HLS 10RS-464 ORIGINAL Page 1 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Regular Session, 2010 HOUSE BILL NO. 227 BY REPRESENTATIVE PEARSON RETIREME NT/TEACHERS: Relative to the Teachers' Retirement System of Louisiana, provides relative to rehired retirees AN ACT1 To amend and reenact R.S. 11:710, relative to reemployment of retirees in the Teachers'2 Retirement System of Louisiana; to prohibit retirees reemployed in certain positions3 from receiving benefits during the period of reemployment; to provide relative to4 contributions during such period; to provide for an effective date; and to provide for5 related matters.6 Notice of intention to introduce this Act has been published7 as provided by Article X, Section 29(C) of the Constitution8 of Louisiana.9 Be it enacted by the Legislature of Louisiana:10 Section 1. R.S. 11:710 is hereby amended and reenacted to read as follows: 11 ยง710. Employment of retirees12 A. For purposes of this Section, "retired teacher" shall mean any of the13 following:14 (1) A retired member who returns to active service covered by the provisions15 of this Chapter as a classroom teacher who teaches any student in kindergarten16 through twelfth grade. For purposes of this Paragraph, "classroom teacher" shall17 mean any employee, excluding librarians, guidance counselors, aides, substitutes,18 para-professionals, or classroom assistants whose position of employment requires19 a valid Louisiana teaching certificate and who is assigned the professional activities20 HLS 10RS-464 ORIGINAL HB NO. 227 Page 2 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. of instructing pupils in courses in classroom situations for which daily pupil1 attendance figures for the school system are kept. Such classroom situations may2 include teaching in a school classroom or in other settings such as a home or hospital3 or other learning situations such as cocurricular activities, which instruction may be4 provided in person or through an approved medium such as television, radio,5 computer, Internet, multimedia telephone, and correspondence that is delivered6 inside or outside the classroom or in other teacher-student settings.7 (2) A retired member who returns to active service covered by the provisions8 of this Chapter who had been reemployed for at least twelve months as of July 1,9 2010; however, if such individual again retires subsequent to July 1, 2010, and is10 later reemployed, he shall not be considered a "retired teacher" unless he meets the11 requirements of Paragraph (1) of this Subsection.12 A B.(1)(a) Any member of this system who retires and then retired teacher13 who returns to active service covered by the provisions of this Chapter within the14 twelve-month period immediately following the effective date of such retirement15 shall have his retirement benefits suspended for the duration of such active service16 or the lapse of twelve months from the effective date of his retirement, whichever17 occurs first, even if such service is based on employment by contract or corporate18 contract.19 (b) If the reemployment of a retired teacher is based on an agreement20 between the retired teacher and his employer where such agreement was perfected21 prior to the such teacher's effective date of retirement and where the agreement22 allows for such a teacher to become reemployed within twelve months immediately23 following the effective date of the teacher's retirement, such reemployed teacher24 shall not be eligible to receive retirement benefits for the twelve-month period25 immediately following the effective date of such reemployment, regardless of26 whether such agreement is express or implied. The provisions of this Subparagraph27 shall be applied prospectively beginning on July 1, 2001.28 HLS 10RS-464 ORIGINAL HB NO. 227 Page 3 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (c) The twelve-month period immediately following the effective date of a1 member's retired teacher's retirement shall be known as the "waiting period".2 (2) Any member of this system retired teacher who retires based on a3 disability shall not be authorized to return to service pursuant to the provisions of4 this Section. Disability retirees shall be covered by the provisions of this Chapter5 applicable to disability retirees.6 B C.(1) During the period of his return to active service, the retiree retired7 teacher and his employer shall make contributions to the retirement system as8 provided by this Chapter, but the retiree such teacher shall receive no additional9 service credit nor accrue any additional retirement benefits in the retirement system.10 Upon termination of such active service, the member retired teacher shall, upon11 application, be refunded the employee contributions paid since reemployment. The12 refund shall be without interest. The retirement system shall retain the employer13 contributions.14 (2) Any retired member not considered a retired teacher as defined in15 Subsection A of this Section shall have his benefit suspended for the duration of his16 period of reemployment in such position. Such member and his employer shall not17 make contributions to the system during such time, and he shall receive no additional18 service credit nor accrue any additional retirement benefits.19 (2) The provisions of this Subsection shall not apply to any retiree20 reemployed in a part-time position with the Louisiana High School Athletic21 Association on June 27, 2003.22 C D. When any retiree returns to active service with an employer covered23 by the provisions of this Chapter, the employing agency shall, within ten thirty days24 thereafter, notify the board of trustees in writing of such employment , and the date25 on which it employment commenced, and a determination by the employer as to26 whether such person is a "retired teacher" pursuant to Subsection A of this Section.27 Upon termination, the agency shall provide the same notice. In addition, to the28 above notice, the employing agency shall also report to the retirement system within29 HLS 10RS-464 ORIGINAL HB NO. 227 Page 4 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. forty-five days after June thirtieth of each year, the name of all persons being paid1 by the employing agency, their social security numbers, and the amount of their2 earnings during the previous fiscal year ending on June thirtieth of the reporting year.3 Should failure to give notice of return to active service result in any payment being4 made in violation of this Section, the employing agency shall be liable to the system5 for the repayment of such amounts.6 D E.(1) The salary of any retiree who is reemployed as a full-time teacher7 retired teacher who is reemployed pursuant to the provisions of this Section shall be8 based on the salary schedule which accounts for all prior years of teaching service9 and pertinent experience.10 (2) The status of any retiree retired teacher who is reemployed pursuant to11 the provisions of this Section shall be the same as a full-time active employee and12 shall be governed by the applicable rules, procedures, policies, and statutes that13 apply to all such full-time active employees.14 F. Any retiree reemployed in a part-time position with the Louisiana High15 School Athletic Association on June 27, 2003, shall not have his retirement benefits16 suspended for the duration of his service in that position. During the period of such17 person's reemployment in such position, neither he nor his employer shall make18 contributions to the retirement system as provided by this Chapter and he shall19 receive no additional service credit nor accrue any additional retirement benefits in20 the retirement system; however, if such individual again retires subsequent to July21 1, 2010, and is later reemployed, he shall not be considered a "retired teacher" unless22 he meets the requirements of Paragraph (A)(1) of this Section.23 Section 2. This Act shall become effective on July 1, 2010; if vetoed by the governor24 and subsequently approved by the legislature, this Act shall become effective on July 1,25 2010, or on the day following such approval by the legislature, whichever is later.26 HLS 10RS-464 ORIGINAL HB NO. 227 Page 5 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. DIGEST The digest printed below was prepared by House Legislative Services. It constitutes no part of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)] Pearson HB No. 227 Abstract: Relative to the Teachers' Retirement System of Louisiana (TRSL), prohibits retirees from receiving retirement benefits during the period of reemployment unless such retirees are reemployed as classroom teachers in grades K through 12. Present law (R.S. 11:710) allows any member of TRSL who retires and returns to active TRSL-covered employment to receive retirement benefits after a 12-month waiting period following the effective date of his retirement. Proposed law prohibits anyone other than a "retired teacher", as defined by proposed law, from receiving a retirement benefit pursuant to present law while reemployed. Provides that anyone other than a "retired teacher" shall have his benefit suspended during reemployment. Defines "retired teacher" as any retired member of TRSL who returns to work as a classroom teacher offering instructional services to any student in grades K through 12 or any other retired member reemployed for 12 months as of July 1, 2010. Present law requires employers to submit certain information regarding reemployed retirees to the retirement system within 10 days of their reemployment and to provide certain other information annually. Proposed law changes the 10-day requirement of present law to 30 days. Additionally, provides that if the employer's failure to give notice of reemployment results in any erroneous payment of benefits, the employer shall be liable to the system for the repayment of such amounts Effective July 1, 2010. (Amends R.S. 11:710)