1 HB159
2 209107-2
3 By Representative Moore (P)
4 RFD: Ways and Means Education
5 First Read: 02-FEB-21
6 PFD: 01/26/2021
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8 SYNOPSIS: Under existing law, retirees of the
9 Employees' Retirement System and the Teachers'
10 Retirement System may be employed part-time by any
11 employer participating in either system, without
12 suspension of their retirement allowance, as long
13 as their compensation is below the annual earning
14 limit.
15 This bill would allow a retiree to be
16 employed full-time, for one academic year at a
17 time, as a teacher or support employee within K-12
18 education, without limit on his or her compensation
19 or suspension of his or her retirement allowance,
20 under certain circumstances.
21
22 A BILL
23 TO BE ENTITLED
24 AN ACT
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26 To amend Section 16-25-26, Code of Alabama 1975,
27 relating to the Teachers' Retirement System; to allow the
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1 full-time employment and compensation of teacher and support
2 personnel retirees by K-12 education employers, without
3 limiting their compensation or suspending their retirement
4 allowances, under certain circumstances.
5 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
6 Section 1. Section 16-25-26 of the Code of Alabama
7 1975, is amended to read as follows:
8 "16-25-26.
9 "(a) Any person who is retired under the Teachers'
10 Retirement System may perform duties in any capacity,
11 including as an independent contractor, with any employer
12 participating in the Employees' Retirement System or the
13 Teachers' Retirement System without suspension of his or her
14 retirement allowance; provided that (1) the person is not
15 employed in a permanent full-time capacity and (2) the
16 person's compensation from the employer in calendar year 2016
17 does not exceed thirty thousand dollars ($30,000). Beginning
18 in calendar year 2017, and each calendar year thereafter, the
19 annual earning limit shall be increased by the same percentage
20 increase as the increase in the Consumer Price Index for all
21 urban consumers as published by the U.S. Department of Labor,
22 Bureau of Labor Statistics. Any increase in the annual earning
23 limit shall be rounded to the next lowest multiple of one
24 thousand dollars ($1,000) with any amount in excess of the one
25 thousand dollar ($1,000) multiple considered in determining
26 the increase for the following year. Each adjustment shall be
27 based on the increase in the index for the preceding 12-month
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1 period ending on September 30 and the increase shall be
2 effective for the following calendar year.
3 "(b) Any person serving as an elected official who
4 has retired from the Teachers' Retirement System may serve for
5 compensation in an elected public office with the state, a
6 county, or an incorporated municipality without suspension of
7 retirement benefits; provided that under no circumstances
8 shall such a person participate in or accrue additional
9 benefits under the Teachers' Retirement System or the
10 Employees' Retirement System, and provided that under no
11 circumstances shall a person whose retirement is based upon
12 service as an elected official continue in or return to such
13 office and receive both pension benefits and salary; provided
14 further, that this subsection shall apply to elected officials
15 whose participation in the Teachers' Retirement System or the
16 Employees' Retirement System is constitutionally required to
17 be upon the same terms and conditions as specified by law for
18 other employees in the retirement system if such elected
19 official's compensation does not exceed the annual earning
20 limits provided in subsection (a).
21 "(c) The responsibility for compliance with this
22 section is placed upon the employing authority, and each
23 retiree performing duties under this section shall certify to
24 the employer any information required in order to carry out
25 this section. The retiree shall provide written notice of the
26 postretirement employment under this section to the Teachers'
27 Retirement System and employing authority within 30 days after
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1 the date the retiree knows or should know that he or she will
2 be performing duties on a full-time or permanent basis or will
3 earn an amount in excess of the annual earning limit under
4 this section.
5 "(d)(1) An employer that is unable to fill a teacher
6 or support personnel position with a qualified candidate may
7 petition the Teachers' Retirement System for a waiver of the
8 limitations provided in subsection (a), on a one academic year
9 basis, to hire a retiree without impacting his or her
10 retirement allowance. The submitted waiver petition shall
11 include all of the following:
12 "a. A copy of the job posting required by Section
13 16-22-15, as proof that the position was posted as required by
14 law.
15 "b. A signed affidavit of the chief executive
16 officer of the employer that the employer has not received an
17 application for the position from any applicant with the
18 minimum posted qualifications.
19 "c. A certification from the State Superintendent of
20 Education that the position was posted as vacant on a State
21 Department of Education website and that there is a statewide
22 shortage of qualified applicants for the position.
23 "(2) The compensation and paid leave of a retiree
24 employed full-time as a teacher or other employee pursuant to
25 this subsection shall be the same, based upon years of
26 experience, degree, and other credentials, as any other
27 full-time teacher or employee of that employer, and the
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1 employer shall be responsible for all employer contributions
2 for health insurance and retirement for the retiree as are
3 otherwise provided for a full-time teacher or employee. A
4 retiree may not accrue additional service credit during
5 retirement work and may not make retirement contributions.
6 "(3) A retiree employed as a teacher or other
7 employee pursuant to this subsection may not be employed in
8 the position for consecutive academic years by the same
9 employer. A break of at least one academic year shall occur
10 before reemployment by the same employer pursuant to this
11 subsection."
12 Section 2. This act shall become effective June 1,
13 2021, following its passage and approval by the Governor, or
14 its otherwise becoming law.
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Statutes affected: Introduced: 16-25-26