HB35 Alabama 2017 Session

Summary

Primary Sponsor

Craig Ford

Independent

Session

Regular Session 2017

Title

Teachers' Retirement System, retirees, one-time lump sum retirement payment in December 2017, approp. from Edu. Trust Fund in Oct. 2017.

Summary

HB35 would create a funded one-time lump-sum retirement payment for certain TRS retirees and ERS beneficiaries who retired before October 1, 2016, to be paid in December 2017 from the Education Trust Fund, with Medicaid protections.

What This Bill Does

The bill adds a funded, one-time lump-sum payment for eligible retirees and beneficiaries. For TRS retirees who retired before October 1, 2016 and are receiving or eligible to receive monthly benefits as of September 30, 2017, the lump-sum is calculated as $2 per month for each year of service or a $300 minimum. Beneficiaries of TRS members or retirees with pre-October 1, 2016 retirement dates who are receiving or entitled to receive monthly TRS benefits as of September 30, 2017 would get $300. The bill also extends a similar one-time lump-sum opportunity to certain ERS recipients who retired before October 1, 2016 and are receiving monthly ERS benefits as of September 30, 2017. The payments are to be funded from the Education Trust Fund, appropriated for fiscal year 2017-2018, and paid in December 2017, with protections if Medicaid eligibility would be impaired. The act takes effect immediately after passage.

Who It Affects

• TRS retirees who retired before October 1, 2016 and are receiving monthly TRS benefits (or are entitled to receive them) as of September 30, 2017.
• TRS beneficiaries and certain ERS beneficiaries who meet the eligibility criteria and are receiving monthly benefits as of September 30, 2017.

Key Provisions

• Establishes a funded one-time lump-sum payment for fiscal year 2017-2018 to eligible TRS retirees and certain beneficiaries.
• TRS payment formula: $2 per month of service for each year of service or a minimum $300, whichever is greater; applicable to retirees retired before October 1, 2016 and receiving/entitled to monthly TRS benefits as of September 30, 2017; plus $300 to eligible beneficiaries.
• ER S provisions: provides a funded one-time lump-sum payment to certain persons (as identified) with ERS retirement dates before October 1, 2016 who are receiving monthly ERS benefits as of September 30, 2017.
• Medicaid protection: individuals whose Medicaid eligibility would be impaired by the lump-sum payment are excluded, and those whose eligibility becomes impaired after filing are also excluded from the increase.
• Funding and timing: appropriates money from the Education Trust Fund to the Teachers’ Retirement System (and related provisions for ERS as applicable) for the 2017-2018 fiscal year, to be paid by October 31, 2017, with lump-sum payments made in December 2017.
• Effective date: the act becomes effective immediately upon passage and approval by the Governor.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Teachers' Retirement System