Modifies provisions relating to working after retirement for certain local governments

SB 1597 - Currently, a person who has retired from employment with a political subdivision covered by the Local Government Employees Retirement System ("LAGERS") will have his or her monthly benefit suspended if the person reemploys with the employer who he or she is receiving the benefit from. Upon a year of reemployment, the person would be vested and eligible for an additional monthly benefit upon a second retirement. This act instead provides that a person may retire and be reemployed without losing his or her retirement benefit if the political subdivision is a city with less than 25,000 inhabitants. The employee shall not contribute nor earn additional membership service for the period of reemployment. However, the employer shall contribute to the retirement system for such employee. Additionally, the employer shall compensate the person in accordance with the salary schedule for such political subdivision or at a salary in accordance with the qualifications of such position and approved by the Board of LAGERS. However, the salary of such retiree may be reduced by an amount equal to the percentage of the member contribution rate.