KS schools & the "double-dip" provision re retirement system law

New law has retired teachers thinking twice about returning

Associated Press

From Kansas.com, July 5, 2006

WICHITA, Kan. - A new law designed to get more money into the state's retirement system could have the unintended consequence of keeping highly qualified retired teachers out of the work force at a time when they're needed the most.

It is estimated that around 500 teachers who have retired and are drawing pensions from the Kansas Public Employees Retirement System currently teach part time in another district. Sen. President Steve Morris' office projects that number will climb to around 4,000 over the next several years.

But a law that went into effect Saturday, requiring public schools to pay 13.75 percent of those teachers' salaries into the retirement fund, has many retired teachers reluctant to step back into the classroom because the money is being kept out of their paychecks.

Legislators say the bill was written with the understanding that school districts would pay at least part of the 13.75 percent. But the schools say they can't afford to pay the extra cost, so the money is being withheld from the teachers' pay instead.

"If we would have known the districts were going to do that, we probably would have made adjustments and changes in the bill," said Morris, R-Hugoton.

Paul Babich, president of United Teachers of Wichita, said the country is moving toward a tremendous teacher shortage. Putting up barriers for retired teachers who want to supplement their pension income at such a time doesn't make much sense, he said.

"If the school districts and Legislature are interested in stopping the upcoming shortage, which is going to be huge, they ought to do what they can to fix this disincentive," Babich said.

Karen Davidson, 53, who taught music in the Rose Hill district for 31 years before retiring, plans to teach part time in a different district in the fall. But despite her experience, she'll be working at a lower salary because of the money that will be kept out of her checks for KPERS.

Districts that rehire their own retired teachers don't have to pay the extra amount into the pension system, but those teachers can only earn up to $20,000 before their retirement benefits stop until the next fiscal year.

"I just feel like they take advantage of the fact that we are retired," Davidson said.

Sen. Jean Schodorf, R-Wichita, said teachers who don't like the new law should either not retire or should stay out of the field after they do.

"There are too many people taking out and not enough people putting in," Schodorf said of KPERS, which has been underfunded for decades.

The new law applies to all public employees, but no other group has to pay as much into the program as retired teachers.

"We don't get people to come back when we need them by reducing their salaries and reducing their rights," said Mark Desetti, director of legislative advocacy for the Kansas National Education Association. "We need to be sure we honor these people."

Morris said the Senate probably will take another look at the issue next year.