HB394 Alabama 2022 Session

Summary

Primary Sponsor

Wes KitchensSenator

Republican

Session

Regular Session 2022

Title

Teachers' Retirement System, to allow Tier I members who have retired and reemployed full-time by a local board of education to continue to receive retirement benefits under certain conditions, Sec. 16-25-26 am'd.

Summary

HB394 would let Tier I TRS retirees who return to full-time work for a local board of education keep receiving retirement benefits under specific conditions.

What This Bill Does

The bill amends the Teachers' Retirement System rules to allow Tier I retirees rehired full-time by a local board of education to continue receiving retirement benefits as if they had not returned to active service. If rehired full-time, the retiree would have health insurance terms like active employees, be paid per the local salary schedule, and not accrue additional service credits or receive a refund of retirement contributions (the contributions would stay with TRS). For retirees not working full-time, the existing earnings limits apply and are CPI-adjusted each year; employers and retirees must certify compliance and provide notice to TRS within 30 days of postretirement employment. The act takes effect July 1, 2022.

Who It Affects

• Tier I retirees of the Teachers' Retirement System who are rehired full-time by a local board of education and meet the specified conditions, who would continue to receive retirement benefits and have health insurance under active terms.
• Local boards of education and employing authorities that hire retirees, who must verify compliance, handle payroll under active-employee rules, and ensure notices and certifications are filed.

Key Provisions

• Amends Section 16-25-26 to permit Tier I retirees rehired full-time by a local board of education to continue receiving retirement benefits as if they had not returned to active service.
• If rehired full-time, the retiree's Public Education Employees' Health Insurance Plan coverage reverts to active-employee terms, and the retiree is paid according to the local salary schedule with standard withholdings.
• The retiree shall not accrue additional service credit and shall not be entitled to any refund of retirement contributions withheld; those contributions remain with the Teachers' Retirement System.
• The earning limit for retirees working (non-full-time) remains in place, with CPI-based annual increases starting from 2017; the Tier I full-time exception does not apply to those non-full-time scenarios.
• Employing authorities and retirees must certify compliance information and the retiree must notify TRS and the employer within 30 days after postretirement employment begins.
• Effective date: July 1, 2022.

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

Subjects

Teachers' Retirement System