HB176 Alabama 2023 Session

Summary

Primary Sponsor

Reed IngramRepresentative

Republican

Session

Regular Session 2023

Title

Relating to retirement; to extend the provisions of Act 2022-229 to allow local units participating in the Employees' Retirement System additional time to elect to come under the provisions of the act.

Summary

HB176 extends the deadline for local units in the Employees' Retirement System to elect to join Act 2022-229’s lump-sum retirement benefit provisions.

What This Bill Does

Extends the election deadline to October 31, 2023 for participating employers to come under Act 2022-229. If an employer elects by that date, lump-sum payments under Act 2022-229 will be paid in December 2023 to eligible recipients who are entitled to a lump-sum and are receiving a benefit as of April 1, 2023. The employer making the election must bear the cost of the lump-sum payments to its retirees, as provided in Act 2022-229. The act becomes effective immediately after passage.

Who It Affects

• Local units participating in the Employees' Retirement System: gain additional time to elect to come under Act 2022-229; if they elect, they trigger lump-sum payments to eligible retirees at the specified time and bear the payment costs.
• Retirees and beneficiaries eligible for lump-sum payments under Act 2022-229 and receiving a benefit as of April 1, 2023: eligible to receive those lump-sum payments in December 2023 if their local unit elects to come under Act 2022-229 by the deadline.
• Employers (local units) that elect to come under Act 2022-229: must pay the lump-sum payments to their retirees as outlined in Act 2022-229.

Key Provisions

• Section 1: Extends the applicability of Act 2022-229 to participating ERS employers who elect to come under its provisions by official resolution on or before October 31, 2023; upon election, lump-sum payments will be made to eligible recipients in December 2023.
• The lump-sum payments are limited to those eligible recipients who are entitled to a lump-sum under Act 2022-229 and are receiving a benefit as of April 1, 2023.
• The cost of the lump-sum payments shall be borne by the employer making the election, as provided in Act 2022-229.
• Section 2: The act becomes effective immediately following passage and approval.

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