SB11 Alabama 2021 Session

Summary

Primary Sponsor

Garlan GudgerSenator

Republican

Session

Second Special Session 2021

Title

Community Development District, adjust rate of taxation on sale of alcholic beverages, Sec. 35-8B-1 am'd.

Summary

SB11 would create a funded, one-time longevity bonus for certain Alabama Employees' Retirement System retirees and eligible beneficiaries, with who qualifies and who pays depending on whether their employer participates in ERS and whether local units choose to participate.

What This Bill Does

The bill authorizes a one-time lump-sum longevity bonus for eligible ERS retirees and beneficiaries, with the bonus calculated as either $2 per month times years of service or a minimum of $300, whichever is higher; some beneficiaries receive a flat $300. Eligibility and payment timing depend on whether the retiree’s employer participates in ERS and whether the employer elects to bring itself under this act, with costs borne by the employer if they opt in. Medicaid rules exclude people whose eligibility would be impaired by the bonus, and the state ERS Board would determine the total cost and how it is funded, with payments scheduled in 2022 and 2023 depending on the group.

Who It Affects

• Retirees and beneficiaries who are receiving ERS benefits and whose employers do not participate in ERS (or who are otherwise eligible under the non-participating rules) would receive a funded longevity bonus, with the amount based on years of service or a $300 minimum.
• Local government employers (cities, towns, counties, and similar organizations) and other employers that participate in ERS would have to decide by a deadline whether to come under the act; if they do, they must fund the longevity bonus for their retirees/beneficiaries and may face increased employer contributions to cover the cost.

Key Provisions

• Section 1 creates a funded one-time longevity bonus for eligible retirees/beneficiaries whose employer did not participate in ERS, with bonus = max($2 per month times years of service, $300) and inclusion of service credits (including state police/Hazardous Duty) in the calculation.
• Section 2 allows employers who participate in ERS to elect by August 31, 2022 to come under the act; if they do, they bear the cost of the longevity bonuses for their retirees/beneficiaries and eligible surviving beneficiaries receive the $300 bonus, with payment timing in line with the act.
• Section 3 extends eligibility to retirees/annuitants who left a non-ERS employer (local government or quasi-public entity) before joining ERS, provided the employer elects to come under the act; such employers must fund the bonus and provide service credit information for eligible annuitants.
• Section 4 excludes individuals whose Medicaid eligibility would be impaired by the longevity bonus from receiving the increase.
• Section 5 directs the ERS Board to determine the total cost of the longevity bonuses and notify each employer; employers may pay in a lump sum or, for FY 2024 onward, fund the increase through the same source used for paying salaries.
• Section 6 sets the timing of payments: April 2022 for most recipients, October 2022 for those with ERS-participating employers who elect to participate.
• Section 7 makes the act effective immediately after passage and approval.

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

Subjects

Community Development Districts