HB440 Alabama 2018 Session

Summary

Primary Sponsor

Kerry Rich

Republican

Session

Regular Session 2018

Title

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

Summary

HB 440 would give a funded one-time $400 lump-sum payment to certain Employees' Retirement System retirees, to be paid in June 2018, with funding supported by higher employer contributions.

What This Bill Does

The bill creates a one-time, funded $400 lump-sum payment for ERS retirees who retired before May 1, 2018 and who were receiving or entitled to receive monthly benefits on April 30, 2018 (excluding retirees whose employers participate in ERS under specified code sections). It also includes safeguards so those whose Medicaid eligibility would be impaired by the lump-sum do not receive it. The cost is to be determined by the ERS Board, and starting in fiscal year 2019 employers would pay the increased rate to cover the payments. The lump-sums are to be paid in June 2018, and the act takes effect immediately upon passage.

Who It Affects

• Retirees of the Employees' Retirement System who are receiving (or entitled to receive) monthly benefits on April 30, 2018 and who retired before May 1, 2018 (excluding those whose employers participate in ERS under the specified sections).
• Medicaid-eligible individuals whose Medicaid benefits would be impaired by receiving the lump-sum (they would not receive the payment).
• Employers contributing to the Employees' Retirement System, as their contribution rates would be increased starting in fiscal year 2019 to fund the lump-sum payments.

Key Provisions

• Provides a funded one-time lump-sum payment of $400 for eligible ERS retirees for fiscal year 2017-2018.
• Eligibility excludes retirees whose employer participated in ERS under Sections 36-27-6, 36-27-7, and 36-27-7.1, and requires a retirement date prior to May 1, 2018 with benefits as of April 30, 2018.
• Section 2 prohibits payment if it would impair Medicaid eligibility; eligibility determined for those already on Medicaid and for those who later apply.
• The ERS Board calculates the total cost and informs the chief fiscal officer; starting in FY 2019, employers pay the increased rate through the same funding channel as salaries of active members.
• Payments are to be made by the ERS in June 2018, and the act becomes effective immediately upon passage.

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