SB206 Alabama 2019 Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: Cam Ward
Republican
Session: Regular Session 2019
Title: Employees' Retirement System, retirees and beneficiaries, one-time lump-sum additional payment
Summary: SB 206 would create a one-time funded longevity bonus for eligible Alabama Employees' Retirement System retirees and beneficiaries for 2019-2020, with funding coming from participating local employers who elect to participate.
What This Bill Does
It establishes a funded one-time lump-sum longevity bonus for eligible ERS retirees and beneficiaries for fiscal year 2019-2020. The bonus amount is the greater of 300 dollars or 2 dollars per month of service, and beneficiaries receive 300 dollars. Eligibility depends on retirement date before June 1, 2019 and being paid or eligible for a monthly ERS allowance on November 30, 2019, with eligibility affected by whether the employer participates in ERS and whether the employer elects to fund under this act.

Who It Affects
ERS retirees with a retirement date before June 1, 2019 who are receiving ERS monthly benefits as of November 30, 2019 and whose local employer elects to fund the longevity bonus.
Beneficiaries of deceased ERS members or retirees who are receiving ERS monthly benefits as of November 30, 2019 and whose local employer elects to fund the bonus.
Retirees who previously worked for a local government before joining ERS and are receiving ERS benefits as of November 30, 2019, whose local unit elects to fund the bonus.
Beneficiaries of such retirees who meet the same conditions and receive a bonus when the local unit funds it.
Medicaid recipients who would have their eligibility impaired by the longevity bonus are not eligible to receive the increase.

Key Provisions
Establishes a funded one-time longevity bonus for fiscal year 2019-2020 to ERS retirees and beneficiaries.
Bonus amount is the greater of 300 dollars or 2 dollars per month of service, with beneficiaries receiving 300 dollars.
Excludes certain retirees and beneficiaries whose employer participates in ERS under Sections 36-27-6, 36-27-7, and 36-27-7.1 unless the employer elects to participate in this act by October 31, 2019.
Allows local employers to elect to fund the bonus; those employers bear the cost of the bonuses paid to their retirees and beneficiaries.
Bonuses are paid by the Employees' Retirement System in December 2019 or by the employer for certain groups as described.
Medicaid eligibility rules may prevent some individuals from receiving the bonus if it would impair eligibility.
The Board of Control determines the cost and notifies employers; for fiscal year 2020, employers must pay the increase in the ERS funding rate in the same manner as salaries of active members.
This act becomes effective 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