SB 24-099

Senate Bill 24-099, which has been approved by the Governor and will take effect on August 7, 2024, allows rural school districts to hire retired PERA employees—such as teachers, bus drivers, cooks, nurses, paraprofessionals, superintendents, and principals—without reducing their retirement benefits. This applies even if these retirees work for the entire calendar year. The bill also requires PERA to report annually starting December 1, 2025, on how this policy impacts employment shortages and costs associated with it. This change primarily affects rural school districts and retired educators in Colorado.

Official Summary

Current law limits the duration of employment a public employees' retirement association (PERA) service retiree can work for a PERA employer without a reduction in PERA retirement benefits. Under certain circumstances, a rural school district may hire a service retiree who is a teacher, a school bus driver, a school food services cook, a school nurse, or a qualified paraprofessional without the service retiree receiving a deduction in benefits for any length of employment in the calender year. The act adds superintendents and principals to the list of service retirees hired by a rural school district who may be employed without a reduction in benefits and clarifies that the exemption for a rural school district also includes a small rural school district which has a funded pupil count for the prior budget year of less than 1,000 pupils. The act also requires PERA, on or before December 1, 2025, and on or before December 1 of each 5th year thereafter, to submit a report to the finance and education committees of the house of representatives and the senate or any successor committees regarding certain employment after service retirement allowances. The report must include: The number of service retirees under certain allowances who have been employed after service retirement as of the date of the report; The extent to which certain employment after service retirement allowances have helped employers in the school division address shortages; The costs, if any, to PERA as a result of certain employment after service retirement allowances; and Any other information deemed relevant by PERA. APPROVED by Governor April 11, 2024 EFFECTIVE August 7, 2024(Note: This summary applies to this bill as enacted.)

Votes