HB387 Alabama 2014 Session

Summary

Primary Sponsor

Jim Patterson

Republican

Co-Sponsors

Elaine BeechJohn MerrillDavid SessionsDan WilliamsJoe FaustKerry RichDonnie ChesteenBecky NordgrenK.L. Brown

Session

Regular Session 2014

Title

Employees' Retirement System, one-time lump-sum additional payment to retirement allowance of certain retirees and beneficiaries

Summary

HB387 would provide a funded, one-time lump-sum payment to certain Alabama Employees' Retirement System retirees and beneficiaries in 2014, with the cost funded by employers that opt into the act.

What This Bill Does

Creates a funded, one-time lump-sum payment for ERS retirees and eligible beneficiaries in fiscal year 2014-2015. The lump-sum is calculated as $2 per month of service (or a $300 minimum), with specific rules for beneficiaries. Employers that elect to participate must fund the payments and will see higher employer contributions starting October 1, 2014; payments are issued by ERS in October 2014. The act includes protections for Medicaid eligibility, excluding those whose benefits would be impaired, and requires employers to report creditable service for eligible annuitants and pensioners.

Who It Affects

• Retired ERS members and their beneficiaries who are receiving or eligible to receive monthly benefits and meet the age/date criteria, depending on employer participation, and may receive a lump-sum payment in October 2014.
• Employer entities that participate in the Employees' Retirement System (or local units that elect to come under this act) because they must fund the lump-sum payments and may see increased employer contribution rates to cover the costs.

Key Provisions

• Provides a funded one-time lump-sum payment in FY2014-2015 to eligible ERS retirees and beneficiaries.
• Lump-sum amount: $2 per month of service (for each year of service) or $300, whichever is greater; beneficiaries receive $300 under certain conditions.
• Employer election: only employers that elect to come under the act fund the payments; costs are borne by those employers and reflected as higher employer rates starting Oct 1, 2014.
• Eligible recipients include retirees/beneficiaries with certain retirement dates and monthly benefits as of Sept 30, 2014, with eligibility varying by employer participation.
• Medicaid rule: individuals whose Medicaid eligibility would be impaired by the lump-sum payment are not entitled to receive the increase.
• Timing: ERS will pay the lump-sum in October 2014; the act becomes effective immediately on passage.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Employees' Retirement System