HB342 Alabama 2017 Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: Steve McMillan
Republican
Session: Regular Session 2017
Title: Employees' Retirement System, retirees and beneficiaries, one-time lump-sum additional payment, receiving allowance on Nov. 30, 2017.
Summary: HB342 creates an optional one-time lump-sum payment for certain ERS retirees and beneficiaries, funded by employers who opt in, to be paid in December 2017.
What This Bill Does
It provides a one-time lump-sum payment for eligible retirees and beneficiaries whose employers participate in the Employees' Retirement System and who were retired before May 1, 2017 and still receive a monthly ERS allowance on November 30, 2017. The payment is calculated as $2 per month of service for each year of service, or $300, whichever is greater, and it includes creditable service and hazardous-duty credit. If an employer elects to participate, the employer pays the cost and notifies ERS; payments are made by ERS in December 2017, and there are Medicaid-related exclusions.

Who It Affects
Eligible retirees and beneficiaries whose employers participate in the Employees' Retirement System and who meet the retirement date and monthly allowance conditions; they would receive the lump-sum payment if their employer votes to participate.
Employers (cities, towns, counties, and public or quasi-public organizations) that participated in ERS and elect to come under the act; they must fund the lump-sum payments and may face increased employer contribution rates starting in 2018.

Key Provisions
Provides an optional one-time lump-sum payment for fiscal year 2017-2018 to eligible retirees and beneficiaries whose employers participated in ERS.
Lump-sum amount: $2 per month of service for each year of service, or $300, whichever is greater; service includes creditable service and hazardous-duty (FLC) credits.
Employer election: the employer must elect to come under the act by official resolution on or before October 31, 2017, and the employer bears the cost of the lump-sum payments.
Extensions cover retirees/annuitants who retired before joining ERS; if the employer elects, these retirees and beneficiaries receive the lump sum and the employer funds it.
Medicaid rule: individuals whose Medicaid eligibility would be impaired by the lump-sum payment are not entitled to receive the increase.
Funding and timing: the ERS Board determines the total cost and notifies employers; for fiscal year 2018, employers pay the increased rate; lump-sums are paid by ERS in December 2017.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Employees' Retirement System