HB78 Alabama 2019 Session

Summary

Primary Sponsor

Rex ReynoldsRepresentative

Republican

Session

Regular Session 2019

Title

Retirement, retirees of Employee Retriement System and Teachers' Retirement System receiving allowance, max annual compensation increased, Secs. 16-25-26, 36-27-8.2 am'd.

Summary

The bill raises the annual earnings limit for retirees working while receiving retirement allowances from TRS and ERS from $30,000 to $42,000 starting in 2020, with future increases tied to the Consumer Price Index.

What This Bill Does

It allows TRS and ERS retirees to work for participating employers without losing their retirement checks, as long as they are not in permanent full-time work and stay under the earnings limit. The $42,000 limit takes effect in 2020, and the limit is adjusted annually based on the CPI, with changes applied to the following calendar year and rounded to the nearest $1,000. Employers must ensure compliance, and retirees must certify and report their postretirement employment and earnings changes to the retirement system and employer within 30 days. The bill also allows elected officials who are retirees to serve in public office without suspending retirement benefits, but they cannot accrue additional benefits and their earnings must stay within the established limits.

Who It Affects

• Retired members of the Teachers' Retirement System (TRS) and Employees' Retirement System (ERS) who perform duties for participating employers while not employed in permanent full-time work.
• Employers participating in TRS/ERS who hire retirees and must monitor compliance with the earnings limit.
• Elected officials who are retired under TRS or ERS and may serve in public office without suspension of benefits, provided they do not exceed the earnings limits and do not accrue additional pension benefits.

Key Provisions

• Increases the maximum annual earnings limit for postretirement work from $30,000 to $42,000 for TRS/ERS retirees.
• Starting in 2020, and thereafter, the earnings limit increases by the same percentage as CPI growth and is rounded to the next lower multiple of $1,000; adjustments apply to the following calendar year.
• Retirees may work in any capacity, including independent contracting, for participating employers as long as they are not in permanent full-time employment and stay within the limit.
• Employing authorities are responsible for compliance; retirees must certify and notify the retirement system and employer within 30 days of learning they will work full-time or earn above the limit.
• Elected officials who are retirees may serve in public office without suspending retirement benefits, but cannot accrue additional pension benefits and their compensation must not exceed the annual earning limits; participation must align with terms required by law.

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 Systems