SB223 Alabama 2010 Session

Summary

Primary Sponsor

Hank Sanders

Democrat

Session

Regular Session 2010

Title

Public education employees, disability retirees, employer contribution for health insurance reduced if retiree approved for federal Social Security disability benefits, Sec. 16-25A-8.1 am'd.

Summary

SB223 would change how public education health insurance contributions are calculated for retirees, reducing contributions based on years of service for non-disability retirees, while exempting those disability retirees approved for Social Security Disability benefits from the reduction.

What This Bill Does

For public education employees who retire for reasons other than disability after September 30, 2005, the employer's health insurance premium contribution would be reduced by 2% for each year of service under 25 and increased by 2% for each year over 25, with adjustments for changes in Medicare costs and a cap ensuring the contribution does not exceed 100% of the premium. Disability retirees who are approved for Social Security Disability benefits are exempt from the reduction and would receive the standard board-determined contribution. The board sets the baseline employer contribution for each retiree class and may adjust the figures to reflect changes in Medicare premium costs.

Who It Affects

• Public education retirees who do not have Social Security Disability benefits and who retire after September 30, 2005; their health insurance employer contribution would be reduced according to their years of service.
• Public education retirees who retire on disability and are approved for Social Security Disability benefits; they would not have the reduction applied.

Key Provisions

• Amends Section 16-25A-8.1 to implement a reduction formula for health insurance contributions based on years of service.
• Applies the reduction to non-disability retirees while exempting SSA-approved disability retirees, with a 100% cap on the employer's share and adjustments for Medicare costs.
• The board may adjust the calculations for changes in Medicare premium costs required to be paid by the retiree.
• Effective date: immediately following passage and governor's approval.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Retirement