Auburn University in 2004.

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