Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
RSA official: prefunding retiree COLAs would be costly; last retiree COLA granted in 2007
Summary
Nia Scott of RSA presented state retirement system data to the committee, saying retiree cost‑of‑living adjustments (COLAs) were last granted in 2007, unfunded COLAs added an estimated $2.2 billion in liability, and a 1% prefunded COLA would require roughly $236 million up front.
Nia Scott, representing the Retirement Systems of Alabama (RSA), briefed the Ways and Means Education Committee on the Teachers’ Retirement System (TRS) funded ratio, prior retiree COLAs and the fiscal implications of grantable retiree adjustments.
Scott said the TRS funded ratio fell from 70% to 67% in the fiscal‑year‑2022 valuation in part because of pay raises and salary‑matrix changes recognized in the valuation and market and actuarial changes. She said the legislature last granted retiree COLAs in February 2007 and that four retiree COLAs granted earlier were added to the system’s liability without being prefunded; actuaries…
Already have an account? Log in
Subscribe to keep reading
Unlock the rest of this article — and every article on Citizen Portal.
- Unlimited articles
- AI-powered breakdowns of topics, speakers, decisions, and budgets
- Instant alerts when your location has a new meeting
- Follow topics and more locations
- 1,000 AI Insights / month, plus AI Chat
