Board Rule 310 - Hiring TRS Retirees

Contact: Office of UAB CFO, (205) 934-5121


Employment of or Contracting with Individuals who are Receiving Retirement Benefits from the Alabama Teachers' Retirement System

  1. The University shall not hire, employ, contract with, compensate, or pay any individuals who are receiving retirement benefits from the Alabama Teachers' Retirement System (TRS).
  2. The University shall not contract with or provide funds or consideration of any kind to a business or other entity of any kind that employs, contracts with, compensates, or pays in any way an individual who is receiving retirement benefits from the TRS unless:
    1. either (i) the contract or arrangement was awarded through an open and competitive bid process; or (ii) the individual receiving TRS retirement benefits has no responsibility to provide and, in fact, does not provide any of the services or other benefits to the University covered under that contract or other arrangement; and
    2. the individual receiving TRS retirement benefits has no role, function, or responsibility in the promotion, negotiation, creation, or execution of the contract or other arrangement between the University and that business or other entity.
  3. The above prohibitions shall not apply in relation to individuals who are receiving TRS benefits if:
    1. the compensation or other amounts paid to them (i) by the University for their employment or under their contract or other arrangement with the University, or (ii) by a business or other entity under a contract or other arrangement with the University, will not exceed the amount specified in Section 16-25-26, Code of Alabama 2001 as adjusted from year to year as provided in that section; or
    2. they terminate their TRS retirement benefits (i) during the time of their reemployment, contract, or other arrangement with the University or (ii) while they are receiving compensation or other amounts from a business or other entity under a contract or other arrangement with the University.
  4. The above prohibitions shall not apply to any individual who is participating in or seeking to apply for participation in the DROP program of the TRS and shall not limit or impede in any manner the participation in that program by any individual who desires to apply for that program.

(Adopted June 6, 2002)