FISCAL NOTE

Senate Bill 30 as introduced grants a one-time lump-sum longevity bonus of $2 per month for each year of service attained, or $300, whichever is greater, to retirees of the Teachers’ Retirement System (TRS) whose effective date of retirement is prior to March 1, 2022, or their beneficiaries. The bonus will be granted in April 2022. According to the actuary for the Retirement Systems of Alabama, the bonus will cost an estimated $59.8 million and will be paid for by increasing the employer contribution rate by 0.82% in fiscal year 2024.

As amended and reported by the Committee on Finance and Taxation Education, removes the provision that would require retirees or their beneficiaries to receive a minimum bonus amount of $300. According to the actuary for the RSA the provisions of this bill will cost an estimated $58.4 million and will be paid for by increasing the employer contribution rate by 0.80% in fiscal year 2024.