State teachers' retirement: postretirement earnings.

(1) The State Teachers' Retirement Law limits the amount of postretirement compensation that may be earned in specified types of employment by a retired member of the Defined Benefit Program without a reduction in the retirement benefits of the member. That law, operative until June 30, 2010, provides exemptions from this limit and specifies that the limitation provisions do not apply to compensation earned by a member retired for service who has returned to work after retirement and, for at least 12 consecutive months, has not performed specified activities. This bill would, as of July 1, 2010, apply a limitation of $0 to the compensation for performance of specified activities as an employee of an employer, an employee of a third party, or as an independent contractor during the first 6 calendar months after a member retired for service under this part, if the member is below normal retirement age at the time the compensation is earned. This bill would also extend the operation of these provisions until June 30, 2012. (2) Under that law, operative until June 30, 2010, the service retirement allowance of a retired member of the Defined Benefit Program is exempt from a reduction if the retired member is appointed as a trustee or administrator by the Superintendent of Public Instruction for a maximum period of 2 years, as specified. That law also exempts from the earnings limitation, until June 30, 2010, service performed by a retired member in an emergency situation to fill a vacant administrative position, as specified. The law requires the employing school district to submit documentation to substantiate the eligibility of the temporary employment of the retired member for these exemptions. This bill would provide that these exemptions end no more than 24 consecutive months, rather than 2 years, from the date the exemption commenced. The bill would prohibit an exemption under the latter provision from being granted to a member retired for service whose termination of employment with the employer is the basis for the vacant administrative position. This bill would require the documentation to substantiate that exception to be received by the system no later than June 30 of the school year for which the exemption is to apply. The bill would extend these provisions until June 30, 2012. (3) That law further exempts from the earnings limitation, until June 30, 2010, compensation received by a retired member providing specified types of services, including direct remedial instruction, as specified, if that retired member retired on or before January 1, 2007. That law requires a school district that employs the retired member to submit documentation to the retirement system that substantiates the eligibility of the temporary employment of the retired member for this exemption. This bill would provide that the compensation received by a retired member providing those specified types of services is exempt from the earnings limitation if the member retired for service with an effective date on or before January 1, 2009. The bill would require the documentation to substantiate that exception to be received by the system no later than June 30 of the school year for which the exemption is to apply. The bill would extend these provisions until June 30, 2012. (4) This bill would also make technical, nonsubstantive changes to these provisions.