SB265 Alabama 2020 Session

Summary

Primary Sponsor

Bobby D. SingletonSenator

Democrat

Session

Regular Session 2020

Title

Teachers' Retirement System, one-time lump-sum payment for certain retirees and beneficiaries

Summary

The bill would pay a funded, one-time lump-sum to certain Teachers' Retirement System retirees and beneficiaries in addition to their monthly benefits.

What This Bill Does

For fiscal year 2020-2021, eligible retirees whose retirement date was before August 31, 2020 and who are receiving or will receive a monthly TRS benefit by October 31, 2020 would get a lump-sum. The lump-sum amount is $3 for every month of service the retiree earned. Beneficiaries of deceased members/retirees with the same retirement-date condition and monthly benefit eligibility by October 31, 2020 would also receive a lump-sum. The payment must be made by October 31, 2020, and the act excludes individuals whose Medicaid eligibility would be impaired by the lump-sum payment.

Who It Affects

• TRS retirees with a retirement date before August 31, 2020 who are receiving or are entitled to receive a monthly TRS benefit by October 31, 2020
• Beneficiaries of deceased TRS members/retirees whose retirement date was before August 31, 2020 and who are receiving or are entitled to receive a monthly TRS benefit by October 31, 2020
• Individuals whose Medicaid eligibility would be impaired by the lump-sum payment (these individuals are not eligible)

Key Provisions

• Provides a funded one-time lump-sum payment for fiscal year 2020-2021 to eligible retirees and beneficiaries.
• Lump-sum amount equals $3 for every month of service the retiree earned.
• Eligibility requires retirement date before August 31, 2020 and monthly benefit eligibility by October 31, 2020, for both retirees and applicable beneficiaries.
• Beneficiaries of deceased members/retirees with the same eligibility conditions are included.
• Medicaid impairment exclusion: individuals whose Medicaid eligibility would be impaired by the lump-sum payment are not eligible, or lose eligibility after applying.
• Payments must be made by October 31, 2020.
• Funding for the cost is provided in the Education Trust Fund budget act for the 2021 fiscal year (not a new separate appropriation).
• Effective immediately upon passage and approval.

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