Bill > A5931

Introduced Session

This bill permits a teacher who retired from the Teachers' Pension and Annuity Fund (TPAF) to return to employment for two years without reenrollment in the TPAF and provides gross income tax relief for certain rehired teachers. The bill permits a board of education to, with the approval of the executive county superintendent of schools, hire a retired teacher who is a former member of the TPAF on a contractual basis for a term of not more than two full school years. The approval of the executive county superintendent is to only be granted upon demonstration by the board of education that the board conducted a thorough search for candidates and that the retired teacher is the only qualified and available person for the position. The bill stipulates that the retired teacher may be hired at a salary not less than 40 percent and not to exceed 70 percent of the median salary of a teacher employed by the board of education. Under the bill, the cancellation, reenrollment, and additional retirement allowance provisions of current law do not apply to the retired teacher hired or rehired under the bill, provided that if the retired teacher returns to work with the former employer, it is required to occur more than 180 days after the retirement. The bill also provides that the former member's retirement is to be a bona fide retirement and any employment or reemployment under the bill is prohibited from being prearranged before retirement. Additionally, the bill stipulates that a retired teacher employed or reemployed under the bill is not to obtain tenure in the position and any tenure or seniority rights previously obtained by the teacher do not apply to the period of employment or reemployment. The bill also provides gross income tax relief for retired teachers who are rehired in accordance with the provisions of the bill. Specifically, the bill provides a gross income tax deduction in the amount of 50 percent of the salary or other remuneration paid to a retired teacher under the bill. Of the remaining salary or remuneration paid to a retired teacher under the bill, this income would be taxed separately under the gross income tax at a rate of 1.4 percent, regardless of the taxpayer's filing status.

AI Summary

Committee Categories

Al Barlas (R)*,  Verlina Reynolds-Jackson (D)*, 

Introduced, Referred to Assembly State and Local Government Committee (on 07/24/2025)

Official Document