SB229 Alabama 2021 Session

Summary

Primary Sponsor

Del Marsh

Republican

Session

Regular Session 2021

Title

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

Summary

SB229 would create a funded, one-time longevity bonus for eligible Alabama Employees' Retirement System retirees and beneficiaries, paid by participating employers and distributed in December 2021.

What This Bill Does

It establishes a funded, one-time lump-sum longevity bonus for certain ERS retirees and beneficiaries for FY 2021-2022. The bonus is calculated as either $2 per month of service (times years of service) or $300, whichever is greater, with a $300 bonus for beneficiaries of deceased members. Employers must elect to participate by Oct 31, 2021; if they do, they bear the cost for their retirees and beneficiaries. The bonus is paid by the ERS in December 2021, and Medicaid rules may exclude some individuals from receiving it.

Who It Affects

• ERS retirees who retired before June 1, 2021 and are receiving or entitled to receive a monthly benefit as of November 30, 2021 (if their employer elects to participate).
• Beneficiaries of deceased ERS members or retirees who are receiving or entitled to receive a monthly benefit as of November 30, 2021 (if the deceased member retired under an employer that elects to participate).
• Employers that participate in the ERS (under specified laws) and choose to come under this act by October 31, 2021; these employers pay the cost of the bonus for their retirees/beneficiaries.
• Local units (cities, towns, counties, or public/quasi-public organizations) whose retirees are covered by ERS and who elect to fund the bonus for their retirees.
• Individuals whose Medicaid eligibility would be impaired by the longevity bonus (they are not eligible to receive the bonus).

Key Provisions

• Provides a funded one-time lump-sum longevity bonus for eligible ERS retirees and beneficiaries for fiscal year 2021-2022.
• Bonus amount is two dollars ($2) per month of service (times years of service) or $300, whichever is greater; beneficiaries of deceased members receive $300.
• Eligibility depends on retirement date (prior to June 1, 2021) and being receiving or entitled to receive monthly benefits on November 30, 2021; employer must elect to participate by October 31, 2021.
• Employers that elect to participate bear the cost of the bonus for their retirees/beneficiaries; local units may fund bonuses for their retirees.
• The Employees' Retirement System pays the bonuses in December 2021; the Board of Control determines the total cost and notifies each employer.
• Medicaid rules may exclude individuals from receiving the bonus if it would impair eligibility.

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