SB267 Alabama 2014 Session

Summary

Primary Sponsor

Del Marsh

Republican

Session

Regular Session 2014

Title

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

Summary

SB267 creates a funded one-time lump-sum payment for certain Alabama Employees' Retirement System retirees and beneficiaries, to be paid in October 2014, funded by participating employers and calculated based on years of service or a $300 minimum.

What This Bill Does

The bill provides a one-time lump-sum payment for fiscal year 2014-2015 to eligible ERS retirees and beneficiaries who meet specific date-and-benefit criteria. The payment amount is $2 per month of service, for each year of service, with a $300 minimum, and some beneficiaries receive a flat $300. Eligibility includes retirees who retired before October 1, 2013 and are receiving monthly benefits on September 30, 2014, as well as certain beneficiaries of deceased members/retirees under the same date条件, provided the employer elects to participate under the act and funds the payment; Medicaid eligibility issues may exclude some individuals. The Board of Control will determine the total cost and inform employers; for FY 2015 the employer contribution rate may increase to fund these payments. Payments are scheduled to be made in October 2014, and the act becomes effective immediately upon passage.

Who It Affects

• Eligible retirees and beneficiaries of the Employees' Retirement System who retired before October 1, 2013 and were receiving or entitled to receive monthly benefits as of September 30, 2014 (subject to employer election to participate).
• Employers that participate in the Employees' Retirement System or choose to come under this act (cities, towns, counties, state public or quasi-public organizations) that must fund the lump-sum payments and may see higher employer contribution rates starting in October 2015.

Key Provisions

• Section 1: Establishes a funded one-time lump-sum payment for fiscal year 2014-2015 to eligible retirees and certain beneficiaries; the amount is $2 per month of service for each year of service or $300, whichever is greater; service credits include certain state police/bonus credits.
• Section 2: For retirees whose employer participated under 36-27-6 and retired before Oct 1, 2013 and receiving benefits on Sep 30, 2014, the lump-sum is paid if the employer elects to come under the act by Aug 31, 2014; the employer bears the cost.
• Section 3: Similar provisions for retirees under 36-27-7 and 36-27-7.1; beneficiaries in these categories receive the $300 lump-sum if the employer elects to participate and funds the payment.
• Section 4: For retirees who earlier joined ERS via a city/town/county/public organization and are receiving benefits on Sep 30, 2014, the lump-sum is paid if the local unit elects to fund the payment and provides creditable service data; beneficiaries receive $300 if qualified.
• Section 5: For retirees who were formerly with local entities and are receiving a monthly benefit not administered by ERS as of Sep 30, 2014, the local employer funds the lump-sum if they elect to come under the act.
• Section 6: The Board of Control will notify employers about the availability of the lump-sum and the requirement to elect funding.
• Section 7: Individuals whose Medicaid eligibility would be impaired by the lump-sum are not entitled to receive it; if Medicaid eligibility would be impaired after applying, the increase is not granted.
• Section 8: The Board determines the total cost and notifies employers of increased funding requirements; for the fiscal year beginning Oct 1, 2015, employers will pay the increase in the same manner and source as active member salaries.
• Section 9: Lump-sum payments are to be paid to eligible recipients by the ERS in October 2014.
• Section 10: The act becomes effective immediately upon passage and approval.

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