HB405 Alabama 2014 Session

Summary

Primary Sponsor

Kurt Wallace

Republican

Session

Regular Session 2014

Title

Labor, unemployment, unemployment compensation, amount of benefits payable reduced if individual receives or is eligible to receive pension payments from a plan maintained or contributed to solely by employer, retroactive pension payments considered disqualification if payments made from a plan maintained or contributed to solely by employer, Sec. 25-4-78 am'd.

Summary

HB405 clarifies that unemployment benefit reductions due to pension payments apply only to plans fully financed by the base period employer, and it ties retroactive pension payments to the same requirement.

What This Bill Does

It changes when weekly unemployment benefits are reduced by pension payments, limiting reductions to pensions paid from a plan that is maintained or contributed to by the base period employer and is 100% employer-financed with no worker contributions. It also specifies that retroactive pension payments would cause disqualification and require recovery of benefits only if those payments come from such a base period employer–financed plan. Pension payments from other sources would not trigger these reductions or disqualifications. The changes are implemented by amending Section 25-4-78 of Alabama law.

Who It Affects

• Unemployed individuals who receive or become eligible for governmental or other pension payments that are based on their previous work and are from a base period employer-funded plan (100% employer-financed, worker-contribution not allowed): their weekly benefits may be reduced and retroactive pension payments may cause disqualification if they come from such a plan.
• Workers who participate in pension plans not funded 100% by the base period employer or who contribute to their plans: they are less likely to be affected by these changes.
• Base period employers with fully employer-financed pension plans: the rules determine when reductions and disqualification apply and how such events affect employer-related charges or experience rating.

Key Provisions

• Reduction of unemployment benefits due to pension payments applies only if the pension is paid under a plan maintained or contributed to by the base period employer, is 100% employer-financed, and is not contributed to by the worker.
• Retroactive pension payments would cause unemployment benefit disqualification and require recovery of benefits only if those payments come from a base period employer–funded plan (100% employer-financed, worker not contributing).

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

Subjects

Labor