Understanding the New Critical Shortage Legislation

August 25, 2017

Retiree working as a teacherHouse Bill (HB) 17-1176, PERA Retirees Employed by Rural School Districts, passed earlier this year by the Colorado General Assembly, allows rural school districts to declare a critical shortage for certain positions including teachers, food service workers, and bus drivers. Once a critical shortage has been determined by the school district, the district can then hire a PERA retiree, referred to as a critical shortage retiree, to work in that position and be exempt from PERA working after retirement limits. Typically, Colorado PERA benefits are temporarily reduced when a PERA retiree works for a PERA employer for more than 110 days/720 hours in a calendar year (or 140 days/916 hours if designated by a school district or institution of higher education).

This law is effective July 1, 2017, starting with the 2017‒2018 school year, and will sunset after the completion of the 2022‒2023 school year on July 1, 2023.

Specifics on how the new legislation works:

 

Image credit: Szepy/istock/thinkstock