HB 1579 as engrossed would require employers to pay the combined contribution rate for employees and the state for any retired employee working after the effective date of the bill. The proposal would also require employers to pay the difference between the amount a retiree enrolled in TRS-Care is required to pay for the retiree, plus any enrolled dependents to participate in TRS-Care, and the full cost of such participation for any retiree that works after the effective date of the bill. The bill would permit the employer and the retiree to negotiate and enter into a contract to pay the combined contribution rate established under this proposal. No payments from local employers would be required for retired employees who were reported by the employer under TRS rules in effect for the report month of January 2005.

Under the proposal, retirees returning to work would not gain additional service credit. The impact to the annuities of individuals who retired prior to the effective data of the bill remains the same as current law. 

Another provision would allow retirees of the Teacher Retirement System (TRS) to return to work without loss of monthly benefits as a bus driver only if their primary employment is as a bus driver. 

The bill, if enacted, is not estimated by the TRS actuary to have a significant actuarial impact. There would be a gain to the present value of future contributions, though the significance depends on the amount of additional funding remitted to TRS. Additional gains could occur if there were active employees who delayed retirement due to fewer return-to-work options available.