This bill allows teachers who have retired from the Teachers Pension and Annuity Fund (TPAF) to return to work for a maximum of two years without needing to reenroll in the TPAF. Boards of education can hire these retired teachers on a contractual basis, subject to approval from the executive county superintendent of schools, who must confirm that the retired teacher is the only qualified candidate after a thorough search. The salary for these positions is set between 40% and 70% of the median salary for current teachers in the district. Importantly, the bill stipulates that the retired teacher's employment cannot be prearranged before their retirement, and they will not gain tenure or seniority rights during this period.

In addition to employment provisions, the bill offers gross income tax relief for rehired teachers. Retired teachers hired under this bill can deduct 50% of their salary from their gross income. Any remaining salary will be taxed at a reduced rate of 1.4%, regardless of the taxpayer's filing status, provided it exceeds the minimum taxable income threshold. This dual approach aims to incentivize the rehiring of retired teachers while providing them with financial benefits.