Education employees would receive higher pay and retirees a service bonus

Education boards and two-year colleges would raise covered employees' pay by 2 percent and revise their salary schedules. The provisions cover certificated employees, support workers, adult bus drivers, Alabama Institute for Deaf and Blind employees, and employees of two-year public colleges. They also cover teachers in the Department of Youth Services School District. The required education funding must be provided through the annual Education Trust Fund budget act. The increase would be added to applicable step increases, but it would not apply to superintendents, local salary supplements, National Board certification bonuses, or the federal share of JROTC pay. A local board may exclude part-time workers in community education, school-sponsored child care, or child enrichment programs. Support employees covered by the state Merit System at the Department of Youth Services School District are excluded. The pay increase would begin with fiscal year 2026-2027, which starts October 1, 2026, and would continue in later years; the act would not authorize additional increases in those later years.

The Teachers' Retirement System would pay an eligible retiree or beneficiary a one-time longevity bonus. The payment would cover retirees who retired before May 1, 2026, and receive or are entitled to receive a Teachers' Retirement System monthly allowance on September 30, 2026. Eligible beneficiaries of deceased members or retirees would also qualify. The bonus would equal $1 for each month of the recipient's or deceased member's years of service. A person would not receive the bonus if it impairs eligibility for Medicaid. The payment depends on funding appropriated to the Teachers' Retirement System through HB238. The Teachers' Retirement System would pay eligible recipients in October 2026.