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Hoover staff recommends opting into state law for one‑time retiree lump‑sum benefit
Summary
City staff recommended the council opt into Act 2026‑608 to provide a one‑time lump‑sum benefit for eligible retirees and beneficiaries; staff estimated the city cost at just over $143,000 and said it would cover roughly 403 retirees, with the amount included in the forthcoming budget amendment.
The CFO told the council the legislature authorized Act 2026‑608, allowing municipalities to opt in to fund a one‑time lump‑sum payment for eligible retirees and beneficiaries; staff recommended Hoover participate.
"This is the 1 time lump sum benefit for the current retirees... it's just over a $143,000," Dr. Lopez said, and added staff estimated it would cover "up close to 403 retirees." The CFO said the city has historically opted into similar one‑time benefits when the legislature made them available.
A councilor said they would abstain from the vote on the item. Staff said the payment will also be reflected in the budget amendment presented during the work session and that city participation is optional under the state law; no formal action was taken during the work session.
