The bill proposes a one-time longevity bonus payment for retirees and beneficiaries of the Teachers' Retirement System in Alabama for the fiscal year 2026-2027. Specifically, it stipulates that individuals who retired before May 1, 2026, and are receiving or entitled to receive a monthly allowance from the system on September 30, 2026, will receive a lump-sum payment calculated at one dollar ($1) per month for each year of service. This payment will also extend to beneficiaries of deceased members or retirees who meet the same criteria. The bill clarifies that service includes specific sections of the Code of Alabama 1975 and outlines that individuals whose Medicaid eligibility would be affected by this bonus will not be entitled to receive it.

Additionally, the bill states that the necessary funds for these payments will be appropriated to the Teachers' Retirement System through HB238 during the 2026 Regular Session, but it does not intend to make direct appropriations itself. The longevity bonus payments are scheduled to be distributed to eligible recipients in October 2026. The act will take effect on October 1, 2026.

Statutes affected:
Introduced: 16-25-1, 16-25-150
Engrossed: 16-25-1, 16-25-150