Code of Alabama - Title 45: Local Laws - Section 45-37-123.54 - Rehired members

Section 45-37-123.54 - Rehired members.

If a member of the system severs employment with the county or his or her term in an elected or appointed job or position terminates, and such member thereafter returns to the service of the county, he or she shall become a member of the system to the extent he or she meets the definition of an eligible employee, subject to the following rules:

(1) MEMBER RECEIVING A PENSION BENEFIT. If a member is receiving his or her pension benefit on account of retirement and such member returns to the service of the county, any amount otherwise payable by the system to such member on account of such member's retirement shall be reduced by the amount, if any, paid or payable to such member by the county on account of or by reason of the reemployment of such member. At the time the member thereafter severs employment with the county, such member's pension benefit shall return to the amount it was prior to the member's reemployment. Accordingly, notwithstanding subdivisions (3) and (4), such a member shall not accrue any additional pension benefit during his or her period of rehire.

(2) MEMBER ELECTED A DEFERRED RETIREMENT. If a vested member who severed employment with the county and elected a deferred retirement benefit is reemployed by the county before age 60, his or her election for a deferred retirement benefit shall be rescinded, and he or she shall begin to accrue benefits again upon the date of reemployment. Such member's benefit shall be calculated by aggregating the member's credited service during all periods of employment.

(3) MEMBER DOES NOT RECEIVE A REFUND AND IS REEMPLOYED WITHIN FIVE YEARS. Except as set forth in subdivision (1), if a member, who severed employment with the county but did not receive a refund of his or her employee contributions to the system as provided in Section 45-37-123.104, is reemployed by the county within five years of such severance from employment, he or she shall begin to accrue benefits again upon the date of reemployment. Such member's benefit shall be calculated by aggregating the member's credited service during all periods of employment.

(4) MEMBER RECEIVED A REFUND OR FORFEITED PENSION BENEFIT. Except as set forth in subdivision (1), if a member who severed employment with the county and received a refund of his or her employee contributions to the system as provided in Section 45-37-123.104, or does not receive a refund within five years after severing from employment, is reemployed by the county, he or she shall rejoin the system in accordance with Sections 45-37-123.50 and 45-37-123.82 and begin to accrue benefits again upon the date of reemployment. In calculating such member's benefit, only credited service rendered after the member is rehired shall be included.

(Act 2013-415, p. 1586, §2:3.5; Act 2019-243, §1.)

Last modified: May 3, 2021