Public Employees' Retirement Association Employment after Retirement for Rural Schools

Current law limits the duration of employment a public employees' retirement association (PERA) service retiree can work for a PERA employer without a reduction in PERA retirement benefits. Under certain circumstances, a rural school district may hire a service retiree who is a teacher, a school bus driver, a school food services cook, a school nurse, or a qualified paraprofessional without the service retiree receiving a deduction in benefits for any length of employment in the calender year.

The act adds superintendents and principals to the list of service retirees hired by a rural school district who may be employed without a reduction in benefits and clarifies that the exemption for a rural school district also includes a small rural school district which has a funded pupil count for the prior budget year of less than 1,000 pupils.

The act also requires PERA, on or before December 1, 2025, and on or before December 1 of each 5th year thereafter, to submit a report to the finance and education committees of the house of representatives and the senate or any successor committees regarding certain employment after service retirement allowances. The report must include:

• The number of service retirees under certain allowances who have been employed after service retirement as of the date of the report;
• The extent to which certain employment after service retirement allowances have helped employers in the school division address shortages;
• The costs, if any, to PERA as a result of certain employment after service retirement allowances; and
• Any other information deemed relevant by PERA.

APPROVED by Governor April 11, 2024

EFFECTIVE August 7, 2024
(Note: This summary applies to this bill as enacted.)