PERS; provide alternative return to work provisions.

The required separation period before a retiree can return to work was reduced from 90 days to 30 days.

A new alternative return-to-work provision was created for retirees not subject to actuarial reductions, allowing them to return at up to 80% of their original salary with employer contributions covering both employer and employee portions.

Retirees returning to work under the new alternative provision are prohibited from being elected officials, K-12 school superintendents, or administrators at universities or community/junior colleges.

The definition of 'average compensation' was changed to include lump sums for personal or major medical leave for members joining the system on or after March 1, 2026, up to 180 days of earned compensation.

Employers must now pay both the employer and employee contributions for retirees returning to work under the alternative provision, designed to offset pension liability.

The alternative return-to-work provision will automatically be repealed on July 1, 2036.

Formatting and header information were updated to reflect the committee substitute version rather than the original introduction.