CSHB 224(STA): "An Act relating to reemployment of persons who retire under the teachers' retirement system."

00                       CS FOR HOUSE BILL NO. 224(STA)                                                                    
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) - (d) 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                                                                       
12                 (1)  certifies that the member and the school district did not arrange                                  
13       before the member retired from the school district for the member to be reemployed                                
14       by the school district after the member retired; and                                                              
01                 (2)  has been retired for at least                                                                      
02                      (A)  60 days if the member is at least 62 years of age; or                                         
03                      (B)  six months if the member is less than 62 years of age.                                        
04 (c)  Before reemploying a retired member under (a) of this section to fill a                                            
05 position, a school district shall publicly advertise the position for 10 business days and                              
06 actively recruit to fill the position by hiring a person other than a member who is                                     
07       retired.                                                                                                          
08            (d)  A contract for reemployment under (a) of this section may not exceed 12                                 
09       consecutive months.                                                                                               
10 (e)  A school district that reemploys a member under this section who is retired                                        
11 under the defined benefit retirement plan established in AS 14.25.009 - 14.25.220 is                                    
12       required to make contributions under AS 14.25.070.                                                                
13 (f)  the requirements of (c) and (d) of this section do not apply to the rehire of a                                    
14       member who is eligible for restoration of tenure rights under AS 14.20.165.                                       
15    * Sec. 2. AS 14.25.043(a) is amended to read:                                                                      
16 (a)  Except as provided in (f) of this section, if [IF] a retired member again                                      
17 becomes an active member, benefit payments may not be made during the period of                                         
18 reemployment. [THE RETIREMENT BENEFIT MUST BE SUSPENDED FOR THE                                                         
19 ENTIRE SCHOOL YEAR IF THE TEACHER IS REEMPLOYED AS AN ACTIVE                                                            
20 TEACHER FOR A PERIOD EQUIVALENT TO A YEAR OF SERVICE.] During                                                           
21 the period of reemployment, deductions from the member's salary will be made in                                         
22       accordance with AS 14.25.050.                                                                                     
23    * Sec. 3. AS 14.25.043(c) is amended to read:                                                                      
24 (c)  Except as provided in (f) of this section, upon [UPON] subsequent                                              
25 retirement, the retired member is entitled to receive an additional benefit based on the                                
26 credited service and the average base salary during the period of reemployment in                                       
27 accordance with AS 14.25.110. If the initial benefit payments to which the retired                                      
28 member is eligible have been actuarially reduced because the member retired early                                       
29 under AS 14.25.110(b), the member shall also receive an incremental benefit based on                                    
30 the amount of the actuarial reduction imposed by AS 14.25.110(j) on the first benefit                                   
31 and the length of time that the employee was reemployed and not receiving retirement                                    
01 benefits. The amount of the incremental benefit is equal to the difference between the                                  
02 normal retirement benefit to which the member would have been entitled had the                                          
03 member taken a normal retirement and the early retirement benefit that the member                                       
04 has been receiving based on the member's initial period of employment multiplied by                                     
05 the total number of months that the member did not receive retirement benefits                                          
06 because of reemployment and that amount actuarially adjusted to be paid over the                                        
07       expected lifetime of the member.                                                                                  
08    * Sec. 4. AS 14.25.043 is amended by adding new subsections to read:                                               
09 (f)  If a member who retired under AS 14.25.110(a) is reemployed by a school                                            
10       district under AS 14.20.136,                                                                                      
11                 (1)  the member does not become an active member;                                                       
12 (2)  the member shall continue to receive retirement benefits from the                                                  
13       plan as though the member were not reemployed by the school district;                                             
14 (3)  deductions from the member's salary may not be made under                                                          
15       AS 14.25.050; and                                                                                                 
16 (4)  the member may not receive credited service in the plan during the                                                 
17       period of reemployment.                                                                                           
18 (g)  Notwithstanding (f) of this section, a member who is retired under                                                 
19 AS 14.25.110(a) and reemployed by a school district under AS 14.20.136 is eligible to                                   
20 receive the group health plan coverage provided to active members employed by that                                      
21       school district.                                                                                                  
22    * Sec. 5. AS 14.25.070(a) is amended to read:                                                                      
23 (a)  Each employer shall contribute to the system every payroll period an                                               
24 amount calculated by applying a rate of 12.56 percent to the total of all base salaries                                 
25 paid by the employer to active members of the system and to members who are                                         
26 retired from the plan and reemployed under AS 14.20.136, including any                                              
27       adjustments to contributions required by AS 14.25.173(a).                                                         
28    * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to                          
29 read:                                                                                                                   
30 APPLICABILITY. This Act applies to contracts made on or after the effective date of                                     
31 this Act.