If passed this legislative session, a new bill in the Alabama House of Representatives would allow beneficiaries of the Teachers’ Retirement System (TRS) and the Employees’ Retirement System (ERS) to earn a salary of as much as $52,000 a year while still receiving retirement benefits.
Currently, state employees can continue to receive retirement benefits as long as they don’t work full-time and make over $30,000 adjusted for inflation per the Consumer Price Index.
The bill, proposed by State Rep. Rex Reynolds (R-Huntsville), would raise the salary cap on retirement beneficiaries who choose to return to work part-time after at least 90 days after retiring. It also includes provisions for annual inflation adjustments beginning in 2025.
The bill comes amid a severe staffing shortage in many departments around the state, including the Alabama Department of Corrections, which needs almost 700 corrections officers, according to reports. The state is also in need of nearly 600 teachers.
Reynolds told WSFA that the measure might increase the number of hours and employees able to work part-time, but State. Sen Arthur Orr (R-Decatur), the Senate Finance and Taxation Education Committee chairman, said increasing state employee salaries would better address the state’s employment crisis.
Reynolds pre-filed the bill in February. Unless extended by the legislature, the pay increase would expire in December 2027.
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