SB388 Summary

• Provides a one-time lump sum payment in fiscal year 2014-2015 to Teachers' Retirement System (TRS) retirees whose retirement date was before October 1, 2013, and who are receiving benefits as of September 30, 2014.

• Calculates lump sum payment as $4 per month for each year of service, or $1,200, whichever is greater.

• Provides beneficiaries of deceased TRS members or retirees (with death/retirement dates before October 1, 2013) a flat $1,200 lump sum payment if receiving benefits on September 30, 2014.

• Excludes individuals whose Medicaid eligibility would be impaired by the payment, and those who subsequently apply for Medicaid after receiving the lump sum.

• Requires TRS Board of Control to determine funding costs and notify employers of required rate increases for fiscal year 2014-2015, with payments distributed to eligible recipients in October 2014.