Legislature(1999 - 2000)

04/18/2000 01:50 PM Senate HES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
         HB 277-RETIREMENT BENEFITS FOR REHIRED TEACHERS                                                                    
                                                                                                                                
MR. JONATHON LACK,  staff to Representative Halcro,  sponsor of HB
277, explained  that if a school  district cannot fill  a position                                                              
in  a specific  specialty or  discipline, it  cannot hire  retired                                                              
teachers to fill those slots.  CSHB  277(FIN) would allow a school                                                              
district, upon establishing  a need in a specialty  or discipline,                                                              
to  fill the  position with  a retired  teacher.   When a  retired                                                              
teacher  is  rehired,  the  teacher   would  continue  to  receive                                                              
retirement  benefits   and  would  be  rehired   at  presumably  a                                                              
different  wage scale  than what  the  teacher previously  earned.                                                              
Approximately 8,000 teachers have  retired from Alaska schools and                                                              
are  living  outside  of Alaska.    In  the  meantime there  is  a                                                              
significant shortage of teachers  in rural school districts and in                                                              
larger school  districts in  the field of  special education.   HB
277 will  diversify the  available pool of  retired teachers.   HB
277 has  an indeterminate  zero fiscal note.   He pointed  out the                                                              
education community supports this bill.                                                                                         
                                                                                                                                
SENATOR WILKEN asked if a teacher  who retired after 20 year would                                                              
then come back into the system as a teacher.                                                                                    
                                                                                                                                
MR.  LACK explained  that only  occurs  in the  instance when  the                                                              
school district is unable to hire  a physics teacher, for example,                                                              
for a high school.   The school district can then  first certify a                                                              
need  for a  physics teacher  at that  high school  and fill  that                                                              
position with a retired teacher.                                                                                                
                                                                                                                                
SENATOR WILKEN asked  at what pay scale the teacher  would be paid                                                              
or whether the teacher would get seniority.                                                                                     
                                                                                                                                
MR.  LACK  replied  that  none  of  the  contracts  in  the  State                                                              
contemplate the ability to hire a  retired teacher since it is not                                                              
permissible under  current law.   Individual bargaining  units and                                                              
school  districts  will have  to  negotiate  at what  terms  those                                                              
teachers would  come back. Presumably  they would be rehired  at a                                                              
lower range and the school district  could negotiate to provide no                                                              
benefits  since  the person  would  be  covered  under TRS.    The                                                              
purpose of the bill  is not to save school districts  money.  In a                                                              
worst  case scenario,  it will  be a cost  of zero  to the  school                                                              
district  but  in a  best  case  scenario,  it will  allow  school                                                              
districts  to  hire retired  teachers  at  a  lower wage  with  no                                                              
benefits.   The impetus  behind the legislation  is to  fill slots                                                              
that are not being filled right now.                                                                                            
                                                                                                                                
SENATOR WILKEN  said he is reluctant  to take action on  this bill                                                              
without speaking with his school district.                                                                                      
                                                                                                                                
CHAIRMAN  MILLER noted  the  bill  has a  referral  to the  Senate                                                              
Finance Committee.                                                                                                              
                                                                                                                                
SENATOR  KELLY asked  if this  bill will  have any  impact on  the                                                              
retirement system.                                                                                                              
                                                                                                                                
MR. GUY BELL, Division of Retirement  and Benefits, said it really                                                              
depends on behavior.   Approximately 1200 teachers  in Alaska have                                                              
more than 20  years of service.   If all of those  teachers retire                                                              
and a  number of them  are rehired, there  would be a cost  to the                                                              
system.                                                                                                                         
                                                                                                                                
MR. CARL ROSE,  Executive Director of the AASB,  expressed support                                                              
for  CSHB  277(FIN)  as  it provides  a  remedy  in  an  emergency                                                              
situation.                                                                                                                      
                                                                                                                                
SENATOR  KELLY  asked  Mr.  Rose  if  the  AASB  is  in  favor  of                                                              
alternative certification.                                                                                                      
                                                                                                                                
MR. ROSE said it is.                                                                                                            
                                                                                                                                
MR. CYR, NEAA, stated support for CSHB 277(FIN).                                                                                
                                                                                                                                
CHAIRMAN  MILLER asked if  anyone in  the room  is opposed  to the                                                              
bill. [No one answered.]                                                                                                        
                                                                                                                                
SENATOR PEARCE moved CSHB 277(FIN) from committee with attached                                                                 
fiscal notes and individual recommendations.  There being no                                                                    
objection, the motion carried.                                                                                                  

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