HB380 Alabama 2020 Session

Summary

Primary Sponsor

Will Dismukes

Republican

Session

Regular Session 2020

Title

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

Summary

HB380 would provide a funded, one-time lump-sum payment to eligible Teachers' Retirement System retirees and beneficiaries in 2020-21.

What This Bill Does

The bill creates a funded one-time lump-sum payment for TRS retirees whose retirement date was before August 31, 2020 and who are receiving or are entitled to receive a monthly TRS allowance by October 31, 2020. The lump-sum is calculated as $3 per month for each year of service the retiree earned. Beneficiaries of deceased TRS members or retirees with the same date and who are receiving or entitled to receive monthly TRS allowances by October 31, 2020 would also get the lump-sum. Payments would be made by October 31, 2020, and there are Medicaid-related exclusions; funding comes from the Education Trust Fund budget act for 2021 rather than a new appropriation.

Who It Affects

• Retirees with TRS retirement date before August 31, 2020 who are currently receiving or are entitled to receive monthly TRS benefits by October 31, 2020.
• Beneficiaries of deceased TRS members or retirees with the same retirement date who are receiving or entitled to receive monthly TRS benefits by October 31, 2020.
• Individuals whose Medicaid eligibility would be impaired by the lump-sum payment (and those who would be affected after applying) are excluded from receiving the payment.
• The cost of the lump-sum is funded through the Education Trust Fund budget act for the 2021 fiscal year (not through a separate appropriation).

Key Provisions

• Section 1(a) provides a funded one-time lump-sum payment for fiscal year 2020-2021 to each person whose TRS retirement date is before August 31, 2020 and who is receiving or entitled to receive a monthly TRS allowance by October 31, 2020.
• Section 1(b) sets the lump-sum amount at three dollars ($3) per month for each year of service attained by the retiree.
• Section 1(c) extends the lump-sum payment to beneficiaries of deceased TRS members or retirees with retirement dates before August 31, 2020 who are receiving or entitled to receive a monthly allowance by October 31, 2020.
• Section 1(f) adds a Medicaid impairment rule: individuals whose Medicaid eligibility would be impaired by the lump-sum payment cannot receive it (and if impairment would occur after applying, they lose eligibility after the date of application).
• Section 1(g) requires lump-sum payments to be paid by October 31, 2020.
• Section 2 states the act does not create new appropriations; the cost will be funded in the 2021 Education Trust Fund budget act.
• Section 3 makes the act effective immediately upon passage.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Employees' Retirement System