SB11 Alabama 2022 Session

Summary

Primary Sponsor

Del Marsh

Republican

Session

Regular Session 2022

Title

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

Summary

SB11 would provide a funded, one-time longevity bonus (lump-sum payment) to eligible Alabama Employees' Retirement System retirees and beneficiaries.

What This Bill Does

It creates a one-time longevity bonus for eligible ERS retirees and beneficiaries, with the bonus amount calculated as the greater of $2 per month for each year of service or $300. Beneficiaries of deceased members can also receive $300. Eligibility depends on retirement dates, current benefits, and whether the retiree’s or beneficiary’s employer participates in ERS and opts into the act. The cost is funded by participating employers, paid either as a lump sum or through higher employer contribution rates, and bonuses are scheduled to be paid in April 2022 (most recipients) or October 2022 for those employers that participate under the act; Medicaid eligibility rules may exclude some individuals from the increase.

Who It Affects

• ERS retirees with retirement dates prior to March 1, 2022 who are receiving monthly benefits as of March 30, 2022
• Beneficiaries of deceased ERS members or retirees who are receiving or entitled to receive monthly allowances as of March 30, 2022
• Employers that participated in ERS and elect to come under the act (by August 31, 2022), who must fund the bonus for their retirees/annuitants
• Local units (cities, towns, counties, or public/quasi-public organizations) that joined ERS and have eligible annuitants receiving benefits as of September 30, 2022, if their employer elects to fund the bonus
• Individuals whose Medicaid eligibility would be impaired by the bonus are not entitled to receive the increase

Key Provisions

• Provides a funded one-time lump-sum longevity bonus to eligible ERS retirees and beneficiaries
• Bonus calculation: greater of $2 per month for each year of service or $300; service includes certain creditable service and credits
• Beneficiaries of deceased members/retirees receive $300 if they are receiving or eligible to receive a monthly allowance as of the applicable date
• Employers must elect to participate under the act for their retirees/annuitants to receive the bonus, by a specified deadline (August 31, 2022) and will bear the cost
• The cost is determined by the ERS Board and charged to each employer; may be paid as a lump sum or via a higher employer contribution rate starting October 1, 2023
• Bonuses for eligible recipients are typically paid in April 2022; for those in participating employers, payment occurs in October 2022
• Medicaid-related eligibility cannot be impaired by the bonus; individuals affected would not receive the increase
• The act becomes effective immediately upon passage

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

Subjects

Employees' Retirement System