Under a new bill filed for the 2026 Legislative Session, Alabamians who retire under the Employees’ Retirement System, ERS, or the Teachers’ Retirement System, TRS, would be permitted to return to work as bus drivers without suspension of their retirement benefits.
House Bill 138, introduced by state Representative Kenneth Paschal, R-Pelham, would specifically allow public school teachers and state employees retired under the ERS or TRS to be hired as full-time bus drivers without losing their retirement allowance as long as their annual compensation does not exceed the programs’ earning limit, which currently stands at $39,000.
Paschal’s bill also stipulates that qualified retirees must have drawn their retirement benefit for at least 12 consecutive months before being eligible for hiring as a full-time bus driver. However, this condition would not apply to any individual who retired under the ERS or TRS on or before January 1, 2026.
Individuals retired under the ERS or TRS are already allowed to pursue part-time work without losing access to their benefits as long as the compensation remains below the earning limit. Additionally, several other forms of full-time post-retirement work are already protected under state statute.
For instance, ERS and TRS retirees may serve as public elected officials and receive both a salary and their pension, provided they do not accrue additional benefits from either program or return to the office through which they enrolled in ERS or TRS in the first place.
Retirees under either program may also work as full-time school resource officers, correctional officers or police officers at a state college or university as long as their compensation does not exceed $52,000 and they have the appropriate certification. Former firefighters and emergency medical services personnel may also return to work as firemedics under the same provisions.
If passed, HB138 would take effect on October 1, with its provisions set to sunset on December 31, 2030.
The bill will now go before the House Ways and Means Education Committee as the 2026 Legislative Session gets underway.
