SB111 Alabama 2022 Session

Summary

Primary Sponsor

Greg AlbrittonSenator

Republican

Session

Regular Session 2022

Title

Employees' Retirement System, compensation, providing a longevity bonus addition to retirement benefits of certain retirees and beneficiaries

Summary

SB111 would provide a funded, one-time longevity bonus to certain Employees' Retirement System retirees and beneficiaries, with specific eligibility rules and funding arrangements.

What This Bill Does

The bill creates a one-time lump-sum longevity bonus calculated as $2 per month of service per year for eligible retirees and beneficiaries. Eligibility includes retirees who ended service before March 1, 2022 and are receiving ERS benefits as of March 30, 2022, plus certain beneficiaries, with variations depending on employer participation in ERS. Employers that participated in ERS can elect to come under the act by August 31, 2022 and would fund the bonus for their retirees and eligible beneficiaries, with payments scheduled for April 2022 (and October 2022 for groups under ERS-employers). The act also excludes individuals whose Medicaid eligibility would be impaired by the bonus and requires the cost to be determined by the ERS Board and funded by the applicable employers. Payments timing and funding methods may vary by group, and the measure becomes effective immediately upon governor's approval.

Who It Affects

• ERS retirees and beneficiaries who meet the eligibility criteria (retired before March 1, 2022 and receiving or eligible for monthly benefits on specified dates) and/or their eligible beneficiaries, depending on employer participation
• Employers and local units that participated in ERS and choose to come under this act by the August 31, 2022 deadline, since they must fund the longevity bonus (either via a lump-sum payment or through a higher employer rate) and provide service-credit information for eligible annuitants/pensioners

Key Provisions

• Provides a funded one-time longevity bonus to eligible ERS retirees and beneficiaries; amount is $2 per month of service per year of service
• Eligibility includes retirees with retirement date before March 1, 2022 and receiving ERS benefits as of March 30, 2022, plus certain beneficiaries of deceased members/retirees, with exceptions for certain employer participants
• Employer participation requirement: employers who participated in ERS under specific sections may elect to come under the act by August 31, 2022; they bear the cost of the bonuses for their retirees/beneficiaries
• Funding and cost determination: the ERS Board determines the total cost and notifies each employer; payments can be made as a lump-sum or, for the 2023 fiscal year, via an increased employer rate funded from the same source as active member salaries
• Payment timing: most bonuses paid in April 2022; bonuses for those under ERS-employers paid in October 2022
• Medicaid impairment provision: individuals whose Medicaid eligibility would be impaired by the bonus are excluded from receiving it
• Effective date: the act becomes effective immediately upon governor's 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

Employees' Retirement System