Alabama House Bill HB308

Alabama 2023 Regular Session

• Introduced: 4/13/23
• Refer: 4/13/23

Caption

Relating to the Retirement Systems of Alabama; to amend Section 16-25-14, as last amended by Act 2022-184 and Act 2022-222 of the 2022 Regular Session, and Section 36-27-16, as last amended by Act 2022-184 and Act 2022-351 of the 2022 Regular Session, Code of Alabama 1975, to require an individual retired under the Teachers' Retirement System, Employees' Retirement System, or Judicial Retirement Fund to draw his or her retirement benefits for 12 consecutive months before returning to compensated work for a participating employer; to limit the person's compensation from the employer to 75 percent of the person's annual retirement benefit for each calendar year; and to repeal Sections 16-25-26, 29-4-6, and 36-27-8.2, Code of Alabama 1975, authorizing certain retired public employees to return to work for participating employers.

Impact

The bill seeks to amend existing laws related to the Teachers' Retirement System, Employees' Retirement System, and Judicial Retirement Fund. By allowing retried public employees to re-enter the workforce after a year of retirement without losing benefits, the bill aims to address workforce shortages in various sectors, especially in education and public service. However, the limitation on compensation ensures that the system maintains its integrity and funding structure.

Summary

House Bill 308 focuses on the conditions under which retired public employees can return to compensated work without suspension of their retirement benefits. Currently, retired individuals are allowed to return to work in limited capacities under specific guidelines. HB308 modifies these provisions by lifting restrictions for retirees who have drawn their retirement benefits for a full year and have not engaged in compensated service during that time. Upon their return, their compensation will be capped at 75 percent of their annual retirement benefit.

Contention

One notable point of contention surrounding HB308 is its potential impact on existing retirees’ earnings and the broader implications for the retirement systems. Supporters argue that it offers essential flexibility for retirees looking to contribute to the public workforce while still receiving retirement benefits. Critics, however, may express concerns about fiscal sustainability and equity among active employees who may feel disadvantaged by this change. The bill also repeals certain sections of relevant laws that previously allowed for different working conditions for retirees, which may lead to debates about fairness and the treatment of public employees post-retirement.