SB 21

Relating to retirement; to provide for a funded one-time lump-sum addition to the retirement benefits of certain retirees and beneficiaries of the Teachers' Retirement System

Section 1

(a) There is hereby provided for fiscal year 2017-2018 a funded one-time lump-sum payment, hereinafter referred to as "lump-sum payment," to each person whose effective date of retirement for purposes of receiving benefits from the Teachers' Retirement System is prior to May 1, 2018, and who is receiving or is entitled to receive a monthly allowance from the Teachers' Retirement System on April 30, 2018. (b) The formula for calculating the lump-sum payment shall be one dollar ($1) per month for each year of service attained by the retiree. (c) Beneficiaries of deceased members or deceased retirees, if the date of death for the deceased member, or the effective date of retirement for the deceased retiree for purposes of receiving benefits from the Teachers' Retirement System was prior to May 1, 2018, and if the beneficiary is SB21 receiving or is entitled to receive a monthly allowance from the Teachers' Retirement System on April 30, 2018, shall receive a lump-sum payment. (d) There is hereby provided for fiscal year 2017-2018 a funded one-time lump-sum payment to certain persons identified in subsection (e) herein, whose effective date of retirement for purposes of receiving benefits from the Teachers' Retirement System is prior to May 1, 2018, and who is receiving or is entitled to receive a monthly allowance from the Teachers' Retirement System on April 30, 2018. (e) For purposes of this section, service includes the service under Section 16-25-1 and Section 16-25-150 et seq., Code of Alabama 1975. (f) 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 section 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 section shall not be entitled to receive the increase subsequent to the date that the member files application for benefits under the Medicaid program. SB21 (g) The lump-sum payments provided under this section shall be paid to all eligible recipients by the Teachers' Retirement System in June 2018.

Section 2

It is not the intent of this act to make appropriations, but the amount required to pay the cost of the lump-sum payments provided under this act shall be made in the annual Education Trust Fund budget act for the 2019 fiscal year.

Section 3

This act shall become effective immediately following its passage and approval by the Governor, or its otherwise becoming law. SB21 President and Presiding Officer of the Senate Speaker of the House of Representatives SB21 Senate 27-FEB-18 I hereby certify that the within Act originated in and passed the Senate, as amended. Patrick Harris, Secretary. House of Representatives Amended and passed 27-MAR-18 Senate concurred in House amendment 28-MAR-18 By: Senator Dial