Alabama § 16-25-26 - Performance of Duties by Retired Persons; Service in Elected Public Office.

§ 16-25-26. Performance of Duties by Retired Persons; Service in Elected Public Office.

(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: (i) the person is not employed in a permanent full-time capacity; and (ii) 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 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. 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.