HB308INTRODUCED
Page 0
5VHBM6-1
By Representatives Sells, Baker, Pettus
RFD: Ways and Means Education
First Read: 13-Apr-23
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5 5VHBM6-1 03/07/2023 KMS (L)cr 2023-573
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SYNOPSIS:
Under existing law, a retired public employee is
permitted to return to certain limited compensated
service with any employer participating in the
Teachers' Retirement System, Employees' Retirement
System, or Judicial Retirement Fund without suspension
of his or her retirement allowance.
This bill would lift these restrictions for
retirees who have drawn retirement benefits for 12
consecutive months without performing services for
compensation with participating employers and would
limit the person's compensation from the employer to 75
percent of the person's annual retirement benefit for
each calendar year.
A BILL
TO BE ENTITLED
AN ACT
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
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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.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Sections 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,
are amended to read as follows:
"§16-25-14
(a)(1) Any Tier I plan member who withdraws from
service upon or after attainment of age 60 and any Tier II
plan member who withdraws from service upon or after
attainment of age 62, or in the case of a Tier II plan member
who is a correctional officer, firefighter, or law enforcement
officer as defined in Section 36-27-59, who withdraws from
service upon or after attainment of age 56 with at least 10
years of creditable service as a correctional officer,
firefighter, or law enforcement officer may retire upon
written application to the Board of Control setting forth at
what time, not less than 30 days nor more than 90 days
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subsequent to the execution and filing thereof, he or she
desires to be retired; provided, that any such member who
became a member on or after October 1, 1963, shall have
completed 10 or more years of creditable service.
(2) Any Tier I plan member who has attained age 60 and
any Tier II plan member who has attained age 62, or in the
case of a Tier II plan member who is a correctional officer,
firefighter, or law enforcement officer as defined in Section
36-27-59, who has attained age 56 with at least 10 years of
creditable service as a correctional officer, firefighter, or
law enforcement officer and has previously withdrawn from
service may retire upon written application to the Board of
Control setting forth at what time, not less than 30 days nor
more than 90 days subsequent to the execution and filing
thereof, he or she desires to be retired; provided, that the
member shall have completed at the time for his or her
withdrawal from service the requirements established by the
Board of Control for eligibility for deferred benefits
pursuant to Section 16-25-3.
(3) Any person who is presently covered or is eligible
to be covered under the Employees' Retirement System of
Alabama or the Teachers' Retirement System of Alabama and who,
prior to the coverage or eligibility for coverage, served as
head of any Alabama county's public library service department
shall have credited to him or her one year of creditable
service for each year served as such head, not to exceed 12
years; provided, that the person shall pay into the retirement
system the employee's part of the cost or contribution based
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on the salary paid to the person during the time of his or her
service in the above capacity, with the cost or contribution
to be calculated at the percent or rate in effect on October
1, 1973.
(4) Any Tier I plan member of the Teachers' Retirement
System of Alabama who withdraws from service after the
completion of at least 25 years of creditable service, or any
Tier II plan member who withdraws from service after the
completion of at least 30 years of creditable service, may
retire upon written application to the Board of Control of the
Teachers' Retirement System setting forth at what time, not
less than 30 days nor more than 90 days subsequent to the
execution and filing thereof, he or she desires to be retired;
provided, that any such member who became a Tier I or Tier II
plan member on or after October 1, 1963, shall have completed
10 or more years of creditable service.
(b) Upon retirement from service, a Tier I plan member
shall receive a service retirement allowance which shall
consist of:
(1) An annuity which shall be the actuarial equivalent
of his or her accumulated contributions at the time of his or
her retirement;
(2) A pension which shall be equal to the annuity
allowable at the age of retirement, but not to exceed an
annuity allowable at age 65 computed on the basis of
contributions made prior to the attainment of age 65; and
(3) If he or she has a prior service certificate in
full force and effect, an additional pension which shall be
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equal to the annuity which would have been provided at age of
retirement, but not to exceed an annuity allowable at age 65
by twice the contributions which he or she would have made
during the period of prior service with which he or she is
credited had the system been in operation and had he or she
contributed thereunder. In lieu of a determination of the
actual compensation of the members that was received during
that prior service, the Board of Control may use for the
purposes of this chapter the compensation rates which, if they
had progressed with the rates of salary increase shown in the
tables as prescribed in subsection (o) of Section 16-25-19,
would have resulted in the same average salary of the member
for the five years immediately preceding the date of
establishment as the records show the member actually
received.
(c) The annual service retirement pension payable to a
Tier I plan member retiring on or after October 1, 1975, shall
not be less than an amount which when added to his or her
annuity is equal to the greater of the following two amounts:
(1) Two and one-eightieth percent of the member's
average final compensation multiplied by the number of years
of his or her creditable service; or
(2) If he or she became a member before October 1,
1971, seventy-two dollars ($72) multiplied by the number of
years of his or her creditable service not in excess of 25
years.
Notwithstanding, a member who retired prior to October
1, 1971, under service retirement shall receive one hundred
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twenty dollars ($120) multiplied by the number of years of his
or her creditable service not in excess of 25 years.
(d) Upon retirement from service, a Tier II plan member
shall receive a service retirement allowance which shall
consist of an annuity which shall be the actuarial equivalent
of the member's accumulated contributions at the time of
retirement and a pension which, when added to the member's
annuity, shall be equal to one and sixty-five hundredths
percent (1.65%) of the member's average final compensation
multiplied by the number of years of creditable service. The
service retirement allowance for a member who retires with 30
years of creditable service before reaching the age of 62
shall be reduced by two percent (2%) for each year of the
difference between age 62 and the age at retirement of the
member. Notwithstanding the foregoing, the service retirement
allowance shall not exceed eighty percent (80%) of the
member's average final compensation.
(e) Upon the application of a Tier I plan member in
service or of his or her employer, any member who has had 10
or more years of creditable service may be retired by the
Board of Control on a disability retirement allowance not less
than 30 nor more than 90 days next following the date of
filing the application; provided, that the medical board,
after a medical examination of the member, shall certify that
the member is mentally or physically incapacitated for further
performance of duty, that the incapacity is likely to be
permanent, and that the member should be retired. Upon the
application of a Tier II plan member in service or of his or
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her employer, any member who has had 10 or more years of
creditable service may be retired by the Board of Control on a
disability retirement allowance not less than 30 nor more than
90 days next following the date of filing the application;
provided, that the medical board, after a medical examination
of the member, shall certify that the member is totally and
permanently mentally or physically incapacitated from regular
and substantial gainful employment, and that the member should
be retired.
(f) Upon retirement for disability, a Tier I plan
member shall receive a service retirement allowance if he or
she has attained age 60 or if any law or part of any law
pertaining to retirement under the Teachers' Retirement System
of Alabama provides for service retirement after the
completion of 25 years of creditable service and the member
has completed 25 years of creditable service; otherwise, he or
she shall receive a disability retirement allowance which
shall consist of:
(1) An annuity which shall be the actuarial equivalent
of his or her accumulated contributions at the time of
retirement; and
(2) A pension which shall be equal to the pension that
would have been payable under subdivisions (2) and (3) of
subsection (b) of this section upon service retirement at age
60 had the member continued in service to that age without
change in compensation.
The annual disability retirement pension shall not be
less than an amount which when added to his or her annuity is
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equal to the greater of the following amounts:
a. Two and one-eightieth percent of the member's
average final compensation multiplied by the number of years
of creditable service.
b. If he or she became a member before October 1, 1971,
fifty-four dollars ($54) multiplied by the number of years of
his or her creditable service not in excess of 25 years.
Notwithstanding, a member who retired prior to October
1, 1971, for disability shall receive ninety dollars ($90)
multiplied by the number of years of his or her creditable
service not in excess of 25 years.
(g) Upon retirement for disability, a Tier II plan
member shall receive a service retirement allowance if the
member has attained age 62, or in the case of a Tier II plan
member who is a correctional officer, firefighter, or law
enforcement officer as defined in Section 36-27-59, if the
member has attained age 56 with at least 10 years of
creditable service as a correctional officer, firefighter, or
law enforcement officer or if the member has completed 30
years of creditable service, otherwise, the member shall
receive a disability retirement allowance which shall be equal
to one and sixty-five hundredths percent (1.65%) of the
member's average final compensation multiplied by the number
of years of creditable service.
(h)(1) Once each year during the first five years
following the retirement of a member on a disability
retirement allowance and once in every three-year period
thereafter, the Board of Control may and upon his or her
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application shall require any disability beneficiary who has
not yet attained age 60 for a Tier I plan member or age 62 for
a Tier II plan member to undergo a medical examination, the
examination to be made at the place of residence of the
beneficiary or other place mutually agreed upon by a physician
of or designated by the medical board. Should any disability
beneficiary who has not yet attained age 60 for a Tier I plan
member or age 62 for a Tier II plan member refuse to submit to
the medical examination, his or her pension may be
discontinued until his or her withdrawal of the refusal, and
should his or her refusal continue for one year, all his or
her rights in and to his or her pension may be revoked by the
Board of Control; provided, that these requirements relative
to the medical examination shall not apply in the case of a
Tier II plan member who is a correctional officer,
firefighter, or law enforcement officer as defined in Section
36-27-59 retired for disability and who has attained age 56
with at least 10 years of creditable service as a correctional
officer, firefighter, or law enforcement officer.
(2) Should the medical board report and certify to the
Board of Control that a disability beneficiary who is a Tier I
plan member is engaged in or is able to engage in a gainful
occupation paying more than the difference between his or her
retirement allowance and his average final compensation and
should the Board of Control concur in the report, then the
amount of his or her pension shall be reduced to an amount
which, together with his or her annuity and the amount
earnable by him or her, shall equal the amount of his or her
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average final compensation. Should his or her earning capacity
be later changed, the amount of his or her pension may be
further modified; provided, that the new pension shall not
exceed the amount of the pension originally granted nor an
amount which, when added to the amount earnable by the
beneficiary together with his or her annuity, equals the
amount of his or her average final compensation.
(3) Should the medical board report and certify to the
Board of Control that a disability beneficiary who is a Tier
II plan member has the capacity to engage in regular and
substantial gainful employment, the Board of Control shall
discontinue the beneficiary's retirement allowance until the
beneficiary is otherwise eligible for service retirement.
(i)(1) Should a member cease to be a teacher, except by
death or by retirement under the provisions of this chapter,
the contributions standing to the credit of his or her
individual account in the Annuity Savings Fund shall be paid
to him or her upon demand, and in addition to the payment
there shall be paid five-tenths of the interest accumulations
standing to the credit of his or her individual account if he
or she shall have not less than three but less than 16 years
of membership service, six-tenths of the interest
accumulations if he or she shall have not less than 16 but
less than 21 years of membership service, seven-tenths of the
interest accumulations if he or she shall have not less than
21 but less than 26 years of membership service, and
eight-tenths of the interest accumulations if he or she shall
have not less than 26 years of membership service.
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(2) In case of the death of a member eligible for
service retirement pursuant to subsection (a) of this section,
an allowance shall be paid to the surviving spouse, if
designated as the sole beneficiary, in an amount that would
have been payable if the member had retired immediately prior
to his or her death and had elected Option 2, as set forth in
subsection (j), or to such other person who the member shall
have designated, in an amount that would have been payable if
the member had retired immediately prior to his or her death
and had elected Option 3, as set forth in subsection (j).
Alternatively, if the surviving spouse or other designee
desires, he or she may choose to receive, in lieu of the
allowance provided under Option 2 or Option 3, the accumulated
contributions of the member plus an amount equal to the
accumulated contributions of the member not to exceed five
thousand dollars ($5,000) or the accumulated contributions of
the member plus the benefit provided by Section 36-27B-3 if a
benefit is payable under that section. For purposes of this
subsection only, hazardous duty time, as set forth in
subdivision (b)(1) of Section 36-27-59, may be used in
calculating the requisite years of service for firefighters,
law enforcement officers, and correctional officers even if
the member has not otherwise attained 25 years of creditable
service.
(3) Upon the death of a member on account of whom no
survivor allowance is payable under subdivision (2) of this
subsection, the accumulated contributions of the member plus
an amount equal to the accumulated contributions not to exceed
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five thousand dollars ($5,000) or the accumulated
contributions of the member plus the benefit provided by
Section 36-27B-3 if a benefit is payable under that section
shall be paid to his or her estate or to such person as he or
she shall have nominated by written designation duly executed
and filed with the Board of Control.
(j) With the provision the election of an option shall
be effective on the effective date of retirement, any member
may elect prior to retirement to receive, in lieu of his or
her retirement allowance payable throughout life, the
actuarial equivalent at that time of his or her retirement
allowance in a reduced retirement allowance payable throughout
life with the provision that:
(1) OPTION 1. If he or she dies before he or she has
received in annuity payments the present value of his or her
annuity as it was at the time of his or her retirement, the
balance shall be paid to his or her legal representatives or
to the person as he or she shall nominate by written
designation duly acknowledged and filed with the Board of
Control;
(2) OPTION 2. Upon his or her death, his or her reduced
retirement allowance shall be continued throughout the life of
and paid to the person as he or she shall nominate by written
designation duly acknowledged and filed with the Board of
Control at the time of his or her retirement;
(3) OPTION 3. Upon his or her death, one half of his or
her reduced retirement allowance shall be continued throughout
the life of and paid to the person as he or she shall nominate
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by written designation duly acknowledged and filed with the
Board of Control at the time of his or her retirement; or
(4) OPTION 4. Some other benefit or benefits shall be
paid either to the member or to the person or persons as he or
she shall nominate; provided, that the other benefit or
benefits, together with the reduced retirement allowance,
shall be certified by the actuary to be of equivalent
actuarial value to his or her retirement allowance and shall
be approved by the Board of Control.
(5) OPTION 5. At the time of retirement, he or she
shall receive a partial lump sum distribution as a single
payment not to exceed the sum of 24 months of the maximum
monthly retirement allowance the member could receive. This
option may be elected in addition to the election of another
option under this subsection and the further reduced monthly
retirement allowance shall be calculated in accordance with
the selected option. This option shall not be available to a
member who is receiving a disability retirement.
(k) Should any beneficiary be restored to active
service, his or her retirement allowance shall be suspended
until he or she again withdraws from service and, he or she
shall not again become a member, nor shall he or she make
contributions; except, that should the beneficiary who has
been restored to active service continue in service for a
period of two or more years from the date of his or her
reentry into active service, he or she may request the Board
of Control to allow him or her to again become a member of the
retirement system. The Board of Control may grant the request
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for restoration to membership; provided, that the beneficiary
whose retirement allowance has been suspended shall repay to
the system all monies received by him or her as benefits
during any period subsequent to the date of his or her reentry
into active service; provided further, that he or she shall
make a contribution equal to the amount he or she would have
contributed had he or she been a member during the period of
his or her restoration to active service on a suspended
allowance basis, together with the interest which would have
been credited to the contributions on account of the period of
restoration up to the date the contribution is made.
(l)(k)(1) All retirement allowance payments due on or
after October 1, 1975, to members who retired prior to October
1, 1975, shall be redetermined as if the provisions of
subsections (b) and (e) of this section which became effective
on said date were in effect at the time the member retired;
provided, that the annual retirement allowance of any member
who retired on or before January 1, 1956, shall be not less
than one hundred thirty-two dollars ($132) multiplied by the
number of years of his or her creditable service not in excess
of 30 years in the case of service retirement or ninety-nine
dollars ($99) multiplied by the number of years of creditable
service not in excess of 30 years in the case of disability
retirements. Any increase provided in the retirement allowance
payment under this subsection for a member who retired under
the provisions of any optional benefit elected pursuant to
subsection (j) of this section shall accrue only to the
retired member, and no person designated to receive any
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payments after the death of a retired member under the
provisions of any optional benefit shall receive any increase
in payments under this subsection.
(2) Any person who served at least 30 years as a
teacher in the public schools of Alabama and was never a
member of the system and who, prior to October 1, 1963, was in
receipt of a benefit for old age assistance pursuant to
subsections (1) and (2) of Section 1 of Act 116, approved
August 24, 1959, shall be entitled to receive an annual
retirement allowance of three thousand nine hundred sixty
dollars ($3,960) from the system, effective as of October 1,
1973.
(3) Prior to October 31, 1975, any beneficiary may
elect to leave on deposit with the system all or a specified
part of any increase in his or her monthly retirement
allowance payments arising in accordance with subdivision (1)
or (2) of this subsection. The portion of each monthly payment
left in the system in accordance with the election shall be
credited, together with regular interest thereon, to the
individual account of the beneficiary. Upon the death of the
beneficiary, the total amount standing to his or her credit,
including regular interest to the date of death, shall be paid
in a lump sum to his or her legal representative or to the
person as he or she shall have nominated by written
designation duly acknowledged and filed with the Board of
Control.
(m)(l) Notwithstanding any other provisions of this
section to the contrary, when a designated beneficiary for a
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member predeceases the member who is receiving a monthly
benefit allowance provided under Option 2, 3, or 4, the member
may designate a replacement beneficiary for the deceased
beneficiary to become effective two years after the date of
designation of the replacement beneficiary and an actuarial
adjustment in the monthly benefit allowance of the member to
cover any cost associated with designating a replacement
beneficiary shall be reflected thereafter in the monthly
benefit allowance received by the member, commencing with the
first benefit allowance check received by the member following
the date of designation of the replacement beneficiary.
(n)(m) Notwithstanding any provision of this section to
the contrary, if a retired member who is receiving a monthly
benefit allowance provided under Option 2, 3, or 4 divorces
his or her designated beneficiary, the member may designate a
replacement beneficiary for the beneficiary to become
effective two years after the date of designation of the
replacement beneficiary and an actuarial adjustment in the
monthly benefit allowance of the member to cover any cost
associated with designating a replacement beneficiary shall be
reflected thereafter in the monthly benefit allowance received
by the member, commencing with the first benefit allowance
check received by the member following the date of designation
of the replacement beneficiary.
(o)(n) Any future act to increase the retirement age
for Tier II plan members above the age of 62 shall require a
two-thirds vote of the elected membership of each house of the
Legislature."
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"§36-27-16
(a)(1) RETIREMENT, ETC., OF EMPLOYEES GENERALLY;
ELIGIBILITY FOR SERVICE RETIREMENT BENEFITS.
a. Any Tier I plan member who withdraws from service
upon or after attainment of age 60 and any Tier II plan member
who withdraws from service upon or after attainment of age 62
may retire upon written application to the Board of Control
setting forth at what time, not less than 30 days nor more
than 90 days subsequent to the execution and filing thereof,
he or she desires to be retired; provided, that any such
member who became a member on or after October 1, 1963, shall
have completed 10 or more years of creditable service;
provided further, that a Tier I plan member employed as a
state policeman shall be eligible to file application for
service retirement upon attaining age 52 and a Tier II plan
member employed as a state policeman or employed as a
correctional officer, firefighter, or law enforcement officer
as defined in Section 36-27-59 with at least 10 years of
creditable service as a correctional officer, firefighter, or
law enforcement officer shall be eligible to file application
for service retirement upon attaining age 56.
b. Any Tier I plan member who has attained age 60, or
age 52 in the case of a state policeman and any Tier II plan
member who has attained age 62, or age 56 in the case of a
state policeman or in the case of a correctional officer,
firefighter, or law enforcement officer as defined in Section
36-27-59 who has at least 10 years of creditable service as a
correctional officer, firefighter, or law enforcement officer,
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and has previously withdrawn from service may retire upon
written application to the Board of Control setting forth at
what time, not less than 30 days nor more than 90 days
subsequent to the execution and filing thereof, he or she
desires to be retired; provided, the member shall have at the
time of his or her withdrawal from service completed the age
and service requirements established by the Board of Control
for eligibility for deferred benefits; provided, that the
minimum number of years of creditable service shall not be
less than 10 years nor more than 25 years.
c. In addition to any law or part of law relating to
service retirement under the Employees' Retirement System of
Alabama, any Tier I plan member of the Employees' Retirement
System who withdraws from service after completion of not less
than 25 years of creditable service, or any Tier II plan
member who withdraws from service after completion of not less
than 30 years of creditable service, may retire without a
reduction in retirement allowance upon written application to
the Board of Control of the Employees' Retirement System
setting forth the first day of which month, not less than 30
days or more than 90 days subsequent to the execution and
filing thereof, he or she desires to be retired, provided that
no person whose employer participates in the Employees'
Retirement System under Section 36-27-6 shall be entitled to
the benefits provided in this paragraph for Tier I members
unless the employer elects to come under the provisions of the
paragraph. Any employer making this election must bear the
cost of the benefit.
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(2) AMOUNT OF SERVICE RETIREMENT ALLOWANCE.
a. Upon retirement from service, a Tier I plan member
shall receive a service retirement allowance which shall
consist of:
1. An annuity which shall be the actuarial equivalent
of his or her accumulated contributions at the time of his or
her retirement; except, that in the case of a state policeman
who has completed 20 years of creditable service as a state
policeman who retires after age 56 but prior to age 60, the
annuity shall be equal to the annuity that would have been
payable upon service retirement at age 60 had the member
continued in service to age 60 without change in compensation;
2. A pension which shall be equal to the annuity
allowance at age of retirement, but not to exceed an annuity
allowable at age 65, computed on the basis of contributions
made prior to attainment of age 65; except, that in the case
of a state policeman who has completed 20 years of creditable
service as a state policeman who retires after age 56 but
prior to age 60, the pension shall be equal to the annuity
that he or she would have received had he or she contributed
to age 60 without change in compensation; and
3. An additional pension, if he or she has a prior
service certificate in full force and effect, which shall be
equal to the annuity which would have been provided at the age
of retirement, but which shall not exceed an annuity allowable
at age 65 by twice the contributions which he or she would
have made during the period of prior service with which he or
she is credited had the system been in operation and had he or
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she contributed thereunder; except, that in case of a state
policeman who has completed 20 years of creditable service as
a state policeman who retired after age 56 but prior to age
60, an additional pension, if he or she has a prior service
certificate in full force and effect, which shall be equal to
the annuity which would have been provided at age 60, but
which shall not exceed an annuity allowable at age 60 by twice
the contributions which he or she would have made during the
period of prior service with which he or she is credited had
the system been in operation and had he or she contributed
thereunder.
b. Notwithstanding the provisions of subparagraphs 1.,
2., and 3. of paragraph a. of this subdivision, a state
policeman who is a Tier I plan member and who has completed 20
years of service as a state policeman who retires after age 52
but prior to age 56 shall receive:
1. An annuity which shall be equal to the annuity that
would have been payable had the member continued in service
for four years without change in compensation;
2. A pension which shall be equal to the annuity that
he or she would have received had he or she contributed for
four years without change in compensation; and
3. An additional pension, if he or she has a prior
service certificate in full force and effect, which shall be
equal to the annuity which would have been provided at the age
of retirement, but which shall not exceed an annuity allowable
at the age of retirement plus four years by twice the
contributions which he or she would have made during the
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period of prior service with which he or she is credited had
the system been in operation and had he or she contributed
thereunder. In lieu of a determination of the actual
compensation of a member that was received during that prior
service, the Board of Control may use for the purpose of this
article the compensation rate which, if it had progressed with
the rates of salary increase shown in the tables as prescribed
in subsection (n) of Section 36-27-23, would have resulted in
the same average salary of the member for the five years
immediately preceding the date of establishment as the records
show the member actually received.
c. The annual service retirement pension payable to a
Tier I plan member not employed as a state policeman retiring
on or after October 1, 1975, shall not be less than an amount
which, when added to his or her annuity, is equal to the
greater of the following two amounts:
1. Two and one-eightieth percent of the member's
average final compensation multiplied by the number of years
of his or her creditable service; or
2. If he or she became a member before October 1, 1965,
seventy-two dollars ($72) multiplied by the number of years of
his or her creditable service not in excess of 25 years.
d. The annual service retirement pension payable to a
Tier I plan member employed as a state policeman retiring on
or after October 1, 1975, shall not be less than an amount
which, when added to his or her annuity, is equal to the
greater of the following two amounts:
1. Two and seven-eighths percent of the member's
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average final compensation multiplied by the number of years
of his or her creditable service. Creditable service for any
state policeman under the age of 56 years who has completed 20
years of creditable service as a state policeman shall include
a bonus equal to four additional years. Creditable service for
a state policeman 56 years or older shall include a bonus
equal to the years or portion thereof remaining until the
member reaches age 60; or
2. If he or she became a member before October 1, 1965,
eighty-six dollars forty cents ($86.40) multiplied by the
number of years of his or her creditable service not in excess
of 25 years; provided, however, that if the member has
completed 20 years of creditable service as a state policeman
and has not attained age 60 at the time of retirement, the
pension shall be determined as provided in this subparagraph
on the basis of the number of years of creditable service
which he or she would have had if he or she had remained in
service for four years, except that, in the case of those
state policemen retiring at age 56 or after, the number of
years in determining the pension shall not exceed the number
of years of creditable service which he or she would have had
if he or she had remained in service to age 60.
e. Upon retirement from service, a Tier II plan member
who is not employed as a state policeman shall receive a
service retirement allowance which shall consist of an annuity
which shall be the actuarial equivalent of the member's
accumulated contributions at the time of retirement and a
pension which, when added to the member's annuity, shall be
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equal to one and sixty-five hundredths percent (1.65%) of the
member's average final compensation multiplied by the number
of years of creditable service. The service retirement
allowance for a member who retires with 30 years of creditable
service before reaching the age of 62 shall be reduced by two
percent (2%) for each year of the difference between age 62
and the age at retirement of the member. Notwithstanding the
foregoing, the service retirement allowance shall not exceed
eighty percent (80%) of the member's average final
compensation.
f. Upon retirement from service, a Tier II plan member
who is employed as a state policeman shall receive a service
retirement allowance which shall consist of an annuity which
shall be the actuarial equivalent of the member's accumulated
contributions at the time of retirement and a pension which,
when added to the member's annuity, shall be equal to two and
three-eighths percent (2.375%) of the member's average final
compensation multiplied by the member's number of years of
creditable service. The service retirement allowance for a
member who retires with 30 years of creditable service before
reaching the age of 62 shall be reduced by two percent (2%)
for each year of the difference between age 62 and the age at
retirement of the member. Notwithstanding the foregoing, the
service retirement allowance shall not exceed eighty percent
(80%) of the member's average final compensation.
g. Anything in this article to the contrary
notwithstanding, in the application of the foregoing
provisions of this subdivision to a member whose creditable
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service includes a period of service as a state policeman and
a period of service in another employment classification, the
benefit rates applicable to a member employed as a state
policeman shall apply to all creditable service as a state
policeman, and the benefit rates applicable to a member not
employed as a state policeman shall apply to all creditable
service, but in all other respects the pension under this
subdivision shall be determined on the basis of the member's
employment classification at the time of his or her withdrawal
from service.
h. The annual service retirement pension payable to any
state employee who had attained age 60 on or before October 1,
1945, who declined membership in the Employees' Retirement
System of Alabama in the manner prescribed in Section 36-27-4
and who retires as a state employee after completing a minimum
of 15 years' service shall be seventy-two dollars ($72)
multiplied by the number of years of his or her service not in
excess of 25 years.
(b)(1) RETIREMENT OF DISABLED EMPLOYEES; ELIGIBILITY
FOR DISABILITY RETIREMENT BENEFITS.
a. Upon application of a Tier I plan member in service
or of his or her employer, any member who has had 10 or more
years of creditable service who becomes disabled may be
retired on a disability retirement allowance by the Board of
Control not less than 30 nor more than 90 days next following
the date of filing of the application; provided, that the
medical board, after a medical examination of the member,
shall certify that the member is mentally or physically
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incapacitated for the further performance of duty, that the
incapacity is likely to be permanent and that the member
should be retired. Upon the application of a Tier II plan
member in service or his or her employer, any member who has
had 10 or more years of creditable service may be retired by
the Board of Control on a disability retirement allowance not
less than 30 nor more than 90 days next following the date of
filing the application; provided, that the medical board,
after a medical examination of the member, shall certify that
the member is totally and permanently mentally or physically
incapacitated from regular and substantial gainful employment,
and that member should be retired.
b. Without regard to the number of years of creditable
service, a member employed as a state policeman, a municipal
police officer or a deputy sheriff, or a member employed as a
state, municipal, or county firefighter who is not covered
through his or her current employer under the United States
Social Security Act, who as a result of his or her employment,
in the line of duty and not as a result of his or her own
misconduct, shall become permanently and totally disabled to
the extent that he or she cannot perform his or her duties or
duties of a less strenuous nature, as an employee of the State
of Alabama or as an employee of an employer participating
under the provisions of Section 36-27-6, shall be retired on a
disability retirement allowance, not less than 30 nor more
than 90 days next following the date of filing of the
application, provided that the medical board, after a medical
examination of the member shall certify that the member is
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mentally or physically incapacitated for the further
performance of duty, that the incapacity is likely to be
permanent, and that the member should be retired.
(2) AMOUNT OF DISABILITY RETIREMENT ALLOWANCE.
a. Upon retirement for disability a member shall
receive a service retirement allowance if he or she is a Tier
I plan member and he or she has attained age 60 or if he or
she is a Tier II plan member and he or she has attained age
62, or if any law or part of any law pertaining to retirement
under the Employees' Retirement System of Alabama provides for
service retirement after the completion of 25 years of
creditable service or 30 years of creditable service without a
reduction in the retirement allowance and the member has
completed 25 years of creditable service or 30 years of
creditable service, whichever is applicable, or, in the case
of a state policeman, if he or she is a Tier I plan member and
he or she has attained age 52 or, in the case of a state
policeman or a correctional officer, firefighter, or law
enforcement officer as defined in Section 36-27-59 with at
least 10 years of creditable service as a correctional
officer, firefighter, or law enforcement officer, if he or she
is a Tier II plan member and he or she has attained age 56;
otherwise, he or she shall receive a disability retirement
allowance which shall consist of:
1. An annuity which shall be the actuarial equivalent
of his or her accumulated contributions at the time of his or
her retirement;
2. A pension which shall be equal to the pension that
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would have been payable under subparagraphs (a)(2)a.2. and
(a)(2)a.3. of this section upon service retirement at age 65
had the member continued in service to that age without change
in compensation.
b. The annual disability retirement pension payable to
a Tier I plan member not employed as a state policeman
retiring on or after October 1, 1975, shall not be less than
an amount which when added to his or her annuity is equal to
the greatest of the following two amounts:
1. Two and one-eightieth percent of the member's
average final compensation multiplied by the number of years
of creditable service.
2. If he or she became a member before October 1, 1965,
fifty-four dollars ($54) multiplied by the number of years of
his or her creditable service not in excess of 25 years.
c. The annual disability retirement pension payable to
a Tier I plan member employed as a state policeman retiring on
or after October 1, 1975, shall not be less than an amount
which when added to his or her annuity is equal to the greater
of the following two amounts:
1. Two and seven-eighths percent of the member's
average final compensation multiplied by the number of years
of his or her creditable service. Creditable service for any
state policeman under the age of 56 years who has completed 20
years of creditable service as a state policeman shall include
a bonus equal to four additional years. Creditable service for
a state policeman 56 years or older shall include a bonus
equal to the years or portion thereof remaining until the
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member reaches age 60; or
2. If he or she became a member before October 1, 1965,
sixty-four dollars eighty cents ($64.80) multiplied by the
number of years of his or her creditable service not in excess
of 25 years.
d. The annual disability retirement allowance payable
to a Tier II plan member not employed as a state policeman
shall be equal to one and sixty-five hundredths percent
(1.65%) of the member's average final compensation multiplied
by the number of years of creditable service.
e. The annual disability retirement allowance payable
to a Tier II plan member employed as a state policeman shall
be equal to two and three-eighths percent (2.375%) of the
member's average final compensation multiplied by the number
of years of creditable service.
f. Anything in this chapter to the contrary
notwithstanding in the application of the provisions of this
subdivision to a member whose creditable service includes a
period of service as a state policeman and a period of service
in another employment classification the benefit rates
applicable to a member employed as a state policeman shall
apply to all creditable service as a state policeman, and the
benefit rates applicable to a member not employed as a state
policeman shall apply to all other creditable service, but in
all other respects the pension under this subdivision shall be
determined on the basis of the member's employment
classification at the time of his or her withdrawal from
service.
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(3) REEXAMINATION OF BENEFICIARIES RETIRED ON ACCOUNT
OF DISABILITY. Once each year during the first five years
following the retirement of a member on a disability
retirement allowance and once every three-year period
thereafter, the Board of Control may, and upon his or her
application shall, require any disability beneficiary who has
not yet attained age 60 if the beneficiary is a Tier I plan
member or age 62 if the beneficiary is a Tier II plan member
to undergo a medical examination, the examination to be made
at the place of residence of the beneficiary or other place
mutually agreed upon by a physician or physicians of or
designated by the medical board. Should any disability
beneficiary who has not yet attained age 60 if the beneficiary
is a Tier I plan member or age 62 if the beneficiary is a Tier
II plan member refuse to submit to the medical examination,
his or her allowance may be discontinued until his or her
withdrawal of the refusal, and, should his or her refusal
continue for one year, all his or her rights in and to his or
her pension may be revoked by the Board of Control; provided,
that these requirements relative to the medical examination
shall not apply in the case of a state policeman retired for
disability and who has attained age 52 if he or she is a Tier
I plan member or in the case of a state policeman or a
correctional officer, firefighter, or law enforcement officer
as defined in Section 36-27-59 with at least 10 years of
creditable service as a correctional officer, firefighter, or
law enforcement officer retired for disability who has
attained age 56 if he or she is a Tier II plan member. Should
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the medical board report and certify to the Board of Control
that a disability beneficiary who is a Tier I plan member is
engaged in or is able to engage in a gainful occupation paying
more than the difference between his or her retirement
allowance and his or her average final compensation and should
the Board of Control concur in the report, then the amount of
his or her pension shall be reduced to an amount which,
together with his or her annuity and the amount earnable by
him or her, shall equal the amount of his or her average final
compensation. Should his or her earning capacity be later
changed, the amount of his or her pension may be further
modified; provided, that the new pension shall not exceed the
amount of the pension originally granted nor an amount which,
when added to the amount earnable by the beneficiary, together
with this annuity exceeds the amount of his or her average
final compensation.
Should the medical board report and certify to the
Board of Control that a disability beneficiary who is a Tier
II plan member has the capacity to engage in regular and
substantial gainful employment, the Board of Control shall
discontinue the beneficiary's retirement allowance until the
beneficiary is otherwise eligible for service retirement.
(c) Disposition of contributions and allowances upon
death, etc., of member.
(1) Should a member cease to be an employee except by
death or by retirement under the provisions of this article,
the contributions standing to the credit of his or her
individual account in the Annuity Savings Fund shall be paid
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to him or her upon demand and, in addition to the payment,
there shall be paid five-tenths of the interest accumulations
standing to the credit of his or her individual account if he
or she shall have not less than three but less than 16 years
of membership service, six-tenths of the interest
accumulations if he or she shall have not less than 16 but
less than 21 years of membership service, seven-tenths of the
interest accumulations if he or she shall have not less than
21 but less than 26 years of membership service and
eight-tenths of the interest accumulations if he or she shall
have not less than 26 years of membership service.
(2) In case of the death of a member eligible for
service retirement pursuant to subsection (a), an allowance
shall be paid to the surviving spouse, if designated as the
sole beneficiary, in an amount that would have been payable if
the member had retired immediately prior to his or her death
and had elected Option 2, as set forth in subsection (d), or
to such other person who the member shall have designated, in
an amount that would have been payable if the member had
retired immediately prior to his or her death and had elected
Option 3, as set forth in subsection (d). Alternatively, if
the surviving spouse or other designee desires, he or she may
choose to receive, in lieu of the allowance provided under
Option 2 or Option 3, the accumulated contributions of the
member plus an amount equal to the accumulated contributions
of the member not to exceed five thousand dollars ($5,000) or
the accumulated contributions of the member plus the benefit
provided by Section 36-27B-3 if a benefit is payable under
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that section;
(3) In case of the death of a Tier I plan member not
eligible for service retirement, after completion of 25 years
of creditable service, an allowance shall be paid to the
surviving spouse, if designated as the sole beneficiary, in an
amount that would have been payable if the member had retired
immediately prior to his or her death and had elected Option
2, as set forth in subsection (d), or to such other person who
the member shall have designated, in an amount that would have
been payable if the member had retired for disability
immediately prior to his or her death and had elected Option 3
as set forth in subsection (d). Alternatively, if the
surviving spouse or other designee desires, he or she may
choose to receive, in lieu of the allowance provided under
Option 2 or Option 3, the accumulated contributions of the
member plus an amount equal to the accumulated contributions
of the member not to exceed five thousand dollars ($5,000) or
the accumulated contributions of the member plus the benefit
provided by Section 36-27B-3 if a benefit is payable under
that section. For purposes of this subsection only, hazardous
duty time, as set forth in subdivision (b)(1) of Section
36-27-59, may be used in calculating the requisite years of
service for firefighters, law enforcement officers, and
correctional officers even if the member has not otherwise
attained 25 years of creditable service;
(4) Upon the death of a member on account of whom no
survivor allowance is payable under subdivisions (2) or (3) of
this subsection, the accumulated contributions of the member
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Page 33
plus an amount equal to the accumulated contributions not to
exceed five thousand dollars ($5,000) or the accumulated
contributions of the member plus the benefit provided by
Section 36-27B-3 if a benefit is payable under that section
shall be paid to his or her estate or to such person as he or
she shall have nominated by written designation duly executed
and filed with the Board of Control.
(d) Optional allowances. With the provision that the
election of an option shall be effective on the effective date
of retirement, any member may elect prior to retirement to
receive, in lieu of his or her retirement allowance payable
throughout life, the actuarial equivalent, at that time, of
his or her retirement allowance in a reduced retirement
allowance payable throughout life with the provisions that:
(1) OPTION 1. If he or she dies before he or she has
received in annuity payments the present value of his or her
annuity as it was at the time of his or her retirement, the
balance shall be paid to his or her legal representatives or
to the person as he or she shall nominate by written
designation duly acknowledged and filed with the Board of
Control;
(2) OPTION 2. Upon his or her death, his or her reduced
retirement allowance shall be continued throughout the life of
and paid to the person as he or she shall nominate by written
designation duly acknowledged and filed with the Board of
Control at the time of his or her retirement;
(3) OPTION 3. Upon his or her death, one half of his or
her reduced allowance shall be continued throughout the life
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of and paid to the person as he or she shall nominate by
written designation duly acknowledged and filed with the Board
of Control at the time of his or her retirement; or
(4) OPTION 4. Some other benefit or benefits shall be
paid either to the member or to the person or persons as he or
she shall nominate; provided, that those other benefits,
together with the reduced retirement allowance, shall be
certified by the actuary to be of equivalent actuarial value
to his or her retirement allowance and shall be approved by
the Board of Control.
(5) OPTION 5. At the time of retirement, he or she
shall receive a partial lump sum distribution as a single
payment not to exceed the sum of 24 months of the maximum
monthly retirement allowance the member could receive. This
option may be elected in addition to the election of another
option under this subsection and the further reduced monthly
retirement allowance shall be calculated in accordance with
the selected option. This option shall not be available to a
member who is receiving a disability retirement.
(e) Effect of return to active service. Should any
beneficiary be restored to active service, his or her
retirement allowance shall be suspended until he or she again
withdraws from service and he or she shall not again become a
member of the retirement system nor shall he or she make
contributions; except, that should the beneficiary who has
been restored to active service continue in service for a
period of two or more years from the date of his or her
reentry into active service, he or she may request the Board
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of Control to allow him or her to again become a member of the
retirement system. The Board of Control may grant the request
for restoration to membership; provided, that the beneficiary
whose retirement allowance has been suspended shall repay to
the system all monies received by him or her as benefits
during any periods subsequent to the date of his or her
reentry into active service and shall make a contribution
equal to the amount he or she would have contributed had he or
she been a member during the period of his or her restoration
to active service on a suspended allowance basis together with
the interest that would have been credited to the
contributions on account of the period of restoration up to
the date the contribution is made.
(f)(e)(1) REDETERMINATION, ETC., OF CERTAIN ALLOWANCES.
All retirement allowance payments due on or after October 1,
1975, to members who retired prior to that date shall be
redetermined as if the provisions of this section in effect on
October 1, 1975, were in effect at the time the member
retired. Anything in this article to the contrary
notwithstanding, the annual retirement allowance of any member
not employed as a state policeman who retired on or before
January 1, 1956, shall not be less than seventy-nine dollars
twenty cents ($79.20) multiplied by the number of years of his
or her creditable service not in excess of 30 years in the
case of service retirement of fifty-nine dollars forty cents
($59.40) multiplied by the number of years of his or her
creditable service not in excess of 30 years in the case of
disability retirement. Any increase provided in the retirement
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allowance payment under this subdivision for a member who
retired under the provisions of any optional benefit elected
pursuant to subsection (d) shall accrue only to the retired
member, and no person designated to receive any payments after
the death of a retired member under the provisions of any
optional benefit shall receive any increase in payments under
this subdivision. Notwithstanding, any member who retired
prior to October 1, 1975, and who chose either Option 2 or
Option 3 may elect to receive a reduced allowance and to
stipulate that the actuarial equivalent of the increase in his
or her retirement allowance, which became effective on that
date, be ascribed to his or her designated beneficiary;
provided, that the member shall clearly express this intention
by filing a written application to the effect with the
Secretary-Treasurer of the Employees' Retirement System of
Alabama prior to October 1, 1976.
(2) Any person who, prior to October 1, 1963, was in
receipt of a benefit pursuant to Act No. 376, approved
November 6, 1959, but was not a member of the system at the
time of retirement shall not be entitled to receive an annual
retirement allowance from the system, effective October 1,
1971, as follows:
a. If the person was retired on or before January 1,
1956, an amount equal to seventy-nine dollars twenty cents
($79.20) multiplied by the number of years of his or her
creditable service not in excess of 30 years.
b. If the person was retired after January 1, 1956, an
amount equal to seventy-two dollars ($72) multiplied by the
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number of years of his or her creditable service not in excess
of 25 years.
(3) Prior to October 31, 1975, any beneficiary may
elect to leave on deposit with the system all or a specified
part of any increase in his or her monthly retirement
allowance payments arising in accordance with subdivisions (1)
or (2) of this subsection over the monthly allowance which he
or she was receiving prior to October 1, 1975. The portion of
each monthly payment left in the system in accordance with the
election shall be credited, together with regular interest
thereon, to the individual account of the beneficiary. Upon
the death of the beneficiary the total amount standing to his
or her credit, including regular interest to the date of
death, shall be paid in a lump sum to his or her legal
representatives or to such person as he or she shall have
nominated by written designation duly acknowledged and filed
with the Board of Control.
(g)(f) Notwithstanding any other provisions of this
section to the contrary, when a designated beneficiary for a
member predeceases the member who is receiving a monthly
benefit allowance provided under Option 2, 3, or 4, the member
may designate a replacement beneficiary for the deceased
beneficiary to become effective two years after the date of
designation of the replacement beneficiary and an actuarial
adjustment in the monthly benefit allowance of the member to
cover any cost associated with designating a replacement
beneficiary shall be reflected thereafter in the monthly
benefit allowance received by the member, commencing with the
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first benefit allowance check received by the member following
the date of designation of the replacement beneficiary.
(h)(g) Notwithstanding any provision of this section to
the contrary, if a retired member who is receiving a monthly
benefit allowance provided under Option 2, 3, or 4 divorces
his or her designated beneficiary, the member may designate a
replacement beneficiary for the beneficiary to become
effective two years after the date of designation of the
replacement beneficiary and an actuarial adjustment in the
monthly benefit allowance of the member to cover any cost
associated with designating a replacement beneficiary shall be
reflected thereafter in the monthly benefit allowance received
by the member, commencing with the first benefit allowance
check received by the member following the date of designation
of the replacement beneficiary.
(i)(h) Any future act to increase the retirement age
for Tier II plan members above the age of 62 shall require a
two-thirds vote of the elected membership of each house of the
Legislature."
Section 2. (a) If any person retired under the
Teachers' Retirement System performs duties in any capacity
for compensation for an employer participating in the
Teachers' Retirement System, Employees' Retirement System, or
Judicial Retirement Fund, his or her retirement allowance
shall be suspended until termination of employment or
contract, unless he or she has drawn his or her retirement
benefit for 12 consecutive months, has not performed services
for compensation with any employer participating in the
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Teachers' Retirement System, Employees' Retirement System, or
Judicial Retirement Fund during that period, and the person's
compensation from the employer is limited to 75 percent of the
person's annual retirement benefit for each calendar year. The
person may not contribute to the retirement system and may not
earn any additional service credit during the period of
employment or contract.
(b) Any person retired under the Teachers' Retirement
System who is serving as an elected official may serve for
compensation without suspension of benefits so long as the
position is otherwise prohibited from participating in the
Teachers' Retirement System, Employees' Retirement System, or
Judicial Retirement Fund.
(c) An employer shall pay employer contributions, as
provided by Section 16-25-21, Code of Alabama 1975, on all
earnable compensation of an employee who is retired under the
Teachers' Retirement System, Employees' Retirement System, or
Judicial Retirement Fund, regardless of membership status.
(d) Any person retired under the Teachers' Retirement
System, Employees' Retirement System, or Judicial Retirement
Fund who is employed with an employer may become a member by
suspending his or her retirement allowance and contributing to
the retirement system as provided by Section 16-25-21, Code of
Alabama 1975.
(e) Any person retired under the Teachers' Retirement
System as of the effective date of this act shall be presumed
to have drawn his or her retirement benefit for 12 consecutive
months without performing services for compensation for any
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Page 40
employer participating in the Teachers' Retirement System,
Employees' Retirement System, or Judicial Retirement Fund
during that period.
(f) This section shall not apply to any person who
retired under the Teachers' Retirement System before the
effective date of this act and is drawing his or her
retirement benefit and participating in the Judicial
Retirement Fund under Chapter 18, Title 12, Code of Alabama
1975.
Section 3. (a) If any person retired under the
Employees' Retirement System performs duties in any capacity
for compensation for an employer participating in the
Teachers' Retirement System, Employees' Retirement System, or
Judicial Retirement Fund, his or her retirement allowance
shall be suspended until termination of employment or
contract, unless he or she has drawn his or her retirement
benefit for 12 consecutive months, has not performed services
for compensation with any employer participating in the
Teachers' Retirement System, Employees' Retirement System, or
Judicial Retirement Fund during that period, and the person's
compensation from the employer is limited to 75 percent of the
person's annual retirement benefit for each calendar year. The
person may not contribute to the retirement system and may not
earn any additional service credit during the period of
employment or contract.
(b) Any person retired under the Employees' Retirement
System who is serving as an elected official may serve for
compensation without suspension of benefits so long as the
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position is otherwise prohibited from participating in the
Teachers' Retirement System, Employees' Retirement System, or
Judicial Retirement Fund.
(c) An employer shall pay employer contributions, as
provided by Section 36-27-24, Code of Alabama 1975, on all
earnable compensation of an employee who is retired under the
Teachers' Retirement System, Employees' Retirement System, or
Judicial Retirement Fund, regardless of membership status.
(d) Any person retired under the Teachers' Retirement
System, Employees' Retirement System, or Judicial Retirement
Fund who is employed with an employer may become a member by
suspending his or her retirement allowance and contributing to
the retirement system as provided by Section 36-27-24, Code of
Alabama 1975.
(e) Any person retired under the Employees' Retirement
System as of the effective date of this act shall be presumed
to have drawn his or her retirement benefit for 12 consecutive
months without performing services for compensation for any
employer participating in the Teachers' Retirement System,
Employees' Retirement System, or Judicial Retirement Fund
during that period.
(f) This section shall not apply to any person who
retired under the Employees' Retirement System before the
effective date of this act, is drawing his or her retirement
benefit, and is participating in the Judicial Retirement Fund
under Chapter 18, Title 12, Code of Alabama 1975.
Section 4. (a) If any person retired under the Judges'
and Clerks' Plan of the Judicial Retirement Fund performs
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duties in any capacity for compensation for an employer
participating in the Teachers' Retirement System, Employees'
Retirement System, or Judicial Retirement Fund, his or her
retirement allowance shall be suspended until termination of
employment or contract, unless he or she has drawn his or her
retirement benefit for 12 consecutive months, has not
performed services for compensation with any employer
participating in the Teachers' Retirement System, Employees'
Retirement System, or Judicial Retirement Fund during that
period, and the person's compensation from the employer is
limited to 75 percent of the person's annual retirement
benefit for each calendar year. The person may not contribute
to the retirement system and may not earn any additional
service credit during the period of employment or contract.
(b) Any person retired under the Judges' and Clerks'
Plan who is serving as an elected official may serve for
compensation without suspension of benefits so long as the
position is otherwise prohibited from participating in the
Teachers' Retirement System, Employees' Retirement System, or
Judicial Retirement Fund.
(c) An employer shall pay employer contributions, as
provided by Section 12-18-152, Code of Alabama 1975, on all
earnable compensation of an employee who is retired under the
Teachers' Retirement System, Employees' Retirement System, or
Judicial Retirement Fund, regardless of membership status.
(d) Any person retired under the Teachers' Retirement
System, Employees' Retirement System, or Judicial Retirement
Fund who is employed as a judge or clerk with an employer may
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become a member by suspending his or her retirement allowance
and contributing to the retirement system as provided by
Section 12-18-152, Code of Alabama 1975.
(e) Any person retired under the Judges' and Clerks'
Plan as of the effective date of this act shall be presumed to
have drawn his or her retirement benefit for 12 consecutive
months without performing services for compensation for any
employer participating in the Teachers' Retirement System,
Employees' Retirement System, or Judicial Retirement Fund
during that period.
Section 5. (a) If any person retired under the District
Attorneys' Plan of the Judicial Retirement Fund performs
duties in any capacity for compensation for an employer
participating in the Teachers' Retirement System, Employees'
Retirement System, or Judicial Retirement Fund, his or her
retirement allowance shall be suspended until termination of
employment or contract, unless he or she has drawn his or her
retirement benefit for 12 consecutive months, has not
performed services for compensation with any employer
participating in the Teachers' Retirement System, Employees'
Retirement System, or Judicial Retirement Fund during that
period, and the person's compensation from the employer is
limited to 75 percent of the person's annual retirement
benefit for each calendar year. The person may not contribute
to the retirement system and may not earn any additional
service credit during the period of employment or contract.
(b) Any person retired under the District Attorneys'
Plan who is serving as an elected official may serve for
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compensation without suspension of benefits so long as the
position is otherwise prohibited from participating in the
Teachers' Retirement System, Employees' Retirement System, or
Judicial Retirement Fund.
(c) An employer shall pay employer contributions, as
provided by Section 12-17-227.2, Code of Alabama 1975, on all
earnable compensation of an employee who is retired under the
Teachers' Retirement System, Employees' Retirement System, or
Judicial Retirement Fund, regardless of membership status.
(d) Any person retired under the Teachers' Retirement
System, Employees' Retirement System, or Judicial Retirement
Fund who is employed with an employer may become a member by
suspending his or her retirement allowance and contributing to
the retirement system as provided by Section 12-17-227.2, Code
of Alabama 1975.
(e) Any person retired under the District Attorneys'
Plan as of the effective date of this act shall be presumed to
have drawn his or her retirement benefit for 12 consecutive
months without performing services for compensation for any
employer participating in the Teachers' Retirement System,
Employees' Retirement System, or Judicial Retirement Fund
during that period.
Section 6. Sections 16-25-26, 29-4-6, and 36-27-8.2 of
the Code of Alabama 1975, authorizing certain retired state
employees to return to work for the state, are repealed.
Section 7. This act shall become effective on the first
day of the third month following its passage and approval by
the Governor, or its otherwise becoming law.
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