DOTHAN, Ala. (WDNews) — Dothan officials are facing an Aug. 31 deadline to decide whether the city will provide a one-time bonus to eligible retired city employees.
The Alabama Legislature approved legislation allowing certain local governments to provide the one-time lump-sum payment to eligible retirees and beneficiaries.
Unlike the payment for eligible state retirees, local governments must choose whether to participate and provide the money needed to cover their retirees.
According to the Alabama Retired State Employees Association, the bonus is calculated at $1 for each month of a retiree’s credited service.
For example, a retiree with 25 years, or 300 months, of credited service would receive a $300 one-time payment.
For eligible local retirees to receive the bonus, the local governing body must adopt a resolution agreeing to participate and provide the required funding.
The deadline for local governments to adopt a resolution is Aug. 31.
The deadline creates a narrow window for Dothan officials because the city’s next regular commission meeting is scheduled for Sept. 8, after the participation deadline.
The Sept. 8 meeting was rescheduled from its normal Sept. 1 date because of the Labor Day holiday.
If Dothan chooses to participate before the deadline, eligible retirees and beneficiaries would receive the one-time payment through the Retirement Systems of Alabama.
The bonus is a one-time payment and does not permanently increase a retiree’s monthly retirement benefit.
