The cost-of-living increase granted to certain retired persons under the Employees' Retirement System by this article may be financed, if possible, from existing funds of the Employees' Retirement System subject to the following provisions and conditions:
(1) If the actuary for the Employees' Retirement System finds that the cost-of-living increase can be paid for the 1996-97 fiscal year from existing funds of the system without having a serious adverse actuarial impact on the system, beginning October 1, 1996, the Board of Control of the system may pay the cost-of-living increase provided in this article. It is the intent of this article as pertains to funding similar increases in the future, that the funding thereof shall be in accordance with the actuarial soundness requirements of Section 36-27-26. If the actuarial estimate of the cost involved in funding the cost-of-living increase provided by this article, as required by Section 36-27-26, is not received by October 1, 1996, but satisfies the above actuarial soundness condition when it is received during the 1996-97 fiscal year, then the cost-of-living increase shall be paid retroactively to October 1, 1996.
(2) If the conditions in subdivision (1) are not met, the cost-of-living increase shall be paid beginning October 1, 1997, and the cost of this benefit shall be included in the amount certified by the Board of Control to be contributed by the state under Sections 16-25-21 or 36-27-24 or any other applicable law. The provisions of this subdivision shall govern and override any seeming or actual conflicts with other provisions of this section.
Structure Code of Alabama
Title 36 - Public Officers and Employees.
Chapter 27 - State Employees' Retirement System.
Article 6 - Cost of Living Increase for Retirement Date Prior to October 1, 1996.
Section 36-27-131 - Amount of Increase - Persons Whose Employer Elects to Come Under Provisions.
Section 36-27-133 - Funding of Benefits.
Section 36-27-134 - Notification of Employers Who Have Withdrawn From Participation.
Section 36-27-135 - Pensioners Who Retired Prior to Membership of Employer in System.
Section 36-27-137 - Election by Local Administrative Unit.