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SB 185: Reemployment of Retired Teachers

December 5, 2018

Senate Bill 185 has been transmitted to the Governor for signature after passing both legislative bodies in the 30th Legislature. The bill will be effective upon signature of the Governor.

What does the bill do?

  • Allows school districts to rehire educators that have retired under the defined benefit plan or the defined contribution plan.
  • Before a retired member can be considered to fill a position, the school district must publicly advertise the position for 10 business days and actively recruit to fill it with a person other than a retired member.
  • A school district must adopt a policy by resolution that describes the circumstances of a shortage or anticipated shortage of applicants, other than retired members, who are qualified for particular positions and permits rehiring that complies with requirements of this bill.
  • The school district must provide the administrator with:
    • a copy of the resolution and policy adopted;
    • a report identifying the retired and rehired member by name and describing the circumstances of the shortage that necessitated the rehire;
    • actions taken by the school district to comply with the policy adopted; and
    • employer contributions based on the salary paid to the rehired retiree (12.56% of pay).
  • A teacher whom is retired from the defined benefit or contribution plan must be retired for six months or more if they are younger than 62; or 60 days if they are 62 or older before they are considered for a rehire.
  • The retired member must also certify that there was no prearrangement of reemployment made prior to retirement.
  • Allows for retirees who are rehired as permitted under this legislation to continue to receive retirement benefits during the period of reemployment.
  • Retirees who are reemployed as permitted under this legislation are ineligible to receive additional retirement benefits based on their service and salary during the period of reemployment.
  • A member who is reemployed does not become an active member of the TRS, will continue to receive retirement benefits, deductions under TRS will not be made to their salary and reemployed educators will not receive credited time for service during reemployment.
  • Ensures that a retired and rehired teacher will be eligible to receive the group health plan coverage that is provided to active members employed by the school district.
  • Employers must make contributions by applying a rate of 12.56 percent to the total of all base salaries paid by the employer to those who have reemployed and rehired.

What are the steps for processing the resolution?

  1. The employer will work with the Division’s Regional Counselor to implement the Act.
  2. The employer will provide the signed resolution to adopt AS 14.20.136 reemployment of members of the Teachers’ Retirement System (TRS) to the Regional Counselor.
  3. The Regional Counselor will return the signed and approved resolution to the employer.
  4. Once approved, the employer is responsible for the employer requirements as stated in section four of the resolution.

TRS Retiree Rehire Program FAQs

  • Retiree Rehire Program is contained in AS 14.20.136
  • Standard retiree rehire provisions are contained in AS 14.25.043

  1. If a teacher is rehired under Sec 14.20.136, the TRS Retiree Rehire Program and did not have a prearrangement to return to work in place with the employer prior to retirement, do they still have to observe the 6-month break in service if under age 62 or 60-day break in service if over age 62?
    • Yes. All rehired retirees will have to observe the Bona Fide Separation rules.
  2. If a retired teacher is rehired under the TRS Retiree Rehire Program, is the school district required to terminate the rehired teacher at the end of the school year if the district is still having difficulties hiring a permanent teacher for the same position?
    • Yes. Rehired teaching contracts are only good for 12 months. There are no provisions provided for ongoing or continuing extensions of the initial contract.
  3. If a retired teacher is rehired under the TRS Retiree Rehire Program, works the full school year or is still employed by the end of the school year, and the school district is having the same issue of hiring a permanent teacher in the following school year, is the school district required to pass another resolution and policy to rehire/retain the same retired teacher already in the position?
    • No. If the employer is already participating in the TRS Retiree Rehire Program, they do not need to continue to reapply. However, the employer must remain in compliance with the required annual activity report.
  4. If a retired teacher is rehired and there is no resolution on file with the Division to participate in the TRS Retiree Rehire Program, and the retired teacher receives a full contract in which service and contributions will be reported to the TRS, are they required to repay any benefits they may have received during the school year in which they are now under contract back to the TRS?
    • Yes. A retired teacher who returns to work and is not covered by the Retiree Rehire Program once again becomes an active member of the system. Their retirement benefit will be suspended as of the first day of the TRS school year, July 1, and the retired teacher will be required to repay benefits received after that date. An employer must have a resolution on file to participate in the Retiree Rehire Program and clearly identify who is participating in the program. If it is unclear, the member will be defaulted back to AS 14.25.043 (a), the standard TRS rehire provisions.
  5. If a retired teacher is rehired under the standard rehire provisions in the TRS Retiree Rehire Program, are they able to stop their Dental-Vision-Audio (DVA) coverage under their TRS retirement benefit during the period of reemployment and then elect this coverage again when no longer employed under an employer group health plan?
    • A rehired retired teacher hired under standard rehire provisions can elect to stop the Dental-Vision-Audio insurance and can be re-elected at the time of the second retirement.

Page Last Modified: 05/11/22 10:02:37

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