HB359 Alabama 2019 Session

Summary

Primary Sponsor

Reed IngramRepresentative

Republican

Session

Regular Session 2019

Title

Employees' Retirement System, retirees and beneficiaries, one-time lump-sum additional payment

Summary

HB359 would provide a one-time funded longevity bonus to certain retirees and beneficiaries of Alabama's Employees' Retirement System to be paid in December 2019.

What This Bill Does

The bill creates a funded, one-time longevity bonus for eligible ERS retirees and annuitants for the 2019-2020 fiscal year. The bonus is calculated as $2 per month of service per year of service, or $300, whichever is greater, with $300 for beneficiaries of deceased members; beneficiaries must be receiving a monthly ERS benefit as of November 30, 2019. Eligible retirees/beneficiaries must have retired before June 1, 2019 and the employer must participate or elect to participate in funding the bonus; the payment is funded by the employer and will increase some employer pension costs starting in 2020, with Medicaid rules limiting eligibility in certain cases, and the payments occur in December 2019.

Who It Affects

• Eligible retirees and annuitants under the Employees' Retirement System (and certain beneficiaries) who retired before June 1, 2019 and were receiving a monthly benefit as of November 30, 2019, if their employer participates or elects to participate in funding the bonus.
• Employers that participate in the Employees' Retirement System (cities, towns, counties, and public or quasi-public organizations) or those that choose to come under the act, who must fund the bonus and may incur higher employer contribution costs starting in 2020.

Key Provisions

• Establishes a funded one-time longevity bonus for fiscal year 2019-2020 for eligible ERS retirees/annuitants and certain beneficiaries, with the amount formula described in the bill.
• Eligibility requires retirement prior to June 1, 2019 and a monthly ERS benefit on November 30, 2019; beneficiaries of deceased members receive $300 under the same conditions, and the state police/hazardous duty credits are included in service calculations.
• Employers must elect to participate by October 31, 2019 to fund the longevity bonus; the employer bears the cost and must provide creditable-service data for eligible recipients.
• Medicaid-related restrictions apply: individuals whose Medicaid eligibility would be impaired by the bonus are not entitled to receive it, and those who subsequently apply for Medicaid and are impaired by the bonus are ineligible for the increase.
• The Board of Control determines the total cost and notifies the chief fiscal officer; for the 2020 fiscal year, the required employer rate increase is directed to be paid in the same manner as salaries; bonuses are paid in December 2019; the act takes effect immediately upon passage.

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