Latest News - MARSP instrumental in passage of HB 5261 (sub bill)

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MARSP instrumental in passage of HB 5261 (sub bill)

MARSP testified before the House Committee on Education on Sept. 12 on a bill that affects retired teachers who want to substitute teach or perform other work for a public school entity. HB 5261 was introduced by Sen. Holly Hughes (R-Montague) in January 2012 to allow retired teachers to work as substitutes in public school systems without forfeiting their retirement and health care coverage.  The bill was signed into law as Public Act 464 of 2012 on December 22, 2012 and will correct an unintended consequence of legislation that was enacted in 2010, which precluded retired personnel from taking jobs through a third party. Since the 2010 law went into effect, retired teachers who wanted to work as subs in the public school system had to forego the opportunity, although they could choose to work outside the public school system. 

The passage of this bill will allow retirees (who retired after July 1, 2010) to be rehired, either directly or via a third party administrator, as substitute teachers, until July 1, 2014, and concurrently collect a pension. Retirees hired under this provision would be limited to earning not more than one-third of their final average compensation. A reporting unit engaging the services of a retiree as a substitute teacher would be required to remit 100% of the employer pension and health unfunded accrued liability rates, regardless of whether the retiree was hired directly or indirectly. A third party administrator would be required to provide the employee's name and wages to the reporting unit, and the reporting unit would be required to remit to the Office of Retirement Services the information on substitute teachers who were hired both directly and indirectly.

Retired teachers can play a valuable role in public schools following their retirement and that many want to retain a connection to the profession they love. Some retirees have served as substitute teachers and as instructional coaches for school systems and it is usually part time and short term. We do not believe retired teachers should be penalized for wanting to remain active in the education arena and help their local districts deliver services to students.

MARSP was pleased to support the bill, which also had support from numerous education organizations.