HB556 Alabama 2025 Session

Updated Feb 23, 2026

Notable

Summary

Primary Sponsor: Allen TreadawayRepresentative
Republican
Session: 2025 Regular Session
Title: Retired law enforcement officers, employment of certain retired law enforcement officers further provided for
Summary: HB556 would expand and extend post-retirement employment options for Alabama retirement system members who were law enforcement officers, allowing certain roles without suspending benefits, with earnings caps and CPI-based increases, and extending the window to 2030 for school resource officer and correctional duties.
What This Bill Does
It allows retired ERS/TRS members who were law enforcement officers to work in various capacities without suspending retirement, subject to earnings limits that start with a $30,000 annual cap (baseline from 2016) and CPI-based increases in subsequent years. It adds that such retirees may serve as police officers at state colleges or universities without suspension, up to $52,000 per year. It extends the period during which retirees may work as school resource officers or correctional officers without suspension from 2026 to 2030, and it sets additional eligibility rules and reporting requirements for these post-retirement arrangements, including restrictions on pension benefits when elected officials return to office.

Who It Affects
Retired law enforcement officers (ERS/TRS) who could work as school resource officers, correctional officers, or police officers at state colleges/universities without suspension of retirement, within specified earnings limits.
Employing authorities (colleges/universities, Department of Corrections, other public employers) and retirees who must certify eligibility, monitor earnings, and provide notices to the retirement systems and employers.

Key Provisions
36-27-8.2(a): Allows a retiree to perform duties in any capacity (including as an independent contractor) with ERS/TRS employers without suspension if not in permanent full-time work and earnings in 2016 did not exceed $30,000, with annual CPI-based increases starting in 2017, rounded to the next lower $1,000 multiple.
36-27-8.2(b): Allows retired elected officials to serve in public office without suspension of retirement benefits, provided they do not accrue additional TRS/ERS benefits for that service and do not receive pension and salary simultaneously; special rule for local elected superintendents of education requires compensation limits to avoid dual benefits.
36-27-8.2(c): Places compliance responsibility on the employing authority; retirees must certify required information and provide 30-day written notice to ERS and the employer when postretirement employment becomes full-time/permanent or exceeds the earnings limit.
36-27-8.2(d)(1): Retired LEOs or state policemen may perform duties as a school resource officer, correctional officer, or police officer at state colleges/universities without suspension, up to $52,000 per year.
36-27-8.2(d)(2): Extends eligibility to certain retirees who meet specific criteria to perform as a correctional officer without suspension, up to $52,000 per year, under defined conditions (LEO or state policeman prior to retirement, or correctional officer who retired under a specific provision).
36-27-8.2(d)(3): The postretirement employment provisions under this subsection expire after December 31, 2030.
Section 2 (Effective date): The act becomes effective on June 1, 2025.

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