SB269 Alabama 2017 Session

Summary

Primary Sponsor

Gerald O. Dial

Republican

Session

Regular Session 2017

Title

Employees' Retirement System, retirees and beneficiaries, one-time lump-sum additional payment

Summary

SB269 would provide a funded one-time lump-sum payment to eligible Alabama Employees' Retirement System retirees and beneficiaries for 2017-2018, with the amount based on years of service (or a $300 minimum) and funded by higher employer contributions.

What This Bill Does

The bill creates a funded one-time lump-sum payment for fiscal year 2017-2018 to ERS retirees who retired before May 1, 2017 and are receiving monthly benefits on November 30, 2017 (excluding certain employers), plus eligible beneficiaries of deceased members/retirees with the same timing. The payment formula is either $2 per month of service or $300, whichever is greater, and service credits include state police bonus or hazardous duty credits. It also specifies that recipients on Medicaid or whose Medicaid eligibility would be impaired by the lump-sum are not entitled to the payment, and requires the ERS Board to determine the total cost and require employers to increase their contributions starting in FY2018 to cover the cost. Payments would be made in December 2017 and the act takes effect immediately upon approval.

Who It Affects

• Eligible ERS retirees and surviving beneficiaries who retired before May 1, 2017 and are receiving monthly benefits as of November 30, 2017 (with certain employer exclusions).
• Employers funding the ERS, who would face higher required contribution rates starting in FY2018 to pay for the lump-sum, and Medicaid recipients who would be ineligible or have their eligibility impaired by the lump-sum.

Key Provisions

• Section 1: For FY 2017-2018, provide a funded one-time lump-sum payment to eligible retirees/beneficiaries, with exclusions for certain employers participating in ERS under specified code sections.
• The lump-sum formula is $2 per month of service for the retiree, or $300, whichever is greater; for beneficiaries, the payment is $300 if the deceased member/retiree retired before May 1, 2017 and the beneficiary is receiving monthly benefits as of Nov 30, 2017; service credits may include state police bonus or hazardous duty credits.
• Section 2: Individuals on Medicaid or whose Medicaid eligibility would be impaired by the lump-sum are not entitled to receive the lump-sum increase.
• Section 3: The ERS Board determines the total cost and notifies employers; starting FY2018, each employer must pay the increased cost in the same manner and from the same fund source as active member salaries.
• Section 4: Lump-sum payments must be distributed to all eligible recipients by December 2017.
• Section 5: The act becomes effective immediately after passage and governor's approval.

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

Subjects

Employees' Retirement System