HB36 Alabama 2022 Session

Summary

Primary Sponsor

Randy WoodRepresentative

Republican

Session

Regular Session 2022

Title

State employees, retired under ERS or TRS, compensation increased which does not affect retirement, Secs. 16-25-26, 36-27-8.2 am'd.

Summary

HB36 would raise the post-retirement earnings cap for TRS and ERS retirees working for system-participating employers, tie future increases to CPI, and keep pension benefits intact.

What This Bill Does

If passed, the bill increases the annual earnings limit for retirees from TRS and ERS from $30,000 to $40,000 (with future CPI-based increases). Starting in 2024 and each year after, the limit would rise by the same percentage as CPI changes and be rounded to the nearest thousand. Retirees may work in any capacity for participating employers without suspending benefits, as long as they are not in permanent full-time positions and their earnings stay within the limit; employers must verify compliance and retirees must report post-retirement employment and notify the systems within 30 days if duties change or earnings exceed the limit. The bill also preserves rules for elected officials who are retirees to serve in compensated public offices without losing benefits, as long as salary stays within the limit and no new benefits are earned.

Who It Affects

• TRS and ERS retirees who return to work for participating employers in non-permanent, non-full-time roles (allowing higher earnings without losing retirement benefits)
• Employing authorities/employers participating in TRS or ERS (must monitor, verify information, and ensure compliance with the earnings limit)
• Retired elected officials who may serve in public offices (can earn compensation under the limit without suspension or additional pension benefits)
• The Teachers' Retirement System and Employees' Retirement System administration (provide notices and maintain records of post-retirement employment)

Key Provisions

• Raise the annual post-retirement earnings limit from $30,000 to $40,000 for TRS/ERS retirees, with future increases tied to CPI
• Starting in 2024 and each subsequent year, adjust the limit by the CPI change for urban consumers, rounded down to the nearest $1,000
• Maintain that post-retirement work must be non-permanent and not full-time; earnings must stay within the limit to avoid suspending retirement benefits
• Employing authority bears responsibility for compliance; the retiree must certify required information and notify TRS/ERS within 30 days if post-retirement employment status or earnings change
• Retired elected officials may serve in compensated public office without suspension, provided earnings do not exceed the annual limit and no additional pension benefits are earned
• Effective date: the act becomes law on the first day of the third month after passage and governor approval

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

Subjects

State Employees