HB166 Alabama 2016 Session

Summary

Primary Sponsor

Mike Hill

Republican

Session

Regular Session 2016

Title

Legislature, retired under the Teachers' Retirement System or Employees' Retirement System authorized to earn compensation with an employer in the TRS or ERS, Secs. 16-25-26, 36-27-8.2 am'd.

Summary

HB166 would let Alabama legislators who are retired under TRS or ERS earn income while keeping their retirement, as long as they work in non-full-time roles and stay within yearly earnings limits.

What This Bill Does

The bill allows retired TRS or ERS members, including legislators, to perform duties for any employer participating in TRS/ERS without suspending retirement, provided they are not in a permanent full-time position and their pay stays under a specified limit. It starts with a $30,000 annual cap in 2016, with future caps rising each year based on CPI-U increases and rounded down to the nearest $1,000. It also permits elected officials who are retirees to serve in public offices for compensation without losing retirement benefits, so long as they do not accrue additional benefits and stay within the earnings limits; the responsibility for compliance rests with the employing authority, and retirees must certify required information and notify TRS/ERS and their employer within 30 days of knowing they will work full-time or exceed the limit. The act repeals conflicting provisions and becomes effective a few months after passage.

Who It Affects

• Retired members of the Teachers' Retirement System or Employees' Retirement System who are or could be serving as legislators or other elected officials and want to work for pay while their retirement benefits continue.
• Employing authorities (employers) and the retirement systems (TRS/ERS) that would oversee compliance, certify eligibility, track earnings, and require notices when postretirement work begins or earnings approach/exceed the limit.

Key Provisions

• A retired TRS member may work for any employer in TRS/ERS in any capacity, including independent contracting, without suspending retirement if not in permanent full-time work and earnings in the current year do not exceed the set limit.
• The initial earning limit is $30,000 for 2016; starting in 2017, the limit increases each year by the same percentage as CPI-U urban index, rounded down to the nearest $1,000; increases are based on the prior year’s CPI-U data and apply to the following calendar year.
• An elected official who is retired from TRS may serve in compensation in a public office without suspension of retirement, as long as they do not accrue additional benefits and earnings stay within the annual limit.
• Employing authorities must ensure compliance, and retirees must certify required information to the employer; retirees must notify TRS/ERS and the employer within 30 days if they anticipate full-time work or earnings above the limit.
• The act repeals conflicting provisions in Section 29-1-26 and becomes effective on the first day of the third month after passage and 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

Legislature