HB572 Alabama 2014 Session

Summary

Primary Sponsor

Greg Burdine

Democrat

Session

Regular Session 2014

Title

Retirement, retiree bonus payment, beneficiaries of Teachers' Retirement System

Summary

This bill would provide a funded one-time lump-sum payment to certain Teachers' Retirement System retirees and beneficiaries.

What This Bill Does

It creates a funded one-time lump-sum payment for fiscal year 2014-2015 to TRS retirees who retired before October 1, 2013 and who are receiving monthly TRS benefits on September 30, 2014, and to beneficiaries of deceased members in the same situation. The lump sum is four dollars per month for each year of service, or a minimum of 1,200 dollars, whichever is greater; eligible beneficiaries also receive 1,200 dollars. Medicaid eligibility rules would exclude anyone whose benefits would be impaired by the lump sum. The TRS Board would determine the total cost and require employers to fund the increased employer contribution rate for FY 2014-2015, with payments made in October 2014, and the act takes effect immediately.

Who It Affects

• TRS retirees who retired before 10/1/2013 and are receiving monthly TRS benefits as of 9/30/2014 (eligible to receive a lump-sum payment).
• Beneficiaries of deceased TRS members or deceased retirees whose death or retirement date was before 10/1/2013 and who are receiving or entitled to receive monthly TRS benefits as of 9/30/2014 (eligible to receive a lump-sum payment).

Key Provisions

• Provides a funded one-time lump-sum payment for FY 2014-2015 to eligible TRS retirees and eligible beneficiaries.
• Lump-sum amount: four dollars per month of service or 1,200 dollars minimum, with beneficiaries receiving 1,200 dollars; eligibility requires retirement date before 10/1/2013 and benefits as of 9/30/2014 (or death date criteria for beneficiaries).
• Excludes individuals whose Medicaid benefits would be impaired by the lump sum; if impairment would occur after applying, the person is not eligible.
• The TRS Board determines the cost and informs employers; for FY 2014-2015, employers fund the increased rate from the same source as active member salaries.
• Payments are made in October 2014; the act becomes effective immediately after 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

Retirement