SB57 Alabama 2019 Session

Updated Feb 24, 2026

Summary

Primary Sponsor: Cam Ward
Republican
Session: Regular Session 2019
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 57 lets a member of Alabama's Retirement Systems designate that part of their retirement benefits be paid directly to a special needs trust for a dependent child.
What This Bill Does
The bill authorizes payments of a portion of retirement benefits to a special needs trust for a dependent child, under the member's designation. It applies to optional retirement benefit options (2-4) and allows the retirement system to send those payments to the trust (under federal law) either on the member's written direction or, after the member's death, to the designated person or legal representative if the beneficiary is a minor or incapacitated. This change modifies who can receive the payments, not the overall benefit calculations, and becomes effective on the first day of the third month after passage.

Who It Affects
Members of the Retirement Systems of Alabama who elect to designate a portion of their retirement benefits to a special needs trust for a dependent child.
Dependent children with special needs who have a special needs trust and the trusts themselves that would receive retirement funds.

Key Provisions
Allows a member to designate that a portion of his or her retirement benefits be paid to a special needs trust for the benefit of a dependent child.
The designated trust must be a special needs trust established under Title 42 of the U.S. Code, section 1396p(d)(4)(A) or (C), and the retirement system may pay the trust upon written direction by the member or, after the member's death, by the designated person or by the member's legal representative if the designated recipient is a minor or incapacitated.
The change applies to optional retirement allowances (Options 2-4) and related beneficiary provisions, enabling trust payments without altering the basic actuarial value of the benefits.
The act amends Sections 12-18-156, 16-25-14, and 36-27-16 and becomes effective on the first day of the third month after it passes.

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