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Sectional Analysis for HCS CSSSSB 149 (FIN)
Teacher Incentives

An Act relating to reemployment of retired teachers, to eligibility for major medical insurance coverage for beneficiaries of the teachers' retirement system, and to teacher certificates; and providing for an effective date.

The following is a sectional analysis of CS for Sponsor Substitute for Senate Bill 149 (draft #22-LS0769\W). CS for SSSB 149 proposes several amendments to Title 14 (Education, Libraries, and Museums), Chapter 20 (Teachers and School Personnel) and Chapter 25 (Teachers Retirement).

Section 1. Amends Title 14 (Education, Libraries, and Museums) Chapter 20 (Teachers and School Personnel) Section 10 (Teacher certificate required) by adding a new teacher certification allowing a person from out-of-state to be employed in Alaska as a teacher in a public school under a "preliminary teacher certificate" created under section 2.

Section 2. Amends Title 14 (Education, Libraries, and Museums) Chapter 20 (Teachers and School Personnel) Section 15 (Recognition of out-of-state teachers) that lists the requirements under which teachers certified out-of-state may have their credentials recognized in Alaska.

Once an out-of-state teacher has been issued a preliminary teacher certificate, he/she is required to pass a competency examination within one year from the date the preliminary teaching certificate was issued. A preliminary teacher certificate is issued by the department with the same endorsements as those on the current, valid certificate issued by the other state.

Tenure may not be granted to a teacher employed under a preliminary teacher certificate. A preliminary teacher certificate is valid for three years and is not renewable.

Section 3. Amends Title 14 (Education, Libraries, and Museums) Chapter 20 (Teachers and School Personnel) by creating Section 135 (Employment of retired teachers because of shortages), specifying that a school district having or anticipating a shortage of teachers may by resolution adopt a policy that permits the employment of retired teachers.

Retired members have 30 days from the date of reemployment to elect to continue receiving retirement benefits. If election is made, no deductions will be made from the reemployed member's salary and no credit service will be given for the period of reemployment.

A teacher, principal, or administrator who participated in a retirement incentive program (RIP) under 1986, 1989, or 1996 is not eligible to make an election under this section.

Section 4. Amends Title 14 (Education, Libraries, and Museums) Chapter 25 (Teachers Retirement) Section 40 (Membership) by creating an election option, specified in section 6, exempting a retired member from Chapter 25.

Section 5. Repeals the election provision referenced in AS 14.25.040(a), on July 1, 2005.

Section 6. Amends Title 14 (Education, Libraries, and Museums) Chapter 25 (Teachers Retirement) Section 43 (Reemployment of retired members) by providing an incentive for a retired teacher to return to full time teaching for a TRS employer. With this change, a retired teacher who took normal retirement may elect a new option under (b) of this section when reemployed. The new option:

• Is subject to a declaration or shortage by a school district;
• Allows the teacher to elect continuation of retirement benefit payments during reemployment;
• Would stop additional retirement benefit accrual;
• Must be selected within 30 days of reemployment; and
• Is not available to RIP participants

If no election is made, the current method would apply and the teacher would:

• Stop receiving a retirement benefit during reemployment; and
• Accrue additional retirement benefit during period of reemployment

Section 7. Repeals the election provision referenced in AS 14.25.043(a), on July 1, 2005.

Section 8. Amends Title 14 (Education, Libraries, and Museums) Chapter 25 (Teachers Retirement) Section 168 (Medical Benefits) by improving medical coverage benefits. Currently, Tier II retirees are eligible for 50 percent coverage once they reach age 60. No benefit accrues for years of service.

Under this section, a teacher who stays five years beyond the normal retirement service requirement of twenty years or who is 60 years old, will be eligible for full system paid medical coverage.

Section 9. Repeals the election provisions of section 3 and section 6 on July 1, 2005.

Section 10. Requires the administrator of the teachers' retirement system to give an annual report to the Legislature detailing the effect of this Act on the retirement system.

Section 11. Authorizes the Alaska Teachers' Retirement Board to adopt regulations necessary to implement changes made by sections 4, 6, and 8 of this Act.

Section 12. Specifies that Section 11 takes effect immediately upon signing by the governor.

Section 13. Specifies that Sections 5, 7, and 9 take effect July 1, 2005.

Section 14. Specifies that this Act, with the exception of sections 12 and 13, takes effect July 1, 2001.

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Attachments:

• Sponsor Statement
• Print Friendly Version
  requires Adobe Acrobat Reader - 1 page(s) - 69 K

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