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HB138 ENROLLED
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HB138
YM49862-2
By Representative Paschal
RFD: Ways and Means Education
First Read: 13-Jan-26
PFD: 09-Jan-26
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HB138 Enrolled
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PFD: 09-Jan-26
Enrolled, An Act,
Relating to retired state employees; to amend Section
36-27-8.2, as last amended by Act 2025-409, Code of Alabama
1975, to further provide for employment authorized for certain
retirees of the Employees' Retirement System or Teachers'
Retirement System.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Section 36-27-8.2, as last amended by Act
2025-409, 2025 Regular Session, Code of Alabama 1975, is
amended to read as follows:
"§36-27-8.2
(a) Any individual who is retired under the Employees'
Retirement System may perform duties in any capacity,
including as an independent contractor, with any employer
participating in the Employees' Retirement System or the
Teachers' Retirement System without suspension of his or her
retirement allowance provided that: (i) the individual is not
employed in a permanent full-time capacity; and (ii) the
individual's compensation from the employer in calendar year
2016 does not exceed thirty thousand dollars ($30,000).
Beginning in calendar year 2017, and each calendar year
thereafter, the annual earning limit shall be increased by the
same percentage increase as the increase in the Consumer Price
Index for all urban consumers as published by the U.S.
Department of Labor, Bureau of Labor Statistics. Any increase
in the annual earning limit shall be rounded to the next
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in the annual earning limit shall be rounded to the next
lowest multiple of one thousand dollars ($1,000) with any
amount in excess of the one thousand dollar ($1,000) multiple
considered in determining the increase for the following year.
Each adjustment shall be based on the increase in the index
for the preceding 12-month period ending on September 30 and
the increase shall be effective for the following calendar
year.
(b) Any individual serving as an elected official who
has retired from the Employees' Retirement System may serve
for his or her full compensation in an elected public office
with the state, a county, or an incorporated municipality
without suspension of retirement benefits ;, provided , that
under no circumstances shall such an individual participate in
or accrue additional benefits under the Teachers' Retirement
System or the Employees' Retirement System for that service,
and provided that under no circumstances shall an individual
whose retirement is based upon service as an elected official
continue in or return to the office and receive both pension
benefits and salary. Any provision of this subsection to the
contrary notwithstanding, a retiree serving as a local elected
superintendent of education shall not receive both pension
benefits and salary unless his or her compensation as a local
elected superintendent of education does not exceed the annual
earning limits provided in subsection (a).
(c) The responsibility for compliance with this section
is placed upon the employing authority, and each retiree
performing duties under this section shall certify to the
employer any information required in order to carry out this
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employer any information required in order to carry out this
section. The retiree shall provide written notice of the
postretirement employment under this section to the Employees'
Retirement System and employing authority within 30 days after
the date the retiree knows or should know that he or she will
be performing duties on a full-time or permanent basis or will
earn an amount in excess of the annual earning limit under
this section.
(d)(1) Any individual who is retired under the
Employees' Retirement System or the Teachers' Retirement
System, has the applicable Alabama Peace Officers' Standards
and Training certification, and was classified as either a law
enforcement officer, as defined in Section 36-27-59, or a
state policeman, as defined in Section 36-27-1, prior to
retirement, may perform duties as any of the following a
school resource officer, as defined in Section 16-1-44.1, a
correctional officer with the Department of Corrections, or a
police officer at any state college or university pursuant to
Section 16-22-1 without suspension of his or her retirement
allowance, provided that the compensation earned does not
exceed fifty-two thousand dollars ($52,000) per year :
a. A school resource officer, as defined in Section
16-1-44.1.
b. A correctional officer with the Department of
Corrections.
c. A police officer at any state college or university
pursuant to Section 16-22-1.
d. A sheriff's deputy.
e. A municipal police officer .
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e. A municipal police officer .
f. A law enforcement officer, as defined in 36-27-59.
g. A state policeman, as defined in Section 36-27-1.
(2) Any individual who is retired under the Employees'
Retirement System, has the applicable Alabama Peace Officers'
Standards and Training certification, and meets any both of
the following criteria may perform duties as a correctional
officer with the Department of Corrections without suspension
of his or her retirement allowance, provided that the
compensation earned does not exceed fifty-two thousand dollars
($52,000) per year:
a. Was classified as a law enforcement officer, as
defined in Section 36-27-59, prior to retirement.
b.a. Was classified as a state policeman, as defined in
Section 36-27-1, prior to retirement Has the applicable Alabama
Peace Officers' Standards and Training certification .
c.b. Was classified as a correctional officer, as
defined in Section 36-27-59, prior to retirement, and retired
pursuant to Section 36-27-16(a)(1)c.
(3) Any individual who is retired under the Employees'
Retirement System, who has both the applicable Alabama
Firefighters' Personnel Standards and Education Commission
certification and the applicable State Board of Health
certification as a firefighter and an emergency medical
services personnel, as defined in Section 36-27-59, prior to
retirement, may perform duties as a firemedic without
suspension of his or her retirement allowance , provided that
the compensation earned does not exceed fifty-two thousand
dollars ($52,000) per year, commensurate with the work
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dollars ($52,000) per year, commensurate with the work
actually performed.
(4) The minimum number of years of service required to
qualify to perform duties without suspension of retirement
benefits under subdivisions (d)(1), (d)(2), and (d)(3) shall
be adjusted as follows:
a. A minimum of 25 years of service on January 1, 2027.
b. A minimum of 26 years of service on January 1, 2028.
c. A minimum of 27 years of service on January 1, 2029.
d. A minimum of 28 years of service on January 1, 2030.
e. A minimum of 29 years of service on January 1, 2031.
f. A minimum of 30 years of service on January 1, 2032,
and each year thereafter.
(5)a. Any individual who is retired under the
Employees' Retirement System or Teachers' Retirement System
with a minimum of 25 years of service and is licensed to
practice law in this state may perform duties as an assistant
district attorney without suspension of his or her retirement
allowance, provided the compensation does not exceed fifty-two
thousand dollars ($52,000) per year.
b. The minimum number of years of service required to
qualify to perform duties without suspension of retirement
benefits under this subdivision shall be adjusted as follows:
1. A minimum of 26 years of service on January 1, 2028.
2. A minimum of 27 years of service on January 1, 2029.
3. A minimum of 28 years of service on January 1, 2030.
4. A minimum of 29 years of service on January 1, 2031.
5. A minimum of 30 years of service on January 1, 2032,
and each year thereafter.
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and each year thereafter.
(6)a. Any individual who is retired under the
Employees' Retirement System or Teachers' Retirement System
may be hired and perform duties as a permanent full-time bus
driver without suspension of his or her retirement allowance,
provided the compensation does not exceed the earnings limit
established in subsection (a) and the individual has drawn his
or her retirement benefit for 12 consecutive months.
b. Notwithstanding paragraph a., an individual who
retired under the Employees' Retirement System or the
Teachers' Retirement System on or before January 1, 2026, may
be hired and perform duties as a permanent full-time bus
driver even if he or she has not drawn his or her retirement
benefit for 12 consecutive months, provided all other
conditions of this subsection are met.
(4) (7) This subsection shall have retroactive
application to January 1, 2023, and no No individual may be
employed pursuant to this subsection after December 31,
20302032."
Section 2. This act shall become effective on June 1,
2026.
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2026.
________________________________________________
Speaker of the House of Representatives
________________________________________________
President and Presiding Officer of the Senate
House of Representatives
I hereby certify that the within Act originated in and
was passed by the House 22-Jan-26.
John Treadwell
Clerk
Senate 05-Mar-26 Amended and Passed
House 12-Mar-26 Concurred in Senate
Amendment
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