SB57 Summary

• Allows retirement system members to designate that a portion of their retirement benefits be paid to a special needs trust established for a dependent child rather than directly to the member or beneficiary.

• Applies to special needs trusts established under Title 42, United States Code, Section 1396p(d)(4)(A) or (C), which are commonly used to protect eligibility for means-tested government benefits like Medicaid and SSI.

• Members may direct benefits to the trust during their lifetime or after death through written direction to the retirement system, and the designated person or their legal representative can authorize payments if the beneficiary is a minor or incapacitated.

• Amends three sections of Alabama's Retirement Systems code: the Judges and Clerks Retirement System (§12-18-156), the Teachers' Retirement System (§16-25-14), and the Employees' Retirement System (§36-27-16).

• Effective on the first day of the third month following passage and approval by the Governor.