HB562 Alabama 2015 Session

Updated Feb 24, 2026

Summary

Primary Sponsor: Ron Johnson
Republican
Session: Regular Session 2015
Title: Retirement Systems, Teachers' and Employees', retirees, retirement benefits, compensation allowed from employers in system without suspension of benefits, annual amount increased, Secs. 16-25-26, 36-27-8.2 am'd
Summary: HB562 allows retirees from the Teachers' and Employees' Retirement Systems to work for participating employers without losing benefits, with an inflation-adjusted earnings cap.
What This Bill Does
It lets TRS and ERS retirees perform duties for employers in the system without suspending retirement benefits, as long as the work is not permanent full-time and earnings stay under a yearly limit. The earnings cap starts with a base amount shown in the bill (initially around $17,000 in 2000 and $30,000 by 2016, including cost-of-living adjustments) and increases each year by the CPI-U percentage, rounded to the nearest $1,000, based on the prior year's CPI data and effective the following year. It also allows retired elected officials to serve in public office without suspension of benefits, provided they do not accrue additional pension benefits and their compensation stays within the same limits. Employers and retirees must report compliance, with retirees certifying required information and giving 30 days’ notice to the retirement system and employer about postretirement employment.

Who It Affects
Retired teachers (TRS) who take part-time or contract work for participating employers
Retired non-teachers (ERS) who take part-time or contract work for participating employers
Employers that participate in TRS or ERS and hire retirees under this provision
Retired elected officials who may continue to serve in public office without suspension of benefits (within the earnings limit)
The TRS and ERS retirement systems that administer these rules

Key Provisions
Amends sections 16-25-26 and 36-27-8.2 to allow postretirement work without suspension of benefits if not full-time and within earnings limits
Sets an initial earnings cap (shown as $17,000 in 2000 and $30,000 by 2016, including COLAs) with future annual CPI-U-based increases, rounded to the nearest $1,000
Annual cap increases are tied to the CPI-U for the prior 12 months ending September 30 and become effective the following calendar year
Allows retired elected officials to work in public office without suspension of benefits, so long as they do not accrue additional benefits and do not exceed the earnings limit
Requires employers to ensure compliance; retirees must certify required information and provide 30-day notice of postretirement employment to the retirement system and employer
Effective date: the act becomes law on the first day of the third month after Governor approval

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Retirement