SB 380

SB380 ENGROSSED
1 SB380
2 PSF3QEG-2
3 By Senators Orr, Stutts, Barfoot, Butler, Carnley, Weaver,
4 Price, Sessions, Melson, Bell, Waggoner, Smitherman, Kitchens,
5 Figures, Stewart, Hatcher, Coleman, Coleman-Madison, Beasley,
6 Singleton, Jones, Woods, Gudger, Livingston, Williams,
7 Elliott, Chesteen, Kelley, Hovey, Chambliss, Albritton, Allen
8
9 RFD: Finance and Taxation Education
10 First Read: 31-Mar-26
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5A BILL
6TO BE ENTITLED
7AN ACT
8
9Relating to the Teachers' Retirement System; to provide
10 for a funded one-time longevity bonus payment in addition to
11 the retirement benefits of certain retirees and beneficiaries
12 of the Teachers' Retirement System.
13 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
14Section 1. (a) There is provided for fiscal year
15 2026-2027 a funded one-time, lump-sum payment, hereinafter
16 referred to as longevity bonus payment, to each individual
17 whose effective date of retirement for purposes of receiving
18 benefits from the Teachers' Retirement System is prior to May
19 1, 2026, and is receiving, or is entitled to receive, a
20 monthly allowance from the Teachers' Retirement System on
21 September 30, 2026.
22(b) The formula for calculating the longevity bonus
23 payment shall be one dollar ($1) per month for each year of
24 service attained by the retiree.
25(c) Beneficiaries of deceased members or deceased
26 retirees, if the beneficiary is receiving or is entitled to
27 receive a monthly allowance from the Teachers' Retirement
28 System on September 30, 2026, shall receive a longevity bonus
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29 payment of one dollar ($1) per month for each year of service
30 of the deceased member or deceased retiree.
31(d) For purposes of this section, service includes the
32 service under Section 16-25-1 and Article 9, commencing with
33 Section 16-25-150, Chapter 25, Title 16, Code of Alabama 1975.
34(e) Any individual who received benefits under the
35 Medicaid program, and whose eligibility for Medicaid benefits
36 would be impaired by the longevity bonus payment provided by
37 this section, shall not be entitled to receive the
38 aforementioned increase. Any individual who subsequently
39 applies for benefits under the Medicaid program, and that
40 individual's eligibility to receive benefits is impaired by
41 the longevity bonus payment provided by this section, shall
42 not be entitled to receive the increase subsequent to the date
43 that the member files application for benefits under the
44 Medicaid program.
45(f) The longevity bonus payments provided under this
46 section shall be paid to all eligible recipients by the
47 Teachers' Retirement System in October 2026.
48Section 2. It is not the intent of this act to make
49 appropriations, but the amount required to pay the cost of the
50 lump-sum payments provided under this act shall be
51 appropriated to the Teachers' Retirement System in HB238 of
52 the 2026 Regular Session.
53Section 3. This act shall become effective on October
54 1, 2026.
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57 Senate
58 Read for the first time and referred ................31-Mar-26
59 to the Senate committee on Finance
60 and Taxation Education
61
62 Read for the second time and placed   ................01-Apr-26
63 on the calendar:
64  1 amendment
65
66 Read for the third time and passed    ................02-Apr-26
67 as amended
68Yeas 33
69Nays 0
70Abstains 0
71
72
73Patrick Harris,
74Secretary.
75
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