We are delighted to share some positive legislative news that affects public school retirees.
At MARSP, we are dedicated to advocating for retired public school employees. We are excited to announce that HB 4694 (Lilly) has unanimously passed in the State Senate and the Michigan House of Representatives. This bill amends the Public School Employees Retirement Act, Public Act 300 of 1980, to loosen restrictions and allow retirees to serve in critical shortage capacities.
MARSP has actively supported this bill and believes it will provide opportunities for public school retirees and MARSP members to support public schools by leveraging their experience and skills.
Before the COVID-19 pandemic, Michigan districts were already experiencing critical shortages across multiple positions. Many retirees want to help, but the potential loss of pension benefits under the old law was too significant. This bill makes it possible for more retirees to return and fill positions listed as “critical shortage” or support those districts that have a COVID-19 learning plan and still receive their full pension benefits, though the provision in state law limiting retirees to earning ⅓ of their Final Average Compensation (FAC) in a calendar year remains in effect. The last and final step in the process is for Gov. Gretchen Whitmer to sign the bipartisan legislation, and we are anticipating she will.
We are proud of the work MARSP has put in to make our voices heard. Thank you for your continued support.
HB4694 will:
Extends Sunset to 2025
Extends sunset from July 1, 2021, to July 1, 2025. The sunset relates to the ability to rehire retired employees of the Michigan Public School Employees’ Retirement System (MPSERS) and allow those retirees to retain their pensions and earn wages during their reemployment period in the areas of critical shortage, substitute teachers, instructional coaches, and independent contractors.
What does this mean for MARSP members?
MARSP members now have more opportunities to return to districts to fill critical shortage positions and retain their pensions and earn wages.
Removes 12 month waiting period for rehire in critical shortage positions while operating under extended COVID-19 learning plan.
Allows a district to hire personnel who have been retired for less than one year for a critical shortage position provided the district is operating under an extended COVID-19 learning plan (in other words, the 2020-2021 school year). The 12-month waiting period before retirees can return to work in a district in current law will otherwise remain in effect. However, state law still prohibits retirees from returning to work in a Michigan public school reporting unit or for the State of Michigan, even as a volunteer, in the month of your retirement effective date. For more information regarding your eligibility visit www.michigan.gov/ors.
What does this mean for MARSP members?
Members who retired less than 12 months ago now have the opportunity to return to schools in critical shortage positions. As independent contractors, substitute teachers and instructional coaches in the current school year, provided they do not return to work until at least one month after the effective date of their retirement.
Removes restrictions to those who retired after September 2, 2017
Allows the rehiring of personnel who retired after Sept. 2, 2017, to return to fill a critical shortage, substitute teacher or instructional coach role. It removes the previous language that only allowed districts to rehire individuals who retired before Sept. 2, 2017.
What does this mean for MARSP members?
Members who retired after Sept. 2, 2017, can return to the buildings as a substitute teacher or instructional coach and retain full pension benefits, subject to the ⅓ annual cap on earnings.
Extends the window for a retiree to become reemployed for leadership support programs
Extends the window during which an employee may retire and become reemployed without forfeiting pension benefits for a specific school leadership support program funded by a Federal grant, private grant or both.
What does this mean for MARSP members?
Members who wish to return to work for a specific school leadership support program funded by a Federal grant, private grant or both may do so and not forfeit pension benefits.
To view the entire bill, click here.
Next Steps:
As we await the governor’s signature, we ask that members be patient. Please watch for more communications and updates regarding the next step for MARSP members.
Again, we are so proud of the work MARSP has put in to make our voices heard. Thank you for your continued support.