Enrolled SB 185: Relating to reemployment of persons who retire under the teachers' retirement system.

00Enrolled 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.