Alabama 2022 Regular Session

Alabama House Bill HB376

Introduced

2/16/22

Refer

2/16/22

Engrossed

3/9/22

Refer

3/10/22

Caption

Teachers' Retirement System and Employees' Retirement System, to revise temporarily the eligibility and compensation of retirees for participating in either system after retirement, Secs. 16-25-25.2, 36-27-8.3 added; Secs. 16-25-26, 36-27-8.2 am'd.

Impact

The bill introduces a temporary increase in the compensation limit from $30,000 to $52,000 for the calendar year 2022, with a clause for annual adjustments based on changes in the Consumer Price Index starting in 2024. This change is meant to encourage retired individuals to continue contributing to the workforce, thus addressing potential labor shortages while maintaining their retirement benefits. The provision allows for retirees to take up employment roles that can benefit both the public sector and the educational system in Alabama.

Summary

House Bill 376 seeks to revise the eligibility and compensation parameters for retirees from the Employees' Retirement System and the Teachers' Retirement System in Alabama. The bill proposes to allow retirees from these systems to perform duties with employers participating in the systems without having their retirement allowances suspended, provided certain conditions are met. Importantly, retirees must not be employed in a permanent full-time capacity and their total compensation must not exceed set limits which have been adjusted for inflation over time.

Contention

While supporters of the bill argue that it will help retain experienced professionals in the workforce, particularly in public education, there are concerns regarding the implications of increasing the earning threshold for retirees. Critics may argue that this could affect the integrity of the pension systems, as allowing higher compensation could lead to higher retirement burdens. Additionally, there is a sunset clause included in the bill that mandates a review or potential repeal of the provisions by the end of 2026, showing a need for ongoing assessment of its effects on the retirement systems.

Companion Bills

No companion bills found.

Previously Filed As

AL SB216

Employees' Retirement System; retired firemedics, return to work without suspension of retirement allowance

AL HB136

Retirement, deferred retirement option plan (DROP), options for Tier I and Tier II Teacher Retirement System members to participate, reopened

AL SB339

Retirement Systems of Alabama; to provide a benefit increase for certain retirees of the ERS and the TRS

AL HB621

Teachers' Retirement System of Alabama, future Alabama High School Athletic Association employees prohibited from participating

AL HB504

Public Investments; to prohibit Board of Control of Employees' Retirement Systems of Alabama and Teachers' Retirement Systems of Alabama from investing with restricted entities affiliated with Communist Chinese military companies

AL HB542

District attorneys, prosecutors, office of prosecution services' attorneys, retirement benefits and allowances further provided for; membership of District Attorneys' Plan expanded; participation in supernumerary program and employees retirement system further provided for

AL HB19

Jackson County, municipalities, mayors, participation in Employees' Retirement System

AL HB44

Teachers' Retirement System, reopened for service rendered to St. Clair County, DAY Program, Inc.

AL HB279

Teachers' Retirement System; officers and employees of Lauderdale County Teacher's Credit Union authorized to participate

AL HB123

Teachers' Retirement System, reopened to allow purchase of credit in the system for prior service rendered to the St. Clair County DAY Program, Inc.

Similar Bills

AL SB61

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.

AL HB41

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.