AL HB404

Provides a one-time longevity bonus to retirees and beneficiaries of the Employees' Retirement System with retirement effective dates prior to March 1, 2022, calculated at $2 per month for each year of service.

Applies to most state retirees automatically, but employers under certain sections of law (36-27-6, 36-27-7, 36-27-7.1) must elect participation by August 31, 2022, and bear the full cost of bonuses for their retirees.

Beneficiaries of deceased members or retirees receive bonus payments under the same conditions; beneficiaries of pre-1975 pensioners receive a flat $300 bonus if the local employer elects to fund it.

Excludes individuals whose Medicaid eligibility would be impaired by the bonus, both for current recipients and those who subsequently apply for Medicaid.

Bonuses paid in April 2022 for most recipients and October 2022 for those whose employers participated under the specified statutory sections; employers may pay costs in lump sum or through increased rates during fiscal year 2023-2024.