SB188 Alabama 2022 Session

Summary

Primary Sponsor

Chris ElliottSenator

Republican

Session

Regular Session 2022

Title

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for a least a year before returning to compensated work for a participating employer, Secs. 16-25-26, 29-4-6, 36-27-8.2 repealed; Secs. 16-25-14, 36-27-16 am'd.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

SB188 would require retirees from Alabama's TRS, ERS, and Judicial Retirement Fund to have 12 consecutive months of drawing benefits with no compensated work during that period before returning to work with participating employers, and it would repeal prior rules that allowed earlier returns.

What This Bill Does

The bill adds a 12-month rule for those drawing retirement benefits to return to compensated work for participating employers and clarifies that their retirement can be suspended if they return without meeting the rule. It repeals several old provisions that previously allowed certain retirees to come back to work without this waiting period. It also requires employers to continue contributing on all earnings of retirees who return and allows retirees to rejoin the systems by suspending retirement and contributing again, with limited exceptions for elected officials. The measure applies to TRS, ERS, and the Judicial Retirement Fund and takes effect on the first day of the third month after it passes.

Who It Affects

• Retired public employees under the Teachers' Retirement System, Employees' Retirement System, or Judicial Retirement Fund who want to return to compensated work with participating employers (they will face the 12-month draw and no-work requirement).
• Participating employers and the retirement systems (TRS, ERS, Judicial Retirement Fund) that administer benefits and contributions, including how they handle suspensions, re-entry, and employer contributions when retirees return to work.

Key Provisions

• Adds a 12-month consecutive retirement-benefit draw requirement before retirees can return to compensated work for participating employers under TRS, ERS, and the Judicial Retirement Fund.
• Repeals Sections 16-25-26, 29-4-6, and 36-27-8.2, which previously authorized certain retirees to return to work for participating employers without the new waiting period.
• If a retiree returns to work without meeting the 12-month draw and work-during-period restrictions, the retirement allowance is suspended until employment ends and the retiree cannot earn or contribute during that period.
• Requires employers to pay contributions on all earnable compensation for retirees and allows a retiree to become a contributing member again by suspending retirement and rejoining the system, with certain exceptions for elected officials.
• Establishes that the act becomes effective on the first day of the third month after passage.

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