HB330 Alabama 2018 Session

Summary

Primary Sponsor

Connie C. Rowe

Republican

Session

Regular Session 2018

Title

Teachers' Retirement System, retirees and beneficiaries, one-time lump sum addition to retirement allowances, provided for

Summary

HB 330 would pay a one-time funded $400 lump-sum to certain TRS retirees and beneficiaries who meet specific date-based eligibility.

What This Bill Does

It creates a funded one-time lump-sum payment of $400 for retirees who retired before October 1, 2017 and are receiving or eligible for monthly TRS benefits on September 30, 2018, and it also pays $400 to the beneficiaries of deceased TRS members/retirees who meet the same date criteria and are receiving or eligible on September 30, 2018. The payment would be issued in October 2018. The bill excludes people whose Medicaid benefits would be impaired by receiving the lump sum. The cost is to be determined by the TRS Board, which must notify the employer about any required rate increases; starting October 1, 2019, employers would pay the increased rate from the same pool used to pay active employees.

Who It Affects

• TRS retirees who retired before October 1, 2017 and are receiving or entitled to receive a monthly TRS benefit as of September 30, 2018, who would receive a $400 lump-sum payment.
• Beneficiaries of deceased TRS members or retirees (with death or retirement before October 1, 2017) who are receiving or entitled to receive a monthly TRS benefit as of September 30, 2018, who would receive a $400 lump-sum payment.

Key Provisions

• Section 1 establishes a funded one-time lump-sum payment of $400 for eligible TRS retirees and beneficiaries for fiscal year 2018-2019, to be paid in October 2018.
• Eligibility includes retirees who retired prior to October 1, 2017 and are receiving or entitled to receive monthly TRS benefits on September 30, 2018, as well as beneficiaries of deceased members/retirees meeting the same date criteria.
• Medicaid-related provision excludes anyone whose Medicaid eligibility would be impaired by the lump-sum payment from receiving the benefit.
• The TRS Board determines the total cost of the lump-sum payments and informs the chief fiscal officer; starting in fiscal year 2019, the increased employer rate to fund the payments would be paid by employers in the same manner as salaries for active members.
• Section 2 states the act becomes effective immediately after 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

Teachers' Retirement System