SB388 Alabama 2014 Session

Summary

Primary Sponsor

Roger Bedford, Jr.

Democrat

Co-Sponsors

Linda Coleman-MadisonRodger SmithermanTammy IronsBobby D. SingletonPriscilla DunnQuinton Ross

Session

Regular Session 2014

Title

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

Summary

SB388 would pay a funded one-time lump-sum to certain TRS retirees and their beneficiaries in October 2014, funded by higher employer contributions and with Medicaid protections.

What This Bill Does

It creates a funded, one-time lump-sum payment for Teachers' Retirement System retirees who retired before October 1, 2013 and were receiving or eligible for monthly benefits on September 30, 2014, calculated as $4 per month times years of service or a $1,200 minimum. It also grants a $1,200 lump-sum payment to beneficiaries of deceased TRS members or retirees with pre-October 1, 2013 retirement dates who were receiving or eligible for monthly benefits on September 30, 2014. It prohibits payments if the lump sum would impair Medicaid benefits and requires the TRS Board to determine the total cost and inform employers of the needed rate increases for funding the payments. The payments are to be made in October 2014 and the funding increase applies to fiscal year 2014-2015.

Who It Affects

• TRS retirees who retired prior to October 1, 2013 and who were receiving monthly TRS benefits as of September 30, 2014: will receive a lump-sum payment based on service years or $1,200 minimum.
• Beneficiaries of deceased TRS members or retirees with pre-October 1, 2013 retirement dates who were receiving monthly benefits as of September 30, 2014: will receive a $1,200 lump-sum payment.
• Individuals whose Medicaid eligibility would be impaired by the lump-sum payment: would not receive the lump-sum increase.
• Employers funding TRS through increased contributions for fiscal year 2014-2015: must cover the increased employer rate necessary to pay the lump sums.

Key Provisions

• Section 1 establishes a funded one-time lump-sum payment for eligible retirees and eligible beneficiaries, with the amount either $1,200 or $4 per month of service, whichever is greater, and mandates payment in October 2014.
• Section 3-4 requires the TRS Board to determine the cost and notify employers of the required funding increase, with the increased employer rate to be collected in fiscal year 2014-2015; Section 2 imposes Medicaid-related eligibility restrictions; Section 5 makes the act effective immediately.

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