HB 440

Under existing law, there is no provision for retirees receiving monthly benefits from the Employees' Retirement System to receive a funded one-time lump-sum addition to their retirement allowances

This bill would provide such a payment to certain retirees under the Employees' Retirement System

To provide for a funded one-time lump-sum addition to the retirement benefits of certain retirees of the Employees' Retirement System.

Section 1

(a) There is provided for fiscal year 2017-2018 a funded one-time lump-sum payment, hereinafter referred to as lump-sum payment, to each person except those whose employer participated in the Employees' Retirement System pursuant to Sections 36-27-6, 36-27-7, and 36-27-7.1, Code of Alabama 1975, whose effective date of retirement for purposes of receiving benefits from the Employees' Retirement System is prior to May 1, 2018, and who is receiving or is entitled to receive a monthly allowance from the Employees' Retirement System on April 30, 2018. (b) The lump-sum payment shall be four hundred dollars ($400).

Section 2

Any person who received benefits under the Medicaid program and whose eligibility for Medicaid benefits would be impaired by the lump-sum payment provided by this act shall not be entitled to receive the aforementioned increase. Any person who subsequently applies for benefits under the Medicaid program and that person's eligibility to receive benefits is impaired by the lump-sum payment provided by this act shall not be entitled to receive the increase subsequent to the date that the member files application for benefits under the Medicaid program.

Section 3

The Board of Control of the Employees' Retirement System shall determine the amount required to pay the cost of the lump-sum payments provided under this act and shall notify the chief fiscal officer of each employer of the increases in the employer rate required to be paid to the system. For the fiscal year beginning October 1, 2019, only, each employer shall pay the increase in the employer rate in the same manner and from the same source of funds as salaries of active members are paid.

Section 4

The lump-sum payments provided under this act shall be paid to all eligible recipients by the Employees' Retirement System in June 2018.

Section 5

This act shall become effective immediately following its passage and approval by the Governor, or its otherwise becoming law.