The Alabama Legislature gave final passage Thursday to House Bill 138, a measure sponsored by Representative Kenneth Paschal, R-Pelham, and Senator Chris Elliott, R-Josephine, allowing certain public retirees to fill school bus driver and public safety jobs without losing retirement benefits. The House voted to concur with Senate changes, sending the bill to Governor Kay Ivey for consideration.
House Bill 138 combines Paschal’s proposal addressing school bus driver shortages and Elliott’s proposal addressing workforce gaps in public safety and prosecution. The consolidated bill is intended to address staffing shortages statewide while protecting the fiscal integrity of the Retirement Systems of Alabama, according to Paschal’s press release.
Originally aimed at helping school systems with persistent bus driver shortages, House Bill 138 allows eligible retirees in the Employees’ Retirement System and Teachers’ Retirement System to return as full-time school bus drivers while continuing to receive retirement benefits, subject to existing earnings limits. Many districts have reported delayed routes and longer travel times because of staffing shortages.
Senate amendments expanded HB138 to include public safety and legal positions, including school resource officers, sheriff’s deputies, municipal and state police officers, correctional officers, police officers at state colleges and universities, and assistant district attorneys.
“Getting children safely to school, returning them home again, and keeping our communities safe from crime are core government responsibilities,” Paschal said. “HB138 provides these critical services while providing experienced retirees a practical way to step back into service where they’re needed most.”
“Senator Elliott and I worked closely to combine our efforts into one effective bill, and I am grateful for his partnership and for the many stakeholders who supported this effort,” he said.
Under HB138, existing earnings limits remain in effect, with limited exceptions, including up to $52,000 for certain positions. Retirees do not accrue additional benefits while re-employed and must meet all certification and qualification requirements. The bill applies only to people already retired from the Employees’ Retirement System or Teachers’ Retirement System and includes a sunset date of December 31, 2032.
HB138 now heads to Ivey for consideration.
