HB308 Alabama 2023 Session

Summary

Primary Sponsor

Chris SellsRepresentative

Republican

Session

Regular Session 2023

Title

Relating to the Retirement Systems of Alabama; to amend Section 16-25-14, as last amended by Act 2022-184 and Act 2022-222 of the 2022 Regular Session, and Section 36-27-16, as last amended by Act 2022-184 and Act 2022-351 of the 2022 Regular Session, Code of Alabama 1975, to require an individual retired under the Teachers' Retirement System, Employees' Retirement System, or Judicial Retirement Fund to draw his or her retirement benefits for 12 consecutive months before returning to compensated work for a participating employer; to limit the person's compensation from the employer to 75 percent of the person's annual retirement benefit for each calendar year; and to repeal Sections 16-25-26, 29-4-6, and 36-27-8.2, Code of Alabama 1975, authorizing certain retired public employees to return to work for participating employers.

Summary

HB308 would require Alabama public retirees from TRS, ERS, or the Judicial Retirement Fund to wait 12 consecutive months after retirement before returning to compensated work with a participating employer, and would cap any such earnings at 75% of the retiree's annual retirement benefit, while repealing older back-to-work rules.

What This Bill Does

If passed, the bill applies to retirees from the Teachers' Retirement System, Employees' Retirement System, and Judicial Retirement Fund who seek compensated work with a participating employer. Retirees must have drawn retirement benefits for 12 consecutive months before returning to work, and their earnings from the new job cannot exceed 75% of their annual retirement benefit for each calendar year. It also repeals three existing statutes that currently authorize certain retirees to return to work, effectively tightening back-to-work rules for these systems. The changes become effective according to the bill's stated timing after passage.

Who It Affects

• Retired public employees covered by the Teachers' Retirement System, Employees' Retirement System, or Judicial Retirement Fund who might consider returning to compensated work for a participating employer (subject to the 12-month retirement and 75% earnings cap).
• Employers participating in the Teachers' Retirement System, Employees' Retirement System, or Judicial Retirement Fund who hire or contract with retirees; these employers would need to enforce the 12-month waiting period and earnings cap and are affected by the repeal of prior back-to-work provisions.

Key Provisions

• Requires any retiree from TRS, ERS, or the Judicial Retirement Fund to draw retirement benefits for 12 consecutive months before returning to compensated work for a participating employer.
• Limits the retiree's compensation from the new employer to 75% of the retiree's annual retirement benefit for each calendar year.
• Repeals Sections 16-25-26, 29-4-6, and 36-27-8.2, which currently authorize certain retired public employees to return to work for participating employers.
• Applies to retirees drawing benefits from TRS, ERS, or the Judicial Retirement Fund and affects how and when they can work after retirement and how much they can earn.

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