PERA Public Employees' Retirement Association Retirees Employed By Rural School Districts

Current law allows a service retiree of any division of the public employees' retirement association (PERA) to work for a PERA employer for limited periods and to receive a salary without reduction in benefits under certain circumstances. Several rural school districts in the state have recently experienced a shortage of teachers, school bus drivers, and school food services cooks and would ideally address the shortages by hiring service retirees. PERA's employment after retirement provisions, including the limitation on the number of days in a calendar year that a service retiree may work for a PERA employer without a reduction in benefits, make it difficult for school districts to fill their vacancies with retired teachers, school bus drivers, and school food services cooks.

The bill modifies the current PERA employment after retirement provisions for certain retirees hired by an employer in the school division if:

• The employer that hires the service retiree is a rural school district as determined by the department of education based on certain criteria and the school district enrolls 6,500 students or fewer in kindergarten through 12th grade;
• The school district hires the service retiree for the purpose of providing classroom instruction or school bus transportation to students enrolled by the district or for the purpose of being a school food services cook; and
• The school district determines that there is a critical shortage of qualified teachers, school bus drivers, or school food services cooks, as applicable, and that the service retiree has specific experience, skills, or qualifications that would benefit the district.

A service retiree who is a teacher, a school bus driver, or a school food services cook and who is hired by an employer in the school division that satisfies the criteria above may receive salary without a reduction in benefits for any length of employment in a calendar year if the service retiree has not worked for any PERA employer during the month of the effective date of retirement.

In addition, the bill requires the employer that hires the service retiree to provide full payment of all PERA employer contributions, disbursements, and working retiree contributions. The bill also specifies that a service retiree who is a teacher, school bus driver, or food services cook and who is hired by an employer in the school division:

• Is not required to resume PERA membership;
• Will not receive a PERA health care premium subsidy;
• Is eligible to participate in the health plan offered by the employer;
• May not receive salary without reduction in benefits and without limitation in a calendar year for more than 6 consecutive years; and
• May not be employed by the school district from which he or she retired until 2 years after retirement if he or she retired without a full service retirement benefit.

By December 1, 2020, PERA is required to submit a report including specified information to the general assembly regarding the additional employment after retirement provisions for teachers, school bus drivers, and food services cooks.

(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)