Title
A Resolution Authorizing Retiree Bonus (ACT 2026-608)
Summary
Description of Topic: (who, what, where, when, why and how much)
Act 2026-608 authorizes cities participating in the Employee's Retirement Systems (ERS) of Alabama to fund a one-time bonus to retired members and beneficiaries of deceased retirees who retired prior to October 1, 2025 and are entitled to receive a monthly retirement benefit from ERS on September 30, 2026. Estimate cost for the City of Foley to fund this one-time bonus is $24,587 which will require 0.10% to be added to your agency's employer contribution rate effective for the one year period from October 1, 2027 - September 30, 2028, or you may submit a one-time lump sum payment remitted with the resolution to cover the cost.
Budgetary Impact:
Non-Capital Item:
____ Budgeted under account #_______________ (discussion item)
____ Not budgeted, requesting transfer of $__________ from Account #______________ to Account #_____________.**Request to Transfer Departmental Budget Dollars form must be attached**
_x___ Not budgeted requiring increase to account #100-9022-5006 in the amount of $24,587 **Request to Increase Departmental Budget Dollars form must be attached**
Capital - Departmental **Capital Purchase Worksheet form must be attached**
____ Budgeted under account #______________ for $_________ and described in budget as ________________________. Additional amount needed, if any: Increase in budget of $_________ OR, transfer of $________ from Account #____________ to Account #_____________**Request to Increase OR Request toTransfer Departmental Budget Dollars form must be attached**
____ Not Budgeted - account #____________ requires budget increase of $_____________.**Request to Increase Departmental Budget Dollars form must be attached**
Capital Project - **If requesting to start a project, a Capital Project Worksheet form must be attached**
In current year Capital Projects Plan:
_____ Yes, described as __________________________, planned amount $___________, requesting $_________ as total project estimate, including contingencies, under account #_________________
_____ No, requesting $___________ as total project estimate, including contingencies, under account #____________________.
_____ No, requesting an increase of $___________ to an already approved project titled ________________________ that is being tracked under Account No. ___________________.
Body
WHEREAS, Act 2026-608 authorizes cities participating in the Employee's Retirement Systems (ERS) of Alabama to fund a one-time bonus to retired members and beneficiaries of deceased retirees who retired prior to October 1, 2025 and are entitled to receive a monthly retirement benefit from ERS as of September 30, 2026, and
WHEREAS, the estimated cost for the City of Foley to fund this one-time bonus is $24,587.00 which will require 0.10% to be added to the City's employer contribution rate effective for a one year period from October 1, 2027 - September 30, 2028, or the City may submit a one-time lump sum payment remitted with the resolution to cover the cost.
NOW THEREFORE BE IT RESOLVED that the City of Foley, through its governing authority, elects to come under the provisions of Section 2 of Act 608 of the Regular Session of the 2026 Legislature.
SECTION 1: The City of Foley agrees to provide all funds necessary to the Employees’ Retirement System to cover the cost of the one-time lump sum payment as provided for by this Act for those eligible retirees and beneficiaries of deceased retirees of the City of Foley with the aforementioned lump sum payment being received by ERS on or prior to August 31, 2026.
SECTION 2: Approves funding in the amount of $24,587.00 to account #100-9022-5006 Retiree Bonuses.
SECTION 3: This Resolution shall become effective immediately upon its adoption as required by law.