Alabama law provides that TRS retirees employed with a TRS employer may continue to receive full retirement benefits provided the retired member meets both of the following conditions:
- The retiree must not be employed or under contract for permanent, full-time employment.
- The retiree’s salary cannot exceed the limitation on earnings. The limits are subject to change each year based upon the Consumer Price Index (CPI). The limit for the 2013 calendar year is $23,000.
If a retiree’s earnings or remunerations exceed the annual limitation on earnings, the retirement benefits will be suspended for the remainder of the calendar year.
Recently, in response to an Attorney General advisory opinion, TRS is requesting all TRS employers to report to TRS the names of all retirees who perform services for the TRS entity even if that retiree has been hired through a personal services contract, a contract with a third party, or as an independent contractor.
Letter from TRS (PDF)
Individuals already complying with the return to work provisions as outlined above should see no impact to their retirement.
Any questions should be directed to HR at 256-782-5007.