REEMPLOYMENT AS A SUBSTITUTE TEACHER
Present law provides that a retired member or prior class member of the Tennessee consolidated retirement system (TCRS), and a retiree of a local retirement fund receiving benefits, may return to service temporarily in a position covered by TCRS and continue to draw such person's retirement allowance if certain conditions are met, including, among others, the following:
(1) During a 12-month period, that person does not work more than 120 days or the equivalent of 120 days; or if employed as a teacher by an institution of higher learning, 24 quarter credit hours or 18 semester credit hours; and
(2) The retired member may work in addition to the 120 days prescribed above if employed as a substitute teacher in a public school system if (A) the director of such school system certifies to the division of retirement that no other qualified personnel are available to substitute teach during such period; (B) the compensation payable to the retired member for such work does not exceed the rate of compensation set by the public school system for substitute teachers filling similar vacant positions; and (C) the total salary paid to such retired member for teaching during the 12-month period does not exceed the pertinent pro rata share of average salary being paid at the institution in the academic discipline concerned.
This bill deletes from (2) the requirement that the director of a school system certifiy to the division of retirement that no other qualified personnel are available to substitute teach during such period.
REEMPLOYMENT AS A TEACHER
Present law provides that a person retired for at least one year from TCRS, a superseded system administered by the state, or a local retirement fund may accept employment as a K-12 teacher without loss or suspension of retirement benefits under the following conditions:
(1) The retired member holds a teacher's professional license or certificate;
(2) The superintendent or director of schools of the employing school system certifies in writing to the division of retirement and to the commissioner of education that the retired member has the requisite experience, training, and expertise for the position to be filled and that no other qualified persons are available to fill the position;
(3) The commissioner certifies in writing to the division that the employing school system serves an area that lacks qualified teachers to serve in the position to be filled;
(4) The retired member is not entitled to tenure status;
(5) Such member is not eligible to accrue additional retirement benefits, accrue leave, or receive medical insurance coverage as a result of the employment;
(6) The retired member must not receive automatic credit for years of experience in determining compensation; provided, that the salary paid to such retired member for performing the teaching services must not be less than the rate of compensation set by the school system for teachers with no experience filling similar positions, nor must such salary exceed 85 percent of the rate of compensation set by the school system for teachers with comparable training and years of experience filling similar positions; and
(7) The retired member's appointment to serve as a teacher cannot exceed one year. However, the retired member may be reappointed to additional one-year periods if the conditions above are met for each reappointment.
This bill removes (2), (3), and (7).
REEMPLOYMENT AS A TEACHER, SUBSTITUTE TEACHER, OR BUS DRIVER
Present law, set to automatically repeal June 30, 2025, provides that a retired member of TCRS, a superseded system, or a local retirement fund may be reemployed in a position covered by the retirement system without the loss or suspension of the retired member's TCRS benefits if the following conditions are met:
(1) The retired member is reemployed as a K-12 teacher, K-12 substitute teacher, or K-12 grade school bus driver;
(2) The retired member is not reemployed until the expiration of at least 60 calendar days from the member's effective date of retirement;
(3) During the reemployment, the retirement benefit payable to the retired member must be reduced to 70 percent the retirement allowance the member would have otherwise been entitled to receive;
(4) The retired members reemployment cannot exceed one year; however, the retired member may be reemployed for additional one-year periods if the conditions in (1)-(8) are met for each period of reemployment;
(5) The retired member's new employer pays to TCRS during each period of reemployment the greater of a payment equal to the amount the employer would have contributed to the retirement system had the retired member been a member of the retirement system during the period of reemployment; or an amount equal to 5 percent of the retired member's pay rate.
(6) The retired member is not eligible to accrue additional retirement benefits as a result of the member's reemployment;
(7) Upon reemployment of the retired member, the member's new employer must:
(A) Notify the retirement system of the member's reemployment with the documents or information required by the retirement system; and
(B) Certify in writing to the retirement system that the retired member has the requisite experience and training for the position to be filled and that no other qualified persons are available to fill the position; and
(8) The retiree is not drawing disability retirement benefits.
This bill deletes (4), (5), and (7)(B) and deletes the automatic repeal provision.
ON APRIL 13, 2023, THE SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 414, AS AMENDED.
AMENDMENT #1 restores the requirement that a retired member's new employer pay to TCRS during each period of reemployment the greater of a payment equal to the amount the employer would have contributed to the retirement system had the retired member been a member of the retirement system during the period of reemployment; or an amount equal to 5 percent of the retired member's pay rate for reemployed in a position covered by the retirement system without the loss or suspension of the retired member's TCRS benefits.

Statutes affected:
Introduced: 8-36-805, 8-36-821(a), 8-36-821, 8-36-822