SB215 Alabama 2018 Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: Gerald O. Dial
Republican
Session: Regular Session 2018
Title: Employees' Retirement System, retirees, one-time lump-sum additional payment
Summary: The bill would pay a funded, one-time lump-sum to certain Alabama Employees' Retirement System retirees and eligible beneficiaries in October 2018, funded by higher employer contributions for 2018-2019.
What This Bill Does
It provides a funded one-time lump-sum payment for eligible ERS retirees who retired before October 1, 2017 and were receiving monthly benefits as of September 30, 2018, with some employers excluded. The lump-sum equals $1 for each month of service, counting various service credits including police or hazardous-duty credits, and eligible deceased-member beneficiaries under similar conditions also receive it. Funding is determined by the ERS Board and paid by employers through increased contribution rates for the 2018-2019 fiscal year, with payments issued in October 2018; Medicaid eligibility rules may prohibit or limit receipt of the lump-sum.

Who It Affects
Eligible ERS retirees (retired before Oct 1, 2017) who were receiving monthly benefits on Sept 30, 2018, and not employed by an ERS-participating employer under certain sections; and their eligible beneficiaries who meet the same criteria.
Employers whose required contributions will increase to fund the lump-sum payments for FY 2018-2019; and Medicaid recipients whose eligibility would be impaired by the lump-sum (and thus are excluded), as well as applicants whose Medicaid eligibility would be affected after applying.

Key Provisions
Section 1 establishes a funded one-time lump-sum payment for FY 2018-2019 to eligible retirees and, under certain conditions, their beneficiaries, with some employers excluded.
Section 1(a) sets eligibility: retirement date before Oct 1, 2017 and receiving monthly ERS benefits as of Sept 30, 2018, excluding certain participating employers.
Section 1(b) provides the lump-sum formula: $1 per month of service for each year of service.
Section 1(c) extends the lump-sum to eligible beneficiaries of deceased members/retirees under the same conditions.
Section 1(d) counts service credits for calculation, including state police bonus credit and hazardous duty credits.
Section 2 excludes individuals whose Medicaid eligibility would be impaired by the lump-sum, and restricts eligibility if impairment occurs after application.
Section 3 directs the ERS Board to determine the total cost and notify employers; for FY 2018-2019, employers must pay the increased rate through the same method used for active member salaries.
Section 4 requires the lump-sum payments to be issued by the ERS in October 2018.
Section 5 states the act takes effect immediately upon passage and 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: Employees' Retirement System