The Department of Public Instruction in collaboration with the Office of the State Treasurer, Retirement Systems Division, has reviewed existing policy as it relates to the reemployment of public school retirees. At issue was the employment of retirees as teachers exempt from the earnings cap, and supplementing their teaching assignment with other duties. To view the questions and answers visit: http://www.ncasa.net/associations/2410/files/Retirees_Questions_and_Answers.pdf
Questions include:
1. What are the eligibility criteria for a retiree to be re-employed exempt from the earnings cap?
2. Are all reemployed retirees considered exempt from the earnings cap after completing a 6-month break in service?
3. Can a retiree be employed exempt from the earnings cap in an assignment other than teaching?
4. Can a retiree exempt from the earnings cap supplement his/her teaching assignment with other duties like coaching?
5. Is all of the salary paid to an exempt retiree subject to 11.70%? If so, who pays?
6. Can the LEA deduct the 11.7% retirement contribution from the teachers’ pay?
7. Can the LEA negotiate (use state funds) to pay the 11.70% contribution for coaching supplements, longevity, annual leave payouts, mentor pay, ABC bonuses, etc? In other words, can the LEA use state funds to pay the 11.70% contribution for all covered salaries?
8. Can a retiree exempt from the cap who is employed for only 51% of the day, be employed for the remainder of the school day in another capacity such as athletic director, guidance counselor, administrator, etc?
9. Can a retiree be employed exempt from the earnings cap to teach driver’s education, online courses (virtual education) and do remediation?
10. What object codes should be used to pay the other covered salaries?
11. What codes and funding source do I use to record the 11.70% payment?