SB193 Alabama 2016 Session

Summary

Primary Sponsor

Gerald O. Dial

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

SB193 lets Alabama legislators who are retired under TRS or ERS earn compensation from TRS/ERS employers, including as independent contractors, without losing their retirement if they work part-time and stay under an annual earnings limit that rises with inflation.

What This Bill Does

It amends TRS and ERS rules to allow retired legislators to perform duties for any employer participating in TRS or ERS without suspension of retirement, as long as they are not in a permanent full-time job and their pay stays within an annual limit. The annual limit starts at $30,000 in 2016 and increases each year based on CPI, rounded down to the nearest $1,000. It also allows retired elected officials to hold public office without suspension of retirement benefits, provided they do not receive both pension and salary and their earnings stay within the limit. Employers must verify compliance and retirees must notify TRS/ERS and the employer when postretirement work begins or changes; the law also repeals conflicting provisions and becomes effective three months after passage.

Who It Affects

• Legislators retired under the Teachers' Retirement System or Employees' Retirement System, who may work part-time for TRS/ERS employers without losing retirement benefits.
• Employers that participate in TRS or ERS and hire such retirees, who must monitor earnings, certify required information, and be notified by the retiree.

Key Provisions

• Section 16-25-26 (TRS): Retired TRS members may work for TRS/ERS employers in any capacity, including as independent contractors, without suspending retirement, as long as not full-time and compensation does not exceed the annual limit; initial limit $30,000 (2016) with CPI-based increases each year, rounded to the next lower thousand; increases effective the following calendar year.
• Section 36-27-8.2 (ERS): Retired ERS members may work for TRS/ERS employers under the same conditions and limits as TRS retirees; initial limit $30,000 (2016) with CPI-based annual increases, rounded as above.
• Section 16-25-26 and Section 36-27-8.2 include a provision allowing retired elected officials to serve in public office without suspension of retirement benefits if earnings stay within the limits and no pension-salary combination occurs.
• Section 2 repeals conflicting provisions (29-1-26) to align with the new rules, and Section 3 sets the effective date as the first day of the third month after passage.

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