HB41 Alabama 2023 Session

Summary

Primary Sponsor

Rex ReynoldsRepresentative

Republican

Session

Regular Session 2023

Title

Relating to the Employees' Retirement System; to amend Section 36-27-8.2, Code of Alabama 1975, to temporarily permit certain retired individuals performing duties as school resource officers or as correctional officers to serve without suspension of his or her retirement allowance.

Summary

HB41 would temporarily allow certain retirees of the Employees' Retirement System (and Teachers' Retirement System) to work part-time as school resource officers or Department of Corrections officers without suspending retirement benefits, with earnings limits that adjust for inflation and a sunset date.

What This Bill Does

It broadens when retirees can work for participating employers without losing their pension by raising the earnings limit from $30,000 in 2016 and indexing it to CPI for future years. It also adds a separate option for retirees with peace officer certification to serve as school resource officers or correctional officers at DoC for up to $52,000 per year without suspension. It includes rules requiring employers to verify postretirement work and to provide notices, and it allows certain elected officials to serve in office without suspending retirement benefits under strict limits, but with no new benefits and no double-dipping, with a sunset and a deadline for implementation.

Who It Affects

• Retired employees of ERS or TRS who want to work part-time for participating employers and can stay under the earnings limit and not be permanently full-time.
• Retired law enforcement officers with Alabama Peace Officers’ Standards and Training certification who work as school resource officers or DoC correctional officers up to $52,000 per year.
• Elected officials who are retirees and may serve in elected public office without suspending benefits, provided they do not accrue additional benefits or receive both salary and pension.
• Employing authorities (state, county, or city) who hire retirees and must certify and report postretirement employment information.

Key Provisions

• Section 36-27-8.2(a): Retirees may perform duties for participating employers without suspension if not permanently full-time and earnings in 2016 did not exceed $30,000; starting 2017, the limit adjusts annually with CPI and is rounded to the nearest $1,000.
• Section 36-27-8.2(b): Retired elected officials may serve in public office without suspension of retirement benefits, but may not accrue additional benefits or receive both pension and salary; applies only if compensation is within the annual earning limits of subsection (a).
• Section 36-27-8.2(c): Employers must ensure compliance; retirees must certify information needed to carry out the section and provide written notice within 30 days of knowing they will work full-time or earn above the limit.
• Section 36-27-8.2(d)(1): Retired ERS members with APOS&T certification classified as law enforcement may serve as a school resource officer or DoC correctional officer without suspension, up to $52,000 per year.
• Section 36-27-8.2(d)(2): Retired ERS members with APOS&T certification who meet specified criteria may serve as a correctional officer without suspension, up to $52,000 per year.
• Section 36-27-8.2(d)(3): No one may be employed under this subsection after December 31, 2026.
• Section 2: The act becomes law on the first day of the third month after its passage/approval.

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