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SB28 ENGROSSED
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SB28
W1JSNE9-2
By Senator Elliott
RFD: County and Municipal Government
First Read: 13-Jan-26
PFD: 04-Dec-25
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PFD: 04-Dec-25
A BILL
TO BE ENTITLED
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
retired state employees.
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
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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
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).
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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
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 with a minimum of 25 years of service on the effective
date of this act , 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.
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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 .
(2) Any individual who is retired under the Employees'
Retirement System, has the applicable Alabama Peace Officers'
Standards and Training certification, and meets any all 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 Is retired
under the Employees' Retirement System with a minimum of 25
years of service on the effective date of this act .
b. 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. 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) The minimum number of years of service required to
qualify to perform duties without suspension of retirement
benefits under subdivisions (d)(1) and (2) shall be adjusted
as follows:
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as follows:
a. A minimum of 26 years of service on October 1, 2027.
b. A minimum of 27 years of service on October 1, 2028.
c. A minimum of 28 years of service on October 1, 2029.
d. A minimum of 29 years of service on October 1, 2030.
e. A minimum of 30 years of service on October 1, 2031,
and each year thereafter.
(3)(4) 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.
(5) 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.
(5)a. Any individual who is retired under the
Employee's Retirement System or Teachers' Retirement System
may perform duties as a permanent full-time bus driver without
suspension of his or her retirement allowance, provided the
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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 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.
(6) The minimum number of years of service required to
qualify to perform duties without suspension of retirement
benefits under subdivision (d)(5) shall be adjusted as
follows:
a. A minimum of 26 years of service on October 1, 2027.
b. A minimum of 27 years of service on October 1, 2028.
c. A minimum of 28 years of service on October 1, 2029.
d. A minimum of 29 years of service on October 1, 2030.
e. A minimum of 30 years of service on October 1, 2031,
and each year thereafter.
(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 October
1, 2026.
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1, 2026.
Senate
Read for the first time and referred
to the Senate committee on County
and Municipal Government
................13-Jan-26
Read for the second time and placed
on the calendar:
1 amendment
................14-Jan-26
Read for the third time and passed
as amended
Yeas 32
Nays 0
Abstains 0
................10-Feb-26
Patrick Harris,
Secretary.
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