The new law HB 1262 enacts changes, effective July 22, 2007, for TRS Plan 1 retirees who wish to return to work for a public education institution.
The new law:
To prevent a Plan 1 retiree's pension from being suspended after working 867 hours in a fiscal year, several criteria must be met by employers – they include:
The 1,900 hour limit applies to all retirees, but the requirements listed in question 1 only apply to those members retiring on or after July 22, 2007.
Yes. All employees with non-continuing contracts should have a begin and end date reported for each employment period.
Yes. If the retiree works for more than one employer, each employer must document a justifiable need in order for the retiree to work up to 1,500 hours per fiscal year. Without this documentation, the retiree may only work up to 867 hours before their pension is suspended. Although the retiree may be working less than 867 hours for one employer, DRS will consider hours worked for all employers
As you know, retirees who return to work can only be offered one year contracts. You must use your established hiring process for renewing contracts – this may require posting the job or not.
Yes. DRS will notify you when a retiree nears their hourly limit for a fiscal year. Also, employers will be notified when a retiree nears their 1,900 hour cumulative lifetime limit. Employees may also track their number of hours worked within the Online Account Services section of the DRS Web site
No. The law requires a written policy and hiring justification/documentation, and both can look very different from district to district depending upon how the employer chooses to address hiring retirees. The Department will not be auditing employers on the substance of their policy, just that they had one and it was followed in their practices. As for the documentation, it just needs to be thorough enough to justify the choice of the retiree and that the appropriate process was followed