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SB380 ENGROSSED
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SB380
PSF3QEG-2
By Senators Orr, Stutts, Barfoot, Butler, Carnley, Weaver,
Price, Sessions, Melson, Bell, Waggoner, Smitherman, Kitchens,
Figures, Stewart, Hatcher, Coleman, Coleman-Madison, Beasley,
Singleton, Jones, Woods, Gudger, Livingston, Williams,
Elliott, Chesteen, Kelley, Hovey, Chambliss, Albritton, Allen
RFD: Finance and Taxation Education
First Read: 31-Mar-26
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SB380 Engrossed
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First Read: 31-Mar-26
A BILL
TO BE ENTITLED
AN ACT
Relating to the Teachers' Retirement System; to provide
for a funded one-time longevity bonus payment in addition to
the retirement benefits of certain retirees and beneficiaries
of the Teachers' Retirement System.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. (a) There is provided for fiscal year
2026-2027 a funded one-time, lump-sum payment, hereinafter
referred to as longevity bonus payment, to each individual
whose effective date of retirement for purposes of receiving
benefits from the Teachers' Retirement System is prior to May
1, 2026, and is receiving, or is entitled to receive, a
monthly allowance from the Teachers' Retirement System on
September 30, 2026.
(b) The formula for calculating the longevity bonus
payment shall be one dollar ($1) per month for each year of
service attained by the retiree.
(c) Beneficiaries of deceased members or deceased
retirees, if the beneficiary is receiving or is entitled to
receive a monthly allowance from the Teachers' Retirement
System on September 30, 2026, shall receive a longevity bonus
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System on September 30, 2026, shall receive a longevity bonus
payment of one dollar ($1) per month for each year of service
of the deceased member or deceased retiree.
(d) For purposes of this section, service includes the
service under Section 16-25-1 and Article 9, commencing with
Section 16-25-150, Chapter 25, Title 16, Code of Alabama 1975.
(e) Any individual who received benefits under the
Medicaid program, and whose eligibility for Medicaid benefits
would be impaired by the longevity bonus payment provided by
this section, shall not be entitled to receive the
aforementioned increase. Any individual who subsequently
applies for benefits under the Medicaid program, and that
individual's eligibility to receive benefits is impaired by
the longevity bonus payment provided by this section, shall
not be entitled to receive the increase subsequent to the date
that the member files application for benefits under the
Medicaid program.
(f) The longevity bonus payments provided under this
section shall be paid to all eligible recipients by the
Teachers' Retirement System in October 2026.
Section 2. It is not the intent of this act to make
appropriations, but the amount required to pay the cost of the
lump-sum payments provided under this act shall be
appropriated to the Teachers' Retirement System in HB238 of
the 2026 Regular Session .
Section 3. This act shall become effective on October
1, 2026.
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1, 2026.
Senate
Read for the first time and referred
to the Senate committee on Finance
and Taxation Education
................31-Mar-26
Read for the second time and placed
on the calendar:
1 amendment
................01-Apr-26
Read for the third time and passed
as amended
Yeas 33
Nays 0
Abstains 0
................02-Apr-26
Patrick Harris,
Secretary.
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