KY HB642

Increases the minimum daily rate for retired teachers returning to work in local school districts from $170 to $200 per day without reduction to retirement benefits

Allows retired members to waive their annuity and return to full-time teaching or nonadministrative positions (200 work days or fewer on certified salary schedule) while contributing to improve their future retirement allowance

Eliminates the alternative separation-from-service option that previously allowed retirees to return to work after only 2 months by forfeiting retirement allowance payments month-for-month

Authorizes the Board of Trustees to offer members participation in equity index funds as an alternative to regular interest for the supplemental benefit component, with members bearing sole responsibility for investment performance and losses

Caps the actuarially assumed investment rate of return for annuitizing supplemental benefit component funds at 6.1% (without cost of living adjustment) or 4.6% (with cost of living adjustment)