SENATE BILL REPORT

HB 1048

As Reported By Senate Committee On:

Ways & Means, April 2, 2001

Title:  An act relating to increasing the number of hours that teachers' retirement system plan retirees may work in an eligible position to eight hundred forty without a reduction in their retirement benefits.

Brief Description:  Increasing the number of hours that teachers' retirement system plan retirees may work in an eligible position to eight hundred forty without a reduction in their retirement benefits.

Sponsors:  By Representatives Lambert, Doumit, Cox, Mulliken, H. Sommers, Clements, Talcott, Pearson, Alexander, Conway, Kagi, Ruderman, Hunt, McIntire, Hurst, Haigh, Kenney, Edmonds, Keiser and Simpson; by request of Joint Committee on Pension Policy.

Brief History:

Committee Activity:  Ways & Means:  4/2/01 [DP].

SENATE COMMITTEE ON WAYS & MEANS

Majority Report:  Do pass.

Signed by Senators Brown, Chair; Constantine, Vice Chair; Fairley, Vice Chair; Fraser, Hewitt, Honeyford, Kline, Kohl‑Welles, Long, Parlette, Rasmussen, Regala, Rossi, Sheahan, B. Sheldon, Snyder, Spanel, Winsley and Zarelli.

Staff:  Pete Cutler (786-7454)

Background:  The Teachers' Retirement System (TRS) plan 1 includes teachers and school administrators first hired prior to October 1, 1977.  In general, TRS retirees could work no more than 75 days (525 hours) each school year in a public educational institution without a reduction in retirement benefits.

The Legislature has gradually expanded the amount that TRS 1 retirees can work in certain settings without a reduction in their benefits.  In a school district that has passed a resolution declaring a shortage of substitute teachers, a TRS 1 retiree can work an additional 315 hours, for a total of 840 hours or about 120 days, as a substitute teacher.  Only persons who substitute on a day‑to‑day basis are eligible for this extended period of employment.  Persons who sign contracts for a school year are still limited to the 525‑hour cap.  A resolution declaring a shortage of substitutes is valid only for the school year in which it is adopted, and a copy of the resolution, with a list of retirees who have been hired, must be provided to the Department of Retirement Systems (DRS).

In a school district that has passed a resolution declaring an inability to find a replacement administrator to fill a vacancy, a TRS 1 retiree may serve as a substitute administrator for an additional 105 hours, for a total of 630 hours or about 90 days.  In 1999 the limit was also amended to provide that a retired principal working for a school district with a shortage of principals may work an additional 315 hours as a substitute principal.  The ability to work these additional hours without a reduction in retirement benefits is available only to TRS 1 retirees who work as substitute teachers, substitute principals, or substitute administrators, and only in those school districts that have passed the required resolution.

Summary of Bill:  All TRS 1 retirees are permitted to work up to 840 hours per school year in any public education institution without a reduction in their retirement benefits.  DRS must provide the State Actuary with data on to TRS Plan 1 post‑retirement employment for the Joint Committee on Pension Policy.

Appropriation:  None.

Fiscal Note:  Available.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  None.

Testimony Against:  None.

Testified:  No one.