HB21 Alabama 2019 Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: Alan BakerRepresentative
Republican
Session: Regular Session 2019
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 21 adds a new lump-sum retirement option (Option 5) for Alabama's Teachers' Retirement System and Employees' Retirement System members, allowing a partial lump-sum distribution at retirement under certain conditions.
What This Bill Does
It creates a new option called Option 5 that lets eligible retirees take a one-time partial lump-sum payment equal to up to 24 months of the maximum monthly retirement allowance. This option can be chosen in addition to the existing options (1-4), and the monthly retirement amount is reduced or adjusted according to the chosen option using actuarial calculations. The option becomes available for retirement dates on or after October 1, 2019, and the act takes effect immediately; disability retirees are not eligible for this option.

Who It Affects
Members of the Teachers' Retirement System and Employees' Retirement System who retire on or after October 1, 2019 may elect Option 5 at retirement.
Disability retirees are not eligible to use the new lump-sum Option 5.

Key Provisions
Provision 1: Introduces Option 5, allowing a partial lump-sum distribution as a single payment up to 24 months of the member's maximum possible monthly retirement allowance, which may be elected in addition to other options and will be accompanied by an actuarial adjustment to the monthly benefit.
Provision 2: Section 2 provides that the lump-sum Option 5 becomes available to members with a retirement date on or after October 1, 2019, and Section 3 states the act is 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 Systems