SB193 By Senator Dial RFD Governmental Affairs Rd 1 09-FEB-16

SYNOPSIS: Under existing law, a member of the Legislature may not be an employee of any other branch of state government or any public educational institution during his or her term of office.

This bill would allow a member of the Legislature who is retired under the Teachers' Retirement System or the Employees' Retirement System to perform duties in any capacity, including as an independent contractor, and to earn compensation with any employer participating in the Teachers' Retirement System or the Employees' Retirement System without suspension of his or her retirement allowance provided that the member is not employed in a permanent full-time capacity and his or her compensation does not exceed a certain amount.

A BILL TO BE ENTITLED AN ACT

Relating to the Legislature; to amend Sections 16-25-26 and 36-27-8.2, as amended by Act 2015-410, 2015 Regular Session, Code of Alabama 1975, to allow a member of the Legislature who is retired under the Teachers' Retirement System or the Employees' Retirement System to perform duties in any capacity, including as an independent contractor, and to earn compensation with any employer participating in the Teachers' Retirement System or the Employees' Retirement System without suspension of his or her retirement allowance provided that the member is not employed in a permanent full-time capacity and his or her compensation does not exceed a certain amount.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:Section 1. Sections 16-25-26 and 36-27-8.2, as amended by Act 2015-410, 2015 Regular Session, Code of Alabama 1975, are amended to read as follows:

§16-25-26.

"(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 (1) the person is not employed in a permanent full-time capacity and (2) 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 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, 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; provided further, that this subsection shall apply to elected officials whose participation in the Teachers' Retirement System or the Employees' Retirement System is constitutionally required to be upon the same terms and conditions as specified by law for other employees in the retirement system if such elected official's compensation does not exceed the annual earning limits provided in subsection (a).

"(c) Notwithstanding Section 29-1-26, any member of the Legislature who is retired under the Teachers' Retirement System or the Employees' Retirement System may perform duties in any capacity, including as an independent contractor, and may earn compensation with any employer participating in the Teachers' Retirement System or the Employees' Retirement System without suspension of his or her retirement allowance provided that (1) the member is not employed in a permanent full-time capacity and (2) the member's compensation does not exceed the annual earning limits provided in subsection (a).

"(d) 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.

§36-27-8.2.

"(a) Any person who is retired under the Employees' 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 (1) the person is not employed in a permanent full-time capacity and (2) 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 Employees' Retirement System may serve for 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, 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; provided further, that this subsection shall apply to elected officials whose participation in the Teachers' Retirement System or the Employees' Retirement System is constitutionally required to be upon the same terms and conditions as specified by law for other employees in the retirement system if such elected official's compensation does not exceed the annual earning limits provided in subsection (a).

"(c) Notwithstanding Section 29-1-26, any member of the Legislature who is retired under the Teachers' Retirement System or the Employees' Retirement System may perform duties in any capacity, including as an independent contractor, and may earn compensation with any employer participating in the Teachers' Retirement System or the Employees' Retirement System without suspension of his or her retirement allowance provided that (1) the member is not employed in a permanent full-time capacity and (2) the member's compensation does not exceed the annual earning limits provided in subsection (a).

"(d) The responsibility for compliance with the provision of 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 Employees' 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."

Section 2. Any provisions of Section 29-1-26, Code of Alabama 1975, that conflict with this act are repealed.

Section 3. This act shall become effective on the first day of the third month following its passage and approval by the Governor, or its otherwise becoming law.

Legislature

Executive Branch

Employers

Employment

Ethics

Retirement Systems

Retirement

Elected Officials

Teachers' Retirement System

Employees' Retirement System

Code Amended