SB61 Alabama 2023 Session

Summary

Primary Sponsor

Sam GivhanSenator

Republican

Session

Regular Session 2023

Title

Relating to the Teachers' Retirement System and the Employees' Retirement System; to amend Sections 16-25-26 and 36-27-8.2, Code of Alabama 1975, and to add Sections 16-25-25.2 and 36-27-8.3 to the Code of Alabama 1975; to temporarily revise the eligibility and compensation of retirees of either system for participating in either system after retirement.

Summary

SB61 temporarily changes how retirees from Alabama's Teachers' Retirement System and Employees' Retirement System may work after retirement by raising earnings limits, adding a required break in service, and setting time-limited rules through 2027.

What This Bill Does

The bill allows TRS and ERS retirees to perform duties for employers in either system without suspension of benefits, under certain conditions. It introduces a higher earnings limit (initially $52,000 for 2023 for TRS retirees, with CPI-based increases thereafter) and requires a 90-day break in service before post-retirement work begins, plus compliance and notice requirements. It also restricts elected officials who are retirees from earning both pension benefits and salary, and sets an explicit repeal date of December 31, 2027 for these provisions unless extended by law.

Who It Affects

• Retired members of the Teachers' Retirement System and Employees' Retirement System who may seek post-retirement work; their ability to work without suspension depends on new earnings limits, time-based breaks, and other conditions.
• Employing authorities (state, counties, and municipalities) that hire retirees under either system; they must manage compliance, verify information, and ensure earnings and participation follow the new rules.

Key Provisions

• TRS retirees may perform duties for any employer participating in ERS or TRS without suspension if not in permanent full-time work and with an initial earnings limit (for 2023) of up to $52,000, increasing annually with CPI and rounded to the nearest $1,000.
• ERS retirees have a parallel provision under 36-27-8.2 and 36-27-8.3 with the same 90-day break and $52,000 cap for 2023, CPI-based increases from 2025, and a repeal date of 2027 unless extended.
• A 90-day break in service is required before a retiree can begin post-retirement work under these sections, and written notice must be provided to the retirement system and employer within 30 days of knowing they will work or earn beyond limits.
• An elected official who is retired may serve for compensation without suspension of retirement benefits, but cannot accrue additional benefits and cannot receive pension benefits and salary simultaneously; participation for elected officials follows the same annual earning limits and terms as other employees, subject to the new sections.
• New sections (16-25-26.2 and 36-27-8.3) codify these temporary rules and include a mechanism for CPI-based annual increases, with repeal set for December 31, 2027.
• Effective date is the first day of the third month after the act passes and is approved by the Governor.

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