HIRING PRACTICES & CRITICAL SHORTAGE LEGISLATION KISA RETREAT JANUARY 15, 2016

HIRING PRACTICES: KISA HIRING CODE OF ETHICS  Districts will not actively pursue an administrator, certified staff member, or other key employees with prior knowledge of the employing district.  When interviewing a candidate, who has applied for a position, the hiring district will encourage the candidate to inform his/her building administrator or HR office that they are interviewing. The candidate should be made aware that references will be checked if they become a finalist, and their employer will be made aware of their employment search.  When an employee under contract in another district has been identified as a finalist, the hiring district’s HR office or other designated administrator shall notify the employing district of its intent.

KISA HIRING CODE OF ETHICS CONT. HIRING TEACHERS & ADMINISTRATORS AFTER 8/1  A district planning to hire a teacher or administrator who is under contract in another district shall contact the employing district to negotiate a mutually acceptable, reasonable release date.  When hiring other school employees from another district (i.e. secretaries, mechanics, technology staff, etc.) the hiring district will encourage the employee to provide an acceptable amount of time to their employer for finding a replacement before leaving.

MEETING YOUR STAFFING NEEDS: HIRING RETIREES What has not changed:  Pre July 1, 2010 Retirees  If a retiree is employed directly by the reporting unit, in a non- critical shortage area, the retiree may earn up to one-third of their final average compensation. For this purpose, the salary average is increased 5 percent (compounded) for each calendar year the staff member is retired..  For each dollar the staff member earns over the annual salary limit, he/she must return one pension dollar to the retirement system.  There are no earning limitations if the retiree returns as an independent contractor or to perform a position on the critical shortage list for the prescribed limited time (more to come on this).

HIRING RETIREES CONTINUED WHAT HAS NOT CHANGED  Post July 1, 2010 Retirees  Retirees employed directly by a reporting unit may earn up to one third of their final average compensation in a calendar year (prorated in the first year of retirement).  If the earning limitation is exceeded, the retiree will forfeit his/her pension and retiree health care subsidy until the employment ceases.  If the retiree is performing a core service for the district, he/she MAY NOT return as an independent contractor or through a third party contractor. His/her pension and health subsidy will be forfeited until the employment ceases regardless of earnings.

“NEW” CRITICAL SHORTAGE LEGISLATION  The new legislation sunsets July1,  Once again, the State Superintendent is required to establish a critical shortage list by April 1 st each year.  Teachers who have been retired for a year may return to work in one of the critical shortage areas for up to THREE (3) years with no earnings limitations.  The reporting unit is required to pay 100% of the contribution rate for the unfunded actuarial accrued liability (UAAL) for the pension and for the UAAL for retiree Health Care.  The retiree is not eligible to use any of the service or compensation earned for a computation of his or her pension.

The LIST….

Academic Discipline Type of Evidence Utilized Districts Approved Substitute Teaching - ALL Disciplines Reported by Districts All All Early Childhood Education (Pre-Kindergarten) Federal Shortage List All All Special Education – All Categories Federal Shortage List All All World Languages – Including Bilingual, English as a Second Language, American Sign Language, and Native American Languages Federal Shortage List All All Occupational – Therapeutic Services Federal Shortage List All All Occupational – Cosmetology Federal Shortage List All All Occupational – Hospitality Federal Shortage List All All Occupational – Construction Trade Federal Shortage List All All Occupational – Public Safety/ Protective Services Federal Shortage List All All Occupational – Automobile Technician (NATEF Certified) Federal Shortage List All All Occupational – Welding, Brazing, and Soldering Federal Shortage List All All Occupational – Graphics and Printing Technology and Communications Federal Shortage List All All Occupational – Agriculture, Agriculture Operations and Related Science Federal Shortage List All All Occupational – Collision Repair Technician (NATEF Certified) Federal Shortage List All All s

NEW TO THE LEGISLATION: SUBSTITUTE TEACHERS, INSTRUCTIONAL COACHES, AND SI FACILITATORS  Retirees in the above areas may work through a third party under the following provisions:  Retired at least one month before returning.  Earn no more than 1/3 of his or her final average compensation in one year.  The retiree is not eligible to use any of the service or compensation earned for a recomputation of his/her pension.  The reporting unit pays to the MPSERS system 100% of the contribution rate for the UAAL for the pension and for the UAAL for retiree health care.

HOW THIS WILL WORK…  If you choose to hire them through a third party:  An addendum to your EduStaff contract would need to be signed and returned indicating the districts willingness to assume fiscal responsibility for the entire UAAL contribution. This would be in addition to the current service fee.  EduStaff would hire the staff and deploy them to your district.  EduStaff would provide a list of all the retirees employed pursuant to this change, as well as the total earnings per quarter.  The district would then pay the UAAL rate directly to MPSERS.

QUESTIONS?