AL HB394

Permits Tier I members retired under the Teachers' Retirement System to continue receiving retirement benefits if reemployed full-time by a city or county board of education, provided they have drawn retirement benefits for at least three consecutive months and performed no compensated services for participating retirement systems during that period.

Retirees rehired full-time continue receiving retirement benefits as if they had not returned to active service, though their Public Education Employees' Health Insurance Plan coverage reverts to active employee terms and standard withholdings apply.

Reemployed retirees are ineligible to accrue additional service credit and cannot receive refunds of retirement contributions withheld, which the Teachers' Retirement System retains.

Existing provisions allow retired Teachers' Retirement System members to work part-time or as independent contractors with earnings not exceeding $30,000 annually (adjusted annually for inflation) without suspension of benefits.

Bill becomes effective July 1, 2022, with retirees required to provide written notice to the Teachers' Retirement System and employing authority within 30 days of beginning full-time employment or when earnings exceed the annual limit.