HB342 Summary

• Provides an optional one-time lump-sum payment to eligible retirees and beneficiaries of the Alabama Employees' Retirement System for fiscal year 2017-2018.

• Lump-sum payment calculated as $2 per month for each year of service or $300, whichever is greater; beneficiaries of deceased members receive a flat $300 payment.

• Employers must elect to participate by October 31, 2017, and bear the full cost of lump-sum payments to their retirees and beneficiaries.

• Eligible recipients must have retired prior to May 1, 2017, and be receiving or entitled to receive monthly benefits on November 30, 2017; applies to retirees under various sections of the Alabama Code and includes hazardous duty credit.

• All eligible lump-sum payments to be distributed by the Employees' Retirement System in December 2017; Medicaid recipients whose benefits would be impaired by the payment are excluded from receiving the increase.