DEPARTMENT OF EDUCATION
P.O.
SUPTS. MEMO NO. 009
October 31, 2008
REGULATORY
|
TO: |
Division
Superintendents |
|
FROM: |
Patricia I. Wright Superintendent of Public Instruction Robert P. Schultze Director,
|
|
SUBJECT: |
Employment
of Retirees in Critical Shortage Areas |
The
51.1-155 of the Code
of Virginia provides that a retired member of the VRS may be hired by a
school division to fill a vacancy in a critical shortage area and continue to
receive the retirement allowance during such employment if specified conditions
are met. This memorandum provides the
requirements for designating critical shortage areas and hiring retired individuals
for critical shortage positions in school divisions.
Critical Shortage Certification
The VDOE will continue to be responsible for
overseeing the designation of areas that meet the criteria for statewide critical
shortage teaching endorsement areas. VRS will begin receiving, reviewing, and
tracking the eligibility of retirees in critical shortage positions using a new
reporting procedure. This VRS procedure includes new forms that replace those
currently used to report critical shortage positions to VDOE. Copies of the new
VRS forms are attached, and directions to submit the forms to VRS are included
in this memorandum.
VRS also is available to consult with you and your
personnel regarding the criteria governing the hiring of VRS retirees for
critical shortage positions in accordance with the Code of
Critical Shortage Designations
As required under the 2008 Acts of Assembly, the VDOE
reports annually to the General Assembly on critical shortage teaching
endorsement areas. Positions eligible to be considered for a critical shortage
designation include instructional personnel, principals, and assistant
principals requiring a valid license issued by the Virginia Board of Education
with the appropriate endorsement.
In addition to the endorsement areas identified as
statewide critical shortages, a critical shortage may be designated by the
school division for any position vacancy for which a school division receives
three or fewer qualified candidates (licensed or eligible for a license issued
by the Virginia Board of Education with an endorsement corresponding to the appropriate
assignment).
In preparing the annual report to the General
Assembly, the Superintendent of Public Instruction surveys all school boards to
identify the top ten critical shortage teaching
endorsement areas. To assist in this effort, you should review your critical
shortage areas annually to determine whether the shortage still exists.
Eligibility Requirements
Eligible Retirees
As provided in 51.1-155 of the Code of Virginia, VRS retirees who hold a valid license issued by
the Virginia Board of Education and meet the bona fide break-in-service
criteria may continue to receive their retirement benefits while working full
time in a designated critical shortage area (51.1-155). Although these
positions are full time, retirees are not accruing VRS benefit eligibility at
the same time they are receiving retirement benefits.
VRS members who have taken a refund of their member
contributions or deferred their retirement are ineligible to participate in the
critical shortage program. These individuals should be reported as active
members. VRS retirees who do not hold a valid teaching license with the
appropriate endorsement for the assignment issued by the Board of Education
also are ineligible to participate.
Bona Fide Break in Service
In prohibiting in-service distribution of retirement
benefits, the Internal Revenue Service (IRS) considers it essential that
employees make a complete and good faith end to service when they retire, with
no agreement or expectation of future employment. Retirement systems that allow
members to retire without fully severing employment for a reasonable period of
time could potentially lose the system's favored IRS tax-qualified status. This
would have far-reaching tax consequences for the retirement systems'
participating employers and members.
Therefore, VRS and VDOE, in consultation with the
Joint Legislative Audit and Review Commission (JLARC), have determined that:
VRS
retirees must have a bona fide break in service of at least 12 consecutive
months between their retirement date and the date they wish to work in a
full-time critical shortage position. This break in service precludes any
full-time, part-time or temporary employment with any VRS-participating
employer, including summer school or substitute teaching.
Employers
may not make any verbal or written offer of
re-employment to employees who are
preparing to retire.
Early Retirement Incentive Programs (ERIPs)
Early
retirement incentive programs (ERIPs) seek to
encourage early retirement by offering a benefit enhancement, such as an
additional benefit or supplemental package. VRS members who participate in a
school board's ERIP and retire with a reduced VRS benefit are ineligible to be
employed under the critical shortage criteria outlined in this memorandum.
However, if a VRS member participates in a school board's ERIP but retires with
an unreduced VRS benefit, the member retains his or her eligibility for
critical shortage provided all other eligibility requirements are met.
VRS Forms
If
you are employing retirees in critical shortage positions for the 2008-09
school year, please submit the Certification of
Eligibility for Critical Shortage Teachers or Administrators (VRS-160) for each
retiree this year by December 1,
2008. In future school years, please
submit the form by November 1.
If
you are not employing a retiree in a critical shortage position for the 2008-09
school year, submit the Certification of
Non-Participation of Critical Shortage Teachers and Administrators (VRS-160A)
for this year by December 1, 2008. In the future, please submit the form by
November 1.
If
you employ a retiree in a critical shortage position after submitting the forms,
please send the VRS-160 for the retiree upon the effective date of his or her
employment in the position.
Forms are available from the VRS website at www.varetire.org. Select Forms from
the Employer tab.
As
a reminder, the critical shortage legislation includes a sunset provision.
Barring an extension by the General Assembly, the legislation will end
effective July 1, 2010.
Additional Information
VRS has developed an e-learning course on critical
shortage. This course, which takes less than an hour to complete, reviews the
components of the critical shortage legislation, eligibility guidelines for
positions and participating individuals, and the procedure to submit the
VRS-160 and VRS-160A forms. The course will be available on the VRS website at
www.varetire.org. Select Employer
Training from the Employer tab.
In addition, the VRS and DOE sites will link to each
other to make it easier for employers and retirees to learn more about critical
shortage teaching designations and eligibility requirements. The DOE website
address is www.doe.virginia.gov.
For questions regarding the critical shortage
designations, contact Mrs. Patty S. Pitts, assistant superintendent for teacher
education and licensure, at (804) 371-2522. For questions concerning a VRS retiree's
eligibility for a critical shortage position, contact one of the following employer
representatives for school divisions at the Virginia Retirement System:
Mrs. Gwyn
Ciemniecki
Toll free: 1-888-827-3847,
ext. 7765
E-mail: gciemniecki@varetire.org
Mrs. Carolyn Newton
Toll free: 1-888-827-3847,
ext. 3196
E-mail: cnewton@varetire.org
PIW/RPS/psp
a. Certification of Eligibility for Critical Shortage Teachers and Administrators (PDF)
b. Certification of Non-Participation of Critical Shortage Teachers and Administrators (PDF)