During its meeting on Aug. 2, the Mobile City council could consider a proposal from Mayor Sandy Stimpson to give retired city employees and retired first responders a one-time bonus.
Earlier this year, the Alabama Legislature gave cities and counties the ability to extend bonuses to retirees in the Retirement Systems of Alabama. The bonus amounts to $2 for every month of service. That would mean a $600 bonus for retirees with 25 years of service, or $720 for members with 30 years of service. If the council approves Mayor Stimpson’s proposal, retired city employees will receive bonuses in October.
The item is a first read. Per council rules all first-read items are held over for at least one week, unless there is unanimous consent to hold a vote early.
Because former police officers and firefighters are not part of the RSA system, Mayor Stimpson is also proposing an equivalent bonus to eligible members and surviving beneficiaries of the city’s Police and Fire Pension Fund. During tomorrow’s meeting, the council will consider both proposed bonuses.
“This is the first bonus that we’ve been authorized to give RSA retirees in more than 15 years, and we’re grateful to the state legislature for giving us the ability to do this,” Stimpson said in a statement. “We also want to ensure our retired first responders receive the same bonus as well. Given the rising cost of living and national challenges with inflation, these bonuses could not have come at a better time.”
The one-time bonus for city retirees will cost approximately $470,000, which the City will pay incrementally through its annual contributions to the RSA system. The bonus for police and fire retirees will come from the city’s general fund surplus and cost an estimated $465,000.
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