HB380 Alabama 2020 Session

Under existing law, there is no provision for retirees and beneficiaries receiving monthly benefits from the Teachers' Retirement System to receive a funded lump-sum payment in addition to their retirement allowances

This bill would provide a funded one-time lump-sum payment to certain retirees and beneficiaries under the Teachers' Retirement System

To provide for a funded one-time lump-sum payment in addition to the retirement benefits of certain retirees and beneficiaries of the Teachers' Retirement System.

Section 1

(a) There is provided for fiscal year 2020-2021 a funded one-time lump-sum payment, hereinafter referred to as lump-sum payment, to each person whose effective date of retirement for purposes of receiving benefits from the Teachers' Retirement System is prior to August 31, 2020, and who is receiving or is entitled to receive a monthly allowance from the Teachers' Retirement System by October 31, 2020. (b) The formula for calculating the lump-sum payment shall be three dollars ($3) per month for each year of service attained by the retiree. (c) Beneficiaries of deceased members or deceased retirees, if the effective date of retirement for the deceased retiree for purposes of receiving benefits from the Teachers' Retirement System was prior to August 31, 2020, and if the beneficiary is receiving or is entitled to receive a monthly allowance from the Teachers' Retirement System by October 31, 2020, shall receive a lump-sum payment. (d) There is provided for fiscal year 2020-2021 a funded one-time lump-sum payment to each person identified in subsection (e), whose effective date of retirement for purposes of receiving benefits from the Teachers' Retirement System is prior to August 31, 2020, and who is receiving or is entitled to receive a monthly allowance from the Teachers' Retirement System by October 31, 2020. (e) For purposes of this section, service includes the service under Section 16-25-1 and Article 9, commencing with Section 16-25-150, Chapter 25, Title 16, Code of Alabama 1975. (f) Any person who received benefits under the Medicaid program and whose eligibility for Medicaid benefits would be impaired by the lump-sum payment provided by this section shall not be entitled to receive the aforementioned increase. Any person who subsequently applies for benefits under the Medicaid program and that person's eligibility to receive benefits is impaired by the lump-sum payment provided by this section shall not be entitled to receive the increase subsequent to the date that the member files application for benefits under the Medicaid program. (g) The lump-sum payments provided under this section shall be paid to all eligible recipients by the Teachers' Retirement System by October 31, 2020.

Section 2

It is not the intent of this act to make appropriations, but the amount required to pay the cost of the lump-sum payments provided by this act shall be made in the annual Education Trust Fund budget act for the 2021 fiscal year.

Section 3

This act shall become effective immediately following its passage and approval by the Governor, or its otherwise becoming law.