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House expands option for retirees to return as full‑time bus drivers without suspending retirement

January 23, 2026 | House, Alabama Legislative Sessions, Alabama


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House expands option for retirees to return as full‑time bus drivers without suspending retirement
Representative Pasco presented HB138 as a response to a statewide school bus driver shortage, proposing that state retirees be allowed to return as full‑time bus drivers without suspending their retirement benefits, subject to a compensation cap and implementation safeguards.

The sponsor said the measure carries no additional appropriation and would instead give local school districts a pathway to hire qualified retirees into dedicated routes. The bill includes a 12‑month waiting window going forward and a grandfather clause for retirees on or before Jan. 1, 2026; it also includes a sunset provision to allow lawmakers to reassess the policy by 2030.

Members asked how the change would affect the retirement system and whether it might prompt other professions to seek similar exceptions. The sponsor said RSA (the retirement system) was consulted and that the measure includes guardrails — a compensation cap and a 2030 sunset — to reduce risk to the retirement system.

The House passed HB138 on a recorded vote after debate.

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