HB 41 — 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.

HB41 INTRODUCEDENROLLED HGT068-1HGT068-2 By Representative Reynolds RFD:

07-Mar-23 PFD:2023 Regular Session Page 0 HB41 Enrolled Enrolled, An Act, 3 Relating to the Employees' Retirement System;

23-Feb-23to Pageamend 0Section HGT068-136-27-8.2, 01/20/2023Code KMSof (L)Alabama cr1975, 2023-123to 2temporarily 4permit SYNOPSIS:certain retired individuals performing duties as school resource officers or as correctional officers to serve without suspension of his or her retirement allowance.

Under existing law, a retiree receiving an Employees' Retirement System or Teachers' Retirement System allowance may perform duties with an employer participating in the system without suspension of the retirement allowance, provided the person is not employed in a permanent full-time capacity and the compensation does not exceed $30,000 plus Consumer Price Index adjustments after 2017.

This bill would temporarily revise the eligibility requirements for participating and the allowance a retiree of either system may earn for performing duties with an employer participating in the system.

A BILL TO BE ENTITLED AN ACT 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 Page 1 HB41 INTRODUCED retirees of either system for participating in either system after retirement.

SectionsSection 16-25-26 and 36-27-8.2 of the Code of Alabama 1975, areis amended to read as follows:

"§16-25-26"§36-27-8.2 (a) Any Subject to Section 16-25-26.2, any person who is retired under the Teachers'Employees' Retirement System may perform duties in any capacity, including as an independent contractor, with any employer participating in the Employees' Retirement System or the Teachers' Retirement System without suspension of his or her retirement allowance provided that (1) the person is not employed in a permanent full-time capacity and (2) the person's compensation from the employer in calendar year 2016 does not exceed thirty thousand dollars ($30,000).

Any increase in the annual earning limit shall be rounded to the next lowest multiple of one thousand dollars ($1,000) with any amount in excess of the one Page 1 HB41 Enrolled thousand dollar ($1,000) multiple considered in determining the increase for the following year.

Page 2 HB41 INTRODUCED (b) Any person serving as an elected official who has retired from the Teachers'Employees' Retirement System may serve for compensation in an elected public office with the state, a county, or an incorporated municipality without suspension of retirement benefits;

provided further, that this subsection shall apply to elected officials whose participation in the Teachers' Retirement System or the Employees' Retirement System is constitutionally required to be upon the same terms and conditions as specified by law for other employees in the retirement system if such elected official's compensation does not exceed the annual earning limits provided in subsection (a),(a). subject to Section 16-25-26.2.

(c) The responsibility for compliance with this section is placed upon the employing authority, and each retiree performing duties under this section shall certify to the employer any information required in order to carry out this section.

The retiree shall provide written notice of the postretirement employment under this section to the Teachers' Retirement System and employing authority within 30 days after the date the retiree knows or should know that he or she will be performing duties on a full-time or permanent basis or will Page 3 HB41 INTRODUCED earn an amount in excess of the annual earning limit under this section, subject to Section 16-25-26.2." "§36-27-8.2 (a) Any Subject to Section 36-27-8.3, any person who is retired under the Employees' Retirement System may perform duties in any capacity, including as an independent contractor, with any employer participating in the Employees' Retirement System or the Teachers' Retirement System without suspension of his or her retirement allowance provided that (1) the person is not employed in a permanent full-time 95 capacity and (2) the person's compensation from the employer in calendar year 2016 does not exceed thirty thousand dollars ($30,000).

Beginning in calendar year 2017, and each calendar year thereafter, the annual earning limit shall be increased by the same percentage increase as the increase in the Consumer Price Index for all urban consumers as published by the U.S.

Department of Labor, Bureau of Labor Statistics.

Any increase in the annual earning limit shall be rounded to the next lowest multiple of one thousand dollars ($1,000) with any amount in excess of the one thousand dollar ($1,000) multiple considered in determining the increase for the following year.

Each adjustment shall be based on the increase in the index for the preceding 12-month period ending on September 30 and the increase shall be effective for the following calendar year.

(b) Any person serving as an elected official who has retired from the Employees' Retirement System may serve for compensation in an elected public office with the state, a Page 4 HB41 INTRODUCED county, or an incorporated municipality without suspension of retirement benefits;

provided that under no circumstances shall such a person participate in or accrue additional benefits under the Teachers' Retirement System or the Employees' Retirement System, and provided that under no circumstances shall a person whose retirement is based upon service as an elected official continue in or return to such office and receive both pension benefits and salary;

provided further, that this subsection shall apply to elected officials whose participation in the Teachers' Retirement System or the Employees' Retirement System is constitutionally required to be upon the same terms and conditions as specified by law for other employees in the retirement system if such elected official's compensation does not exceed the annual earning limits provided in subsection (a), subject to Section 36-27-8.3.

The retiree shall provide Page 2 HB41 Enrolled written notice of the postretirement employment under this section to the Employees' Retirement System and employing authority within 30 days after the date the retiree knows or should know that he or she will be performing duties on a full-time or permanent basis or will earn an amount in excess of the annual earning limit under this section,section. subject to Section 36-27-8.3." Page 5 HB41 INTRODUCED Section 2.

Sections(d)(1) 16-25-26.2Any andindividual 36-27-8.3who areis addedretired tounder the CodeEmployees' ofRetirement System, has the applicable Alabama 1975,Peace Officers’ Standards and Training certification, and was classified as a law enforcement officer, as defined in Section 36-27-59 prior to readretirement, may perform duties as follows:either a school resource officer, as defined in Section 16-1-44.1, or a correctional officer with the Department of Corrections without suspension of his or her retirement allowance provided that the compensation earned does not exceed fifty-two thousand dollars ($52,000) per year:

§16-25-26.2.(2) Any individual who is retired under the Employees' Retirement System, has the applicable Alabama Peace Officers’ Standards and Training certification, and meets either of the following criteria, may perform duties as a correctional officer with the Department of Corrections without suspension of his or her retirement allowance provided that the compensation earned does not exceed fifty-two thousand dollars ($52,000) per year:

(a)(1) Any provision of subsection 16-25-26(a) to the contrary notwithstanding, commencing on the effective date of the act adding this section, any person who is retired under the Teachers' Retirement System may perform duties in any capacity, including as an independent contractor, with any employer participating in the Employees' Retirement System or the Teachers' Retirement System without suspension of his or her retirement allowance provided that:

TheWas personclassified hasas a 90-daylaw breakenforcement inofficer, service from the date of retirement or, as ofdefined thein effectiveSection date36-27-59, ofprior theto actretirement. adding this section, is already performing duties;

and b.

TheWas person'sclassified compensationas froma thecorrectional employerofficer, as defined in calendarSection year36-27-59, 2023prior doesto notretirement, exceedand fifty-tworetired thousandpursuant dollarsPage ($52,000).3 HB41 Enrolled to paragraph c.

(2)of CommencingSection in36-27-16(a)(1). calendar year 2025, and each calendar year thereafter, the annual earning limit specified in subdivision (1) shall be increased by the same percentage increase as the increase in the Consumer Price Index for all urban consumers as published by the U.S.

Department(3) ofNo Labor,individual Bureaumay ofbe Laboremployed Statistics.pursuant to this subsection after December 31, 2026." Section 2.

Any increase in the annual earning limit shall be rounded to the next lowest multiple of one thousand dollars ($1,000) with any amount in excess of the one thousand dollar ($1,000) multiple considered in determining the increase for the following year.

Each adjustment shall be based on the increase in the index for the preceding 12-month Page 6 HB41 INTRODUCED period ending on September 30, and the increase shall be effective for the following calendar year.

(b) Unless extended by an act of the Legislature, this section shall be repealed on December 31, 2027.

§36-27-8.3.

(a)(1) Any provision of subsection 36-27-8.2(a) to the contrary notwithstanding, commencing on the effective date of the act adding this section, any person who is retired under the Employees' Retirement System may perform duties in any capacity, including as an independent contractor, with any employer participating in the Employees' Retirement System or the Teachers' Retirement System without suspension of his or her retirement allowance provided that:

a.

The person has a 90-day break in service from the date of retirement or, as of the effective date of this act, is already performing duties;

and b.

The person's compensation from the employer in calendar year 2023 does not exceed fifty-two thousand dollars ($52,000).