HB 224: "An Act relating to reemployment of persons who retire under the teachers' retirement system."

00                             HOUSE BILL NO. 224                                                                          
01 "An Act relating to reemployment of persons who retire under the teachers' retirement                                   
02 system."                                                                                                                
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1. AS 14.20 is amended by adding a new section to read:                                                
05 Sec. 14.20.136. Reemployment of member of teachers' retirement system.                                                
06 (a) Subject to (b) of this section, a school district may reemploy a member who is                                      
07 retired under a retirement plan established in AS 14.25.009 - 14.25.220, or a member                                    
08 who is retired under a retirement plan established in AS 14.25.310 - 14.25.590. In this                                 
09       subsection, "school district" has the meaning given in AS 14.30.350.                                              
10            (b)  A member who is retired under AS 14.25.110(a) may not be reemployed                                     
11       under (a) of this section unless the member has been retired for at least                                         
12                 (1)  three months if the member is at least 62 years of age; or                                         
13                 (2)  one year if the member is less than 62 years of age.                                               
14            (c)  A school district that reemploys a member under this section who is retired                             
01 under the defined benefit retirement plan established in AS 14.25.009 - 14.25.220 is                                    
02       required to make contributions under AS 14.25.070.                                                                
03    * Sec. 2. AS 14.25.043(a) is amended to read:                                                                      
04 (a)  Except as provided in (f) of this section, if [IF] a retired member again                                      
05 becomes an active member, benefit payments may not be made during the period of                                         
06 reemployment. [THE RETIREMENT BENEFIT MUST BE SUSPENDED FOR THE                                                         
07 ENTIRE SCHOOL YEAR IF THE TEACHER IS REEMPLOYED AS AN ACTIVE                                                            
08 TEACHER FOR A PERIOD EQUIVALENT TO A YEAR OF SERVICE.] During                                                           
09 the period of reemployment, deductions from the member's salary will be made in                                         
10       accordance with AS 14.25.050.                                                                                     
11    * Sec. 3. AS 14.25.043(c) is amended to read:                                                                      
12 (c)  Except as provided in (f) of this section, upon [UPON] subsequent                                              
13 retirement, the retired member is entitled to receive an additional benefit based on the                                
14 credited service and the average base salary during the period of reemployment in                                       
15 accordance with AS 14.25.110. If the initial benefit payments to which the retired                                      
16 member is eligible have been actuarially reduced because the member retired early                                       
17 under AS 14.25.110(b), the member shall also receive an incremental benefit based on                                    
18 the amount of the actuarial reduction imposed by AS 14.25.110(j) on the first benefit                                   
19 and the length of time that the employee was reemployed and not receiving retirement                                    
20 benefits. The amount of the incremental benefit is equal to the difference between the                                  
21 normal retirement benefit to which the member would have been entitled had the                                          
22 member taken a normal retirement and the early retirement benefit that the member                                       
23 has been receiving based on the member's initial period of employment multiplied by                                     
24 the total number of months that the member did not receive retirement benefits                                          
25 because of reemployment and that amount actuarially adjusted to be paid over the                                        
26       expected lifetime of the member.                                                                                  
27    * Sec. 4. AS 14.25.043 is amended by adding a new subsection to read:                                              
28 (f)  If a member who retired under AS 14.25.110(a) is reemployed by a school                                            
29       district under AS 14.20.136,                                                                                      
30                 (1)  the member does not become an active member;                                                       
31 (2)  the member shall continue to receive retirement benefits as though                                                 
01       the member were not reemployed by the school district;                                                            
02                 (3)  deductions from the member's salary may not be made under                                          
03       AS 14.25.050; and                                                                                                 
04                 (4)  the member may not receive credited service in the plan during the                                 
05       period of reemployment.                                                                                           
06    * Sec. 5. AS 14.25.070(a) is amended to read:                                                                      
07 (a)  Each employer shall contribute to the system every payroll period an                                               
08 amount calculated by applying a rate of 12.56 percent to the total of all base salaries                                 
09 paid by the employer to active members of the system and to members who are                                         
10       retired from the plan and reemployed under AS 14.20.136, including any                                        
11       adjustments to contributions required by AS 14.25.173(a).                                                         
12    * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to                          
13 read:                                                                                                                   
14 APPLICABILITY. AS 14.20.136, enacted by sec. 1 of this Act, AS 14.25.043(a), as                                         
15 amended by sec. 2 of this Act, AS 14.25.043(c), as amended by sec. 3 of this Act,                                       
16 AS 14.25.043(f), enacted by sec. 4 of this Act, and AS 14.25.070(a), as amended by sec. 5 of                            
17 this Act, apply to contracts made on or after the effective date of this Act.