SB321 Alabama 2017 Session

Summary

Primary Sponsor

Bill Hightower

Republican

Session

Regular Session 2017

Title

Teachers' Retirement System and Employees' Retirement System, lump sum retirement option authorized, Alabama Pension Authority created, bond authority, Secs. 16-25-14, 16-25-21, 36-27-16, 36-27-24 am'd.

Description

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.

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Subjects

Retirement