CSHB 161(HES): "An Act relating to reemployment of and benefits for or on behalf of retired teachers and public employees and to teachers or employees who participated in retirement incentive programs and are subsequently reemployed as a commissioner; repealing secs. 5, 7, and 9, ch. 58, SLA 2001; providing for an effective date by amending the delayed effective date for secs. 3, 5, 9, and 12, ch. 57, SLA 2001, and repealing sec. 13, ch. 58, SLA 2001, which is the delayed effective date for secs. 5, 7, and 9, ch. 58, SLA 2001; and providing for an effective date."
00 CS FOR HOUSE BILL NO. 161(HES) 01 "An Act relating to reemployment of and benefits for or on behalf of retired teachers 02 and public employees and to teachers or employees who participated in retirement 03 incentive programs and are subsequently reemployed as a commissioner; repealing secs. 04 5, 7, and 9, ch. 58, SLA 2001; providing for an effective date by amending the delayed 05 effective date for secs. 3, 5, 9, and 12, ch. 57, SLA 2001, and repealing sec. 13, ch. 58, 06 SLA 2001, which is the delayed effective date for secs. 5, 7, and 9, ch. 58, SLA 2001; and 07 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, 2008, 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 14.20.135 is amended by adding a new subsection to read: 16 (e) A school district or regional educational attendance area that hires a retired 17 teacher in accordance with this section shall provide, and the retired teacher shall 18 accept, the same health and medical benefits provided to other active teachers. If a 19 retired teacher who has been rehired elects to continue receiving benefit payments 20 during the period of reemployment under AS 14.25.043(b), the teacher may not 21 receive retirement medical coverage if that person is an active member employed by a 22 school district or regional educational attendance area. 23 * Sec. 3. AS 14.25.043(a) is amended to read: 24 (a) If a retired member again becomes an active member, benefit payments 25 may not be made during the period of reemployment [UNLESS THE TEACHER 26 MAKES AN ELECTION UNDER (b) OR (e) OF THIS SECTION]. The retirement 27 benefit must be suspended for the entire school year if the teacher is reemployed as an 28 active teacher for a period equivalent to a year of service. During the period of 29 reemployment, [THE MEMBER IS SUBJECT TO AS 14.25.050, AND] deductions 30 from the member's salary will be made in accordance with AS 14.25.050. 31 * Sec. 4. AS 14.25.043(b) is amended to read:
01 (b) A school district or regional educational attendance area that has adopted a 02 policy that permits the employment of retired teachers in accordance with 03 AS 14.20.135 shall notify the administrator that it is hiring retired teachers under 04 AS 14.20.135. A teacher who retired under AS 14.25.110(a) and subsequently 05 becomes an active member under a policy adopted in accordance with AS 14.20.135 06 may, within 30 days after the date of reemployment, elect to continue receiving benefit 07 payments during the period of reemployment by filing a waiver of coverage with the 08 administrator on a form provided by the administrator. An election under this 09 subsection waives coverage for the period of reemployment and is irrevocable during 10 the period of reemployment. A teacher making the election to continue to receive 11 benefit payments may not receive retirement medical benefits during 12 reemployment but, instead, shall be covered under the medical coverage 13 provided by an employer to active members. Deductions from the member's salary 14 may not be made under AS 14.25.050 during the period of reemployment, and the 15 member may not receive credited service for the period of reemployment. A member 16 who participated in a retirement incentive program under ch. 26, SLA 1986; ch. 89, 17 SLA 1989; ch. 65, SLA 1996; ch. 4, FSSLA 1996; or ch. 92, SLA 1997, is not eligible 18 to make an election under this subsection. 19 * Sec. 5. AS 14.25.070 is amended by adding a new subsection to read: 20 (b) Each employer of a retired teacher rehired under the authority of 21 AS 14.20.135 shall make contributions to the unfunded liability of the system on 22 behalf of that retired teacher at the rate that the employer is making contributions to 23 the unfunded liability of the system for other teachers. 24 * Sec. 6. AS 39.35.150(b) is amended to read: 25 (b) A member who retired under AS 39.35.370(a) and subsequently becomes 26 an active member may, within 30 days of the date of reemployment, elect to continue 27 receiving benefit payments during the period of reemployment by filing an election 28 with the administrator on a form provided by the administrator. An election under this 29 subsection waives coverage for the period of reemployment and is irrevocable during 30 the period of reemployment. A member making the election to continue to receive 31 benefit payments may not receive retirement medical benefits during
01 reemployment but, instead, will be covered under the medical coverage provided 02 by an employer to active members. During the period of reemployment, deductions 03 from the member's salary may not be made under AS 39.35.160 and the member may 04 not receive credited service. A member who participated in a retirement incentive 05 program under ch. 26, SLA 1986; ch. 89, SLA 1989; ch. 65, SLA 1996; ch. 4, FSSLA 06 1996; or ch. 92, SLA 1997, is not eligible to make an election under this subsection 07 unless the member is reemployed as a commissioner. 08 * Sec. 7. AS 39.35.150 is amended by adding new subsections to read: 09 (f) Notwithstanding (b) of this section, a member employed by a political 10 subdivision or a public organization may not make the election provided in (b) of this 11 section unless the member's employer has adopted a policy that permits the 12 employment of retired employees in accordance with (g) of this section. The 13 administrator shall accept the election of a member subject to this subsection if the 14 governing body or the person with hiring authority for the political subdivision or 15 public organization certifies that the appointment to the position being filled by the 16 retired member was the result of a competitive hiring process. 17 (g) In accordance with this section, a political subdivision or a public 18 organization that has or anticipates having a shortage of employees qualified for 19 particular job classes may, by resolution, adopt a policy that permits the employment 20 of employees who retired under AS 39.35.370(a), who have been separated from 21 employment for at least 30 days, and who are qualified for particular job classes. The 22 policy adopted by resolution must describe the circumstances that constitute the 23 shortage. If a shortage of qualified employees exists as described in the policy, the 24 political subdivision or the public organization shall notify the administrator that it is 25 hiring retired members under (f) of this section and shall provide a copy of the 26 resolution and policy adopted by the resolution to the administrator of the public 27 employees' retirement system (AS 39.35). 28 (h) Notwithstanding (b) of this section, an employer may not allow a member 29 who is hired to fill a position subject to competititve recruitment procedures to make 30 the election provided in (b) of this section unless 31 (1) the employer conducted an initial recruitment for at least 15 days
01 for the position to be filled by the member making an election under (b) of this section 02 resulted in fewer than five qualified, eligible, and available applicants, including the 03 retired member; and 04 (2) the employer then conducted an additional recruitment and the 05 additional recruitment resulted in fewer than five qualified, eligible, and available 06 applicants, including the retired member. This additional recruitment period added to 07 the initial recruitment period must be at least 30 days total. 08 * Sec. 8. AS 39.35.270 is amended by adding a new subsection to read: 09 (b) Each employer of a retired member rehired under the authority of 10 AS 39.35.150(b) shall make contributions to the unfunded liability of the system on 11 behalf of that retired member at the rate that the employer is making contributions to 12 the unfunded liability of the system for that employer's other members. 13 * Sec. 9. Section 12, ch. 57, SLA 2001, as amended by sec. 6, ch. 15, SLA 2003, is 14 amended to read: 15 Sec. 12. AS 14.20.135; AS 14.25.043(b), 14.25.043(e), added by sec. 3, ch. 16 15, SLA 2003 [OF THIS 2003 ACT]; AS 39.35.120(b)(2), 39.35.150(b), as amended 17 by sec. 4, ch. 15, SLA 2003 [OF THIS 2003 ACT], and 39.35.150(c) are repealed 18 July 1, 2008 [2005]. 19 * Sec. 10. The uncodified law of the State of Alaska enacted in sec. 13, ch. 57, SLA 2001, 20 is amended to read: 21 Sec. 13. REPORT TO LEGISLATURE. Annually, beginning in 2002 and 22 ending in 2009 [2006], the administrator of the teachers' retirement system and the 23 administrator of the public employees' retirement system shall report to the 24 legislature by the 30th day of the regular legislative session concerning the effect of 25 this Act, as amended, on the retirement system. The administrator of the public 26 employees' retirement system shall include information in the report regarding 27 the efforts of employers in the executive branch to address the recruitment 28 difficulties in job classes in which retired members have been rehired. 29 * Sec. 11. AS 14.25.070(b) and AS 39.35.270(b) are repealed July 1, 2008. 30 * Sec. 12. Sections 5, 7, and 9, ch. 58, SLA 2001, are repealed. 31 * Sec. 13. The uncodified law of the State of Alaska is amended by adding a new section to
01 read: 02 CONDITIONAL RETROACTIVITY. If secs. 9, 12, and 15 of this Act take effect 03 after July 1, 2005, secs. 9, 12, and 15 of this Act are retroactive to July 1, 2005. 04 * Sec. 14. Section 15, ch. 57, SLA 2001, is amended to read: 05 Sec. 15. Sections 3, 5, 9, and 12 of this Act take effect July 1, 2008 [2005]. 06 * Sec. 15. Section 13, ch. 58, SLA 2001, is repealed. 07 * Sec. 16. Section 3 of this Act takes effect July 1, 2008. 08 * Sec. 17. Except as provided in sec. 16 of this Act, this Act takes effect immediately under 09 AS 01.10.070(c).