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Retired Educators: Return to Michigan Schools With Zero Earning Limitations

Aug 18, 2022, 10:00 AM by User Not Found
The Michigan Association of Superintendents & Administrators, Michigan Association of Secondary School Principals, Michigan Association of School Boards, Michigan Association of Intermediate School Administrators and Michigan Alliance for Student Opportunity (formerly known as the Middle Cities Education Association) are encouraging retired educators to review recent changes to state law making it easier to return to schools across the state with zero earning limitations.
Public Act 184 of 2022 creates new opportunities for Michigan educators who’ve been retired for at least nine months—allowing them to return to work at any school while continuing to collect their full pension and insurance premium subsidy. Retirees are not limited in how much they can earn, and this change applies regardless of what job a retiree is hired to do, not just to those positions that were previously included on the critical shortage list.

“Districts across the state are facing an unprecedented educator shortage at all levels, from teachers to building leaders to superintendents,” said MASA Executive Director Tina Kerr, Ph.D. “Our educator shortage didn’t happen overnight and it’s not something that is going to be solved overnight, but this new legislation is an opportunity to help districts address this serious issue. Allowing experienced educators to be back in buildings and educating our students without penalties or pension reductions is a great opportunity for all those involved.”

The new law changed the required sit-out period for a retired educator to return to work at a public school reporting unit from 30 days to nine consecutive months. However, once they pass the nine-month mark, retired educators can return to work in any position, either directly or indirectly, with no earning limit and no effect on their pension or insurance premium subsidy.

Previously, the Public School Employees Retirement Act only provided an exception for “critical shortage areas” as determined by the state. Additionally, most retirees who returned to work were limited to earning no more than one-third of their final average compensation. PA 184 removes both of those limitations.

“If someone you know has been retired from a career in education for at least nine months, please reach out to them and share this information,” said MASSP Executive Director Wendy Zdeb. “They could help fill the gap and help our schools continue to thrive as they do important work, while still earning a full pension and additional paycheck.”

The Michigan Office of Retirement Services has created a detailed FAQ to help answer additional questions about the new law and its impact. An infographic explaining the requirements is also available on the ORS website.

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