HB155 Alabama 2022 Session

Summary

Primary Sponsor

Corley EllisRepresentative

Republican

Session

Regular Session 2022

Title

Retirement System of Alabama, surviving spouse benefit of a retirement eligible member who dies in active service, benefit-option amended under District Attorneys' Plan, Judges' and Clerks' Plan, Teachers' and Employees' Retirement System, Secs. 12-17-277.6, 12-18-156, 16-25-14, 36-27-16 am'd.

Summary

HB155 updates survivor benefits for spouses of retirement-eligible members who die in active service across four Alabama retirement systems, with retroactive applicability.

What This Bill Does

It changes how survivor benefits are calculated for spouses or designated beneficiaries when a member dies in active service, allowing payment as if the member had retired and chosen certain options, or a lump-sum up to $5,000 from accumulated contributions (or the related 36-27B-3 benefit). It also adds and describes flexible retirement benefit options (including a new Option 5 with a partial lump sum) and establishes rules for designating replacement beneficiaries and making actuarial adjustments to ensure costs are covered. The changes apply retroactively to January 1, 2021.

Who It Affects

• Surviving spouses or other designated beneficiaries of retirement-eligible members in the District Attorneys' Plan, Judges' and Clerks' Plan, Teachers' Retirement System, and Employees' Retirement System who die in active service, who would receive revised survivor benefits.
• Members and their designated beneficiaries who may elect, change, or replace retirement benefit options and beneficiaries (including replacement beneficiaries and special needs trust provisions).

Key Provisions

• Retroactive effective date for the changes: January 1, 2021 (as stated in the act).
• Survivor allowances upon death in active service: surviving spouse or designee may receive the amount that would have been payable if the member had retired immediately before death and had elected Option 2 or Option 3, or take the accumulated contributions plus up to $5,000 or the Section 36-27B-3 benefit.
• Optional allowances: creation and details of Options 1-4 (and 5 in some sections) for retirement payments, including a new Option 5 allowing a partial lump-sum distribution not available to disability retirees.
• Replacement beneficiary rules: if a designated beneficiary predeceases or the surviving spouse divorces, a replacement beneficiary can be designated to take effect two years after designation, with actuarial adjustments to the retiree's monthly benefits to cover associated costs; special needs trust provisions are included.
• Disability and restoration provisions: if a beneficiary is restored to active service, retirement benefits are suspended and must be repaid if restoration occurs; the system may allow restoration after meeting requirements.

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

Subjects

Retirement