HB 4375 Summary

• Amends the Public School Employees Retirement System (PSERS) to allow certain retirants to work at a reporting unit without forfeiting their retirement allowance or health care subsidy.

• Exempts retirants who were already employed at a reporting unit on the effective date of this act (July 25, 2022) from the forfeiture requirement if they retired after a bona fide termination of employment.

• Allows retirants who have been retired for at least 9 consecutive months to return to work at a reporting unit without forfeiting benefits, provided they retired after a bona fide termination of employment.

• Exempts retirants employed by universities that serve as reporting units for limited purposes from the forfeiture requirement.

• Defines "bona fide termination of employment" as a complete severance of the employer-employee relationship, with the retirement system responsible for determining compliance with federal qualified retirement plan standards; retirants cannot use reemployment service or compensation for retirement allowance recomputation.