HB356 Alabama 2017 Session

This bill would create an option for certain retirees of the Teachers' Retirement System and the Employees' Retirement System to elect to receive a lump-sum cash payment equal to and in lieu of a portion of his or her retirement allowance, not to exceed 50 percent.

This bill would require the Director of Finance to certify to the Board of Control, the Governor, and the presiding officer of each house of the Legislature whether or not available funds are sufficient and economic conditions are satisfactory to support the financial viability of the lump-sum retirement allowance option and would delay the offering of the option for a period of 12 months if economic conditions do not support the viability of the lump-sum option.

This bill would also create the Alabama Pension Authority and would authorize the authority to issue bonds to fund the lump-sum retirement allowance option to be repaid based on savings accrued from the decreased annual required contribution obligations of the state to the Teachers' Retirement System and the Employees' Retirement System.

This bill would also provide for the formation of the authority, the powers and duties of the authority, bond requirements, and the dissolution of the authority.

Relating to retirement; to amend Sections 16-25-14, 16-25-21, 36-27-16, and 36-27-24, Code of Alabama 1975, to allow certain retirees of the Teachers' Retirement System and the Employees' Retirement System to elect to receive a lump-sum cash payment equal to a specified portion of their retirement allowance under certain conditions; to require the Director of Finance to certify to the Board of Control, the Governor, and the presiding officer of each House of the Legislature whether there are sufficient funds and whether economic conditions support the viability of the lump-sum option; to provide for the creation of the Alabama Pension Authority; to provide for the duties and powers of the authority; to authorize the authority to issue bonds; to provide for the bond requirements; and to provide for the dissolution of the authority under certain conditions.