HLS 10RS-536 ORIGINAL
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Regular Session, 2010
HOUSE BILL NO. 392
BY REPRESENTATIVE HARDY
RETIREMENT/STATE-STWIDE: Relative to state and statewide retirement systems,
prohibits certain members who are reemployed after retirement from receiving
retirement benefits or accruing additional benefits
AN ACT1
To amend and reenact R.S. 11:149, 416(A)(introductory paragraph), (B), and (C), 710, 1006,2
1007(A)(1), 1311, 1413, 1513, 1631(F), 1762, 1928, 2078, 2220(A)(1)(e), (f), and3
(g), 2256(A)(5) and to enact R.S. 11:2175(E)(7), relative to state and statewide4
retirement systems; to prohibit certain reemployed retirees from receiving retirement5
benefits or accruing additional benefits during their reemployment; to provide6
relative to contributions during such period; to provide for reporting requirements;7
to provide an effective date; and to provide for related matters.8
Notice of intention to introduce this Act has been published9
as provided by Article X, Section 29(C) of the Constitution10
of Louisiana.11
Be it enacted by the Legislature of Louisiana:12
Section 1. R.S. 11:149, 416(A)(introductory paragraph), (B), and (C), 710, 1006,13
1007(A)(1), 1311, 1413, 1513, 1631(F), 1762, 1928, 2078, 2220(A)(1)(e), (f), and (g),14
2256(A)(5) are hereby amended and reenacted and R.S. 11:2175(E)(7) is hereby enacted15
to read as follows: 16 HLS 10RS-536 ORIGINAL
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§149. Reemployment of retirees 1
A. The provisions of this Section are applicable to the following public2
retirement or pension systems, plans, or funds, hereinafter referred to in this Section3
as "systems":4
(1) Assessors' Retirement Fund.5
(2) Clerks' of Court Retirement and Relief Fund.6
(3) District Attorneys' Retirement System.7
(4) Firefighters' Retirement System.8
(5) Louisiana School Employees' Retirement System.9
(6) Louisiana State Employees' Retirement System.10
(7) Municipal Employees' Retirement System of Louisiana.11
(8) Municipal Police Employees' Retirement System.12
(9) Parochial Employees' Retirement System of Louisiana.13
(10) Registrars of Voters Employees' Retirement System.14
(11) Sheriffs' Pension and Relief Fund.15
(12) State Police Pension and Retirement System.16
(13) Teachers' Retirement System of Louisiana.17
B. If a member of a system listed in Subsection A of this Section retires from18
such system on or after July 1, 2010, and engages in employment which otherwise19
would render him eligible for membership in any such system, his retirement benefit20
shall be suspended during the period of his reemployment. During such period of21
reemployment, neither he nor his employer shall make contributions to the system,22
nor shall he earn any additional service credit or supplemental benefit. Both the23
reemployed retiree and his employer shall immediately notify the system of the24
retiree's date of reemployment and the estimated duration of reemployment and,25
upon termination, the date of termination of reemployment. Should failure to give26
notice of return to employment result in any payment being made in violation of this27
Section, the employer shall be liable to the system for the repayment of such28
amounts.29 HLS 10RS-536 ORIGINAL
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A. C. Notwithstanding any other provision of law to the contrary, any person1
who retires from employment with a department of state government as defined in2
Title 36 of the Louisiana Revised Statutes of 1950, on or before June 30, 2010, shall,3
upon reemployment by the same department of state government, be governed, with4
respect to retirement, by the laws governing the retirement system from which he5
retired. 6
B. D. Any person who retires under any early retirement incentive plan of the7
state of Louisiana for state employees shall not be reemployed by any department of8
state government for two years after the effective date of their retirement. The9
provisions of this Subsection shall not apply to seasonal fire fighting firefighting10
personnel employed by the office of forestry in the Department of Agriculture and11
Forestry, and election-related personnel in the Department of State. Reemployment12
of election personnel shall not exceed six weeks prior to an election and two weeks13
following an election. 14
* * *15
§416. Employment of retirees16
A. Regardless of age, if a retiree of the system who retires on or before June17
30, 2010, and is engaged or hereafter engages in employment which otherwise would18
render him eligible for membership in the system, he shall choose one of the19
following irrevocable options:20
* * *21
B. For any reemployed retiree who retires on or before June 30, 2010, the22
following shall apply:23
(1) The retiree and the appointing authority of the employer agency covered24
by the system shall immediately notify the system of the retiree's date of25
employment, the option selected for reemployment purposes, the amount of his26
starting salary, any subsequent changes in salary, the estimated duration of27
employment, and the date of termination of employment.28 HLS 10RS-536 ORIGINAL
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C.(2) Should any employer covered by the system employ a retiree and fail1
to submit the report required by Subsection B of this Section Paragraph (1) of this2
Subsection, the retiree shall be considered as returning to active service under the3
provisions of Option 3 above. His retirement benefit shall be suspended during such4
active service and he shall be governed by the provisions of this Section. Employers5
and employees failing to submit the report required by Subsection B of this Section6
Paragraph (1) of this Subsection shall be liable for the repayment of contributions7
due from the date of reemployment.8
C. Any member who retires on or after July 1, 2010, and engages in9
employment which otherwise would render him eligible for membership in the10
system shall be subject to the provisions of R.S. 11:149.11
* * *12
§710. Employment of retirees13
A. Persons retiring on or after July 1, 2010. Any member of this system who14
retires on or after July 1, 2010, shall be subject to the provisions of R.S. 11:149.15
B. Persons retiring on or before June 30, 2010. The following provisions16
shall apply to any member of this system who retires on or before June 30, 2010, and17
then returns to active service covered by the provisions of this Chapter:18
A.(1)(a)(i) Any member of this system who retires on or before June 30,19
2010, and then returns to active service covered by the provisions of this Chapter20
within the twelve-month period immediately following the effective date of such21
retirement shall have his retirement benefits suspended for the duration of such22
active service or the lapse of twelve months from the effective date of his retirement,23
whichever occurs first, even if such service is based on employment by contract or24
corporate contract.25
(b)(ii) If the reemployment of a retired teacher is based on an agreement26
between the retired teacher and his employer where such agreement was perfected27
prior to the teacher's effective date of retirement and where the agreement allows for28
such a teacher to become reemployed within twelve months immediately following29 HLS 10RS-536 ORIGINAL
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the effective date of the teacher's retirement, such reemployed teacher shall not be1
eligible to receive retirement benefits for the twelve-month period immediately2
following the effective date of such reemployment, regardless of whether such3
agreement is express or implied. The provisions of this Subparagraph shall be4
applied prospectively beginning on July 1, 2001.5
(c)(iii) The twelve-month period immediately following the effective date of6
a member's retirement shall be known as the "waiting period".7
(2)(b) Any member of this system who retires based on a disability shall not8
be authorized to return to service pursuant to the provisions of this Section.9
Disability retirees shall be covered by the provisions of this Chapter applicable to10
disability retirees.11
B.(1)(2)(a) During the period of his return to active service, the retiree and12
his employer shall make contributions to the retirement system as provided by this13
Chapter, but the retiree shall receive no additional service credit nor accrue any14
additional retirement benefits in the retirement system. Upon termination of such15
active service, the member shall, upon application, be refunded the employee16
contributions paid since reemployment. The refund shall be without interest. The17
retirement system shall retain the employer contributions.18
(2)(b) The provisions of this Subsection Paragraph shall not apply to any19
retiree reemployed in a part-time position with the Louisiana High School Athletic20
Association on June 27, 2003.21
C.(3) When any retiree returns to active service with an employer covered22
by the provisions of this Chapter, the employing agency shall, within ten days23
thereafter, notify the board of trustees in writing of such employment and the date24
on which it commenced and, upon termination, shall provide the same notice. In25
addition to the above notice, the employing agency shall also report to the retirement26
system within forty-five days after June thirtieth of each year, the name of all27
persons being paid by the employing agency, their social security numbers, and the28 HLS 10RS-536 ORIGINAL
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amount of their earnings during the previous fiscal year ending on June thirtieth of1
the reporting year.2
D.(1)(4)(a) The salary of any retiree who is reemployed as a full-time teacher3
pursuant to the provisions of this Section Subsection shall be based on the salary4
schedule which accounts for all prior years of teaching service and pertinent5
experience.6
(2)(b) The status of any retiree who is reemployed pursuant to the provisions7
of this Section Subsection shall be the same as a full-time active employee and shall8
be governed by the applicable rules, procedures, policies, and statutes that apply to9
all such full-time active employees.10
* * *11
§1006. Reemployment of retirees12
A. Persons retiring on or after July 1, 2010. Any service retiree of this13
system who retires on or after July 1, 2010, shall be subject to the provisions of R.S.14
11:149.15
B. Persons retiring on or before June 30, 2010. The following provisions16
shall apply to any service retiree who retires on or before June 30, 2010, and then17
returns to active service covered by the provisions of this Chapter:18
A.(1) Any service retiree of the Louisiana School Employees' Retirement19
System who retires on or before June 30, 2010, may be reemployed in any position20
covered by the system as a full-time, part-time, temporary, or substitute employee21
subject to the provisions of this Section Subsection.22
(2) The employing agency shall transmit monthly, by the fifteenth day after23
the end of the month, a report with the name, social security number, and the amount24
of earnings of the retiree during the previous month.25
(3) For the purposes of this Section Subsection, there shall be an annual26
cost-of-living adjustment to the average compensation figure used in these27
computations. This cost-of-living adjustment shall be based upon and directly reflect28 HLS 10RS-536 ORIGINAL
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the annual percentage increase or decrease in the Consumer Price Index for the1
preceding year.2
B.(4) If the earnings of the reemployed retiree in any fiscal year are in excess3
of fifty percent of average compensation, an amount equal to the amount of the4
earnings in excess of fifty percent of average compensation for the fiscal year shall5
be repaid to the retirement system, either through direct reimbursement to the system6
or by suspension of benefits; however, the repayment amount shall not exceed the7
amount of retirement benefits received by the retiree for the fiscal year.8
C.(5) Should any employing agency fail to submit the report required by9
Subsection A of this Section Paragraph (2) of this Subsection, the employing agency10
shall be liable to the retirement system for the repayment of any overpayments to the11
retiree by the system.12
D.(6) The provisions of this Section Subsection shall not apply to any retiree13
of this system who retired from service as a bus driver on or before June 30, 2010,14
who returns to active service in a full-time position as a bus driver covered by the15
provisions of this Chapter, and whose employer chooses to reemploy him pursuant16
to R.S. 11:1007. The full-time reemployment of such retired bus drivers shall be17
governed by the provisions of that Section.18
§1007. Employment of retired bus drivers19
A.(1) Subject to the provisions of Subsection F of this Section, any retiree20
of this system who was retired from service as a bus driver on or before June 30,21
2010, and who returns to active service in a full-time position as a bus driver covered22
by the provisions of this Chapter within the twelve-month period immediately23
following the effective date of his retirement shall have his retirement benefit24
suspended for the duration of such active service or the lapse of twelve months after25
the effective date of his retirement, whichever occurs first, even if such service is26
based on employment by contract or corporate contract. After the period of27 HLS 10RS-536 ORIGINAL
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suspension of benefits as provided in this Subsection, the retirement benefit of such1
retiree shall no longer be suspended.2
* * *3
§1311. Reemployment of retiree4
A. Persons retiring on or after July 1, 2010. Any member of this system who5
retires on or after July 1, 2010, shall be subject to the provisions of R.S. 11:149.6
B. Persons retiring on or before June 30, 2010. The following provisions7
shall apply to any member of this system who retires on or before June 30, 2010, and8
then returns to active service covered by the provisions of this Chapter:9
A.(1) Whenever a retiree, who retired on or before June 30, 2010, returns to10
employment as a sworn, commissioned law enforcement officer of the office of state11
police in any office, section, agency, commission, or branch of the Department of12
Public Safety and Corrections as defined in Title 36 of the Louisiana Revised13
Statutes of 1950, whether by executive order or by any other authorized action or14
authority, such person shall not be entitled to renew his membership in or become15
a member of the system. If his earnings in such employment are more than fifty16
percent of his average final compensation, payment of his retirement benefit shall be17
suspended for every month of such employment. Upon the subsequent separation18
of such employment or upon death prior thereto, the retirement allowance to which19
he shall then be entitled and the benefits to which any of his dependents shall then20
be entitled shall be the same as those to which he and/or his dependents or21
beneficiaries were entitled prior to and at the time of such employment.22
B.(2) Notwithstanding the provisions of R.S. 11:149(A)(C), whenever a23
retiree returns to employment with the Department of Public Safety and Corrections24
in any capacity other than as a sworn, commissioned law enforcement officer of the25
state police, his employment shall, if otherwise applicable, be governed, with respect26
to retirement, by the laws governing the Louisiana State Employees' Retirement27
System.28
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§1413. Reemployment of a retiree1
A. Persons retiring on or after July 1, 2010. Any member of this system who2
retires on or after July 1, 2010, shall be subject to the provisions of R.S. 11:149.3
B. A retiree Any member who retired on or before June 30, 2010, and is4
receiving retirement benefits from the system may be temporarily reemployed by an5
assessor but the retiree shall not be or become a member of the system during such6
reemployment. If the retiree is reemployed in any capacity for more than one7
hundred working days during any calendar year, or the equivalent thereof, during any8
calendar year, the benefits payable to the retiree shall be reduced by the amount he9
earned after thirty working days, or the equivalent thereof. The retiree and the10
assessor shall immediately notify the board of the date of reemployment, the amount11
of salary paid, any changes in salary, the number of hours employed per week, the12
estimated duration of reemployment, and the date of the termination of the13
reemployment. If the retiree dies during reemployment, benefits shall be paid to any14
other person as if death occurred regardless of reemployment pursuant to any option15
which may have been selected by the retiree at the time of retirement.16
* * *17
§1513. Reemployment of a retiree 18
A. Persons retiring on or after July 1, 2010. Any member of this system who19
retires on or after July 1, 2010, shall be subject to the provisions of R.S. 11:149.20
A. B. Persons retiring on or before June 30, 2010. The following provisions21
shall apply to any member of this system who retires on or before June 30, 2010, and22
then returns to active service covered by the provisions of this Chapter: 23
(1) Except as provided in Paragraph (2) of this Subsection, Subsection B of24
this Section, a retiree a member who retired on or before June 30, 2010, and is25
receiving retirement benefits from the system may be temporarily reemployed by a26
clerk, but the retiree shall not be or become a member of the system during such27
reemployment. If the retiree is reemployed in any capacity for more than sixty28
working days, or the equivalent thereof, during any calendar year, the benefits29 HLS 10RS-536 ORIGINAL
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payable to the retiree shall be reduced by the amount he earned after sixty working1
days, or the equivalent thereof. The retiree and the clerk shall immediately notify2
the board of the date of reemployment, the amount of salary paid, any changes in3
salary, the number of hours employed per week, the estimated duration of4
reemployment, and the date of the termination of the reemployment. If the retiree5
dies during reemployment, benefits shall be paid to any other person as if death6
occurred regardless of reemployment pursuant to any option which may have been7
selected by the retiree at the time of retirement.8
B.(1) (2)(a) A retiree who has terminated employment and was receiving9
retirement benefits from the system on January 1, 2007, may be temporarily10
reemployed by a clerk whose office is located in a parish designated under the11
Robert T. Stafford Disaster Relief and Emergency Assistance Act as eligible for12
individual assistance, or individual assistance and public assistance following13
Hurricane Katrina or Rita; however, the retiree shall not be or become a member of14
the system during such reemployment. If the retiree is reemployed by such a clerk15
in any capacity for more than one hundred eighty working days, or the equivalent16
thereof, during any calendar year, the benefits payable to the retiree shall be reduced17
by the amount he earned after one hundred eighty working days, or the equivalent18
thereof. The retiree and the clerk shall immediately notify the board of the date of19
reemployment, the amount of salary paid, any changes in salary, the number of hours20
employed per week, the estimated duration of reemployment, and the date of the21
termination of the reemployment. If the retiree dies during reemployment, benefits22
shall be paid to any other person as if death occurred regardless of reemployment23
pursuant to any option which may have been selected by the retiree at the time of24
retirement.25
(2) (b) The provisions of this Subsection Paragraph shall expire on July 1,26
2012, and thereafter shall be null and void and of no effect.27
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§1631. Retirement benefits; application; eligibility requirements1
* * *2
F.(1) Except as provided in Paragraph (2) Paragraphs (2) and (3) of this3
Subsection, if any member who has retired from this system is reemployed as an4
employee by any district attorney in the state, his retirement benefit shall be5
suspended during said employment, and he shall not be paid any benefits for the6
period covered by such employment. He shall, upon such reemployment, again7
become an active contributing member of the system, with the option of establishing8
service credit for any period of full-time employment as district attorney or assistant9
district attorney since returning to such employment following retirement by10
payment into the system the employer and employee amount plus interest that would11
have been withheld and paid into the system for that period based upon his total12
salary for such period. He shall accrue a supplemental retirement benefit based on13
his service rendered after reemployment. If the member continues employment after14
retirement for a period of less than thirty-six months, his supplemental monthly15
retirement benefit shall equal the benefit accrued under R.S. 11:1632 or 1633,16
whichever is applicable, based on the lesser of his average final compensation at his17
original retirement date or his average compensation during the period of his18
subsequent reemployment. If the member continues in employment after retirement19
for a period of thirty-six months or more, his supplemental monthly retirement20
benefit shall equal the benefit accrued under R.S. 11:1632 or 1633, whichever is21
applicable, based on his average final compensation during his period of22
reemployment. Upon retirement subsequent to reemployment, his benefit shall be23
equal to the benefits he was receiving immediately prior to reemployment plus the24
supplemental benefit earned during his reemployment.25
(2) Notwithstanding the provisions of Paragraph (1) of this Subsection, if26
any district attorney or assistant district attorney has retired in accordance with R.S.27
11:1633(A)(1)(b) or (c) and is reemployed by any district attorney in this state and28
paid a salary of less than the annual salary provided for in R.S. 16:11(A)(1), his29 HLS 10RS-536 ORIGINAL
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benefit shall not be suspended, and he shall not be considered a member, nor shall1
he earn additional credit or be required to pay contributions.2
(3) Any member of this system who retires on or after July 1, 2010, shall be3
subject to the provisions of R.S. 11:149.4
* * *5
§1762. Reemployment of retirees 6
A. Persons retiring on or after July 1, 2010. Any member of this system who7
retires on or after July 1, 2010, shall be subject to the provisions of R.S. 11:149.8
A. B. Persons retiring on or before June 30, 2010. The following provisions9
shall apply to any member of this system who retires on or before June 30, 2010, and10
then returns to active service covered by the provisions of this Chapter: 11
A.(1) Whenever a retired member member who retires on or before June 30,12
2010, and is receiving normal retirement benefits becomes reemployed by an13
employer such that his monthly earnings are equal to or less than the difference14
between his monthly average final compensation and his monthly retirement benefit,15
his retirement benefits shall continue and he shall not be a member of the system.16
B.(2) Whenever a retired member member who retires on or before June 30,17
2010, and is receiving normal retirement benefits becomes reemployed by an18
employer such that his monthly earnings exceed the difference between his monthly19
average final compensation and his monthly retirement benefit, his retirement20
benefits shall be reduced by the amount his monthly earnings exceed the difference21
between his monthly average final compensation and his monthly retirement benefit22
for every month of such employm ent and he shall not be a member of the system. 23
C.(3) The retired member and the employer shall immediately notify the24
board of the retiree's date of employment, the amount of his monthly salary, and any25
changes in salary, number of hours employed per week, estimated duration of26
employment, and date of termination of employment.27
D.(4) For purposes of this Section Subsection, there shall be an annual28
cost-of-living adjustment to the average final compensation figure used to determine29 HLS 10RS-536 ORIGINAL
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whether benefits are to be continued or reduced. This cost-of-living adjustment shall1
be based upon and directly reflect the annual percentage increase or decrease in the2
Consumer Price Index for the preceding calendar year.3
* * *4
§1928. Temporary employment of retirees; permanently employed retirees;5
membership; calculation of additional benefit; retirees in elected positions6
A. Persons retiring on or after July 1, 2010. Any service retiree of this7
system who retires on or after July 1, 2010, shall be subject to the provisions of R.S.8
11:149.9
B. Persons retiring on or before June 30, 2010. The following provisions10
shall apply to any service retiree who retires on or before June 30, 2010, and then11
returns to active service covered by the provisions of this Chapter:12
A.(1) Any person who has retired retires under the provisions of this Chapter13
on or before June 30, 2010, may be temporarily employed by an employer14
participating in this plan, subject to the following limitations. If a retiree is under15
age sixty-five or has not been retired at least three years, he may be employed no16
more than four hundred eighty hours in a calendar year. If a retiree is age sixty-five17
or older and has been retired at least three years, he may be employed no more than18
one thousand forty hours in a calendar year However; however, if the retiree is19
employed longer than the maximum hours stated above, his retirement benefit will20
be reduced by the amount earned after the allowed number of hours.21
B.(1) (2)(a) If the retired member, who is otherwise eligible, becomes22
permanently employed by an employer participating in this plan, the retired member23
and the employer shall immediately notify the board of the retiree's date of24
employment, the amount of his monthly salary, any changes in salary, number of25
hours employed per week, estimated duration of employment, and date of26
termination of employment However; however, this Section Subsection shall not27
apply to retirees who are elected to office and are prohibited from joining this system28
under Article X, Section 29.1(A) of the Constitution of Louisiana.29 HLS 10RS-536 ORIGINAL
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(2) (b) At the time the retired member returns to permanent employment, the1
benefit of the retiree shall be suspended and he shall be considered as returning to2
active service and employee and employer contributions shall resume.3
C. (3) Upon subsequent termination of employment of a retired contributing4
member, the retired contributing member shall begin receiving his original5
retirement benefit and shall receive an additional benefit based on his additional6
service and the compensation earned during the period of additional service.7
D. (4) Notwithstanding the provisions of R.S. 11:1902(12)(a) or 1921(A)(3),8
if a retired member of the system is subsequently elected to an office covered by the9
system, sixty days after taking the oath of office his monthly retirement benefit shall10
be reduced by the amount of his monthly earnings.11
* * *12
§2078. Reemployment of retirees13
A. Persons retiring on or after July 1, 2010. Any service retiree of this14
system who retires on or after July 1, 2010, shall be subject to the provisions of R.S.15
11:149.16
B. Persons retiring on or before June 30, 2010. The following provisions17
shall apply to any service retiree who retires on or before June 30, 2010, and then18
returns to active service covered by the provisions of this Chapter:19
A.(1) In the event any retiree of the system who retires on or before June 30,20
2010, is employed by an employer covered by this system, the retiree and the21
employer shall immediately notify the system of the retiree's date of employment,22
the amount of salary paid, any changes in salary while reemployed, number of hours23
employed per week, estimated duration of employment, and date of termination of24
reemployment.25
B.(1)(2)(a) Any retiree who retires on or before June 30, 2010, may be26
employed by an employer covered by this system without suspension of benefits27
provided the retiree has terminated employment for at least six consecutive months.28
Such retiree may be employed for no more than sixty days, or four hundred eighty29 HLS 10RS-536 ORIGINAL
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hours, in a calendar year. Should the portion of the calendar year available for1
employment be less than twelve months, the period of employment without reduction2
in benefits shall be reduced on a pro rata basis.3
(2)(b) Should any retiree who retires on or before June 30, 2010, be4
employed in excess of the amount of time provided for in Paragraph (1) of this5
Subsection Subparagraph (a) of this Paragraph, his retirement benefit shall be6
reduced by an amount equal to the amount earned in excess of the limitation. The7
reduction in benefits shall begin with the next payroll after the system receives8
notification of such employment.9
C.(3) Should any retiree who retires on or before June 30, 2010, be employed10
by an employer covered by this system within six months of termination of11
employm ent, his retirement benefit shall be reduced by an amount equal to that12
earned during such employment. Such reduction shall begin with the next payroll13
after the system receives notification of such employment.14
D.(4) Should any retiree who retires on or before June 30, 2010, return to15
full-time permanent employment by an employer covered by this system at any time16
after termination of employment, his retirement benefit shall be suspended and he17
shall become an active contributing member of the system. Upon his subsequent18
retirement, he shall receive his original benefit plus a supplemental benefit based on19
his salary and service earned since his reemployment. No change shall be permitted20
in the member's original option; however, at the end of the period of reemployment,21
the member shall select any option authorized as to any supplemental benefit earned.22
* * *23
§2175. Blanket fidelity insurance policy; powers of board; refund of contributions;24
restrictions on payments; warrants; deposits; investments25
* * *26
E.27
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(7) The provisions of this Subsection shall not apply to any member who1
retires on or after July 1, 2010; such persons shall be subject to the provisions of2
R.S. 11:149.3
* * *4
§2220. Benefits; contribution limit5
A. Eligibility for normal retirement, early retirement, and limitations.6
* * *7
(1)8
* * *9
(e) Regardless Except as provided by R.S. 11:149, regardless of age, if a10
retiree of this system becomes an employee as defined in R.S. 11:2213(11), payment11
of retirement benefits shall be suspended and the employee and employer shall12
contribute to the system toward creditable service.13
(f) Upon Except as provided by R.S. 11:149, upon termination of14
employment, the monthly benefit which had been suspended shall resume being paid15
to the retiree. The retiree may not change the option which was elected under the16
original retirement computation.17
(g) Upon Except as provided by R.S. 11:149, upon termination of18
employment, the retiree shall receive an additional retirement benefit based on his19
additional service rendered since reemployment using the normal method of20
computation of benefits or as provided in Subparagraph (h) of this Paragraph, subject21
to the following:22
* * *23
§2256. Benefits; refund of contributions, application, and payment24
A.25
* * *26
(5)(a) Upon returning For any member who retires on or before June 30,27
2010, and returns to work as a full-time employee covered by this system, retirement28
benefits shall cease and the employee and employer shall contribute to the system29 HLS 10RS-536 ORIGINAL
HB NO. 392
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are additions.
towards creditable service. The member may not change the option which was1
selected under the first retirement computation.2
(b) Any member who retires on or after July 1, 2010, shall be subject to the3
provisions of R.S. 11:149.4
* * *5
Section 2. This Act shall become effective on July 1, 2010; if vetoed by the governor6
and subsequently approved by the legislature, this Act shall become effective on July 1,7
2010, or on the day following such approval by the legislature, whichever is later.8
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)]
Hardy HB No. 392
Abstract: Relative to state and statewide retirement systems, requires the suspension of
benefits for reemployed retirees who retire on or after July 1, 2010, and prohibits the
accrual of additional benefits during such period.
Various provisions of present law provide with respect to reemployed retirees in the 13 state
and statewide retirement systems in the following manner:
STATE RETIREMENT SYSTEMS
(1)La. State Employees' Retirement System (LASERS) - provides three options for a
reemployed retiree. Option 1: The retiree's earnings while reemployed cannot
exceed 50% of his annual retirement benefit in a fiscal year. If his earnings exceed
the 50% cap, his retirement benefits shall be reduced by the amount over the 50%
cap; Option 2: The retiree may regain membership in the retirement system by
paying back all his benefits plus interest plus all employer and employee
contributions that would have been paid; Option 3: The retiree may request a
suspension of his benefits. If he works past 36 months, he accumulates a
supplemental benefit.
(2)Teachers' Retirement System of Louisiana (TRSL) - provides that if a retiree is
reemployed within 12 months of his retirement date, his benefit will be suspended.
After 12 months has passed (from his date of retirement), he can start collecting his
benefit.
(3)La. School Employees' Retirement System (LSERS) - provides for a two-fold
approach to reemployed retirees: (a) The "50% rule", which is the default option for
rehired retirees. Under this rule, the retiree's earnings in a given year cannot exceed
50% of his "average compensation"; (b) The "100% rule" provides that if a retiree
is reemployed within 12 months of his retirement date, his benefit will be suspended.
After 12 months has passed (from his date of retirement), he can start collecting his
benefit. The "100% rule" is only available to retired bus drivers, and is a voluntary
reemployment option for individual employers who must pay the actuarial cost of
reemploying such person under the "100 % rule". HLS 10RS-536 ORIGINAL
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(4)State Police Pension and Retirement System (STPOL) - provides that if a retiree is
reemployed and his earnings exceed 50% of his average final compensation, his
benefit shall be suspended.
STATEWIDE RETIREMENT SYSTEMS
(1)La. Assessor's Retirement Fund (LARF) - provides that if a retiree is reemployed for
more than 100 working days, the benefits payable to him shall be reduced by the
amount he earned (in salary) after 30 working days.
(2)Clerks' of Court Retirement and Relief Fund (CCRS) - if a retiree is reemployed for
more than 60 working days, the benefits payable to him shall be reduced by the
amount of salary earned after 60 working days.
(3)District Attorney's Retirement System (DARS) - provides that a reemployed retiree's
benefits are suspended, but during the period of reemployment he shall accrue a
supplemental benefit. Provides an exception allowing a district attorney or assistant
district attorney to be reemployed without having his benefit suspended if his salary
is less than $45,000, but he shall not accrue a supplemental benefit while
reemployed.
(4)Firefighters' Retirement System (FRS) - provides that a reemployed retiree's benefit
shall be suspended, but such person shall earn a supplemental benefit during the
period of his reemployment.
(5)Municipal Employees' Retirement System (MERS) - provides that a reemployed
retiree's benefits shall continue only if his monthly earnings (salary) are equal to or
less than the difference between his average final compensation and his retirement
benefits. If his salary exceeds this difference, then his benefits will be reduced by
the amount of such difference.
(6)Municipal Police Employees' Retirement System (MPERS) - provides that a
reemployed retiree's benefit shall be suspended but the retiree shall accumulate a
supplemental benefit during his period of reemployment.
(7)Parochial Employees' Retirement System (PERS) - provides that a reemployed
retiree who has three years of service credit and is 65 or older, may work for up to
1,040 hours in the calendar year. If such retiree is not 65 with three years of service
then he may work up to 480 hours during the calendar year. If a retiree exceeds such
limits, his retirement benefit will be reduced by the amount of salary earned in
excess of those limits.
(8)Registrars of Voters Employees' Retirement System (ROVERS) - provides that a
retiree can be rehired without a suspension in benefits if he has terminated
employment for at least six months and is employed for no more than 60 days or 480
hours in a calendar year. Employment in excess of this requires a reduction of the
benefit by an amount equal to the amount earned in excess of the limitation. Any
retiree reemployed within six months shall have his benefit reduced by the amount
earned during his reemployment. For any retiree returning to work full-time, his
benefit will be suspended during reemployment, and he will earn a supplemental
benefit for such period.
(9)Sheriffs' Pension and Relief Fund (SPRF) - provides that a reemployed retiree may
return to work part-time, in which case his earnings shall not exceed 50% of his final
average compensation; however, a full-time reemployed retiree's benefits shall be
suspended during reemployment, but he shall accrue a supplemental benefit. HLS 10RS-536 ORIGINAL
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Proposed law, relative to the above-named state and statewide retirement systems, requires
the suspension of benefits for reemployed retirees of such systems who retire on or after July
1, 2010, and prohibits the accrual of additional benefits during such period. Furthermore,
proposed law requires employers and reemployed retirees to notify the systems of
reemployment. Requires the employer to compensate the system for any benefits payments
to reemployed retirees if the system has not received the required notification of
reemployment.
Effective July 1, 2010.
(Amends R.S. 11:149, 416(A)(intro. para.), (B), and (C), 710, 1006, 1007(A)(1), 1311, 1413,
1513, 1631(F), 1762, 1928, 2078, 2220(A)(1)(e), (f), and (g), 2256(A)(5); Adds R.S.
11:2175(E)(7))