CSSSSB 24(FIN): "An Act relating to reemployment of and benefits for 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 SPONSOR SUBSTITUTE FOR SENATE BILL NO. 24(FIN) 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 the delayed effective 05 date for secs. 3, 5, 9, and 12, ch. 57, SLA 2001, and repealing sec. 13, ch. 58, SLA 2001, 06 which is the delayed effective date for secs. 5, 7, and 9, ch. 58, SLA 2001; and providing 07 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) The legislature also finds that there have been unintended consequences resulting 13 from implementation of the retiree reemployment provisions, including an increase in the 14 unfunded liability of the retirement systems and the failure to realize savings in the health 15 expenses of the retirement systems as a result of the practice of some employers of 16 withdrawing health and medical coverage for reemployed retirees. It is the intent of the 17 legislature that employers that benefit from the provisions of the retiree reemployment 18 provisions pay any increase in unfunded liability that results to the retirement systems and 19 that employers provide reemployed retirees with the same health and medical benefits 20 provided to other active employees. 21 * Sec. 2. AS 14.20.135 is amended by adding a new subsection to read: 22 (e) If a school district or regional educational attendance area hires a retired 23 teacher under this section and the retired teacher who has been rehired elects to 24 continue receiving benefit payments during the period of reemployment under 25 AS 14.25.043(b), the employer of a retired teacher who has been rehired under this 26 section shall provide health and medical benefits to the retired teacher who has been 27 rehired. If the retired teacher has been rehired as a full-time teacher, the teacher's 28 employer shall provide the same health and medical benefits to that teacher as the 29 employer provides to other full-time teachers, and the teacher may not receive 30 retirement medical benefits during the period of reemployment. 31 * Sec. 3. AS 14.25.043(a) is amended to read:
01 (a) If a retired member again becomes an active member, benefit payments 02 may not be made during the period of reemployment [UNLESS THE TEACHER 03 MAKES AN ELECTION UNDER (b) OR (e) OF THIS SECTION]. The retirement 04 benefit must be suspended for the entire school year if the teacher is reemployed as an 05 active teacher for a period equivalent to a year of service. During the period of 06 reemployment, [THE MEMBER IS SUBJECT TO AS 14.25.050, AND] deductions 07 from the member's salary will be made in accordance with AS 14.25.050. 08 * Sec. 4. AS 14.25.043(b) is amended to read: 09 (b) A school district or regional educational attendance area that has adopted a 10 policy that permits the employment of retired teachers in accordance with 11 AS 14.20.135 shall notify the administrator that it is hiring retired teachers under 12 AS 14.20.135. A teacher who retired under AS 14.25.110(a) and subsequently 13 becomes an active member under a policy adopted in accordance with AS 14.20.135 14 may, within 30 days after the date of reemployment, elect to continue receiving benefit 15 payments during the period of reemployment by filing a waiver of coverage with the 16 administrator on a form provided by the administrator. An election under this 17 subsection waives coverage for the period of reemployment and is irrevocable during 18 the period of reemployment. The period of reemployment is considered to end 19 when this subsection is repealed or the person stops working, whichever occurs 20 first. A teacher hired to work as a full-time teacher who makes the election to 21 continue to receive benefit payments may not receive retirement medical benefits 22 during reemployment but, instead, shall be covered under the medical coverage 23 provided by the employer to active teachers. A teacher hired to work as a less 24 than full-time teacher who makes the election to continue to receive benefit 25 payments may continue to receive retirement medical benefits. Deductions from 26 the member's salary may not be made under AS 14.25.050 during the period of 27 reemployment, and the member may not receive credited service for the period of 28 reemployment. A member who participated in a retirement incentive program under 29 ch. 26, SLA 1986; ch. 89, SLA 1989; ch. 65, SLA 1996; ch. 4, FSSLA 1996; or ch. 30 92, SLA 1997, is not eligible to make an election under this subsection. 31 * Sec. 5. AS 14.25.043(e) is amended to read:
01 (e) A member who retired under AS 14.25.110(a) and participated in a 02 retirement incentive program under ch. 26, SLA 1986; ch. 89, SLA 1989; ch. 65, SLA 03 1996; ch. 4, FSSLA 1996; or ch. 92, SLA 1997, who is subsequently reemployed as a 04 commissioner and becomes an active member may, within 30 days of the date of 05 reemployment, elect to continue receiving benefit payments during the period of 06 reemployment by filing a waiver of coverage with the administrator on a form 07 provided by the administrator. An election under this subsection waives coverage for 08 the period of reemployment and is irrevocable during the period of reemployment. 09 The period of reemployment is considered to end when this subsection is repealed 10 or the person stops working, whichever occurs first. A commissioner hired to 11 work as a full-time employee who makes the election to continue to receive 12 benefit payments may not receive retirement medical benefits during 13 reemployment but, instead, shall be covered under the medical coverage 14 provided by the employer to active employees. A commissioner hired to work as 15 a less than full-time employee who makes the election to continue to receive 16 benefit payments may continue to receive retirement medical benefits. 17 Deductions from the member's salary may not be made under AS 14.25.050 during the 18 period of reemployment, and the member may not receive credited service for the 19 period of reemployment. A member who makes an election under this subsection 20 does not lose the incentive credit provided under the applicable retirement incentive 21 plan and is not subject to any related reemployment indebtedness. 22 * Sec. 6. AS 14.25.070 is amended by adding a new subsection to read: 23 (b) Each employer of a retired teacher rehired under the authority of 24 AS 14.20.135 shall make contributions to the unfunded liability of the system on 25 behalf of that retired teacher at the rate that the employer is making contributions to 26 the unfunded liability of the system for other teachers. 27 * Sec. 7. AS 39.35.150(b) is amended to read: 28 (b) A member who retired under AS 39.35.370(a) and subsequently becomes 29 an active member may, within 30 days of the date of reemployment, elect to continue 30 receiving benefit payments during the period of reemployment by filing an election 31 with the administrator on a form provided by the administrator. An election under this
01 subsection waives coverage for the period of reemployment and is irrevocable during 02 the period of reemployment. The period of reemployment is considered to end 03 when this subsection is repealed or the person stops working, whichever occurs 04 first. A member hired to work as a full-time employee who makes the election to 05 continue to receive benefit payments may not receive retirement medical benefits 06 during reemployment but, instead, shall be covered under the medical coverage 07 provided by the employer to active employees. A member hired to work as a less 08 than full-time employee who makes the election to continue to receive benefit 09 payments may continue to receive retirement medical benefits. During the period 10 of reemployment, deductions from the member's salary may not be made under 11 AS 39.35.160 and the member may not receive credited service. A member who 12 participated in a retirement incentive program under ch. 26, SLA 1986; ch. 89, SLA 13 1989; ch. 65, SLA 1996; ch. 4, FSSLA 1996; or ch. 92, SLA 1997, is not eligible to 14 make an election under this subsection unless the member is reemployed as a 15 commissioner. 16 * Sec. 8. AS 39.35.150 is amended by adding new subsections to read: 17 (f) Notwithstanding (b) of this section, a member employed by a political 18 subdivision or a public organization may not make the election provided in (b) of this 19 section unless the member's employer has adopted a policy that permits the 20 employment of retired employees in accordance with (g) of this section. The 21 administrator shall accept the election of a member subject to this subsection if the 22 governing body or the person with hiring authority for the political subdivision or 23 public organization certifies that the appointment to the position being filled by the 24 retired member was the result of the competitive hiring process required under (g) of 25 this section. 26 (g) In accordance with this section, a political subdivision or a public 27 organization that has or anticipates having a shortage of employees qualified for 28 particular job classes may, by resolution, adopt a policy that permits the employment 29 of employees who retired under AS 39.35.370(a), who have been separated from 30 employment for at least 30 days, and who are qualified for particular job classes. The 31 policy adopted by resolution must describe the circumstances that constitute the
01 shortage. The policy must require recruitment procedures similar to the procedure 02 described in (h) of this section for any position filled by a retired employee under (f) 03 of this section. If a shortage of qualified employees exists as described in the policy, 04 the political subdivision or the public organization shall notify the administrator that it 05 is hiring retired members under (f) of this section and shall provide a copy of the 06 resolution and policy adopted by the resolution to the administrator of the public 07 employees' retirement system (AS 39.35). 08 (h) Notwithstanding (b) of this section, an employer in the executive branch of 09 state government may not allow a member hired to fill a position that requires 10 recruitment to make the election provided in (b) of this section unless 11 (1) the employer conducted an initial recruitment for at least 15 days 12 for the position to be filled by the member making an election under (b) of this section 13 that resulted in fewer than five qualified, eligible, and available applicants, including 14 the retired member; and 15 (2) the employer then conducted an additional recruitment and the 16 additional recruitment resulted in fewer than five qualified, eligible, and available 17 applicants, including the retired member; this additional recruitment period added to 18 the initial recruitment period must be at least 30 days total. 19 * Sec. 9. AS 39.35.270 is amended by adding a new subsection to read: 20 (b) Each employer of a retired member rehired under the authority of 21 AS 39.35.150(b) shall make contributions to the unfunded liability of the system on 22 behalf of that retired member at the rate that the employer is making contributions to 23 the unfunded liability of the system for that employer's other members. 24 * Sec. 10. Section 12, ch. 57, SLA 2001, as amended by sec. 6, ch. 15, SLA 2003, is 25 amended to read: 26 Sec. 12. AS 14.20.135, as amended by sec. 2 of this Act; AS 14.25.043(b), 27 as amended by sec. 4 of this Act, 14.25.043(e), added by sec. 3, ch. 15, SLA 2003, 28 and as amended by sec. 5 of this Act [OF THIS 2003 ACT]; AS 39.35.120(b)(2), 29 39.35.150(b), as amended by sec. 4, ch. 15, SLA 2003, and by sec. 7 of this Act [OF 30 THIS 2003 ACT], and 39.35.150(c) are repealed July 1, 2009 [2005]. 31 * Sec. 11. The uncodified law of the State of Alaska enacted in sec. 13, ch. 57, SLA 2001,
01 is amended to read: 02 Sec. 13. REPORT TO LEGISLATURE. Annually, beginning in 2002 and 03 ending in 2010 [2006], the administrator of the teachers' retirement system and the 04 administrator of the public employees' retirement system shall report to the 05 legislature by the 30th day of the regular legislative session concerning the effect of 06 this Act, as amended, on the retirement systems. The administrator of the public 07 employees' retirement system shall include information in the report regarding 08 the efforts of employers in the executive branch to address the recruitment 09 difficulties in job classes in which retired members have been rehired. 10 * Sec. 12. AS 14.25.070(b); AS 39.35.150(f), 39.35.150(g), 39.35.150(h), and 39.35.270(b) 11 are repealed July 1, 2009. 12 * Sec. 13. Sections 5, 7, and 9, ch. 58, SLA 2001, are repealed. 13 * Sec. 14. The uncodified law of the State of Alaska is amended by adding a new section to 14 read: 15 APPLICABILITY OF SECS. 2, 4, AND 5 OF THIS ACT TO RETIRED TEACHERS 16 MAKING AN ELECTION UNDER AS 14.25.043(b) OR (e) BEFORE JULY 1, 2005. (a) A 17 retired teacher who was rehired and made an election under AS 14.25.043(b) or (e) before 18 November 3, 2004, may continue to receive retirement benefits and medical benefits under 19 AS 14.25.043(b) or (e) from July 1, 2005, through December 31, 2006, if that teacher 20 continues to serve in the same position. However, on January 1, 2007, the period of 21 reemployment to which the teacher's original election under AS 14.25.043(b) or (e) applied is 22 considered terminated. If the teacher continues as an active teacher, that teacher may not 23 continue to receive benefit payments while working as an active teacher unless the employer 24 rehires the teacher under AS 14.25.043(b) or (e), as amended by secs. 4 and 5 of this Act, on 25 or after January 1, 2007. 26 (b) A retired teacher who was rehired and made an election under AS 14.25.043(b) or 27 (e) on or after November 3, 2004, may not continue to receive retirement benefits and medical 28 benefits under AS 14.25.043(b) or (e) after June 30, 2005. On July 1, 2005, the period of 29 reemployment to which the teacher's original election under AS 14.25.043(b) or (e) applied is 30 considered terminated. If the teacher continues as an active teacher, that teacher may not 31 continue to receive benefit payments while working as an active teacher unless the employer
01 rehires the teacher under AS 14.25.043(b) or (e), as amended by secs. 4 and 5 of this Act, on 02 or after July 1, 2005. 03 (c) This section does not apply to an employer who may be required to provide health 04 and medical benefits under AS 14.25.043(b), as amended by sec. 4 of this Act, regardless of 05 whether a teacher receives retirement medical benefits under this section. 06 * Sec. 15. The uncodified law of the State of Alaska is amended by adding a new section to 07 read: 08 APPLICABILITY OF SECS. 7 AND 8 OF THIS ACT FOR RETIRED 09 EMPLOYEES MAKING AN ELECTION UNDER AS 39.35.150(b) OR (e) BEFORE JULY 10 1, 2005. (a) A retired employee who was rehired and made an election under 11 AS 39.35.150(b) or (e) before November 3, 2004, may continue to receive retirement benefits 12 and medical benefits under AS 39.35.150(b) or (e) from July 1, 2005, through December 31, 13 2006, if that employee continues to serve in the same position. However, on January 1, 2007, 14 the period of reemployment to which the employee's original election under AS 39.35.150(b) 15 or (e) applied is considered terminated, and, as to that employee, 16 (1) AS 39.35.150(b), as amended by sec. 7 of this Act, or AS 39.35.150(e) 17 applies; and 18 (2) if the employee continues as an active member, that employee may not 19 continue to receive benefit payments unless the employer hires the employee as a result of the 20 competitive hiring process required by the applicable subsection of AS 39.35.150(f), (g), and 21 (h), added by sec. 8 of this Act, on or after January 1, 2007. 22 (b) A retired employee who was rehired and made an election under AS 39.35.150(b) 23 or (e) on or after November 3, 2004, may not continue to receive retirement benefits and 24 medical benefits under AS 39.35.150(b) or (e) after June 30, 2005. On July 1, 2005, the 25 period of reemployment to which the employee's original election under AS 39.35.150(b) or 26 (e) applied is considered terminated, and, as to that employee, 27 (1) AS 39.35.150(b), as amended by sec. 7 of this Act, or AS 39.35.150(e) 28 applies; and 29 (2) if the employee continues as an active member, that employee may not 30 continue to receive benefit payments while an active member unless the employer hires the 31 employee as a result of the competitive hiring process required by the applicable subsection of
01 AS 39.35.150(f), (g), and (h), added by sec. 8 of this Act, on or after January 1, 2007. 02 (c) This section does not apply to an employer who may be required to provide health 03 and medical benefits under AS 39.35.150(b), as amended by sec. 7 of this Act, regardless of 04 whether a member receives retirement medical benefits under this section. 05 * Sec. 16. The uncodified law of the State of Alaska is amended by adding a new section to 06 read: 07 CONDITIONAL RETROACTIVITY. If secs. 2, 4 - 10, and 13 of this Act take effect 08 after July 1, 2005, secs. 2, 4 - 10, and 13 of this Act are retroactive to July 1, 2005. 09 * Sec. 17. 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. 18. Section 13, ch. 58, SLA 2001, is repealed. 12 * Sec. 19. Section 3 of this Act takes effect July 1, 2009. 13 * Sec. 20. Sections 2, 4, 5, 7, and 8 of this Act take effect July 1, 2005. 14 * Sec. 21. Except as provided in secs. 19 and 20 of this Act, this Act takes effect 15 immediately under AS 01.10.070(c).