Bill > HB470

This bill amends existing Alabama law to allow retired state employees, including those retired from the Employees' Retirement System (ERS) and the Teachers' Retirement System (TRS), to return to work under certain conditions without their retirement benefits being suspended. Specifically, it introduces a new provision allowing retirees to work in any capacity, even as independent contractors, for employers participating in ERS or TRS, provided they have received retirement benefits for 12 consecutive months, commit to working for three consecutive years, and contribute a specified percentage of their earnings to support the retirement system's administrative costs, with this percentage set by the Board of Control. This new provision exempts these returning retirees from the previously established annual earning limits. The bill also clarifies that individuals returning to work under these new conditions cannot accrue additional retirement benefits for that service. Additionally, it modifies rules for elected officials who are retired, allowing them to serve in elected office and receive their full compensation without benefit suspension, with specific exceptions for local elected superintendents of education regarding earning limits. The responsibility for ensuring compliance is placed on the employing authority, and retirees must notify the retirement system and their employer of their post-retirement employment. The bill also retains and slightly modifies provisions allowing certain retired law enforcement officers, correctional officers, and firemedics to return to specific roles with an increased annual earning limit of $52,000, with retroactive application to January 1, 2023, and a sunset date of December 31, 2030. This act is set to become effective on October 1, 2026.

Budget and Finance

https://alison.legislature.state.al.us/bill-search