SB 733 - This act modifies provisions of the Public School Retirement System (PSRS) and the Non-Teacher School Employee Retirement System (NTRS).

PSRS & NTRS. The following apply to both systems.

Independent contractors are not employees for purposes of membership in or contributions to the retirement system.

Reinstatement provisions are modified so that reinstatement may be made by paying an amount based on the service being reinstated, or an amount less than total service previously forfeited, as promulgated by rules. Payments may be made over a period no longer than the length of service to be reinstated, instead of 5 years, as current law provides.

This act modifies purchasing membership service provisions by not allowing the purchase cost to exceed the actuarial value of the credit being purchased.

This act modifies military service purchase provisions. Currently military service must be purchased within 5 years of discharge from the military. This act removes such deadline. This act also removes a provision in PSRS which allowed any person who is vested and who had served in the armed forces, but was not yet a member, to purchase military service prior to retirement.

This act modifies purchase of service by PSRS member from NTRS and vice versa, when such service credit was forfeited. The system from which service credit was forfeited shall transfer to the member's current system the forfeited service being purchased plus interest, which shall reduce the amount otherwise paid by the member for purchase, up to one-half of the purchase cost.

PUBLIC SCHOOL RETIREMENT SYSTEM (PSRS).

With regard to PSRS, this act also removes a provision which allows certain certificated employees (employed at least 20 hours per week, but less than full-time) to purchase credit for such service on a pro rata basis.

NON-TEACHER SCHOOL EMPLOYEE RETIREMENT SYSTEM (NTRS).

This act also adds an option for NTRS retirement. This option provides variable monthly benefits which, in conjunction with Social Security benefits, will provide level or nearly level retirement income to the member for life and to an appropriate beneficiary designated by the member.
OTTO FAJEN