HB506 Alabama 2015 Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: Napoleon BracyRepresentative
Democrat
Session: Regular Session 2015
Title: 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: HB506 changes unemployment benefits rules so pension reductions only apply to employer-funded plans and retroactive pensions from those plans can trigger disqualification.
What This Bill Does
The bill narrows when unemployment benefits are reduced due to pension payments, so reductions only occur if the pension comes from a base-period employer-funded plan that is 100% financed by the employer and not contributed to by the worker. If the pension does not come from such a plan, the benefit reduction does not apply. It also says retroactive pension payments from such plans can cause a disqualification and require repayment of benefits during the disqualified period.

Who It Affects
Unemployed individuals who receive or are eligible for pensions based on their past work, as their benefit reductions will depend on how their pension is funded.
Base-period employers who maintain or contribute to 100% employer-financed pension plans, since these plans determine whether pension-related benefit reductions or disqualifications apply.

Key Provisions
Reductions in unemployment benefits due to pension payments apply only if the pension comes from a base-period employer-maintained, 100% employer-financed plan and is not worker-contributed.
Retroactive pension payments that meet the above funding conditions count as a disqualification and require recovery of benefits paid during the disqualification period.
The act becomes effective on the first day of the third month after its 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: Labor