Senate Bill 1147 Summary

• Amends the Public School Employees Retirement Act of 1979 to modify Section 61 regarding retirants who become re-employed by a reporting unit.

• Removes the requirement that retirants forfeit their retirement allowance and health care subsidy when performing core services for an entity other than a reporting unit or as an independent contractor.

• Revises the calculation of final average compensation for benefit cutoffs after re-employment to include five percent increases for each full year of retirement, income taxes assessed on the retirement allowance, and annual health care coverage premiums.

• Allows retirants to elect recomputation of retirement allowances based on added service credit or final average compensation after performing 5 or more years of additional service (or 3 or more years for member investment plan participants).

• Establishes an exception for former teachers and administrators employed by universities in teaching or research capacities, requiring annual reporting of such employment to the retirement system by July 1.