Alabama Senate Bill SB114

Alabama 2022 Regular Session

• Introduced: 1/18/22
• Refer: 1/18/22
• Engrossed: 2/24/22
• Refer: 2/24/22

Caption

Jefferson Co., retirement system for county employees, reemployment with county, benefits not reduced if reemployed two years after retirement or after two years of reemployment, certain provisions for reduction amended and repealed, Sec. 45-37-123.54 am'd; Sec. 45-37-123.105 repealed

Impact

The passage of SB114 would modify the existing regulations surrounding the pension system in Alabama, particularly for Jefferson County employees. It eliminates the reduction in pension benefits for retired members who return to work after a certain period, which should encourage retired staff to consider reemployment without the risk of losing their retirement benefits. Such legislation is promoted as a way to retain experienced personnel in the county workforce, especially in light of potential staffing shortages in various local government roles.

Summary

SB114 addresses the General Retirement System for employees of Jefferson County, specifically focusing on the pension benefits of members who return to work for the county after retiring. The bill amends Section 45-37-123.54 of the Code of Alabama 1975 to ensure that if a retired member is reemployed by the county two or more years after severing employment, their pension benefits will not be reduced. This change provides a significant financial benefit to employees seeking to return to county service after a substantial break following retirement.

Contention

Potential points of contention regarding SB114 may arise from discussions about the sustainability of pension systems and the implications of allowing reemployment without benefit reduction. Opponents may argue that the bill could put financial strain on the retirement system by disincentivizing ongoing contributions or prolonging benefit payouts. Proponents, however, are likely to highlight the necessity of adapting to modern workforce needs and the importance of attracting seasoned professionals back into county service.

Notable_points

This bill specifically repeals Section 45-37-123.105, which provided rules for the offset of retirement or disability benefits when a retired member is reemployed by the county. By specifying a prospective application, the bill ensures clarity in its enactment, targeting future reemployment situations without retroactively affecting current retirees.