The Alabama Legislature awarded final passage Thursday to a bill allowing retired public employees to return to work as school bus drivers and public safety officers without losing their retirement benefits.

HB138, jointly sponsored by State Rep. Kenneth Paschal (R-Pelham) and State Sen. Chris Elliott (R-Josephine), combines two separate measures addressing staffing shortages in school transportation and public safety.

“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.”

The legislation allows eligible retirees in the Employees’ Retirement System and Teachers’ Retirement System to return as school bus drivers, school resource officers, sheriff’s deputies, municipal and state police officers, correctional officers, and assistant district attorneys while continuing to receive retirement benefits.

Existing earnings limits remain in place, with exceptions for certain positions up to $52,000. Retirees would not accrue additional benefits while reemployed and must meet all certification requirements. The bill sunsets December 31, 2032.

The House voted to concur with Senate amendments, sending the bill to Governor Kay Ivey.

Thursday was the 22nd legislative day. There are eight days remaining in the 2026 legislative session.

Sawyer Knowles is a capitol reporter for Yellowhammer News. You may contact him at [email protected].