SB172 Alabama 2021 Session

Summary

Primary Sponsor

Bobby D. SingletonSenator

Democrat

Co-Sponsors

Linda Coleman-MadisonVivian Davis FiguresRandy PriceJack W. Williams

Session

Regular Session 2021

Title

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

Summary

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

What This Bill Does

For fiscal year 2021-2022, it provides a funded one-time lump-sum payment to retirees who retired before April 30, 2021 and are receiving monthly TRS benefits by June 30, 2021, with at least 10 years of service. The amount is $3 per month of service, with a minimum of $360. Beneficiaries of deceased members or retirees with death before April 30, 2021 who are receiving monthly benefits by June 30, 2021 would get a $300 lump-sum. There is also a separate funded lump-sum payment in 2021-2022 for individuals identified in subsection (f) related to Medicaid considerations. Payments must be made by December 15, 2021, and funding is to be provided through the Education Trust Fund in the 2022 budget act, not via a separate appropriation. The act takes effect immediately upon passage.

Who It Affects

• TRS retirees with at least 10 years of service who retired before April 30, 2021 and are receiving monthly TRS benefits by June 30, 2021
• Beneficiaries of deceased TRS members or deceased retirees whose death or retirement occurred before April 30, 2021 and who are receiving monthly TRS benefits by June 30, 2021

Key Provisions

• Eligibility: retirement date before 4/30/2021, receiving monthly TRS benefits by 6/30/2021, and at least 10 years of service
• Amount for retirees: $3 per month of service, with a minimum of $360
• Amount for beneficiaries: $300 lump-sum if death/retirement occurred before 4/30/2021 and monthly benefits by 6/30/2021
• Medicaid exclusion: individuals whose Medicaid eligibility would be impaired by the lump-sum are not entitled
• Payment deadline: lump-sums paid by December 15, 2021
• Funding: not an independent appropriation; funded in the 2022 Education Trust Fund budget act
• Additional provision: a funded one-time lump-sum payment in 2021-2022 for individuals identified in subsection (f) related to Medicaid considerations
• Effective date: effective immediately upon passage

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

Subjects

Teachers' Retirement System