Ala. retirees collect pensions, work on contract


MONTGOMERY, Ala. (AP) — State retirement officials say they're trying to crack down on former public employees retiring, collecting pensions and working as contractors for public agencies.

Alabama law says a retiree can't draw a pension and continue earning more than $23,000 annually from a Retirement System of Alabama member agency. The Florence TimesDaily ( reports some have found a loophole by identifying themselves as contractors or saying they're working for a third party.

The retirement system is now asking its more than 1,000 member agencies to report how many retirees are on their payrolls.

RSA Deputy Director Don Yancey says retirees working as contractors for public agencies impacts the RSA's funding because the organization relies in part on employee contributions.

RSA officials are unsure of how many retirees are now employed as contractors


Information from: TimesDaily,

What's onFull Schedule

Hot Video From AP

AP Video