HB21 Summary

• Amends retirement provisions for the Teachers' Retirement System and Employees' Retirement System of Alabama by adding a new Option 5 allowing members to receive a partial lump-sum distribution as a single payment at retirement.

• Option 5 permits retiring members to receive a one-time lump-sum payment not exceeding 24 months of their maximum monthly retirement allowance, with the monthly retirement benefit reduced accordingly.

• This option may be elected in addition to other retirement options (Options 1-4) and can be combined with any selected option, but is not available to members receiving disability retirement.

• Implementation delayed until October 1, 2019, to allow the Retirement Systems of Alabama and Department of Finance time to establish procedures for administering the lump-sum distribution option.

• Act becomes effective immediately upon passage and gubernatorial approval.