HB 277-RETIREMENT BENEFITS FOR REHIRED TEACHERS  MR. JONATHON LACK, staff to Representative Halcro, sponsor of HB 277, explained that if a school district cannot fill a position in a specific specialty or discipline, it cannot hire retired teachers to fill those slots. CSHB 277(FIN) would allow a school district, upon establishing a need in a specialty or discipline, to fill the position with a retired teacher. When a retired teacher is rehired, the teacher would continue to receive retirement benefits and would be rehired at presumably a different wage scale than what the teacher previously earned. Approximately 8,000 teachers have retired from Alaska schools and are living outside of Alaska. In the meantime there is a significant shortage of teachers in rural school districts and in larger school districts in the field of special education. HB 277 will diversify the available pool of retired teachers. HB 277 has an indeterminate zero fiscal note. He pointed out the education community supports this bill. SENATOR WILKEN asked if a teacher who retired after 20 year would then come back into the system as a teacher. MR. LACK explained that only occurs in the instance when the school district is unable to hire a physics teacher, for example, for a high school. The school district can then first certify a need for a physics teacher at that high school and fill that position with a retired teacher. SENATOR WILKEN asked at what pay scale the teacher would be paid or whether the teacher would get seniority. MR. LACK replied that none of the contracts in the State contemplate the ability to hire a retired teacher since it is not permissible under current law. Individual bargaining units and school districts will have to negotiate at what terms those teachers would come back. Presumably they would be rehired at a lower range and the school district could negotiate to provide no benefits since the person would be covered under TRS. The purpose of the bill is not to save school districts money. In a worst case scenario, it will be a cost of zero to the school district but in a best case scenario, it will allow school districts to hire retired teachers at a lower wage with no benefits. The impetus behind the legislation is to fill slots that are not being filled right now. SENATOR WILKEN said he is reluctant to take action on this bill without speaking with his school district. CHAIRMAN MILLER noted the bill has a referral to the Senate Finance Committee. SENATOR KELLY asked if this bill will have any impact on the retirement system. MR. GUY BELL, Division of Retirement and Benefits, said it really depends on behavior. Approximately 1200 teachers in Alaska have more than 20 years of service. If all of those teachers retire and a number of them are rehired, there would be a cost to the system. MR. CARL ROSE, Executive Director of the AASB, expressed support for CSHB 277(FIN) as it provides a remedy in an emergency situation. SENATOR KELLY asked Mr. Rose if the AASB is in favor of alternative certification. MR. ROSE said it is. MR. CYR, NEAA, stated support for CSHB 277(FIN). CHAIRMAN MILLER asked if anyone in the room is opposed to the bill. [No one answered.] SENATOR PEARCE moved CSHB 277(FIN) from committee with attached fiscal notes and individual recommendations. There being no objection, the motion carried.