Commission backs lowering re‑employment age so retired teachers can return to work sooner

Senator Rasmussen asked the commission to recommend Senate File 4765 and House File 4429, a bill that would lower the minimum age for teachers to enter a return‑to‑work agreement from 62 to 59½ and allow them to draw their pension while employed.

The bill’s sponsors said the change aligns with in‑service distribution rules passed in 2025 and is permitted under IRS rules governing such distributions. "This allows teachers who want to continue to work to work without penalizing them," Senator Rasmussen said. Supporters argued the measure would help districts retain experienced teachers during shortages.

Doug Anderson (identified in the record as PARA executive director when testifying on other items) and witnesses from the Teachers Retirement Association discussed funding. TRA testimony in the packet and from the TRA representative (recorded as Mr. Tan) stated the change would have "no material impact" on contribution requirements or fund funding status and that employers continue to make contributions for rehired retirees.

Members questioned interactions with Social Security and earnings limits. Representative Driskell asked whether teachers who start Social Security early would be affected; sponsors replied the bill complies with IRS rules and would allow teachers to earn above federal caps if eligible under the in‑service distribution rules. Senators and representatives also pressed whether employers continue to contribute for rehired retirees; the authors said employer contributions and accounting treatment differ by plan and local arrangements.

Representative Driskell moved that the commission recommend passage and incorporation of the bills into the 2026 omnibus pension bill; the motion carried by voice vote. The commission’s action sends the measure forward for inclusion in the omnibus package.