SB12ENROLLED
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SB12
8NUPHHF-3
By Senator Elliott
RFD: County and Municipal Government
First Read: 06-Feb-24
PFD: 04-Jan-24
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PFD: 04-Jan-24
Enrolled, An Act,
Relating to the Retirement Systems of Alabama; to amend
Section 16-25-26 and Section 36-27-8.2, as amended by Act
2023-334 and Act 2023-564, Code of Alabama 1975, to remove
certain conditions under which a person who has retired from
the Teachers' Retirement System and the Employees' Retirement
System may serve for his or her full compensation in an
elected public office without suspension of retirement
benefits.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Section 16-25-26 and Section 36-27-8.2, as
amended by Act 2023-334 and Act 2023-564, of the Code of
Alabama 1975, are amended to read as follows:
"§16-25-26
(a) Any person who is retired under the Teachers'
Retirement System may perform duties in any capacity,
including as an independent contractor, with any employer
participating in the Employees' Retirement System or the
Teachers' Retirement System without suspension of his or her
retirement allowance provided that (1) the person is not
employed in a permanent full-time capacity and (2) the
person's compensation from the employer in calendar year 2016
does not exceed thirty thousand dollars ($30,000). Beginning
in calendar year 2017, and each calendar year thereafter, the
annual earning limit shall be increased by the same percentage
increase as the increase in the Consumer Price Index for all
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increase as the increase in the Consumer Price Index for all
urban consumers as published by the U.S. Department of Labor,
Bureau of Labor Statistics. Any increase in the annual earning
limit shall be rounded to the next lowest multiple of one
thousand dollars ($1,000) with any amount in excess of the one
thousand dollar ($1,000) multiple considered in determining
the increase for the following year. Each adjustment shall be
based on the increase in the index for the preceding 12-month
period ending on September 30 and the increase shall be
effective for the following calendar year.
(b) Any person serving as an elected official who has
retired from the Teachers' Retirement System may serve for his
or her full compensation in an elected public office with the
state, a county, or an incorporated municipality without
suspension of retirement benefits; provided that under no
circumstances shall such a person participate in or accrue
additional benefits under the Teachers' Retirement System or
the Employees' Retirement System for that service , and
provided that under no circumstances shall a person whose
retirement is based upon service as an elected official
continue in or return to such office and receive both pension
benefits and salary ; provided further, that this subsection
shall apply to elected officials whose participation in the
Teachers' Retirement System or the Employees' Retirement
System is constitutionally required to be upon the same terms
and conditions as specified by law for other employees in the
retirement system if such elected official's compensation does
not exceed the annual earning limits provided in subsection
(a). Any provision of this subsection to the contrary
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(a). Any provision of this subsection to the contrary
notwithstanding, a retiree serving as a local elected
superintendent of education shall not receive both pension
benefits and salary unless his or her compensation as a local
elected superintendent of education does not exceed the annual
earning limits provided in subsection (a) .
(c) The responsibility for compliance with this section
is placed upon the employing authority, and each retiree
performing duties under this section shall certify to the
employer any information required in order to carry out this
section. The retiree shall provide written notice of the
postretirement employment under this section to the Teachers'
Retirement System and employing authority within 30 days after
the date the retiree knows or should know that he or she will
be performing duties on a full-time or permanent basis or will
earn an amount in excess of the annual earning limit under
this section."
"§36-27-8.2
(a) Any individual who is retired under the Employees'
Retirement System may perform duties in any capacity,
including as an independent contractor, with any employer
participating in the Employees' Retirement System or the
Teachers' Retirement System without suspension of his or her
retirement allowance provided that (1) the individual is not
employed in a permanent full-time capacity and (2) the
individual's compensation from the employer in calendar year
2016 does not exceed thirty thousand dollars ($30,000).
Beginning in calendar year 2017, and each calendar year
thereafter, the annual earning limit shall be increased by the
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thereafter, the annual earning limit shall be increased by the
same percentage increase as the increase in the Consumer Price
Index for all urban consumers as published by the U.S.
Department of Labor, Bureau of Labor Statistics. Any increase
in the annual earning limit shall be rounded to the next
lowest multiple of one thousand dollars ($1,000) with any
amount in excess of the one thousand dollar ($1,000) multiple
considered in determining the increase for the following year.
Each adjustment shall be based on the increase in the index
for the preceding 12-month period ending on September 30 and
the increase shall be effective for the following calendar
year.
(b) Any individual serving as an elected official who
has retired from the Employees' Retirement System may serve
for his or her full compensation in an elected public office
with the state, a county, or an incorporated municipality
without suspension of retirement benefits; provided that under
no circumstances shall such an individual participate in or
accrue additional benefits under the Teachers' Retirement
System or the Employees' Retirement System for that service ,
and provided that under no circumstances shall
an individual whose retirement is based upon service as an
elected official continue in or return to the office and
receive both pension benefits and salary ; provided further,
that this subsection shall apply to elected officials whose
participation in the Teachers' Retirement System or the
Employees' Retirement System is constitutionally required to
be upon the same terms and conditions as specified by law for
other employees in the retirement system if the elected
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other employees in the retirement system if the elected
official's compensation does not exceed the annual earning
limits provided in subsection (a) . Any provision of this
subsection to the contrary notwithstanding, a retiree serving
as a local elected superintendent of education shall not
receive both pension benefits and salary unless his or her
compensation as a local elected superintendent of education
does not exceed the annual earning limits provided in
subsection (a).
(c) The responsibility for compliance with this section
is placed upon the employing authority, and each retiree
performing duties under this section shall certify to the
employer any information required in order to carry out this
section. The retiree shall provide written notice of the
postretirement employment under this section to the Employees'
Retirement System and employing authority within 30 days after
the date the retiree knows or should know that he or she will
be performing duties on a full-time or permanent basis or will
earn an amount in excess of the annual earning limit under
this section.
(d)(1) Any individual who is retired under the
Employees' Retirement System, has the applicable Alabama Peace
Officers' Standards and Training certification, and was
classified as either a law enforcement officer, as defined in
Section 36-27-59, or a state policeman, as defined in Section
36-27-1, prior to retirement, may perform duties as either a
school resource officer, as defined in Section 16-1-44.1, or a
correctional officer with the Department of Corrections
without suspension of his or her retirement allowance,
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without suspension of his or her retirement allowance,
provided that the compensation earned does not exceed
fifty-two thousand dollars ($52,000) per year.
(2) Any individual who is retired under the Employees'
Retirement System, has the applicable Alabama Peace Officers'
Standards and Training certification, and meets any of the
following criteria, may perform duties as a correctional
officer with the Department of Corrections without suspension
of his or her retirement allowance, provided that the
compensation earned does not exceed fifty-two thousand dollars
($52,000) per year:
a. Was classified as a law enforcement officer, as
defined in Section 36-27-59, prior to retirement.
b. Was classified as a state policeman, as defined in
Section 36-27-1, prior to retirement.
c. Was classified as a correctional officer, as defined
in Section 36-27-59, prior to retirement, and retired pursuant
to Section 36-27-16(a)(1)c.
(3) No individual may be employed pursuant to this
subsection after December 31, 2026."
Section 2. This act shall become effective June 1,
2024.
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2024.
________________________________________________
President and Presiding Officer of the Senate
________________________________________________
Speaker of the House of Representatives
SB12
Senate 05-Mar-24
I hereby certify that the within Act originated in and passed
the Senate, as amended.
Patrick Harris,
Secretary.
House of Representatives
Passed: 30-Apr-24
By: Senator Elliott
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