MISSISSIPPI LEGISLATURE

1998 Regular Session

To: Education; Appropriations

By: Representative Warren

House Bill 615

AN ACT TO CREATE NEW SECTION 25-11-126, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT CERTAIN PERSONS RECEIVING A RETIREMENT ALLOWANCE FROM THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM WHO ARE EMPLOYED AS TEACHERS IN THE PUBLIC SCHOOL SYSTEM AFTER THEIR RETIREMENT, AND CERTAIN PERSONS EMPLOYED AS TEACHERS IN THE PUBLIC SCHOOL SYSTEM WHO ARE ELIGIBLE TO RECEIVE A RETIREMENT ALLOWANCE FROM THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM, MAY RECEIVE A RETIREMENT ALLOWANCE DURING THEIR EMPLOYMENT AS TEACHERS IN ADDITION TO RECEIVING A TEACHER'S SALARY; TO PROVIDE THAT THOSE PERSONS SHALL BE CONTRIBUTING MEMBERS OF THE RETIREMENT SYSTEM AND SHALL RECEIVE CREDITABLE SERVICE FOR THE PERIOD DURING WHICH THEY RECEIVE A RETIREMENT ALLOWANCE DURING THEIR EMPLOYMENT AS TEACHERS; TO AMEND SECTIONS 25-11-103 AND 25-11-127, MISSISSIPPI CODE OF 1972, IN CONFORMITY WITH THE PROVISIONS OF THIS ACT; TO AMEND SECTION 37-19-7, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE TEACHERS' SALARIES OF THOSE PERSONS SHALL BE EQUAL TO THE AMOUNT OF THE BEGINNING TEACHERS' SALARIES FOR THEIR LICENSE LEVEL AND TO PROVIDE THAT THE SALARIES OF THOSE PERSONS SHALL NOT BE INCREASED FOR TEACHING EXPERIENCE OBTAINED BEFORE THE DATE OF THEIR EMPLOYMENT AS TEACHERS AFTER THEIR RETIREMENT OR THE DATE THAT CURRENT TEACHERS BEGAN RECEIVING A RETIREMENT ALLOWANCE; AND FOR RELATED PURPOSES.  

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. The following shall be codified as Section 25-11-126, Mississippi Code of 1972:

25-11-126. (1) (a) Any person who has completed

twenty-five (25) or more years of creditable service and is receiving a retirement allowance under this article, who was employed as a teacher in the public school system at the time of his retirement and who is employed as a teacher in the public school system after his retirement, may choose to continue receiving the retirement allowance under this article during his employment as a teacher after his retirement in addition to receiving the salary authorized under Section 37-19-7(3), in the manner provided in this section.

(b) Any person who is employed as a teacher in the public school system who completes twenty-five (25) or more years of creditable service during his employment as a teacher, may choose to receive a retirement allowance under this article during his employment as a teacher in the public school system in addition to receiving the salary authorized under Section 37-19-7(3), in the manner provided in this section.

(2) Any person described in subsection (1)(a) of this section shall notify the executive director of the retirement system, before being employed as a teacher in the public school system after his retirement, about his choice on continuing to receive the retirement allowance during his employment as a teacher. If the person chooses not to continue receiving the retirement allowance during his employment as a teacher, the retirement allowance shall cease on the day that he begins employment as a teacher after his retirement. After the person leaves employment as a teacher that he began after his retirement, in order to begin receiving a retirement allowance under this article again, the person shall make application to the executive director of the retirement system, and the retirement allowance shall begin on the first of the month following the date that the application is received by the executive director.

(3) Any person described in subsection (1)(b) who chooses to receive a retirement allowance during his employment as a teacher in the public school system shall make application to the executive director of the retirement system, and the retirement allowance shall begin on the first of the month following the date that the application is received by the executive director. Those persons shall not be required to withdraw from service in order to receive the retirement allowance.

(4) Any person to whom this section applies who receives or continues to receive a retirement allowance under this article during his employment as a teacher shall be a contributing member of the retirement system and shall receive creditable service for the period during which he receives a retirement allowance during his employment as a teacher. Upon his retirement from employment as a teacher during which he received a retirement allowance, he shall have his allowance recomputed to include his service as a teacher while receiving a retirement allowance. Any person to whom this section applies who chooses not to receive a retirement allowance during his employment as a teacher also shall be a contributing member of the retirement system and shall receive creditable service for the period during which he is employed as a teacher without receiving a retirement allowance. If the person has previously received a retirement allowance under this article and he is employed as a teacher for more than six (6) months without receiving a retirement allowance, he shall have his allowance recomputed when he retires again, which shall include the service after he again became a contributing member of the retirement system.

SECTION 2. Section 25-11-103, Mississippi Code of 1972, is amended as follows:

25-11-103. The following words and phrases as used in Articles 1 and 3, unless a different meaning is plainly required by the context, shall have the following meanings:

(a) "Accumulated contributions" shall mean the sum of all the amounts deducted from the compensation of a member and credited to his individual account in the annuity savings account, together with regular interest thereon as provided in Section 25-11-123.

(b) "Actuarial cost" shall mean the amount of funds presently required to provide future benefits as determined by the board based on applicable tables and formulas provided by the actuary.

(c) "Actuarial equivalent" shall mean a benefit of equal value to the accumulated contributions, annuity or benefit, as the case may be, when computed upon the basis of such mortality tables as shall be adopted by the board of trustees, and regular interest.

(d) "Actuarial tables" shall mean such tables of mortality and rates of interest as shall be adopted by the board in accordance with the recommendation of the actuary.

(e) "Agency" shall mean any governmental body employing persons in the state service.

(f) "Average compensation" shall mean the average of the four (4) highest years of earned compensation reported for an employee in a fiscal or calendar year period, or combination thereof which do not overlap, or the last forty-eight (48) consecutive months of earned compensation reported for an employee. The four (4) years need not be successive or joined years of service. In no case shall the average compensation so determined be in excess of One Hundred Twenty-five Thousand Dollars ($125,000.00). In computing the average compensation, any amount paid in a lump sum for personal leave shall be included in the calculation to the extent that such amount does not exceed an amount which is equal to thirty (30) days of earned compensation and to the extent that it does not cause the employees' earned compensation to exceed the maximum reportable amount specified in Section 25-11-103(k); provided, however, that such thirty-day limitation shall not prevent the inclusion in the calculation of leave earned under federal regulations prior to July 1, 1976, and frozen as of that date as referred to in Section 25-3-99. Only the amount of lump sum pay for personal leave due and paid upon the death of a member attributable for up to one hundred fifty (150) days shall be used in the deceased member's average compensation calculation in determining the beneficiary's benefits. In computing the average compensation, no amounts shall be used which are in excess of the amount on which contributions were required and paid. If any member who is or has been granted any increase in annual salary or compensation of more than eight percent (8%) retires within twenty-four (24) months from the date that such increase becomes effective, then the board shall exclude that part of the increase in salary or compensation that exceeds eight percent (8%) in calculating that member's average compensation for retirement purposes. The board may enforce this provision by rule or regulation. However, increases in compensation in excess of eight percent (8%) per year granted within twenty-four (24) months of the date of retirement may be included in such calculation of average compensation if satisfactory proof is presented to the board showing that the increase in compensation was the result of an actual change in the position held or services rendered, or that such compensation increase was authorized by the State Personnel Board or was increased as a result of statutory enactment, and the employer furnishes an affidavit stating that such increase granted within the last twenty-four (24) months was not contingent on a promise or agreement of the employee to retire. Nothing in Section 25-3-31 shall affect the calculation of the average compensation of any member for the purposes of this article. The average compensation of any member who retires before July 1, 1992, shall not exceed the annual salary of the Governor.

(g) "Beneficiary" shall mean any person entitled to receive a retirement allowance, an annuity or other benefit as provided by Articles 1 and 3. In the event of the death prior to retirement of any member whose spouse and/or children are not entitled to a retirement allowance, the lawful spouse of a member at the time of the death of such member shall be the beneficiary of such member unless the member has designated another beneficiary subsequent to the date of marriage in writing, and filed such writing in the office of the executive director of the board of trustees. No designation or change of beneficiary shall be made in any other manner.

(h) "Board" shall mean the board of trustees provided in Section 25-11-15 to administer the retirement system herein created.

(i) "Creditable service" shall mean "prior service," "retroactive service" and all lawfully credited unused leave not exceeding the accrual rates and limitations provided in Section 25-3-91 et seq., as of the date of withdrawal from service plus "membership service" for which credit is allowable as provided in Section 25-11-109. Except to limit creditable service reported to the system for the purpose of computing an employee's retirement allowance or annuity or benefits provided in this article, nothing in this paragraph shall limit or otherwise restrict the power of the governing authority of a municipality or other political subdivision of the state to adopt such vacation and sick leave policies as it deems necessary.

(j) "Child" means either a natural child of the member, a child that has been made a child of the member by applicable court action before the death of the member, or a child under the permanent care of the member at the time of the latter's death, which permanent care status shall be determined by evidence satisfactory to the board.

(k) "Earned compensation" shall mean the full amount earned by an employee for a given pay period including any maintenance furnished up to a maximum of One Hundred Twenty-five Thousand Dollars ($125,000.00) per year, and proportionately for less than one (1) year of service. The value of such maintenance when not paid in money shall be fixed by the employing state agency, and, in case of doubt, by the board of trustees as defined in Section 25-11-15. In any case, earned compensation shall be limited to the regular periodic compensation paid, exclusive of litigation fees, bond fees, and other similar extraordinary nonrecurring payments. In the case of fee officials, the net earnings from their office after deduction of expenses shall apply, except that in no case shall earned compensation be less than the total direct payments made by the state or governmental subdivisions to the official, and employer and employee contributions shall be paid thereon. In the case of members of the state Legislature, all remuneration or amounts paid, except mileage allowance, shall apply. The amount by which an eligible employee's salary is reduced pursuant to a salary reduction agreement authorized under Section 25-17-5 shall be included as earned compensation under this paragraph, provided this inclusion does not conflict with federal law, including federal regulations and federal administrative interpretations thereunder, pertaining to the Federal Insurance Contributions Act or to Internal Revenue Code Section 125 cafeteria plans. Compensation in addition to an employee's base salary that is paid to the employee pursuant to the vacation and sick leave policies of a municipality or other political subdivision of the state that employs him which exceeds the maximums authorized by Section 25-3-91 et seq. shall be excluded from the calculation of earned compensation under this article. The maximum salary applicable for retirement purposes before July 1, 1992, shall be the salary of the Governor. Nothing in Section 25-3-31 shall affect the determination of the earned compensation of any member for the purposes of this article.

(l) "Employee" means any person legally occupying a position in the state service, and shall include the employees of the retirement system created hereunder.

(m) "Employer" shall mean the State of Mississippi or any of its departments, agencies or subdivisions from which any employee receives his compensation.

(n) "Executive director" shall mean the secretary to the board of trustees, as provided in Section 25-11-15(9), and the administrator of the Public Employees' Retirement System and all systems under the management of the board of trustees. Wherever the term "Executive Secretary of the Public Employees' Retirement System" or "executive secretary" appears in this article or in any other provision of law, it shall be construed to mean the Executive Director of the Public Employees' Retirement System.

(o) "Fiscal year" shall mean the period beginning on July 1 of any year and ending on June 30 of the next succeeding year.

(p) "Medical board" shall mean the board of physicians or any governmental or nongovernmental disability determination service designated by the board of trustees that is qualified to make disability determinations as provided for in Section 25-11-119.

(q) "Member" shall mean any person included in the membership of the system as provided in Section 25-11-105.

(r) "Membership service" shall mean service as an employee rendered while a member of the retirement system.

(s) "Position" means any office or any employment in the state service, or two (2) or more of them, the duties of which call for services to be rendered by one (1) person, including positions jointly employed by federal and state agencies administering federal and state funds.

(t) "Prior service" shall mean service rendered before February 1, 1953, for which credit is allowable under Sections 25-11-105 and 25-11-109, and which shall allow prior service for any person who is now or becomes a member of the Public Employees' Retirement System and who does contribute to the system for a minimum period of four (4) years.

(u) "Regular interest" shall mean interest compounded annually at such a rate as shall be determined by the board in accordance with Section 25-11-121.

(v) "Retirement allowance" shall mean an annuity for life as provided in this article, payable each year in twelve (12) equal monthly installments beginning as of the date fixed by the board. The retirement allowance shall be calculated in accordance with Section 25-11-111. Provided, any spouse who received a spouse retirement benefit in accordance with Section 25-11-111(d) prior to March 31, 1971, and said benefits were terminated because of eligibility for a Social Security benefit, may again receive his spouse retirement benefit from and after making application with the board of trustees to reinstate such spouse retirement benefit.

(w) "Retroactive service" shall mean service rendered after February 1, 1953, for which credit is allowable under Section 25-11-105(b) and Section 25-11-105(k).

(x) "System" shall mean the Public Employees' Retirement System of Mississippi established and described in Section 25-11-101.

(y) "State" shall mean the State of Mississippi or any political subdivision thereof or instrumentality thereof.

(z) "State service" shall mean all offices and positions of trust or employment in the employ of the state, or any political subdivision or instrumentality thereof, which elect to participate as provided by Section 25-11-105 (f), including the position of elected or fee officials of the counties and their deputies and employees performing public services or any department, independent agency, board or commission thereof, and shall also include all offices and positions of trust or employment in the employ of joint state and federal agencies administering state and federal funds and service rendered by employees of the public schools. Effective July 1, 1973, all nonprofessional public school employees, such as bus drivers, janitors, maids, maintenance workers and cafeteria employees, shall have the option to become members in accordance with Section 25-11-105(b), and shall be eligible to receive credit for services prior to July 1, 1973, provided the contributions and interest are paid by the employee in accordance with said section; provided, further, that the county or municipal separate school district may pay the employer contribution and pro rata share of interest of the retroactive service from available funds. From and after July 1, 1998, retroactive service credit shall be purchased at the actuarial cost in accordance with Section 25-11-105(b).

(aa) "Withdrawal from service" shall mean complete severance of employment in the state service of any member by resignation, dismissal or discharge, except in the case of persons who become eligible to receive a retirement allowance under this article during their employment as teachers and who choose to receive the retirement allowance during their employment as teachers as authorized by Section 25-11-126.

(bb) The masculine pronoun, wherever used, shall include the feminine pronoun.

SECTION 3. Section 25-11-127, Mississippi Code of 1972, is amended as follows:

25-11-127. No person who is being paid a retirement allowance or a pension after retirement under this article shall be employed or paid for any service by the State of Mississippi, except as provided in this section or in Section 25-11-126. This section shall not apply to any pensioner who has been elected to public office after retirement, nor to any person employed because of special knowledge or experience. This section shall not be construed to mean that any person employed or elected under the above exceptions shall become a member under Article 3 of the retirement system, nor shall any retirant of this retirement system who is reemployed or is reelected to office after retirement continue to draw retirement benefits while so reemployed or reelected except those persons who choose to continue receiving a retirement allowance during their employment as teachers as authorized by Section 25-11-126. Any person who has been retired under the provisions of Articles l and 3 and who is later reemployed in service covered by this article shall cease to receive benefits hereunder unless he chooses to continue receiving a retirement allowance during his employment as a teacher as authorized by Section 25-11-126, and the person shall again become a contributing member of the retirement system; and when the person again retires, if he has been a contributing member of the retirement system during his reemployment and his reemployment exceeds six (6) months, he shall have his benefit recomputed, including service after again becoming a member. Provided, further, that the total retirement allowance paid to the retired member in his previous retirement shall be deducted from his retirement reserve and taken into consideration in recalculating the retirement allowance under a new option selected. Nothing contained in this section shall be construed as prohibiting any county or city not a member of the Public Employees' Retirement System from employing persons up to the age of seventy-three (73); and provided further that, through June 30, 1988, nothing contained in this section shall be construed as prohibiting any governmental unit which is a member from employing persons up to the age of seventy-three (73) who are not eligible for membership at the time of employment under Article 3.

The board of trustees of the retirement system shall have the right to prescribe rules and regulations for the carrying out of this provision.

The provisions of this section shall not be construed to prohibit any retirant regardless of age from being employed and from drawing retirement allowance either (a) for a period of time not to exceed one hundred twenty (120) days in any fiscal year, but less than one-half (1/2) of the normal working days for the position in any fiscal year, or (b) for a period of time in any fiscal year sufficient in length to permit a retirant to earn not in excess of twenty-five percent (25%) of retirant's average compensation or the current rate of the salary in effect for the regular position filled. Notice shall be given in writing to the executive director of the system, setting forth the facts upon which the * * * employment is being made, and such notice shall be given within five (5) days from the date of employment and also from the date of termination of the employment. It is further provided that any member who has attained seventy (70) years of age and who has forty (40) or more years of creditable service may continue in office or employment or be reemployed or elected provided such person files annually, in writing, in the office of the employer and the office of the executive director of the system prior to such services, a waiver of all salary or compensation and elects to receive in lieu of such salary or compensation a retirement allowance as provided in this section, in which even no salary or compensation shall thereafter be due or payable for such services and provided, further, that any such officer or employee may receive in addition to such retirement allowance any per diem, office expense allowance, mileage or travel expense authorized by any statute of the State of Mississippi. Any other member may continue in municipal or county office or employment or be reemployed or elected in a municipality or county provided such person files annually, in writing, in the office of the employer and the office of the executive director of the system prior to such services, a waiver of all salary or compensation and elects to receive in lieu of such salary or compensation a retirement allowance as provided in this section, in which event no salary or compensation shall thereafter be due or payable for such services and provided, further, that any such officer or employee may receive in addition to such retirement allowance any per diem, office expense allowance, mileage or travel expense authorized by any statute of the State of Mississippi.

SECTION 4. Section 37-19-7, Mississippi Code of 1972, is amended as follows:

[From and after July 1, 1998, and until July 1, 1999, Section 37-19-7 will read as follows:]

37-19-7. (1) The allowance in the minimum education program for teachers' salaries in each county and separate school district shall be determined and paid in accordance with the scale for teachers' salaries as provided in this subsection for the number of teachers employed not in excess of the number of teacher units allotted. For teachers holding the following types of licenses or the equivalent as determined by the State Board of Education, and the following number of years of teaching experience, the scale shall be as follows:

1998-1999 School Year

Less than 25 Years of Teaching Experience

AAAA $23,895.00

AAA 23,045.00

AA 22,195.00

A 21,145.00

25 or More Years of Teaching Experience

AAAA $24,895.00

AAA 24,045.00

AA 23,195.00

A 22,145.00

It is the intent of the Legislature that any state funds made available for salaries of licensed personnel in excess of the funds paid for such salaries for the 1986-1987 school year shall be paid to licensed personnel pursuant to a personnel appraisal and compensation system implemented by the State Board of Education. The State Board of Education shall have the authority to adopt and amend rules and regulations as are necessary to establish, administer and maintain the system. 

All teachers employed on a full-time basis shall be paid a minimum salary in accordance with the above scale. However, no school district shall receive any funds under this section for any school year during which the local supplement paid to any individual teacher shall have been reduced to a sum less than that paid to that individual teacher for performing the same duties from local supplement during the immediately preceding school year. The amount actually spent for the purposes of group health and/or life insurance shall be considered as a part of the aggregate amount of local supplement but shall not be considered a part of the amount of individual local supplement.

For teachers holding a Class AAAA license, the minimum base pay specified in this subsection shall be increased by the sum of Six Hundred Thirty Dollars ($630.00) for each year of teaching experience possessed by the person holding such license until such person shall have twenty-four (24) years of teaching experience.

For teachers holding a Class AAA license, the minimum base pay specified in this subsection shall be increased by the sum of Five Hundred Seventy Dollars ($570.00) for each year of teaching experience possessed by the person holding such license until such person shall have twenty-four (24) years of teaching experience.

For teachers holding a Class AA license, the minimum base pay specified in this subsection shall be increased by the sum of Five Hundred Five Dollars ($505.00) for each year of teaching experience possessed by the person holding such license until such person shall have twenty-four (24) years of teaching experience.

For teachers holding a Class A license, the minimum base pay specified in this subsection shall be increased by the sum of Four Hundred Fifteen Dollars ($415.00) for each year of teaching experience possessed by the person holding such license until such person shall have twenty (20) years of teaching experience.

The level of professional training of each teacher to be used in establishing the salary allotment for the teachers for each year shall be determined by the type of valid teacher's license issued to those teachers on or before October 1 of the current school year.

(2) From and after the 1995-1996 school year and beginning with the next school year following the school year in which a teacher meets the standard requirements, any licensed teacher who shall have met the requirements and acquired a Master Teacher certificate from the National Board for Professional Teaching Standards and who is employed by a local school board or the State Board of Education as a teacher and not as an administrator shall receive a Three Thousand Dollar ($3,000.00) salary supplement in addition to any other compensation to which the teacher may be entitled. The teacher shall be reimbursed one (1) time for the actual cost of completing the process of acquiring the Master Teacher certificate, regardless of whether or not the process resulted in the award of the Master Teacher certificate.  All such salary supplements and process reimbursement shall be paid directly by the State Department of Education to the local school district and shall be in addition to its minimum education program allotments and not a part thereof in accordance with regulations promulgated by the State Board of Education, and subject to appropriation by the Legislature. Local school districts shall not reduce the local supplement paid to any teacher receiving such salary supplement, and the teacher shall receive any local supplement to which teachers with similar training and experience are otherwise entitled.

(3) (a) Notwithstanding any provision in this section to the contrary, any person who is receiving a retirement allowance from the Public Employees' Retirement System who is employed as a teacher after his retirement, and chooses to continue receiving the retirement allowance during his employment as a teacher after his retirement, as authorized by subsection (1)(a) of Section

25-11-126, shall be paid a salary in accordance with the scale prescribed in subsection (1) of this section under the heading "Less Than 25 Years of Teaching Experience" for the class of teaching license held by the person. For such persons, no increase in the minimum salary prescribed in subsection (1) of this section shall be allowed for any teaching experience obtained by the person before the date of his employment as a teacher after his retirement, but the minimum salary shall be increased for each year of teaching experience obtained by the person after the date of his employment as a teacher after his retirement.

(b) Notwithstanding any provision in this section to the contrary, any person who is employed as a teacher and becomes eligible to receive a retirement allowance from the Public Employees' Retirement System during his employment as a teacher who chooses to receive the retirement allowance during his employment as a teacher, as authorized by subsection (1)(b) of Section 25-11-126, shall be paid a salary in accordance with the scale prescribed in subsection (1) of this section under the heading "Less Than 25 Years of Teaching Experience" for the class of the teaching license held by the person. For such persons, no increase in the minimum salary prescribed in subsection (1) of this section shall be allowed for any teaching experience obtained by the person before the date of his employment as a teacher after his retirement, but the minimum salary shall be increased for each year of teaching experience obtained by the person after the date of his employment as a teacher after his retirement.

[From and after July 1, 1999, Section 37-19-7 will read as follows:]

37-19-7. (1) The allowance in the minimum education program for teachers' salaries in each county and separate school district shall be determined and paid in accordance with the scale for teachers' salaries as provided in this subsection for the number of teachers employed not in excess of the number of teacher units allotted. For teachers holding the following types of licenses or the equivalent as determined by the State Board of Education, and the following number of years of teaching experience, the scale shall be as follows:

1999-2000 School Year

and School Years Thereafter

Less Than 25 Years of Teaching Experience

AAAA $24,445.00

AAA 23,595.00

AA 22,745.00

A 21,695.00

25 or More Years of Teaching Experience

AAAA $25,445.00

AAA 24,595.00

AA 23,745.00

A 22,695.00

It is the intent of the Legislature that any state funds made available for salaries of licensed personnel in excess of the funds paid for such salaries for the 1986-1987 school year shall be paid to licensed personnel pursuant to a personnel appraisal and compensation system implemented by the State Board of Education. The State Board of Education shall have the authority to adopt and amend rules and regulations as are necessary to establish, administer and maintain the system. 

All teachers employed on a full-time basis shall be paid a minimum salary in accordance with the above scale. However, no school district shall receive any funds under this section for any school year during which the local supplement paid to any individual teacher shall have been reduced to a sum less than that paid to that individual teacher for performing the same duties from local supplement during the immediately preceding school year. The amount actually spent for the purposes of group health and/or life insurance shall be considered as a part of the aggregate amount of local supplement but shall not be considered a part of the amount of individual local supplement.

For teachers holding a Class AAAA license, the minimum base pay specified in this subsection shall be increased by the sum of Six Hundred Fifty-five Dollars ($655.00) for each year of teaching experience possessed by the person holding such license until such person shall have twenty-five (25) years of teaching experience.

For teachers holding a Class AAA license, the minimum base pay specified in this subsection shall be increased by the sum of Five Hundred Ninety Dollars ($590.00) for each year of teaching experience possessed by the person holding such license until such person shall have twenty-five (25) years of teaching experience.

For teachers holding a Class AA license, the minimum base pay specified in this subsection shall be increased by the sum of Five Hundred Twenty Dollars ($520.00) for each year of teaching experience possessed by the person holding such license until such person shall have twenty-five (25) years of teaching experience.

For teachers holding a Class A license, the minimum base pay specified in this subsection shall be increased by the sum of Four Hundred Twenty-five Dollars ($425.00) for each year of teaching experience possessed by the person holding such license until such person shall have twenty-one (21) years of teaching experience.

The level of professional training of each teacher to be used in establishing the salary allotment for the teachers for each year shall be determined by the type of valid teacher's license issued to those teachers on or before October 1 of the current school year.

(2) From and after the 1995-1996 school year and beginning with the next school year following the school year in which a teacher meets the standard requirements, any licensed teacher who shall have met the requirements and acquired a Master Teacher certificate from the National Board for Professional Teaching Standards and who is employed by a local school board or the State Board of Education as a teacher and not as an administrator shall receive a Three Thousand Dollar ($3,000.00) salary supplement in addition to any other compensation to which the teacher may be entitled. The teacher shall be reimbursed one (1) time for the actual cost of completing the process of acquiring the Master Teacher certificate, regardless of whether or not the process resulted in the award of the Master Teacher certificate.  All such salary supplements and process reimbursement shall be paid directly by the State Department of Education to the local school district and shall be in addition to its minimum education program allotments and not a part thereof in accordance with regulations promulgated by the State Board of Education, and subject to appropriation by the Legislature. Local school districts shall not reduce the local supplement paid to any teacher receiving such salary supplement, and the teacher shall receive any local supplement to which teachers with similar training and experience are otherwise entitled.

(3) (a) Notwithstanding any provision in this section to the contrary, any person who is receiving a retirement allowance from the Public Employees' Retirement System who is employed as a teacher after his retirement, and chooses to continue receiving the retirement allowance during his employment as a teacher after his retirement, as authorized by subsection (1)(a) of Section 25-11-126, shall be paid a salary in accordance with the scale prescribed in subsection (1) of this section under the heading "Less Than 25 Years of Teaching Experience" for the class of the teaching license held by the person. For such persons, no increase in the minimum salary prescribed in subsection (1) of this section shall be allowed for any teaching experience obtained by the person before the date of his employment as a teacher after his retirement, but the minimum salary shall be increased for each year of teaching experience obtained by the person after the date of his employment as a teacher after his retirement.

(b) Notwithstanding any provision in this section to the contrary, any person who is employed as a teacher and becomes eligible to receive a retirement allowance from the Public Employees' Retirement System during his employment as a teacher who chooses to receive the retirement allowance during his employment as a teacher, as authorized by subsection (1)(b) of Section 25-11-126, shall be paid a salary in accordance with the scale prescribed in subsection (1) of this section under the heading "Less Than 25 Years of Teaching Experience" for the class of the teaching license held by the person. For such persons, no increase in the minimum salary prescribed in subsection (1) of this section shall be allowed for any teaching experience obtained by the person before the date of his employment as a teacher after his retirement, but the minimum salary shall be increased for each year of teaching experience obtained by the person after the date of his employment as a teacher after his retirement.

SECTION 5. This act shall take effect and be in force from and after July 1, 1998.