1 HB278
2 216790-1
3 By Representative Sells
4 RFD: Ways and Means Education
5 First Read: 08-FEB-22
Page 0 1 216790-1:n:01/31/2022:KMS/cr LSA2021-2665
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8 SYNOPSIS: Under existing law, a retired public
9 employee is permitted to return to certain limited
10 compensated service with any employer participating
11 in the Teachers' Retirement System, Employees'
12 Retirement System, or Judicial Retirement Fund
13 without suspension of his or her retirement
14 allowance.
15 This bill would lift these restrictions for
16 retirees who have drawn retirement benefits for 12
17 consecutive months without performing services for
18 compensation with participating employers.
19
20 A BILL
21 TO BE ENTITLED
22 AN ACT
23
24 Relating to the Retirement Systems of Alabama; to
25 amend Sections 16-25-14 and 36-27-16, as amended by Act
26 2021-270, 2021 Regular Session, to require an individual
27 retired under the Teachers' Retirement System, Employees'
Page 1 1 Retirement System, or Judicial Retirement Fund to draw his or
2 her retirement benefits for 12 consecutive months before
3 returning to compensated work for a participating employer;
4 and to repeal Sections 16-25-26, 29-4-6, and 36-27-8.2, Code
5 of Alabama 1975, authorizing certain retired public employees
6 to return to work for participating employers.
7 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
8 Section 1. Sections 16-25-14 and 36-27-16, as
9 amended by Act 2021-270, 2021 Regular Session, are amended to
10 read as follows:
11 "§16-25-14.
12 "(a)(1) Any Tier I plan member who withdraws from
13 service upon or after attainment of age 60 and any Tier II
14 plan member who withdraws from service upon or after
15 attainment of age 62, or in the case of a Tier II plan member
16 who is a correctional officer, firefighter, or law enforcement
17 officer as defined in Section 36-27-59, who withdraws from
18 service upon or after attainment of age 56 with at least ten
19 10 years of creditable service as a correctional officer,
20 firefighter, or law enforcement officer may retire upon
21 written application to the Board of Control setting forth at
22 what time, not less than 30 days nor more than 90 days
23 subsequent to the execution and filing thereof, he or she
24 desires to be retired; provided, that any such member who
25 became a member on or after October 1, 1963, shall have
26 completed 10 or more years of creditable service.
Page 2 1 "(2) Any Tier I plan member who has attained age 60
2 and any Tier II plan member who has attained age 62, or in the
3 case of a Tier II plan member who is a correctional officer,
4 firefighter, or law enforcement officer as defined in Section
5 36-27-59, who has attained age 56 with at least ten 10 years
6 of creditable service as a correctional officer, firefighter,
7 or law enforcement officer and has previously withdrawn from
8 service may retire upon written application to the Board of
9 Control setting forth at what time, not less than 30 days nor
10 more than 90 days subsequent to the execution and filing
11 thereof, he or she desires to be retired; provided, that the
12 member shall have completed at the time for his or her
13 withdrawal from service the requirements established by the
14 Board of Control for eligibility for deferred benefits
15 pursuant to Section 16-25-3.
16 "(3) Any person who is presently covered or is
17 eligible to be covered under the Employees' Retirement System
18 of Alabama or the Teachers' Retirement System of Alabama and
19 who, prior to such coverage or eligibility for coverage,
20 served as head of any Alabama county's public library service
21 department shall have credited to him or her one year of
22 creditable service for each year served as such head, not to
23 exceed 12 years; provided, that such person shall pay into the
24 retirement system the employee's part of the cost or
25 contribution based on the salary paid to such person during
26 the time of his or her service in the above capacity, with
Page 3 1 such cost or contribution to be calculated at the percent or
2 rate in effect on October 1, 1973.
3 "(4) Any Tier I plan member of the Teachers'
4 Retirement System of Alabama, who withdraws from service after
5 the completion of at least 25 years of creditable service, may
6 retire upon written application to the Board of Control of the
7 Teachers' Retirement System setting forth at what time, not
8 less than 30 days nor more than 90 days subsequent to the
9 execution and filing thereof, he or she desires to be retired;
10 provided, that any such member who became a Tier I plan member
11 on or after October 1, 1963, shall have completed 10 or more
12 years of creditable service.
13 "(b) Upon retirement from service, a Tier I plan
14 member shall receive a service retirement allowance which
15 shall consist of:
16 "(1) An annuity which shall be the actuarial
17 equivalent of his or her accumulated contributions at the time
18 of his or her retirement;
19 "(2) A pension which shall be equal to the annuity
20 allowable at the age of retirement, but not to exceed an
21 annuity allowable at age 65 computed on the basis of
22 contributions made prior to the attainment of age 65; and
23 "(3) If he or she has a prior service certificate in
24 full force and effect, an additional pension which shall be
25 equal to the annuity which would have been provided at age of
26 retirement, but not to exceed an annuity allowable at age 65
27 by twice the contributions which he or she would have made
Page 4 1 during the period of prior service with which he or she is
2 credited had the system been in operation and had he or she
3 contributed thereunder. In lieu of a determination of the
4 actual compensation of the members that was received during
5 such prior service, the Board of Control may use for the
6 purposes of this chapter the compensation rates which, if they
7 had progressed with the rates of salary increase shown in the
8 tables as prescribed in subsection (o) of Section 16-25-19,
9 would have resulted in the same average salary of the member
10 for the five years immediately preceding the date of
11 establishment as the records show the member actually
12 received.
13 "(c) The annual service retirement pension payable
14 to a Tier I plan member retiring on or after October 1, 1975,
15 shall not be less than an amount which when added to his or
16 her annuity is equal to the greater of the following two
17 amounts:
18 "(1) Two and one-eightieth percent of the member's
19 average final compensation multiplied by the number of years
20 of his or her creditable service; or
21 "(2) If he or she became a member before October 1,
22 1971, $72 seventy-two dollars ($72) multiplied by the number
23 of years of his or her creditable service not in excess of 25
24 years.
25 "Notwithstanding, a member who retired prior to
26 October 1, 1971, under service retirement shall receive $120
27 one hundred twenty dollars ($120) multiplied by the number of
Page 5 1 years of his or her creditable service not in excess of 25
2 years.
3 "(d) Upon retirement from service, a Tier II plan
4 member shall receive a service retirement allowance which
5 shall consist of an annuity which shall be the actuarial
6 equivalent of the member's accumulated contributions at the
7 time of retirement and a pension which, when added to the
8 member's annuity, shall be equal to one and sixty-five
9 hundredths percent (1.65%) of the member's average final
10 compensation multiplied by the number of years of creditable
11 service. Notwithstanding the foregoing, the service retirement
12 allowance shall not exceed eighty percent (80%) of the
13 member's average final compensation.
14 "(e) Upon the application of a Tier I plan member in
15 service or of his or her employer, any member who has had 10
16 or more years of creditable service may be retired by the
17 Board of Control on a disability retirement allowance not less
18 than 30 nor more than 90 days next following the date of
19 filing such an application; provided, that the medical board,
20 after a medical examination of such member, shall certify that
21 such member is mentally or physically incapacitated for
22 further performance of duty, that such incapacity is likely to
23 be permanent, and that such member should be retired. Upon the
24 application of a Tier II plan member in service or of his or
25 her employer, any member who has had 10 or more years of
26 creditable service may be retired by the Board of Control on a
27 disability retirement allowance not less than 30 nor more than
Page 6 1 90 days next following the date of filing such an application;
2 provided, that the medical board, after a medical examination
3 of such member, shall certify that the member is totally and
4 permanently mentally or physically incapacitated from regular
5 and substantial gainful employment, and that such member
6 should be retired.
7 "(f) Upon retirement for disability, a Tier I plan
8 member shall receive a service retirement allowance if he or
9 she has attained age 60 or if any law or part of any law
10 pertaining to retirement under the Teachers' Retirement System
11 of Alabama provides for service retirement after the
12 completion of 25 years of creditable service and the member
13 has completed 25 years of creditable service; otherwise, he or
14 she shall receive a disability retirement allowance which
15 shall consist of:
16 "(1) An annuity which shall be the actuarial
17 equivalent of his or her accumulated contributions at the time
18 of retirement; and
19 "(2) A pension which shall be equal to the pension
20 that would have been payable under subdivisions (2) and (3) of
21 subsection (b) of this section upon service retirement at age
22 60 had the member continued in service to that age without
23 change in compensation.
24 "The annual disability retirement pension shall not
25 be less than an amount which when added to his or her annuity
26 is equal to the greater of the following amounts:
Page 7 1 "a. Two and one-eightieth percent of the member's
2 average final compensation multiplied by the number of years
3 of creditable service.
4 "b. If he or she became a member before October 1,
5 1971, $54 fifty-four dollars ($54) multiplied by the number of
6 years of his or her creditable service not in excess of 25
7 years.
8 "Notwithstanding, a member who retired prior to
9 October 1, 1971, for disability shall receive $90 ninety
10 dollars ($90) multiplied by the number of years of his or her
11 creditable service not in excess of 25 years.
12 "(g) Upon retirement for disability, a Tier II plan
13 member shall receive a service retirement allowance if the
14 member has attained age 62, or in the case of a Tier II plan
15 member who is a correctional officer, firefighter, or law
16 enforcement officer as defined in Section 36-27-59, if the
17 member has attained age 56 with at least ten 10 years of
18 creditable service as a correctional officer, firefighter, or
19 law enforcement officer, otherwise, the member shall receive a
20 disability retirement allowance which shall be equal to one
21 and sixty-five hundredths percent (1.65%) of the member's
22 average final compensation multiplied by the number of years
23 of creditable service.
24 "(h)(1) Once each year during the first five years
25 following the retirement of a member on a disability
26 retirement allowance and once in every three-year period
27 thereafter, the Board of Control may and upon his or her
Page 8 1 application shall require any disability beneficiary who has
2 not yet attained age 60 for a Tier I plan member or age 62 for
3 a Tier II plan member to undergo a medical examination, such
4 examination to be made at the place of residence of such
5 beneficiary or other place mutually agreed upon by a physician
6 of or designated by the medical board. Should any disability
7 beneficiary who has not yet attained age 60 for a Tier I plan
8 member or age 62 for a Tier II plan member refuse to submit to
9 such medical examination, his or her pension may be
10 discontinued until his or her withdrawal of such refusal, and
11 should his refusal continue for one year, all his or her
12 rights in and to his or her pension may be revoked by the
13 Board of Control; provided, that these requirements relative
14 to the medical examination shall not apply in the case of a
15 Tier II plan member who is a correctional officer,
16 firefighter, or law enforcement officer as defined in Section
17 36-27-59 retired for disability and who has attained age 56
18 with at least ten 10 years of creditable service as a
19 correctional officer, firefighter, or law enforcement officer.
20 "(2) Should the medical board report and certify to
21 the Board of Control that a disability beneficiary who is a
22 Tier I plan member is engaged in or is able to engage in a
23 gainful occupation paying more than the difference between his
24 or her retirement allowance and his average final compensation
25 and should the Board of Control concur in such report, then
26 the amount of his or her pension shall be reduced to an amount
27 which, together with his or her annuity and the amount
Page 9 1 earnable by him or her, shall equal the amount of his or her
2 average final compensation. Should his or her earning capacity
3 be later changed, the amount of his or her pension may be
4 further modified; provided, that the new pension shall not
5 exceed the amount of the pension originally granted nor an
6 amount which, when added to the amount earnable by the
7 beneficiary together with his or her annuity, equals the
8 amount of his or her average final compensation.
9 "(3) Should the medical board report and certify to
10 the Board of Control that a disability beneficiary who is a
11 Tier II plan member has the capacity to engage in regular and
12 substantial gainful employment, the Board of Control shall
13 discontinue the beneficiary's retirement allowance until the
14 beneficiary is otherwise eligible for service retirement.
15 "(i)(1) Should a member cease to be a teacher,
16 except by death or by retirement under the provisions of this
17 chapter, the contributions standing to the credit of his or
18 her individual account in the Annuity Savings Fund shall be
19 paid to him or her upon demand, and in addition to such
20 payment there shall be paid five-tenths of the interest
21 accumulations standing to the credit of his or her individual
22 account if he or she shall have not less than three but less
23 than 16 years of membership service, six-tenths of such
24 interest accumulations if he or she shall have not less than
25 16 but less than 21 years of membership service, seven-tenths
26 of such interest accumulations if he or she shall have not
27 less than 21 but less than 26 years of membership service, and
Page 10 1 eight-tenths of such interest accumulations if he or she shall
2 have not less than 26 years of membership service.
3 "(2) In case of the death of a member eligible for
4 service retirement pursuant to subsection (a) of this section,
5 an allowance shall be paid to the surviving spouse, or to such
6 other person who the member shall have designated, in an
7 amount that would have been payable if the member had retired
8 immediately prior to his or her death and had elected Option
9 3, as set forth in subsection (j) or, alternatively, if the
10 surviving spouse or other designee desires, he or she may
11 choose to receive, in lieu of the allowance provided under
12 Option 3, the accumulated contributions of the member plus an
13 amount equal to the accumulated contributions of the member
14 not to exceed $5,000 five thousand dollars ($5,000) or the
15 accumulated contributions of the member plus the benefit
16 provided by Section 36-27B-3 if a benefit is payable under
17 such section. For purposes of this subsection only, hazardous
18 duty time, as set forth in subdivision (b)(1) of Section
19 36-27-59, may be used in calculating the requisite years of
20 service for firefighters, law enforcement officers, and
21 correctional officers even if the member has not otherwise
22 attained 25 years of creditable service.
23 "(3) Upon the death of a member on account of whom
24 no survivor allowance is payable under subdivision (2) of this
25 subsection, the accumulated contributions of the member plus
26 an amount equal to the accumulated contributions not to exceed
27 $5,000 five thousand dollars ($5,000) or the accumulated
Page 11 1 contributions of the member plus the benefit provided by
2 Section 36-27B-3 if a benefit is payable under such section
3 shall be paid to his or her estate or to such person as he or
4 she shall have nominated by written designation duly executed
5 and filed with the Board of Control.
6 "(j) With the provision the election of an option
7 shall be effective on the effective date of retirement, any
8 member may elect prior to retirement to receive, in lieu of
9 his or her retirement allowance payable throughout life, the
10 actuarial equivalent at that time of his or her retirement
11 allowance in a reduced retirement allowance payable throughout
12 life with the provision that:
13 "(1) OPTION 1. If he or she dies before he or she
14 has received in annuity payments the present value of his or
15 her annuity as it was at the time of his or her retirement,
16 the balance shall be paid to his or her legal representatives
17 or to the person as he or she shall nominate by written
18 designation duly acknowledged and filed with the Board of
19 Control;
20 "(2) OPTION 2. Upon his or her death, his or her
21 reduced retirement allowance shall be continued throughout the
22 life of and paid to the person as he or she shall nominate by
23 written designation duly acknowledged and filed with the Board
24 of Control at the time of his or her retirement;
25 "(3) OPTION 3. Upon his or her death, one half of
26 his or her reduced retirement allowance shall be continued
27 throughout the life of and paid to the person as he or she
Page 12 1 shall nominate by written designation duly acknowledged and
2 filed with the Board of Control at the time of his or her
3 retirement; or
4 "(4) OPTION 4. Some other benefit or benefits shall
5 be paid either to the member or to the person or persons as he
6 or she shall nominate; provided, that such other benefit or
7 benefits, together with the reduced retirement allowance,
8 shall be certified by the actuary to be of equivalent
9 actuarial value to his or her retirement allowance and shall
10 be approved by the Board of Control.
11 "(5) OPTION 5. At the time of retirement, he or she
12 shall receive a partial lump sum distribution as a single
13 payment not to exceed the sum of 24 months of the maximum
14 monthly retirement allowance the member could receive. This
15 option may be elected in addition to the election of another
16 option under this subsection and the further reduced monthly
17 retirement allowance shall be calculated in accordance with
18 the selected option. This option shall not be available to a
19 member who is receiving a disability retirement.
20 "(k) Should any beneficiary be restored to active
21 service, his or her retirement allowance shall be suspended
22 until he or she again withdraws from service and, he or she
23 shall not again become a member, nor shall he or she make
24 contributions; except, that should such beneficiary who has
25 been restored to active service continue in service for a
26 period of two or more years from the date of his or her
27 reentry into active service, he or she may request the Board
Page 13 1 of Control to allow him or her to again become a member of the
2 retirement system. The Board of Control may grant the request
3 for restoration to membership; provided, that such beneficiary
4 whose retirement allowance has been suspended shall repay to
5 the system all moneys received by him or her as benefits
6 during any period subsequent to the date of his or her reentry
7 into active service; provided further, that he or she shall
8 make a contribution equal to the amount he or she would have
9 contributed had he or she been a member during the period of
10 his or her restoration to active service on a suspended
11 allowance basis, together with the interest which would have
12 been credited to the contributions on account of such period
13 of restoration up to the date such contribution is made.
14 "(l)(k)(1) All retirement allowance payments due on
15 or after October 1, 1975, to members who retired prior to
16 October 1, 1975, shall be redetermined as if the provisions of
17 subsections (b) and (e) of this section which became effective
18 on said date were in effect at the time the member retired;
19 provided, that the annual retirement allowance of any member
20 who retired on or before January 1, 1956, shall be not less
21 than $132 one hundred thirty-two dollars ($132) multiplied by
22 the number of years of his or her creditable service not in
23 excess of 30 years in the case of service retirement or $99
24 ninety-nine dollars ($99) multiplied by the number of years of
25 creditable service not in excess of 30 years in the case of
26 disability retirements. Any increase provided in the
27 retirement allowance payment under this subsection for a
Page 14 1 member who retired under the provisions of any optional
2 benefit elected pursuant to subsection (j) of this section
3 shall accrue only to the retired member, and no person
4 designated to receive any payments after the death of a
5 retired member under the provisions of any such optional
6 benefit shall receive any increase in such payments under this
7 subsection.
8 "(2) Any person who served at least 30 years as a
9 teacher in the public schools of Alabama and was never a
10 member of the system and who, prior to October 1, 1963, was in
11 receipt of a benefit for old age assistance pursuant to
12 subsections (1) and (2) of Section 1 of Act 116, approved
13 August 24, 1959, shall be entitled to receive an annual
14 retirement allowance of $3,960 three thousand nine hundred
15 sixty dollars ($3,960) from the system, effective as of
16 October 1, 1973.
17 "(3) Prior to October 31, 1975, any beneficiary may
18 elect to leave on deposit with the system all or a specified
19 part of any increase in his or her monthly retirement
20 allowance payments arising in accordance with subdivision (1)
21 or (2) of this subsection. The portion of each monthly payment
22 left in the system in accordance with such election shall be
23 credited, together with regular interest thereon, to the
24 individual account of such beneficiary. Upon the death of such
25 beneficiary, the total amount standing to his or her credit,
26 including regular interest to the date of death, shall be paid
27 in a lump sum to his or her legal representative or to such
Page 15 1 person as he or she shall have nominated by written
2 designation duly acknowledged and filed with the Board of
3 Control.
4 "(m)(l) Notwithstanding any other provisions of this
5 section to the contrary, when a designated beneficiary for a
6 member predeceases the member who is receiving a monthly
7 benefit allowance provided under Option 2, 3, or 4, the member
8 may designate a replacement beneficiary for the deceased
9 beneficiary to become effective two years after the date of
10 designation of the replacement beneficiary and an actuarial
11 adjustment in the monthly benefit allowance of the member to
12 cover any cost associated with designating a replacement
13 beneficiary shall be reflected thereafter in the monthly
14 benefit allowance received by the member, commencing with the
15 first benefit allowance check received by the member following
16 the date of designation of the replacement beneficiary.
17 "(n)(m) Notwithstanding any provision of this
18 section to the contrary, if a retired member who is receiving
19 a monthly benefit allowance provided under Option 2, 3, or 4
20 divorces his or her designated beneficiary, the member may
21 designate a replacement beneficiary for the beneficiary to
22 become effective two years after the date of designation of
23 the replacement beneficiary and an actuarial adjustment in the
24 monthly benefit allowance of the member to cover any cost
25 associated with designating a replacement beneficiary shall be
26 reflected thereafter in the monthly benefit allowance received
27 by the member, commencing with the first benefit allowance
Page 16 1 check received by the member following the date of designation
2 of the replacement beneficiary.
3 "(o)(n) Any future act to increase the retirement
4 age for Tier II plan members above the age of 62 shall require
5 a two-thirds vote of the elected membership of each house of
6 the Legislature.
7 "§36-27-16.
8 "(a)(1) RETIREMENT, ETC., OF EMPLOYEES GENERALLY;
9 ELIGIBILITY FOR SERVICE RETIREMENT BENEFITS.
10 "a. Any Tier I plan member who withdraws from
11 service upon or after attainment of age 60 and any Tier II
12 plan member who withdraws from service upon or after
13 attainment of age 62 may retire upon written application to
14 the Board of Control setting forth at what time, not less than
15 30 days nor more than 90 days subsequent to the execution and
16 filing thereof, he or she desires to be retired; provided,
17 that any such member who became a member on or after October
18 1, 1963, shall have completed 10 or more years of creditable
19 service; provided further, that a Tier I plan member employed
20 as a state policeman shall be eligible to file application for
21 service retirement upon attaining age 52 and a Tier II plan
22 member employed as a state policeman or employed as a
23 correctional officer, firefighter, or law enforcement officer
24 as defined in Section 36-27-59 with at least ten 10 years of
25 creditable service as a correctional officer, firefighter, or
26 law enforcement officer shall be eligible to file application
27 for service retirement upon attaining age 56.
Page 17 1 "b. Any Tier I plan member who has attained age 60,
2 or age 52 in the case of a state policeman and any Tier II
3 plan member who has attained age 62, or age 56 in the case of
4 a state policeman or in the case of a correctional officer,
5 firefighter, or law enforcement officer as defined in Section
6 36-27-59 who has at least ten 10 years of creditable service
7 as a correctional officer, firefighter, or law enforcement
8 officer, and has previously withdrawn from service may retire
9 upon written application to the Board of Control setting forth
10 at what time, not less than 30 days nor more than 90 days
11 subsequent to the execution and filing thereof, he or she
12 desires to be retired; provided, the member shall have at the
13 time of his or her withdrawal from service completed the age
14 and service requirements established by the Board of Control
15 for eligibility for deferred benefits; provided, that such
16 minimum number of years of creditable service shall not be
17 less than 10 years nor more than 25 years.
18 "c. In addition to any law or part of law relating
19 to service retirement under the Employees' Retirement System
20 of Alabama, any Tier I plan member of the Employees'
21 Retirement System who withdraws from service after completion
22 of not less than 25 years of creditable service may retire
23 without a reduction in retirement allowance upon written
24 application to the Board of Control of the Employees'
25 Retirement System setting forth the first day of which month,
26 not less than 30 days or more than 90 days subsequent to the
27 execution and filing thereof, he or she desires to be retired,
Page 18 1 provided that no person whose employer participates in the
2 Employees' Retirement System under Section 36-27-6 shall be
3 entitled to the benefits provided in this paragraph unless
4 such employer elects to come under the provisions of the
5 paragraph. Any employer making such election must bear the
6 cost of such benefit.
7 "(2) AMOUNT OF SERVICE RETIREMENT ALLOWANCE.
8 "a. Upon retirement from service a Tier I plan
9 member shall receive a service retirement allowance which
10 shall consist of:
11 "1. An annuity which shall be the actuarial
12 equivalent of his or her accumulated contributions at the time
13 of his or her retirement; except, that in the case of a state
14 policeman who has completed 20 years of creditable service as
15 a state policeman who retires after age 56 but prior to age
16 60, the annuity shall be equal to the annuity that would have
17 been payable upon service retirement at age 60 had the member
18 continued in service to age 60 without change in compensation;
19 "2. A pension which shall be equal to the annuity
20 allowance at age of retirement, but not to exceed an annuity
21 allowable at age 65, computed on the basis of contributions
22 made prior to attainment of age 65; except, that in the case
23 of a state policeman who has completed 20 years of creditable
24 service as a state policeman who retires after age 56 but
25 prior to age 60, the pension shall be equal to the annuity
26 that he or she would have received had he or she contributed
27 to age 60 without change in compensation; and
Page 19 1 "3. An additional pension, if he or she has a prior
2 service certificate in full force and effect, which shall be
3 equal to the annuity which would have been provided at the age
4 of retirement, but which shall not exceed an annuity allowable
5 at age 65 by twice the contributions which he or she would
6 have made during the period of prior service with which he or
7 she is credited had the system been in operation and had he or
8 she contributed thereunder; except, that in case of a state
9 policeman who has completed 20 years of creditable service as
10 a state policeman who retired after age 56 but prior to age
11 60, an additional pension, if he or she has a prior service
12 certificate in full force and effect, which shall be equal to
13 the annuity which would have been provided at age 60, but
14 which shall not exceed an annuity allowable at age 60 by twice
15 the contributions which he or she would have made during the
16 period of prior service with which he or she is credited had
17 the system been in operation and had he or she contributed
18 thereunder.
19 "b. Notwithstanding the provisions of subparagraphs
20 1., 2., and 3. of paragraph a. of this subdivision, a state
21 policeman who is a Tier I plan member and who has completed 20
22 years of service as a state policeman who retires after age 52
23 but prior to age 56 shall receive:
24 "1. An annuity which shall be equal to the annuity
25 that would have been payable had the member continued in
26 service for four years without change in compensation;
Page 20 1 "2. A pension which shall be equal to the annuity
2 that he or she would have received had he or she contributed
3 for four years without change in compensation; and
4 "3. An additional pension, if he or she has a prior
5 service certificate in full force and effect, which shall be
6 equal to the annuity which would have been provided at the age
7 of retirement, but which shall not exceed an annuity allowable
8 at the age of retirement plus four years by twice the
9 contributions which he or she would have made during the
10 period of prior service with which he or she is credited had
11 the system been in operation and had he or she contributed
12 thereunder. In lieu of a determination of the actual
13 compensation of a member that was received during such prior
14 service, the Board of Control may use for the purpose of this
15 article the compensation rate which, if it had progressed with
16 the rates of salary increase shown in the tables as prescribed
17 in subsection (n) of Section 36-27-23, would have resulted in
18 the same average salary of the member for the five years
19 immediately preceding the date of establishment as the records
20 show the member actually received.
21 "c. The annual service retirement pension payable to
22 a Tier I plan member not employed as a state policeman
23 retiring on or after October 1, 1975, shall not be less than
24 an amount which, when added to his or her annuity, is equal to
25 the greater of the following two amounts:
Page 21 1 "1. Two and one-eightieth percent of the member's
2 average final compensation multiplied by the number of years
3 of his or her creditable service; or
4 "2. If he or she became a member before October 1,
5 1965, $72.00 seventy-two dollars ($72) multiplied by the
6 number of years of his or her creditable service not in excess
7 of 25 years.
8 "d. The annual service retirement pension payable to
9 a Tier I plan member employed as a state policeman retiring on
10 or after October 1, 1975, shall not be less than an amount
11 which, when added to his or her annuity is equal to the
12 greater of the following two amounts:
13 "1. Two and seven-eighths percent of the member's
14 average final compensation multiplied by the number of years
15 of his or her creditable service. Creditable service for any
16 state policeman under the age of 56 years who has completed 20
17 years of creditable service as a state policeman shall include
18 a bonus equal to four additional years. Creditable service for
19 a state policeman 56 years or older shall include a bonus
20 equal to the years or portion thereof remaining until the
21 member reaches age 60; or
22 "2. If he or she became a member before October 1,
23 1965, $86.40 eighty-six dollars forty cents ($86.40)
24 multiplied by the number of years of his or her creditable
25 service not in excess of 25 years; provided, however, that if
26 such member has completed 20 years of creditable service as a
27 state policeman and has not attained age 60 at the time of
Page 22 1 retirement, the pension shall be determined as provided in
2 this subparagraph on the basis of the number of years of
3 creditable service which he or she would have had if he or she
4 had remained in service for four years, except that, in the
5 case of those state policemen retiring at age 56 or after, the
6 number of years in determining the pension shall not exceed
7 the number of years of creditable service which he or she
8 would have had if he or she had remained in service to age 60.
9 "e. Upon retirement from service, a Tier II plan
10 member who is not employed as a state policeman shall receive
11 a service retirement allowance which shall consist of an
12 annuity which shall be the actuarial equivalent of the
13 member's accumulated contributions at the time of retirement
14 and a pension which, when added to the member's annuity, shall
15 be equal to one and sixty-five hundredths percent (1.65%) of
16 the member's average final compensation multiplied by the
17 number of years of creditable service. Notwithstanding the
18 foregoing, the service retirement allowance shall not exceed
19 eighty percent (80%) of the member's average final
20 compensation.
21 "f. Upon retirement from service, a Tier II plan
22 member who is employed as a state policeman shall receive a
23 service retirement allowance which shall consist of an annuity
24 which shall be the actuarial equivalent of the member's
25 accumulated contributions at the time of retirement and a
26 pension which, when added to the member's annuity, shall be
27 equal to two and three-eighths percent (2.375%) of the
Page 23 1 member's average final compensation multiplied by the member's
2 number of years of creditable service. Notwithstanding the
3 foregoing, the service retirement allowance shall not exceed
4 eighty percent (80%) of the member's average final
5 compensation.
6 "g. Anything in this article to the contrary
7 notwithstanding, in the application of the foregoing
8 provisions of this subdivision to a member whose creditable
9 service includes a period of service as a state policeman and
10 a period of service in another employment classification, the
11 benefit rates applicable to a member employed as a state
12 policeman shall apply to all creditable service as a state
13 policeman, and the benefit rates applicable to a member not
14 employed as a state policeman shall apply to all creditable
15 service, but in all other respects the pension under this
16 subdivision shall be determined on the basis of the member's
17 employment classification at the time of his or her withdrawal
18 from service.
19 "h. The annual service retirement pension payable to
20 any state employee who had attained age 60 on or before
21 October 1, 1945, who declined membership in the Employees'
22 Retirement System of Alabama in the manner prescribed in
23 Section 36-27-4 and who retires as a state employee after
24 completing a minimum of 15 years' service shall be $72.00
25 seventy-two dollars ($72) multiplied by the number of years of
26 his or her service not in excess of 25 years.
Page 24 1 "(b)(1) RETIREMENT OF DISABLED EMPLOYEES;
2 ELIGIBILITY FOR DISABILITY RETIREMENT BENEFITS.
3 "a. Upon application of a Tier I plan member in
4 service or of his or her employer, any member who has had 10
5 or more years of creditable service who becomes disabled may
6 be retired on a disability retirement allowance by the Board
7 of Control not less than 30 nor more than 90 days next
8 following the date of filing of such application; provided,
9 that the medical board, after a medical examination of such
10 member, shall certify that such member is mentally or
11 physically incapacitated for the further performance of duty,
12 that such incapacity is likely to be permanent and that such
13 member should be retired. Upon the application of a Tier II
14 plan member in service or his or her employer, any member who
15 has had 10 or more years of creditable service may be retired
16 by the Board of Control on a disability retirement allowance
17 not less than 30 nor more than 90 days next following the date
18 of filing such application; provided, that the medical board,
19 after a medical examination of such member, shall certify that
20 the member is totally and permanently mentally or physically
21 incapacitated from regular and substantial gainful employment,
22 and that member should be retired.
23 "b. Without regard to the number of years of
24 creditable service, a member employed as a state policeman, a
25 municipal police officer or a deputy sheriff, or a member
26 employed as a state, municipal, or county firefighter who is
27 not covered through his or her current employer under the
Page 25 1 United States Social Security Act, who as a result of his or
2 her employment, in the line of duty and not as a result of his
3 or her own misconduct, shall become permanently and totally
4 disabled to the extent that he or she cannot perform his or
5 her duties or duties of a less strenuous nature, as an
6 employee of the State of Alabama or as an employee of an
7 employer participating under the provisions of Section
8 36-27-6, shall be retired on a disability retirement
9 allowance, not less than 30 nor more than 90 days next
10 following the date of filing of such application, provided
11 that the medical board, after a medical examination of such
12 member shall certify that such member is mentally or
13 physically incapacitated for the further performance of duty,
14 that such incapacity is likely to be permanent, and that such
15 member should be retired.
16 "(2) AMOUNT OF DISABILITY RETIREMENT ALLOWANCE.
17 "a. Upon retirement for disability a member shall
18 receive a service retirement allowance if he or she is a Tier
19 I plan member and he or she has attained age 60 or if he or
20 she is a Tier II plan member and he or she has attained age
21 62, or if any law or part of any law pertaining to retirement
22 under the Employees' Retirement System of Alabama provides for
23 service retirement after the completion of 25 years of
24 creditable service without a reduction in the retirement
25 allowance and the member has completed 25 years of creditable
26 service, or, in the case of a state policeman, if he or she is
27 a Tier I plan member and he or she has attained age 52 or, in
Page 26 1 the case of a state policeman or a correctional officer,
2 firefighter, or law enforcement officer as defined in Section
3 36-27-59 with at least ten 10 years of creditable service as a
4 correctional officer, firefighter, or law enforcement officer,
5 if he or she is a Tier II plan member and he or she has
6 attained age 56; otherwise, he or she shall receive a
7 disability retirement allowance which shall consist of:
8 "1. An annuity which shall be the actuarial
9 equivalent of his or her accumulated contributions at the time
10 of his or her retirement;
11 "2. A pension which shall be equal to the pension
12 that would have been payable under subparagraphs 2 and 3 of
13 paragraph a. of subdivision (2) of subsection (a) of this
14 section upon service retirement at age 65 had the member
15 continued in service to that age without change in
16 compensation.
17 "b. The annual disability retirement pension payable
18 to a Tier I plan member not employed as a state policeman
19 retiring on or after October 1, 1975, shall not be less than
20 an amount which when added to his or her annuity is equal to
21 the greatest of the following two amounts:
22 "1. Two and one-eightieth percent of the member's
23 average final compensation multiplied by the number of years
24 of creditable service.
25 "2. If he or she became a member before October 1,
26 1965, $54.00 fifty-four dollars ($54) multiplied by the number
Page 27 1 of years of his or her creditable service not in excess of 25
2 years.
3 "c. The annual disability retirement pension payable
4 to a Tier I plan member employed as a state policeman retiring
5 on or after October 1, 1975, shall not be less than an amount
6 which when added to his or her annuity is equal to the greater
7 of the following two amounts:
8 "1. Two and seven-eighths percent of the member's
9 average final compensation multiplied by the number of years
10 of his or her creditable service. Creditable service for any
11 state policeman under the age of 56 years who has completed 20
12 years of creditable service as a state policeman shall include
13 a bonus equal to four additional years. Creditable service for
14 a state policeman 56 years or older shall include a bonus
15 equal to the years or portion thereof remaining until the
16 member reaches age 60; or
17 "2. If he or she became a member before October 1,
18 1965, $64.80 sixty-four dollars eighty cents ($64.80)
19 multiplied by the number of years of his or her creditable
20 service not in excess of 25 years.
21 "d. The annual disability retirement allowance
22 payable to a Tier II plan member not employed as a state
23 policeman shall be equal to one and sixty-five hundredths
24 percent (1.65%) of the member's average final compensation
25 multiplied by the number of years of creditable service.
26 "e. The annual disability retirement allowance
27 payable to a Tier II plan member employed as a state policeman
Page 28 1 shall be equal to two and three-eighths percent (2.375%) of
2 the member's average final compensation multiplied by the
3 number of years of creditable service.
4 "f. Anything in this chapter to the contrary
5 notwithstanding in the application of the provisions of this
6 subdivision to a member whose creditable service includes a
7 period of service as a state policeman and a period of service
8 in another employment classification the benefit rates
9 applicable to a member employed as a state policeman shall
10 apply to all creditable service as a state policeman, and the
11 benefit rates applicable to a member not employed as a state
12 policeman shall apply to all other creditable service, but in
13 all other respects the pension under this subdivision shall be
14 determined on the basis of the member's employment
15 classification at the time of his or her withdrawal from
16 service.
17 "(3) REEXAMINATION OF BENEFICIARIES RETIRED ON
18 ACCOUNT OF DISABILITY. Once each year during the first five
19 years following the retirement of a member on a disability
20 retirement allowance and once every three-year period
21 thereafter, the Board of Control may, and upon his or her
22 application shall, require any disability beneficiary who has
23 not yet attained age 60 if the beneficiary is a Tier I plan
24 member or age 62 if the beneficiary is a Tier II plan member
25 to undergo a medical examination, such examination to be made
26 at the place of residence of such beneficiary or other place
27 mutually agreed upon by a physician or physicians of or
Page 29 1 designated by the medical board. Should any disability
2 beneficiary who has not yet attained age 60 if the beneficiary
3 is a Tier I plan member or age 62 if the beneficiary is a Tier
4 II plan member refuse to submit to such medical examination,
5 his or her allowance may be discontinued until his or her
6 withdrawal of such refusal, and, should his or her refusal
7 continue for one year, all his or her rights in and to his or
8 her pension may be revoked by the Board of Control; provided,
9 that these requirements relative to the medical examination
10 shall not apply in the case of a state policeman retired for
11 disability and who has attained age 52 if he or she is a Tier
12 I plan member or in the case of a state policeman or a
13 correctional officer, firefighter, or law enforcement officer
14 as defined in Section 36-27-59 with at least ten 10 years of
15 creditable service as a correctional officer, firefighter, or
16 law enforcement officer retired for disability who has
17 attained age 56 if he or she is a Tier II plan member. Should
18 the medical board report and certify to the Board of Control
19 that a disability beneficiary who is a Tier I plan member is
20 engaged in or is able to engage in a gainful occupation paying
21 more than the difference between his or her retirement
22 allowance and his or her average final compensation and should
23 the Board of Control concur in such report, then the amount of
24 his or her pension shall be reduced to an amount which,
25 together with his or her annuity and the amount earnable by
26 him or her shall equal the amount of his or her average final
27 compensation. Should his or her earning capacity be later
Page 30 1 changed, the amount of his or her pension may be further
2 modified; provided, that the new pension shall not exceed the
3 amount of the pension originally granted nor an amount which,
4 when added to the amount earnable by the beneficiary, together
5 with this annuity exceeds the amount of his or her average
6 final compensation.
7 "Should the medical board report and certify to the
8 Board of Control that a disability beneficiary who is a Tier
9 II plan member has the capacity to engage in regular and
10 substantial gainful employment, the Board of Control shall
11 discontinue the beneficiary's retirement allowance until the
12 beneficiary is otherwise eligible for service retirement.
13 "(c) Disposition of contributions and allowances
14 upon death, etc., of member.
15 "(1) Should a member cease to be an employee except
16 by death or by retirement under the provisions of this
17 article, the contributions standing to the credit of his or
18 her individual account in the Annuity Savings Fund shall be
19 paid to him or her upon demand and, in addition to such
20 payment, there shall be paid five-tenths of the interest
21 accumulations standing to the credit of his or her individual
22 account if he or she shall have not less than three but less
23 than 16 years of membership service, six-tenths of such
24 interest accumulations if he or she shall have not less than
25 16 but less than 21 years of membership service, seven-tenths
26 of such interest accumulations if he or she shall have not
27 less than 21 but less than 26 years of membership service and
Page 31 1 eight-tenths of such interest accumulations if he or she shall
2 have not less than 26 years of membership service.
3 "(2) In case of the death of a member eligible for
4 service retirement pursuant to subsection (a) of this section,
5 an allowance shall be paid to the surviving spouse, or to such
6 other person who the member shall have designated, in an
7 amount that would have been payable if the member had retired
8 immediately prior to his or her death and had elected Option
9 3, as set forth in subsection (d) of this section or,
10 alternatively, if the surviving spouse or other designee
11 desires, he or she may choose to receive, in lieu of the
12 allowance provided under Option 3, the accumulated
13 contributions of the member plus an amount equal to the
14 accumulated contributions of the member not to exceed
15 $5,000.00 five thousand dollars ($5,000) or the accumulated
16 contributions of the member plus the benefit provided by
17 Section 36-27B-3 if a benefit is payable under such section;
18 "(3) In case of the death of a Tier I plan member
19 not eligible for service retirement, after completion of 25
20 years of creditable service, an allowance shall be paid to the
21 surviving spouse, or to such other person who the member shall
22 have designated, in an amount that would have been payable if
23 the member had retired for disability immediately prior to his
24 or her death and had elected Option 3 as set forth in
25 subsection (d) of this section or, alternatively, if the
26 surviving spouse or other designee desires, he or she may
27 choose to receive, in lieu of the allowance provided under
Page 32 1 Option 3, the accumulated contributions of the member plus an
2 amount equal to the accumulated contributions of the member
3 not to exceed $5,000.00 five thousand dollars ($5,000) or the
4 accumulated contributions of the member plus the benefit
5 provided by Section 36-27B-3 if a benefit is payable under
6 such section. For purposes of this subsection only, hazardous
7 duty time, as set forth in subdivision (b)(1) of Section
8 36-27-59, may be used in calculating the requisite years of
9 service for firefighters, law enforcement officers, and
10 correctional officers even if the member has not otherwise
11 attained 25 years of creditable service;
12 "(4) Upon the death of a member on account of whom
13 no survivor allowance is payable under subdivisions (2) or (3)
14 of this subsection, the accumulated contributions of the
15 member plus an amount equal to the accumulated contributions
16 not to exceed $5,000 five thousand dollars ($5,000) or the
17 accumulated contributions of the member plus the benefit
18 provided by Section 36-27B-3 if a benefit is payable under
19 such section shall be paid to his or her estate or to such
20 person as he or she shall have nominated by written
21 designation duly executed and filed with the Board of Control.
22 "(d) Optional allowances. With the provision that
23 the election of an option shall be effective on the effective
24 date of retirement, any member may elect prior to retirement
25 to receive, in lieu of his or her retirement allowance payable
26 throughout life, the actuarial equivalent, at that time, of
Page 33 1 his or her retirement allowance in a reduced retirement
2 allowance payable throughout life with the provisions that:
3 "(1) OPTION 1. If he or she dies before he or she
4 has received in annuity payments the present value of his or
5 her annuity as it was at the time of his or her retirement,
6 the balance shall be paid to his or her legal representatives
7 or to the person as he or she shall nominate by written
8 designation duly acknowledged and filed with the Board of
9 Control;
10 "(2) OPTION 2. Upon his or her death, his or her
11 reduced retirement allowance shall be continued throughout the
12 life of and paid to the person as he or she shall nominate by
13 written designation duly acknowledged and filed with the Board
14 of Control at the time of his or her retirement;
15 "(3) OPTION 3. Upon his or her death, one half of
16 his or her reduced allowance shall be continued throughout the
17 life of and paid to the person as he or she shall nominate by
18 written designation duly acknowledged and filed with the Board
19 of Control at the time of his or her retirement; or
20 "(4) OPTION 4. Some other benefit or benefits shall
21 be paid either to the member or to the person or persons as he
22 or she shall nominate; provided, that such other benefits,
23 together with the reduced retirement allowance, shall be
24 certified by the actuary to be of equivalent actuarial value
25 to his or her retirement allowance and shall be approved by
26 the Board of Control.
Page 34 1 "(5) OPTION 5. At the time of retirement, he or she
2 shall receive a partial lump sum distribution as a single
3 payment not to exceed the sum of 24 months of the maximum
4 monthly retirement allowance the member could receive. This
5 option may be elected in addition to the election of another
6 option under this subsection and the further reduced monthly
7 retirement allowance shall be calculated in accordance with
8 the selected option. This option shall not be available to a
9 member who is receiving a disability retirement.
10 "(e) Effect of return to active service. Should any
11 beneficiary be restored to active service, his or her
12 retirement allowance shall be suspended until he or she again
13 withdraws from service and he or she shall not again become a
14 member of the retirement system nor shall he or she make
15 contributions; except, that should such beneficiary who has
16 been restored to active service continue in service for a
17 period of two or more years from the date of his or her
18 reentry into active service, he or she may request the Board
19 of Control to allow him or her to again become a member of the
20 retirement system. The Board of Control may grant the request
21 for restoration to membership; provided, that such beneficiary
22 whose retirement allowance has been suspended shall repay to
23 the system all moneys received by him or her as benefits
24 during any periods subsequent to the date of his or her
25 reentry into active service and shall make a contribution
26 equal to the amount he or she would have contributed had he or
27 she been a member during the period of his or her restoration
Page 35 1 to active service on a suspended allowance basis together with
2 the interest which would have been credited to the
3 contributions on account of such period of restoration up to
4 the date such contribution is made.
5 "(f)(e)(1) REDETERMINATION, ETC., OF CERTAIN
6 ALLOWANCES. All retirement allowance payments due on or after
7 October 1, 1975, to members who retired prior to that date
8 shall be redetermined as if the provisions of this section in
9 effect on October 1, 1975, were in effect at the time the
10 member retired. Anything in this article to the contrary
11 notwithstanding, the annual retirement allowance of any member
12 not employed as a state policeman who retired on or before
13 January 1, 1956, shall not be less than $79.20 seventy-nine
14 dollars twenty cents ($79.20) multiplied by the number of
15 years of his or her creditable service not in excess of 30
16 years in the case of service retirement of $59.40 fifty-nine
17 dollars forty cents ($59.40) multiplied by the number of years
18 of his or her creditable service not in excess of 30 years in
19 the case of disability retirement. Any increase provided in
20 the retirement allowance payment under this subdivision for a
21 member who retired under the provisions of any optional
22 benefit elected pursuant to subsection (d) of this section
23 shall accrue only to the retired member, and no person
24 designated to receive any payments after the death of a
25 retired member under the provisions of any such optional
26 benefit shall receive any increase in such payments under this
27 subdivision. Notwithstanding, any member who retired prior to
Page 36 1 October 1, 1975, and who chose either Option 2 or Option 3 may
2 elect to receive a reduced allowance and to stipulate that the
3 actuarial equivalent of the increase in his or her retirement
4 allowance, which became effective on that date, be ascribed to
5 his or her designated beneficiary; provided, that such member
6 shall clearly express this intention by filing a written
7 application to the effect with the Secretary-Treasurer of the
8 Employees' Retirement System of Alabama prior to October 1,
9 1976.
10 "(2) Any person who, prior to October 1, 1963, was
11 in receipt of a benefit pursuant to Act No. 376, approved
12 November 6, 1959, but was not a member of the system at the
13 time of retirement shall not be entitled to receive an annual
14 retirement allowance from the system, effective October 1,
15 1971, as follows:
16 "a. If such person was retired on or before January
17 1, 1956, an amount equal to $79.20 seventy-nine dollars twenty
18 cents ($79.20) multiplied by the number of years of his or her
19 creditable service not in excess of 30 years.
20 "b. If such person was retired after January 1,
21 1956, an amount equal to $72.00 seventy-two dollars ($72)
22 multiplied by the number of years of his or her creditable
23 service not in excess of 25 years.
24 "(3) Prior to October 31, 1975, any beneficiary may
25 elect to leave on deposit with the system all or a specified
26 part of any increase in his or her monthly retirement
27 allowance payments arising in accordance with subdivisions (1)
Page 37 1 or (2) of this subsection over the monthly allowance which he
2 or she was receiving prior to October 1, 1975. The portion of
3 each monthly payment left in the system in accordance with
4 such election shall be credited, together with regular
5 interest thereon, to the individual account of such
6 beneficiary. Upon the death of such beneficiary the total
7 amount standing to his or her credit, including regular
8 interest to the date of death, shall be paid in a lump sum to
9 his or her legal representatives or to such person as he or
10 she shall have nominated by written designation duly
11 acknowledged and filed with the Board of Control.
12 "(g)(f) Notwithstanding any other provisions of this
13 section to the contrary, when a designated beneficiary for a
14 member predeceases the member who is receiving a monthly
15 benefit allowance provided under Option 2, 3, or 4, the member
16 may designate a replacement beneficiary for the deceased
17 beneficiary to become effective two years after the date of
18 designation of the replacement beneficiary and an actuarial
19 adjustment in the monthly benefit allowance of the member to
20 cover any cost associated with designating a replacement
21 beneficiary shall be reflected thereafter in the monthly
22 benefit allowance received by the member, commencing with the
23 first benefit allowance check received by the member following
24 the date of designation of the replacement beneficiary.
25 "(h)(g) Notwithstanding any provision of this
26 section to the contrary, if a retired member who is receiving
27 a monthly benefit allowance provided under Option 2, 3, or 4
Page 38 1 divorces his or her designated beneficiary, the member may
2 designate a replacement beneficiary for the beneficiary to
3 become effective two years after the date of designation of
4 the replacement beneficiary and an actuarial adjustment in the
5 monthly benefit allowance of the member to cover any cost
6 associated with designating a replacement beneficiary shall be
7 reflected thereafter in the monthly benefit allowance received
8 by the member, commencing with the first benefit allowance
9 check received by the member following the date of designation
10 of the replacement beneficiary.
11 "(i)(h) Any future act to increase the retirement
12 age for Tier II plan members above the age of 62 shall require
13 a two-thirds vote of the elected membership of each house of
14 the Legislature."
15 Section 2. (a) If any person retired under the
16 Teachers' Retirement System performs duties in any capacity
17 for compensation for an employer participating in the
18 Teachers' Retirement System, Employees' Retirement System, or
19 Judicial Retirement Fund, his or her retirement allowance
20 shall be suspended until termination of employment or
21 contract, unless he or she has drawn his or her retirement
22 benefit for 12 consecutive months and has not performed
23 services for compensation with any employer participating in
24 the Teachers' Retirement System, Employees' Retirement System,
25 or Judicial Retirement Fund during that period. The person may
26 not contribute to the retirement system and may not earn any
Page 39 1 additional service credit during the period of employment or
2 contract.
3 (b) Any person retired under the Teachers’
4 Retirement System who is serving as an elected official may
5 serve for compensation without suspension of benefits so long
6 as the position is otherwise prohibited from participating in
7 the Teachers' Retirement System, Employees' Retirement System,
8 or Judicial Retirement Fund.
9 (c) An employer shall pay employer contributions, as
10 provided by Section 16-25-21, Code of Alabama 1975, on all
11 earnable compensation of an employee who is retired under the
12 Teachers' Retirement System, Employees' Retirement System, or
13 Judicial Retirement Fund, regardless of membership status.
14 (d) Any person retired under the Teachers'
15 Retirement System, Employees' Retirement System, or Judicial
16 Retirement Fund who is employed with an employer may become a
17 member by suspending his or her retirement allowance and
18 contributing to the retirement system as provided by Section
19 16-25-21, Code of Alabama 1975.
20 (e) Any person retired under the Teachers'
21 Retirement System as of the effective date of this act shall
22 be presumed to have drawn his or her retirement benefit for 12
23 consecutive months without performing services for
24 compensation for any employer participating in the Teachers'
25 Retirement System, Employees' Retirement System, or Judicial
26 Retirement Fund during that period.
Page 40 1 (f) This section shall not apply to any person who
2 retired under the Teachers' Retirement System before the
3 effective date of this act and is drawing his or her
4 retirement benefit and participating in the Judicial
5 Retirement Fund under Chapter 18, Title 12, Code of Alabama
6 1975.
7 Section 3. (a) If any person retired under the
8 Employees' Retirement System performs duties in any capacity
9 for compensation for an employer participating in the
10 Teachers' Retirement System, Employees' Retirement System, or
11 Judicial Retirement Fund, his or her retirement allowance
12 shall be suspended until termination of employment or
13 contract, unless he or she has drawn his or her retirement
14 benefit for 12 consecutive months and has not performed
15 services for compensation with any employer participating in
16 the Teachers' Retirement System, Employees' Retirement System,
17 or Judicial Retirement Fund during that period. The person may
18 not contribute to the retirement system and may not earn any
19 additional service credit during the period of employment or
20 contract.
21 (b) Any person retired under the Employees'
22 Retirement System who is serving as an elected official may
23 serve for compensation without suspension of benefits so long
24 as the position is otherwise prohibited from participating in
25 the Teachers' Retirement System, Employees' Retirement System,
26 or Judicial Retirement Fund.
Page 41 1 (c) An employer shall pay employer contributions, as
2 provided by Section 36-27-24, Code of Alabama 1975, on all
3 earnable compensation of an employee who is retired under the
4 Teachers' Retirement System, Employees' Retirement System, or
5 Judicial Retirement Fund, regardless of membership status.
6 (d) Any person retired under the Teachers'
7 Retirement System, Employees' Retirement System, or Judicial
8 Retirement Fund who is employed with an employer may become a
9 member by suspending his or her retirement allowance and
10 contributing to the retirement system as provided by Section
11 36-27-24, Code of Alabama 1975.
12 (e) Any person retired under the Employees'
13 Retirement System as of the effective date of this act shall
14 be presumed to have drawn his or her retirement benefit for 12
15 consecutive months without performing services for
16 compensation for any employer participating in the Teachers'
17 Retirement System, Employees' Retirement System, or Judicial
18 Retirement Fund during that period.
19 (f) This section shall not apply to any person who
20 retired under the Employees' Retirement System before the
21 effective date of this act, is drawing his or her retirement
22 benefit, and is participating in the Judicial Retirement Fund
23 under Chapter 18, Title 12, Code of Alabama 1975.
24 Section 4. (a) If any person retired under the
25 Judges' and Clerks' Plan of the Judicial Retirement Fund
26 performs duties in any capacity for compensation for an
27 employer participating in the Teachers' Retirement System,
Page 42 1 Employees' Retirement System, or Judicial Retirement Fund, his
2 or her retirement allowance shall be suspended until
3 termination of employment or contract, unless he or she has
4 drawn his or her retirement benefit for 12 consecutive months
5 and has not performed services for compensation with any
6 employer participating in the Teachers' Retirement System,
7 Employees' Retirement System, or Judicial Retirement Fund
8 during that period. The person may not contribute to the
9 retirement system and may not earn any additional service
10 credit during the period of employment or contract.
11 (b) Any person retired under the Judges' and Clerks'
12 Plan who is serving as an elected official may serve for
13 compensation without suspension of benefits so long as the
14 position is otherwise prohibited from participating in the
15 Teachers' Retirement System, Employees' Retirement System, or
16 Judicial Retirement Fund.
17 (c) An employer shall pay employer contributions, as
18 provided by Section 12-18-152, Code of Alabama 1975, on all
19 earnable compensation of an employee who is retired under the
20 Teachers' Retirement System, Employees' Retirement System, or
21 Judicial Retirement Fund, regardless of membership status.
22 (d) Any person retired under the Teachers'
23 Retirement System, Employees' Retirement System, or Judicial
24 Retirement Fund who is employed as a judge or clerk with an
25 employer may become a member by suspending his or her
26 retirement allowance and contributing to the retirement system
27 as provided by Section 12-18-152, Code of Alabama 1975.
Page 43 1 (e) Any person retired under the Judges' and Clerks'
2 Plan as of the effective date of this act shall be presumed to
3 have drawn his or her retirement benefit for 12 consecutive
4 months without performing services for compensation for any
5 employer participating in the Teachers' Retirement System,
6 Employees' Retirement System, or Judicial Retirement Fund
7 during that period.
8 Section 5. (a) If any person retired under the
9 District Attorneys' Plan of the Judicial Retirement Fund
10 performs duties in any capacity for compensation for an
11 employer participating in the Teachers' Retirement System,
12 Employees' Retirement System, or Judicial Retirement Fund, his
13 or her retirement allowance shall be suspended until
14 termination of employment or contract, unless he or she has
15 drawn his or her retirement benefit for 12 consecutive months
16 and has not performed services for compensation with any
17 employer participating in the Teachers' Retirement System,
18 Employees' Retirement System, or Judicial Retirement Fund
19 during that period. The person may not contribute to the
20 retirement system and may not earn any additional service
21 credit during the period of employment or contract.
22 (b) Any person retired under the District Attorneys'
23 Plan who is serving as an elected official may serve for
24 compensation without suspension of benefits so long as the
25 position is otherwise prohibited from participating in the
26 Teachers' Retirement System, Employees' Retirement System, or
27 Judicial Retirement Fund.
Page 44 1 (c) An employer shall pay employer contributions, as
2 provided by Section 12-17-227.2, Code of Alabama 1975, on all
3 earnable compensation of an employee who is retired under the
4 Teachers' Retirement System, Employees' Retirement System, or
5 Judicial Retirement Fund, regardless of membership status.
6 (d) Any person retired under the Teachers'
7 Retirement System, Employees' Retirement System, or Judicial
8 Retirement Fund who is employed with an employer may become a
9 member by suspending his or her retirement allowance and
10 contributing to the retirement system as provided by Section
11 12-17-227.2, Code of Alabama 1975.
12 (e) Any person retired under the District Attorneys'
13 Plan as of the effective date of this act shall be presumed to
14 have drawn his or her retirement benefit for 12 consecutive
15 months without performing services for compensation for any
16 employer participating in Teachers' Retirement System,
17 Employees' Retirement System, or Judicial Retirement Fund
18 during that period.
19 Section 6. Sections 16-25-26, 29-4-6, and 36-27-8.2
20 of the Code of Alabama 1975, authorizing certain retired state
21 employees to return to work for the state, are repealed.
22 Section 7. This act shall become effective on the
23 first day of the third month following its passage and
24 approval by the Governor, or its otherwise becoming law.
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