Three Truths Against The Attacks on Public Pensions
October 9, 2020
2020 Legislative Update #13
October 13, 2020

Legislative Update: 10/12/2020

The House Retirement Committee met at 9 a.m. this morning to address House Bill 36 by Rep. Tony Bacala.
Prior to the meeting this morning, we anticipated amendments would be introduced to the bill. The amendments to the bill will help employers and retirees fill a need during a state of emergency without adverse impacts to the retirement plan. Therefore, LRTA is in SUPPORT of this bill.
In summary, House Bill 36 by Rep. Bacala would:
  • Authorize the re-employment of retirees from the four state retirement systems during a declared state of emergency without any effect on retirement benefits if all the following conditions occur:
    • The re-employment occurs during a state of emergency declared by the governor.
    • The employer certifies in writing to the retirement system that employment of the retiree is critical to the effectiveness of the employer’s response to the emergency. The employer shall recertify that the employee is critical every six months.
    • The date of the retiree’s retirement is more than 30 days prior to the initial declaration of the state of emergency that he is reemployed to respond to.
    • The retiree’s retirement was not based on a disability.
There are no earning limits under this bill, and the employer and employee (retiree) will make contributions to the retirement system during such reemployment. The retiree would receive a refund for their contributions at the end of employment, but service credit would not be earned. Once the state of emergency is over, the retiree reverts to return to work provisions.
The House Retirement Committee reported the bill favorably, and HB 36 will go to the full House.
Contact your Representatives TODAY and ask them to vote “YES” on HB 36!

LRTA will monitor the House agenda and alert members when the House will hear HB 36. LRTA will also continue to monitor the session for any fiscal considerations that could affect retirement or our benefit plan.

Rodney R. Watson
LRTA Executive Director