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HB470 INTRODUCED
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HB470
DGCB3HN-1
By Representative Robbins
RFD: Ways and Means Education
First Read: 17-Feb-26
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DGCB3HN-1 02/17/2026 GP (L)lg 2026-760
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First Read: 17-Feb-26
SYNOPSIS:
Under existing law, individuals retired under
the Employees' Retirement System may return to work in
a part-time capacity without suspension of his or her
retirement allowance, provided the individual is
subject to an annual earning limit.
This bill would authorize any individual who has
been retired under the Employees' Retirement System or
the Teachers' Retirement System for at least 12 months
to return to work for either system without suspension
of his or her retirement benefits, with no regard for
the annual earning limit, but would prohibit the
individual from accruing additional retirement
benefits.
This bill would provide that such an individual
must commit to employment for three consecutive years.
This bill would also require the Board of
Control to establish a percentage of earnable
compensation that each individual returning to work
pursuant to this bill must pay to support the
administration of the retirement system.
A BILL
TO BE ENTITLED
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TO BE ENTITLED
AN ACT
Relating to retired state employees; to authorize
certain retired state employees to return to work, subject to
certain conditions; and to require the Board of Control to
establish a percentage which such employees must pay to
support the administration of the retirement system.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Section 36-27-8.2, Code of Alabama 1975, as
last amended by Act 2025-409, 2025 Regular Session, 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
lowest multiple of one thousand dollars ($1,000) with any
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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)(1) Any individual who is retired under the
Employees' Retirement System or Teachers' 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 benefits
and without regard for the annual earning limit described in
subsection (a), provided that the individual meets all of the
following criteria:
a. The individual has drawn his or her retirement
benefit for 12 consecutive months.
b. The individual commits to working for that employer
for three consecutive years.
c. The individual pays an amount equal to a specified
percentage of the individual's earnable compensation to
support the administrative expenses of the retirement system.
The percentage rate shall be fixed by the Board of Control and
may not be recouped to the individual.
(2) An individual employed pursuant to this section may
not participate in or accrue additional benefits under the
Employees' Retirement System or the Teachers' Retirement
System for that service.
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System for that service.
(c) 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).
(d)(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 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.
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this section.
(e)(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 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.
(2) Any individual who is retired under the Employees'
Retirement System, has the applicable Alabama Peace Officers'
Standards and Training certification, and meets any 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. Was classified as a state policeman, as defined in
Section 36-27-1, prior to retirement.
c. 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.
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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
actually performed.
(4) This subsection shall have retroactive application
to January 1, 2023, and no individual may be employed pursuant
to this subsection after December 31, 2030."
Section 2. This act shall become effective on October
1, 2026.
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