SB319 Alabama 2018 Session

Summary

Primary Sponsor

Cam Ward

Republican

Session

Regular Session 2018

Title

Retirement Systems, dependent child, to provide direct retirement benefits be paid to a special needs trust, authorized, Secs. 12-18-156, 16-25-14, 36-27-16 am'd.

Summary

SB 319 would allow Alabama's retirement systems to pay a portion of a member's retirement benefits directly to a special needs trust for a dependent child.

What This Bill Does

It adds authority for the Judicial Retirement Fund, the Teachers' Retirement System, and the Employees' Retirement System to send retirement payments to a special needs trust designated as the beneficiary. The change applies when the beneficiary is a special needs trust created under Title 42 of the U.S. Code (1396p(d)(4)(A) or (C)). It covers certain retirement payout options (Options 2, 3, and 4) and lets the payment go to the trust on written direction by the member, or after the member's death by the designated person or guardian if the beneficiary is a minor or incapacitated. The law would take effect on the date specified for the act's start after passage.

Who It Affects

• Members of Alabama's Judicial Retirement Fund, Teachers' Retirement System, and Employees' Retirement System who designate a special needs trust as the recipient of part of their retirement benefits
• Dependents of such members who are beneficiaries of a special needs trust (often dependent children with special needs) and their guardians or trustees who would oversee the trust

Key Provisions

• Amends Sections 12-18-156, 16-25-14, and 36-27-16 to allow a member's retirement allowance to be paid to a special needs trust for a dependent child
• Adds language that, if the designated beneficiary is a special needs trust established under Title 42 USC 1396p(d)(4)(A) or (C), retirement benefits may be paid to the trust upon written direction by the member or by the designated person/guardian after the member's death
• Specifies applicability to optional allowances (Options 2, 3, and 4) and corresponding post-retirement payment arrangements
• Requires the payments to be made to the trust via the retirement system when designated
• Effective date: becomes law on the first day of the third month after passage and governor 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

Retirement Systems