SB218 Alabama 2020 Session

Summary

Primary Sponsor

J.T. WaggonerSenator

Republican

Session

Regular Session 2020

Title

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

Summary

SB218 would create a one-time funded longevity bonus for eligible Employees' Retirement System retirees and beneficiaries, to be paid in December 2020 if their employer elects to participate.

What This Bill Does

It provides a funded one-time longevity bonus for eligible ERS retirees and beneficiaries for fiscal year 2021-2022, with payment made in December 2020. Eligibility depends on retirement date before October 1, 2020 and receiving ERS benefits on September 30, 2020, plus whether the retiree's employer has elected to participate in the act. The bonus for retirees is the greater of $3 per month of service or $300; beneficiaries receive $300. The cost is funded by participating employers that elect to come under the act, and employer contribution rates may increase in 2021; there is also a Medicaid-related limit that could exclude some individuals from receiving the bonus.

Who It Affects

• ERS retirees and beneficiaries who retired before October 1, 2020, were receiving ERS monthly benefits on September 30, 2020, and whose employer elects to participate in the act.
• Local units (cities, towns, counties, and public or quasi-public organizations) that participate in ERS or elect to come under this act to fund the longevity bonus for their retirees/annuitants and provide service credit information.

Key Provisions

• Provides for a funded one-time longevity bonus for fiscal year 2021-2022 to eligible ERS retirees and beneficiaries, with payment to be made in December 2020.
• Eligibility depends on retirement date prior to October 1, 2020, receiving or being entitled to receive monthly ERS benefits as of September 30, 2020, and the employer electing to participate by a specified deadline; some groups require the employer to fund the bonus.
• The bonus for retirees is the greater of $3 per month of service or $300; beneficiaries receive $300; service includes standard ERS service plus certain credits (state police, hazardous duty).
• Costs are funded by the employer units that elect to participate; employers must notify and provide service credit information; employer contribution rates may increase beginning October 1, 2021 to cover the cost.
• Medicaid protections apply: individuals whose Medicaid eligibility would be impaired by the bonus are not eligible to receive the increase, and this remains true if eligibility would be impaired after applying.

AI-generated summary using openai/gpt-5-nano on Feb 23, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Employees' Retirement System