HB358 Alabama 2021 Session

Summary

Primary Sponsor

Allen TreadawayRepresentative

Republican

Session

Regular Session 2021

Title

Jefferson Co., retirement system for county employees, reemployment with county, benefits not reduced if reemployed two years after retirement or after two years of reemployment, certain provisions for reduction amended and repealed, Sec. 45-37-123.54 am'd; Sec. 45-37-123.105 repealed

Summary

HB358 would stop pension reductions for Jefferson County retirees who return to county work and would repeal an offset rule for reemployed retirees.

What This Bill Does

It changes how pensions are handled when a Jefferson County retiree is rehired. If the retiree comes back to work two or more years after leaving, their pension is not reduced; if they return within two years, any reduction is offset by county payments, and the pension returns to its pre-rehire level after the reemployment ends or after two years. No new pension benefits are earned during the reemployment period. The bill also repeals a law that previously offset retirement or disability benefits (including workers' compensation) for rehired retirees and adds rules for deferred retirement and for those who did or did not take refunds, clarifying how benefits are recalculated when reemployed. The act becomes effective immediately upon passage.

Who It Affects

• Retired Jefferson County employees who are rehired by the county, with changes to how their pension is calculated and whether they can earn additional benefits during reemployment.
• Members who elected deferred retirement and are rehired before age 60, whose deferral would be rescinded and benefits would begin accruing again upon reemployment.
• Members who severed employment and did not receive a refund and are rehired within five years, with benefits accruing again from the reemployment date (aggregating service).
• Members who severed employment and either received a refund or did not receive a refund within five years, with reemployment triggering rejoining the system and benefits based on service after rehire.

Key Provisions

• Amends 45-37-123.54 to prohibit pension reductions for retirees rehired by Jefferson County two or more years after leaving; permits reductions if rehired within two years, offset by county payments, and returns the pension to its pre-rehire amount at the earlier of severance or after two years of reemployment; no new pension accrual during rehire.
• Repeals 45-37-123.105, which previously provided an offset of retirement or disability benefits (including workers' compensation) for a retired member who is rehired by the county.
• Clarifies treatment for deferred retirement: if rehired before age 60, the deferred retirement election is rescinded and benefits begin accruing again with aggregated service.
• Details on refunds: if no refund was taken, benefits begin accruing again upon reemployment with service aggregated; if a refund was taken (or not refunded within five years), the member rejoins the system and accrues benefits from the rehire date, counting only service after rehiring.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Jefferson County