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HB138 • 2026

Retired state employees; certain supplemental work authorized

Retired state employees; certain supplemental work authorized

Education Labor
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Paschal
Last action
2026-03-26
Official status
Enacted
Effective date
2026-06-01

Plain English Breakdown

The full text regarding the exception for pre-2026 retirees working as bus drivers was truncated in the provided source material; however, the official bill summary confirms this group is excluded from the general rule.

HB138: Rules for Retired State Employees Returning to Work

This law allows certain retired state employees in Alabama to work again without losing their pension, but it sets specific job limits and raises the years of service needed over time.

What This Bill Does

  • Adds sheriff's deputies, municipal police officers, other law enforcement roles, and state policemen as jobs where retirees classified as such before retirement can work without stopping benefits.
  • Allows retired lawyers with at least 25 years of service to work as assistant district attorneys if they earn $52,000 or less per year.
  • Increases the required years of service for these special job exceptions by one each year until it reaches 30 years in 2032.
  • Permits retirees who have received benefits for 12 consecutive months to work as permanent full-time bus drivers if their pay stays under $52,000 annually.

Who It Names or Affects

  • Retired members of the Employees' Retirement System and Teachers' Retirement System.
  • Former law enforcement officers and state policemen who want to return to police work in specific roles.
  • Licensed attorneys with at least 25 years of service seeking assistant district attorney roles.
  • Bus drivers hired by employers participating in these retirement systems.

Terms To Know

Suspension
Temporarily stopping the payment of a pension or benefit while someone works again.
Annual compensation limit
The maximum amount of money, such as $52,000 for specific jobs, that a retiree can earn from new work without losing benefits.

Limits and Unknowns

  • Retirees who left their jobs on or before January 1, 2026, are not allowed to return as permanent full-time bus drivers unless they meet the specific exception noted in the law.
  • The annual earning limit for general work is adjusted yearly based on inflation and rounded down.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

YM49862-1

R 727 • Elliott

Adopted

Plain English: This amendment updates Alabama law to allow retired state employees and teachers to work in specific jobs while keeping their pension, as long as they meet certain rules about job type and pay limits.

  • Retired workers can earn up to $30,000 in the year 2016 without losing benefits, with this limit increasing each year based on inflation starting in 2017.
  • Elected officials who are retired from state systems may keep their pension while serving in a new elected office if they do not earn extra retirement credits for that job.
  • Retired law enforcement officers can work as school resource officers, correctional officers, or police at colleges and universities with an annual pay limit of $52,000.
  • Retired firefighters who hold specific certifications may return to work as firemedics without losing their pension if they earn no more than $52,000 per year.
  • The provided text is cut off at the end of Section (d)(4), so rules regarding minimum years of service required for these special jobs are not fully explained.
  • Some sentences in the amendment contain typos or formatting errors that make them difficult to read clearly, such as repeated words and mixed-up lettering.
NRVF2J8-1

V • Elliott

Adopted

Plain English: This amendment allows certain retired state employees to work in specific law enforcement or legal jobs without losing their pension, provided they meet strict experience and certification requirements.

  • Retired police officers with at least 25 years of service can now work as sheriff's deputies or municipal police officers if they earn less than $52,000 a year.
  • Qualified retired law enforcement officers may also serve as school resource officers, correctional officers, or university police without their retirement benefits being suspended.
  • Retired lawyers with at least 25 years of service can work as assistant district attorneys while keeping their pension, as long as they earn less than $52,000 annually.
  • The official text provided is cut off near the end and contains some unclear editing marks that make it impossible to fully explain all rules for correctional officers.
  • This explanation only covers the new jobs added by this amendment, not other existing work limits mentioned in the bill.

Bill History

  1. 2026-03-26 House

    Enacted

  2. 2026-03-17 Senate

    Signature Requested

  3. 2026-03-17 House

    Delivered to Governor

  4. 2026-03-17 House

    Enrolled

  5. 2026-03-12 House

    Paschal Concur In and Adopt - Adopted Roll Call 888 (Yeas 105, Nays 0)

  6. 2026-03-12 House

    Ready to Enroll

  7. 2026-03-05 Senate

    Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 728 (Yeas 31, Nays 0)

  8. 2026-03-05 Senate

    Elliott motion to Adopt - Adopted Roll Call 727 (Yeas 31, Nays 0)

  9. 2026-03-05 Senate

    Third Reading in Second House (Yeas 30, Nays 0)

  10. 2026-03-05 Senate

    Elliott 1st Substitute Offered

  11. 2026-03-05 Senate

    Elliott motion to Table - Adopted Voice Vote

  12. 2026-03-05 Senate

    Finance and Taxation Education 1st Substitute Offered

  13. 2026-02-12 Senate

    Read for the Second Time and placed on the Calendar

  14. 2026-02-11 Senate

    Reported Out of Committee Second House

  15. 2026-02-11 Senate

    Finance and Taxation Education 1st Substitute

  16. 2026-01-27 Senate

    Pending Committee Action in Second House

  17. 2026-01-27 Senate

    Read for the first time and referred to the Senate Committee on Finance and Taxation Education

  18. 2026-01-22 House

    Motion to Read a Third Time and Pass - Adopted Roll Call 143 (Yeas 103, Nays 0)

  19. 2026-01-22 House

    Third Reading in House of Origin (Yeas 103, Nays 0)

  20. 2026-01-20 House

    Read for the Second Time and placed on the Calendar

  21. 2026-01-20 House

    Reported Out of Committee House of Origin

  22. 2026-01-13 House

    Pending Committee Action in House of Origin

  23. 2026-01-13 House

    Read for the first time and referred to the House Committee on Ways and Means Education

Official Summary Text

This act amends Section 36-27-8.2, Code of Alabama 1975, to: (1) add sheriff's deputy, municipal police officer, law enforcement officer, and state policeman to the jobs to which retirees of the Employees' Retirement System and the Teachers' Retirement System classified as law enforcement officers or state policemen prior to retirement may work without suspension of their retirement pay and benefits; (2) authorize retirees of the Employees' Retirement System and the Teachers' Retirement System with 25 years of service and who are licensed to practice law to work as assistant district attorneys without suspension of their retirement pay and benefits so long as the annual compensation does not exceed $52,000; (3) increase the requisite years of service for certain of these retirees to qualify to return to work without suspension of retirement pay and benefits by 1 one each year until 30 years of service is required beginning January 1, 2032; and (4) authorize retirees of the Employees' Retirement System and the Teachers' Retirement System to work as a permanent full-time bus drivers without suspension of retirement pay and benefits so long as annual compensation does not exceed $52,000 and benefits have been drawn for 12 consecutive months, except for those who retired before January 1, 2026.

Current Bill Text

Read the full stored bill text
HB138 ENROLLED
Page 0
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
Page 1
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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