Senate Bill No. 1525 proposes significant amendments to the Teachers' Retirement System (TRS) statutes, focusing on the definitions of "Employer" and "Public School," as well as the retirement application process and survivor benefits. The bill specifies that for members hired before July 1, 2025, the term "Employer" will include various educational entities but will exclude the State Education Resource Center for those hired on or after that date. Similarly, the definition of "Public School" is updated to reflect this hiring cutoff, removing references to the State Education Resource Center for members hired after July 1, 2025. The retirement application process is also revised, making applications irrevocable upon retirement and clarifying that benefits will accrue from the month following application submission. Additionally, survivor benefits will now allow for a lump sum payment of accumulated contributions to designated beneficiaries or, in the absence of a designation, to surviving spouses or children.

The bill further amends the governance structure of the TRS by ensuring that the Teachers' Retirement Board (TRB) includes both retired and non-retired members, with provisions for filling vacancies and requiring the Governor to appoint a public member from a municipality. The board members will serve without compensation but will be reimbursed for expenses. In terms of health benefits, the bill mandates that the board must offer health plans to retired members and their dependents, with a defined cost-sharing structure. It also prohibits collective bargaining agreements from providing subsidies for purposes other than reducing costs for eligible members. The effective date for most provisions is set for July 1, 2025, while certain sections will take effect upon passage.

Statutes affected:
Raised Bill: 10-183t
APP Joint Favorable: 10-183t
File No. 869: 10-183t