SB122 Alabama 2017 Session

Summary

Primary Sponsor

Arthur OrrSenator

Republican

Session

Regular Session 2017

Title

State employees, lump sum merit reward payments for full-time employees at top of pay ranges authorized, Sec. 36-26-48 added

Summary

SB122 would authorize lump-sum merit rewards for certain full-time state employees who have reached the maximum of their pay ranges, under specific conditions and funding.

What This Bill Does

Starting Oct 1, 2017, eligible agencies may pay a lump-sum merit reward of up to 2.5% of an employee's annual base salary on their anniversary date if, for the preceding two fiscal years, the employee was at the max pay rate, met or exceeded performance standards, and no cost-of-living increase was provided. The total amount each year depends on a funding percentage set by the agency, and if funds are insufficient, no payments are made. The payment does not increase retirement pay, and not all employees will receive such payments every year. Eligibility has many exclusions (e.g., labor agreements, retirees or those without annual appraisals, agency heads, and employees who received pay or bonus increases in the last two years).

Who It Affects

• Group 1: Full-time state employees who have reached the maximum of their pay range and meet performance standards (potential recipients of a lump-sum merit reward).
• Group 2: Appointing authorities and state agencies that determine funding amounts, approve payments, and administer annual performance appraisals; they must apply eligibility rules and manage payments within available funds.

Key Provisions

• Up to 2.5% of the employee's annual base salary may be paid as a lump-sum merit reward.
• Eligibility requires: max pay rate for two consecutive fiscal years, meeting/exceeding performance standards, and no cost-of-living increase in that fiscal year.
• At the start of each fiscal year, agencies set a percentage amount for total lump-sum payments; if funds are insufficient, no payments are made for that year.
• Payment cannot be made to employees who changed their anniversary date to receive a payment early, or to those not eligible due to exclusions (labor agreements, retirees performing duties, lack of annual appraisal, agency heads, etc.).
• An employee cannot receive such a payment every year and the payment does not count toward retirement pay.
• Employees who have had pay, bonus, or incentive pay increases (other than a differential wage payment) in the previous two years are ineligible.
• Any branch of state government may provide payments if it uses standardized pay ranges and conducts annual performance appraisals; approvals are required from the appointing authority.

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

Subjects

State Employees