CSHB 1579 allows 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.

CSHB 1579 requires 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 proposal does not prohibit local employers from deducting amounts that the employer must pay under the provisions of the bill from the compensation of the employed retiree.

CSHB 1579 would exempt payments due under the provisions of the proposal from local employers 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 date of the bill remains the same as current law. 

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.