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Bill would let retired educators return to OPI for up to five years without losing TRS benefits
Summary
HB 349 would let retired teachers with at least 27 years of credible service return to full‑time work at the Office of Public Instruction for up to five years without suspending their retirement benefits; TRS staff told the committee employer contributions would preserve actuarial soundness.
Representative Melissa Nicola Kaus presented House Bill 349 as a targeted measure to help the Office of Public Instruction recruit experienced personnel by allowing retired teachers to return to work without losing retirement benefits.
Susie Hedalen, speaking for OPI, said the provision would apply in "unique" cases when OPI has advertised a position, received no qualified applicants, and needs to hire an experienced educator or leader such as a deputy superintendent or an executive staff member. The bill would permit a retired teacher with at least 27 years of credible service to return to full‑time employment for up to five years.
Lance Melton (Montana School Boards Association) linked HB 349 to prior legislative steps that gave temporary hiring flexibility to rural districts, and he said the provision is a limited, time‑bound exception (the bill was described as terminating after five years). Sean Graham, executive director of the Montana Teachers Retirement System (TRS), appeared as an informational witness and explained the fiscal mechanics: the rehired retiree would continue to receive unreduced retirement benefits while the employer would remit the combined contribution rate (about 20.11% of compensation) to TRS. TRS witnesses and bill proponents said rehired retirees under this provision would not earn additional service credit and protections (the 27‑year threshold, a five‑year cap and employer contribution) are intended to prevent actuarial harm.
Committee members asked why the threshold is 27 years; witnesses said 27 years reflects TRS experience and actuarial modeling (educators often retire around 25 years of service) and the combination of limits and employer contributions aims to guard the fund’s soundness. Representative Nicola Kaus closed by urging a "do pass" recommendation. The hearing closed with a field‑trip reminder and adjournment; the committee did not record a final vote in the transcript.
