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AL HB432
Bill
Status
3/16/2017
Primary Sponsor
Jim Patterson
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AI Summary
HB432 Summary
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Authorizes a 5 percent surcharge on both retired persons and their employers when the retiree performs any duties for compensation (including as an independent contractor) for an employer participating in the Employees' Retirement System or Teachers' Retirement System, without suspending the retiree's retirement allowance.
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Surcharge is based on the retiree's annual gross compensation and shall be paid monthly to the Retirement Systems of Alabama in the same manner as other contributions.
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Requires employers to provide written notice to retired persons at least 30 days before they begin performing duties, or immediately if less than 30 days' notice is available, with standardized language created by the Retirement Systems of Alabama.
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Specifies that no service credit is granted for periods when the surcharge is paid, and the surcharge is nonrefundable and will not be credited to the retiree or employer.
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Becomes effective on the first day of the third month following passage and approval by the Governor.
Legislative Description
Retirement System, Employees' Retirement System, Teachers' Retirement System, retirees, surcharge authorized when retiree performs duties for compensation, including independent contractors, for employers participating in ERS and TRS, without suspension of retiree's retirement allowance, certain disclosures required
Employees' Retirement System
Last Action
Read for the first time and referred to the House of Representatives committee on State Government
3/16/2017