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Summary

Updated 4/25/2025

The Legislature convened for the twenty-fourth and twenty-fifth legislative days of the Regular Session this week.

House passed the Education Trust Fund budget, which included full funding of TRS and PEEHIP at the requested rates. The budget increases the PEEHIP employer rate to $904 per member per month, which amounts to a $124 million increase in funding. The budget now goes back to the Senate for it to concur in the changes made in the House.

The House passed HB542, by Rep. Shaver, which allows supernumerary district attorneys to draw both supernumerary benefits and retirement benefits if the benefits are based on different years of service.

The Senate Finance and Taxation General Fund committee amended HB158, the bill that creates a process for funding retiree benefit increases, to provide that increases can only be granted once in a legislative quadrennium and to move the effective date to October 1, 2026.

House committees gave favorable reports to SB216, by Sen. Chambliss, which adds fire medics to the temporary return to work exception, and SB244, by Sen. Melson, which creates the crime of theft of employee retirement benefits.

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 Second Time in Second House; Pending Third Reading.
HB186/Reynolds	n/a	General Fund budget; fully funds ERS.	Read Second Time in Second House; Pending Third Reading.
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.	Enacted.
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 First Time in Second House; Pending Consideration by Finance and Taxation Education.
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	Allows supernumerary DAs to draw both supernumerary benefits and retirement benefits, as amended in House committee.	Read First Time in Second House; Pending Consideration by Finance and Taxation Education
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 Second Time in House of Origin; Pending Third Reading.

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 Third Time in Second House; Pending Concurrence by First House.
SB195/Orr	HB309/Garrett	Allows PEEHIP to renegotiate healthcare contracts every five years.	Read Second Time in House of Origin; Pending Third Reading.
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 Second Time in Second House; Pending Third Reading.
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.	Enacted. Act 2025-136.
SB286/Hatcher	n/a	Proposes a constitutional amendment to allow Montgomery City Council members to participate in ERS.	Enacted. Act 2025-181.
SJR45/Butler	n/a	Directing LSA to retain a consultant to study and report on the effects of pharmacy benefits manager practices in Alabama.	Enacted. Act 2025-130.

2/7/2025

2/14/2025

2/21/2025

2/28/2025

3/7/2025

3/21/2025

4/4/2025

4/11/2025

4/18/2025

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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