00 CS FOR SPONSOR SUBSTITUTE FOR SENATE BILL NO. 24(HES) 01 "An Act relating to reemployment of and benefits for retired teachers and public 02 employees and to teachers or employees who participated in retirement incentive 03 programs and are subsequently reemployed as a commissioner; repealing secs. 5, 7, and 04 9, ch. 58, SLA 2001; providing for an effective date by amending sec. 15, ch. 57, SLA 05 2001, which is the delayed effective date for secs. 3, 5, 9, and 12, ch. 57, SLA 2001, and 06 repealing sec. 13, ch. 58, SLA 2001, which is the delayed effective date for secs. 5, 7, and 07 9, ch. 58, SLA 2001; and providing for an effective date." 08 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 09  * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 10 to read: 11 FINDINGS AND INTENT. (a) The legislature finds that provisions of ch. 57, SLA 12 2001, ch. 58, SLA 2001, and ch. 15, SLA 2003 that provide for the reemployment of certain 13 retired members of the teachers' and public employees' retirement systems provide a valuable 01 tool for school districts and public employers to manage workforce shortages, especially in 02 teaching positions and job classes that require specialized knowledge and skills. 03 (b) The legislature also finds that school districts and public employers must plan to 04 meet their future workforce needs without reliance on retired workers. In extending the 05 termination date of the reemployment provisions, it is the intent of the legislature to allow 06 school districts and public employers to continue to use this management tool, while 07 developing plans that address the knowledge, skills, and abilities that need to be transferred or 08 developed to assure the work can be accomplished when the reemployment provisions 09 terminate. It is the intent of the legislature that all participation in the retiree reemployment 10 provisions by employers and reemployed retirees will end on July 1, 2009, unless that date is 11 extended by law. 12 (c) It is the intent of the legislature that employers that benefit from the provisions of 13 the retiree reemployment provisions pay any increase in unfunded liability that results to the 14 retirement systems. 15 * Sec. 2. AS 14.25.043(a) is amended to read: 16 (a) If a retired member again becomes an active member, benefit payments 17 may not be made during the period of reemployment [UNLESS THE TEACHER 18 MAKES AN ELECTION UNDER (b) OR (e) OF THIS SECTION]. The retirement 19 benefit must be suspended for the entire school year if the teacher is reemployed as an 20 active teacher for a period equivalent to a year of service. During the period of 21 reemployment, [THE MEMBER IS SUBJECT TO AS 14.25.050, AND] deductions 22 from the member's salary will be made in accordance with AS 14.25.050. 23  * Sec. 3. AS 14.25.070 is amended by adding a new subsection to read: 24 (b) If the administrator determines that reemployment of a retired teacher 25 under the authority of AS 14.20.135 results in an increase in the unfunded liability of 26 the system, the administrator shall include the base salary of the reemployed teacher in 27 the determination of the amount of contributions due from the employer of the 28 reemployed teacher to the extent determined by the administrator as necessary to pay 29 the liability. 30  * Sec. 4. AS 39.35.150 is amended by adding new subsections to read: 31 (f) Notwithstanding (b) of this section, a member employed by a political 01 subdivision or a public organization may not make the election provided in (b) of this 02 section unless the member's employer has adopted a policy that permits the 03 employment of retired employees in accordance with (g) of this section. The 04 administrator shall accept the election of a member subject to this subsection if the 05 governing body or the person with hiring authority for the political subdivision or 06 public organization certifies that the appointment to the position being filled by the 07 retired member was the result of a competitive hiring process. 08 (g) In accordance with this section, a political subdivision or a public 09 organization that has or anticipates having a shortage of employees qualified for 10 particular job classes may, by resolution, adopt a policy that permits the employment 11 of employees who retired under AS 39.35.370(a), who have been separated from 12 employment for at least 30 days, and who are qualified for particular job classes. The 13 policy adopted by resolution must describe the circumstances that constitute the 14 shortage. If a shortage of qualified employees exists as described in the policy, the 15 political subdivision or the public organization shall notify the administrator that it is 16 hiring retired members under (f) of this section and shall provide a copy of the 17 resolution and policy adopted by the resolution to the administrator of the public 18 employees' retirement system (AS 39.35). 19  * Sec. 5. AS 39.35.270 is amended by adding a new subsection to read: 20 (b) If the administrator determines that reemployment of a retired member 21 under AS 39.35.150(b) results in an increase in the unfunded liability of the system, 22 the administrator shall include the base salary of the reemployed member in the 23 determination of the amount of contributions due from the employer of the 24 reemployed member to the extent determined by the administrator as necessary to pay 25 the liability. 26  * Sec. 6. Section 12, ch. 57, SLA 2001, as amended by sec. 6, ch. 15, SLA 2003, is 27 amended to read: 28 Sec. 12. AS 14.20.135; AS 14.25.043(b), 14.25.043(e), added by sec. 3, ch.  29 15, SLA 2003 [OF THIS 2003 ACT]; AS 39.35.120(b)(2), 39.35.150(b), as amended 30 by sec. 4, ch. 15, SLA 2003 [OF THIS 2003 ACT], and 39.35.150(c) are repealed 31 July 1, 2009 [2005]. 01  * Sec. 7. The uncodified law of the State of Alaska is amended by adding a new section to 02 read: 03 RETROACTIVE APPLICATION OF SECTION 3 TO EMPLOYERS OF REHIRED 04 RETIRED TEACHERS. If the administrator determines that retired teachers rehired by an 05 employer caused an increase in the unfunded liability of the teachers' retirement system, the 06 employer shall pay the amount of the increase attributable to that employer's rehired retired 07 teachers within the next annual budget cycle following the determination by the administrator. 08 This section only applies to an employer in regard to the unfunded liability attributable to a 09 (1) retired teacher rehired under AS 14.20.135 between July 1, 2001, and the 10 effective date of this Act; and 11 (2) retired commissioner rehired under AS 14.25.043(d) and 14.25.043(e) 12 between May 1, 2003, and the effective date of this Act. 13  * Sec. 8. The uncodified law of the State of Alaska is amended by adding a new section to 14 read: 15 RETROACTIVE APPLICATION OF SECTION 5 TO EMPLOYERS OF REHIRED 16 RETIRED PUBLIC EMPLOYEES. If the administrator determines that retired members 17 rehired by an employer caused an increase in the unfunded liability of the public employees' 18 retirement system, the employer shall pay the amount of the increase attributable to that 19 employer's rehired retired members within the next annual budget cycle following the 20 determination by the administrator. This section only applies to an employer in regard to the 21 unfunded liability attributable to a 22 (1) retired member rehired under AS 39.35.150(b) between July 1, 2001, and 23 the effective date of this Act; and 24 (2) retired commissioner rehired under AS 39.35.150(b) and (e) between 25 May 1, 2003, and the effective date of this Act. 26  * Sec. 9. The uncodified law of the State of Alaska enacted in sec. 13, ch. 57, SLA 2001, is 27 amended to read: 28 Sec. 13. REPORT TO LEGISLATURE. Annually, beginning in 2002 and 29 ending in 2010 [2006], the administrator of the teachers' retirement system and the  30 administrator of the public employees' retirement system shall report to the 31 legislature by the 30th day of the regular legislative session concerning the effect of 01 this Act, as amended, on the retirement systems. 02  * Sec. 10. AS 14.25.070(b); AS 39.35.150(f), 39.35.150(g), and 39.35.270(b) are repealed 03 July 1, 2009. 04  * Sec. 11. Sections 5, 7, and 9, ch. 58, SLA 2001, are repealed. 05  * Sec. 12. The uncodified law of the State of Alaska is amended by adding a new section to 06 read: 07 CONDITIONAL RETROACTIVITY. If secs. 1, 3 - 8, 11, and 13 of this Act take 08 effect after July 1, 2005, secs. 1, 3 - 8, 11, and 13 of this Act are retroactive to July 1, 2005. 09  * Sec. 13. Section 15, ch. 57, SLA 2001, is amended to read: 10 Sec. 15. Sections 3, 5, 9, and 12 of this Act take effect July 1, 2009 [2005]. 11  * Sec. 14. Section 13, ch. 58, SLA 2001, is repealed. 12  * Sec. 15. Section 2 of this Act is effective July 1, 2009. 13  * Sec. 16. Except as provided in sec. 15 of this Act, this Act takes effect immediately under 14 AS 01.10.070(c).