SB307 Alabama 2023 Session

Summary

Primary Sponsor

Chris ElliottSenator

Republican

Session

Regular Session 2023

Title

Relating to the Retirement Systems of Alabama; to amend Sections 16-25-26 and 36-27-8.2, Code of Alabama 1975, to remove certain conditions under which an elected official who has retired from the Teachers' Retirement System and the Employees' Retirement System may serve for compensation in another elected public office without suspension of retirement benefits.

Summary

SB307 would let retirees from Alabama's Teachers' Retirement System and Employees' Retirement System serve in another elected public office without losing retirement benefits, but only within earnings limits and with safeguards to prevent double dipping.

What This Bill Does

It amends TRS and ERS rules to allow post-retirement service in an elected office without suspension of retirement benefits, but imposes an earnings cap and other safeguards. The initial earning limit is $30,000 for 2016 and would increase each year based on CPI, rounded to the nearest $1,000, with the increase calculated from the previous 12 months ending September 30. Retirees must notify their retirement system and employer within 30 days if they will exceed the limit or work full-time, and employers must verify compliance; under no circumstances can a retiree receive both a pension and a salary, or accrue additional retirement benefits while serving.

Who It Affects

• Retired members of the Teachers' Retirement System or Employees' Retirement System who are elected officials and may serve in another elected public office under the new limits and conditions.
• Employing authorities (state, county, and municipal employers) and the retirement systems (TRS and ERS) themselves, who would administer, enforce, and verify compliance and ensure proper reporting and certification.

Key Provisions

• TRS §16-25-26: A retiree may perform duties in any capacity for a TRS/Teachers' Retirement System employer without suspension, as long as not in permanent full-time capacity and earnings in 2016 do not exceed $30,000; annual limits rise with CPI starting 2017, rounded to the nearest $1,000, based on the prior year's CPI ending September 30, and applied the following calendar year.
• TRS §16-25-26: An elected official who has retired from TRS may serve in an elected public office without suspension of retirement benefits, but may not accrue additional TRS/ERS benefits or receive both pension and salary; applies to officials whose participation is constitutionally required to be on the same terms as other employees if compensation does not exceed the limit in (a).
• TRS §16-25-26: Compliance is the employer's responsibility; each retiree must certify required information to the employer and provide written notice within 30 days to TRS and the employer if full-time work or earnings above the limit will occur.
• ERS §36-27-8.2: The ERS provisions mirror TRS: a retiree may perform duties for an ERS/Teachers' system employer without suspension, subject to not being employed full-time and meeting the $30,000 (2016) limit with CPI-based annual increases and the same rounding rules.
• ERS §36-27-8.2: An elected official retired from ERS may serve without suspension of benefits, but cannot accrue additional ERS/TRS benefits or receive both pension and salary, and the same constitutional considerations apply if compensation does not exceed the annual limit.
• ERS §36-27-8.2: Compliance obligations are on the employing authority, with notices and certifications required from the retiree within 30 days of knowing they will work full-time or exceed the limit.
• Section 2: The act becomes effective on the first day of the third month after it passes and is approved.

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