HB278 Alabama 2022 Session

Summary

Primary Sponsor

Chris SellsRepresentative

Republican

Session

Regular Session 2022

Title

Retirement System, retirees required to draw retirement benefits for a least a year before returning to compensated work for a participating employer, Secs. 16-25-26, 29-4-6, 36-27-8.2 repealed; Secs. 16-25-14, 36-27-16 am'd.

Summary

HB278 would require retirees in Alabama's Teachers', Employees', and Judicial retirement systems to draw benefits for 12 consecutive months before returning to compensated work for a participating employer, and it would repeal prior rules that allowed returning to work without a waiting period.

What This Bill Does

The bill changes the rules for retirees in the Teachers' Retirement System, Employees' Retirement System, and Judicial Retirement Fund by requiring a 12-month period of drawing retirement benefits with no paid work for participating employers before returning to compensated work without suspension. If a retiree returns to work before meeting that 12-month rule, their retirement would be suspended during the period of employment and they would not earn new service credit; after meeting the 12-month condition, they could return without suspension. It repeals older provisions that previously allowed certain retirees to return to work without a waiting period, and it imposes transitional rules for current retirees and requires employers to pay contributions on retirees' earnings when they return to work.

Who It Affects

• Retired individuals covered by the Teachers' Retirement System, Employees' Retirement System, or Judicial Retirement Fund, as they would face a 12-month waiting period and potential suspension if they return to work before meeting it.
• Employers and government entities participating in these retirement systems, which would need to handle contributions for retirees who return to work and manage reentry rules (including exceptions for elected officials).

Key Provisions

• Repeals Sections 16-25-26, 29-4-6, and 36-27-8.2, which previously authorized certain retired public employees to return to work for participating employers.
• Amends Sections 16-25-14 and 36-27-16 to require a retiree to draw retirement benefits for 12 consecutive months before returning to compensated work for a participating employer.
• Specifies that retirement allowances may be suspended if a retiree returns to work before meeting the 12-month draw and working period, and that the retiree cannot earn service credits during that period; if the 12-month condition is met and no compensation was earned, they may return without suspension.
• Requires employers to pay contributions on all earnable compensation for retirees who return to work, and allows a retiree to rejoin the retirement system by suspending their retirement and contributing.
• Includes transitional provisions: retirees under the applicable systems as of the act’s effective date are presumed to have drawn retirement benefits for 12 consecutive months.
• Effective date: the act becomes law on the first day of the third month after passage and approval by the Governor.

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

Subjects

Retirement Systems