Alabama § 45-8A-22.121 Partial Lump Sum Option

Alabama Statutes

§ 45-8A-22.121 — Partial Lump Sum Option

Alabama § 45-8A-22.121

JurisdictionAlabama

Title 45Local Laws

Ch. 8ACalhoun County Municipalities

Art. 2Anniston

Part 3Employees

Subpart 3Police and Firefighters Retirement System

This text of Alabama § 45-8A-22.121 (Partial Lump Sum Option) is published on Counsel Stack Legal Research, covering Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ala. Code § 45-8A-22.121 (2026).

Text

(a)Notwithstanding Section 45-8A-22.120, effective with respect to distributions before October 1, 2012, a participant may elect to receive a partial lump sum option whereby the amount of his or her monthly retirement benefit shall be reduced, in return for the payment to the participant of a lump sum amount, in cash, at the time his or her monthly pension is first payable. The participant may elect to receive the lump sum, which is based on the reduced amount of his or her regular monthly benefit, before any reduction for survivor benefits, for life multiplied by the specified number of months, as set forth below: Reduction Factor Multiplier 0.91 12 months 0.83 24 months 0.77 36 months 0.71 48 months 0.67 60 months Lump Sum Benefit = Monthly Retirement Benefit X Reduction Factor X Multip

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(a) Notwithstanding Section 45-8A-22.120, effective with respect to distributions before October 1, 2012, a participant may elect to receive a partial lump sum option whereby the amount of his or her monthly retirement benefit shall be reduced, in return for the payment to the participant of a lump sum amount, in cash, at the time his or her monthly pension is first payable. The participant may elect to receive the lump sum, which is based on the reduced amount of his or her regular monthly benefit, before any reduction for survivor benefits, for life multiplied by the specified number of months, as set forth below:
Reduction Factor
Multiplier
0.91
12 months
0.83
24 months
0.77
36 months
0.71
48 months
0.67
60 months
Lump Sum Benefit = Monthly Retirement Benefit X Reduction Factor X Multiplier
The monthly benefit then shall be reduced appropriately for survivor benefit options.
(b) Effective with respect to distributions on and after October 1, 2012, the plan does not provide a partial lump sum distribution option; rather all distributions shall be made in accordance with Section 45-8A-22.120.