HB498 Alabama 2018 Session

Summary

Primary Sponsor

Alan BakerRepresentative

Republican

Session

Regular Session 2018

Title

Retirement of members of the Teachers' Retirement System and the Employees' Retirement System who elect to receive a reduced retirement allowance, additional option of electing to receive a partial lump-sum distribution as a single payment, provided for under certain conditions, Secs. 16-25-14 & 36-27-16 am'd.

Summary

HB 498 adds a new option allowing TRS and ERS retirees to take a partial lump-sum payment (up to 24 months of the maximum monthly retirement) when choosing a reduced retirement allowance.

What This Bill Does

HB 498 creates a new Option 5 for the distribution of a reduced retirement allowance, allowing a partial lump-sum payment as a single sum not to exceed 24 months of the member's maximum monthly retirement allowance. This lump-sum option can be chosen in addition to other existing options for disbursing the reduced retirement allowance. The lump-sum option is not available to members who are retired on disability. The option becomes available for retirement dates on or after October 1, 2018, and the act becomes law immediately upon approval.

Who It Affects

• Current and future retirees of the Teachers' Retirement System (TRS) who elect a reduced retirement and want the option of a partial lump-sum distribution.
• Current and future retirees of the Employees' Retirement System (ERS) who elect a reduced retirement and want the option of a partial lump-sum distribution.

Key Provisions

• Adds Section 5: New Option 5 allows a partial lump-sum distribution as a single payment not to exceed 24 months of the member's maximum monthly retirement allowance.
• Option 5 may be elected in addition to other options for distributing the reduced retirement allowance.
• Option 5 is not available to members who are receiving disability retirement.
• Amends Sections 16-25-14 and 36-27-16 to implement this option; availability starts for retirement dates on or after October 1, 2018; the act becomes effective immediately.

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

Subjects

Retirement