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30th Legislature(2017-2018)

Bill Text 30th Legislature

00 Enrolled SB 185                                                                                                         
01 Relating to reemployment of persons who retire under the teachers' retirement system.                                   
02                           _______________                                                                               
03    * Section 1. AS 14.20 is amended by adding a new section to read:                                                    
04 Sec. 14.20.136. Reemployment of member of teachers' retirement system.                                                  
05 (a) Subject to (b) - (d) of this section, a school district may reemploy a member who is                                
06 retired under a retirement plan established in AS 14.25.009 - 14.25.220, or a member                                    
07 who is retired under a retirement plan established in AS 14.25.310 - 14.25.590. In this                                 
08       subsection, "school district" has the meaning given in AS 14.30.350.                                              
09            (b)  A member who is retired under AS 14.25.110(a) may not be reemployed                                     
10       under (a) of this section unless the member                                                                       
11                 (1)  certifies that the member and the school district did not arrange                                  
12       before the member retired from the school district for the member to be reemployed                                
13       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                                                                                 
06 (1)  by resolution, adopt a policy that describes the circumstances of a                                                
07 shortage or anticipated shortage of applicants, other than retired members, who are                                     
08 qualified for particular positions and permits rehiring that complies with the                                          
09       requirements of this section; and                                                                                 
10 (2)  publicly advertise the position for 10 business days and actively                                                  
11       recruit to fill the position by hiring a person other than a member who is retired.                               
12 (d)  A contract for reemployment under (a) of this section may not exceed 12                                            
13       consecutive months.                                                                                               
14 (e)  A school district that reemploys a member under this section who is retired                                        
15 under the defined benefit retirement plan established in AS 14.25.009 - 14.25.220 is                                    
16       required to                                                                                                       
17                 (1)  provide the administrator with                                                                     
18 (A)  a copy of the resolution and policy adopted under (c) of                                                           
19            this section; and                                                                                            
20 (B)  for every retired member who is rehired, a report                                                                  
21            identifying the member by name and describing the                                                            
22 (i)  circumstances of the shortage that necessitated the                                                                
23                 rehire; and                                                                                             
24 (ii)  actions taken by the school district to comply with                                                               
25 school district policy adopted under (c) of this section and the                                                        
26                 requirements of this section; and                                                                       
27                 (2)  make contributions under AS 14.25.070.                                                             
28 (f)  The requirements of (c), (d), and (e)(1) of this section do not apply to the                                       
29       rehire of a member who is eligible for restoration of tenure rights under AS 14.20.165.                           
30    * Sec. 2. AS 14.25.043(a) is amended to read:                                                                        
31 (a)  Except as provided in (f) of this section, if [IF] a retired member again                                        
01 becomes an active member, benefit payments may not be made during the period of                                         
02 reemployment. [THE RETIREMENT BENEFIT MUST BE SUSPENDED FOR THE                                                         
03 ENTIRE SCHOOL YEAR IF THE TEACHER IS REEMPLOYED AS AN ACTIVE                                                            
04 TEACHER FOR A PERIOD EQUIVALENT TO A YEAR OF SERVICE.] During                                                           
05 the period of reemployment, deductions from the member's salary will be made in                                         
06       accordance with AS 14.25.050.                                                                                     
07    * Sec. 3. AS 14.25.043(c) is amended to read:                                                                        
08 (c)  Except as provided in (f) of this section, upon [UPON] subsequent                                                
09 retirement, the retired member is entitled to receive an additional benefit based on the                                
10 credited service and the average base salary during the period of reemployment in                                       
11 accordance with AS 14.25.110. If the initial benefit payments to which the retired                                      
12 member is eligible have been actuarially reduced because the member retired early                                       
13 under AS 14.25.110(b), the member shall also receive an incremental benefit based on                                    
14 the amount of the actuarial reduction imposed by AS 14.25.110(j) on the first benefit                                   
15 and the length of time that the employee was reemployed and not receiving retirement                                    
16 benefits. The amount of the incremental benefit is equal to the difference between the                                  
17 normal retirement benefit to which the member would have been entitled had the                                          
18 member taken a normal retirement and the early retirement benefit that the member                                       
19 has been receiving based on the member's initial period of employment multiplied by                                     
20 the total number of months that the member did not receive retirement benefits                                          
21 because of reemployment and that amount actuarially adjusted to be paid over the                                        
22       expected lifetime of the member.                                                                                  
23    * Sec. 4. AS 14.25.043 is amended by adding new subsections to read:                                                 
24 (f)  If a member who retired under AS 14.25.110(a) is reemployed by a school                                            
25       district under AS 14.20.136,                                                                                      
26                 (1)  the member does not become an active member;                                                       
27 (2)  the member shall continue to receive retirement benefits from the                                                  
28       plan as though the member were not reemployed by the school district;                                             
29 (3)  deductions from the member's salary may not be made under                                                          
30       AS 14.25.050; and                                                                                                 
31 (4)  the member may not receive credited service in the plan during the                                                 
01       period of reemployment.                                                                                           
02 (g)  Notwithstanding (f) of this section, a member who is retired under                                                 
03 AS 14.25.110(a) and reemployed by a school district under AS 14.20.136 is eligible to                                   
04 receive the group health plan coverage provided to active members employed by that                                      
05       school district.                                                                                                  
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. This Act applies to contracts made on or after the effective date of                               
15 this Act.                                                                                                               
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