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Regular Session, 2010
SENATE BILL NO. 274
BY SENATOR HEITMEIER
TEACHERS RETIREMENT. Requires a charter school teacher who is an active member
of the system to remain an active member for the duration of employment at the charter
school under certain circumstances. (See Act)
AN ACT1
To amend and reenact R.S. 11:701(introductory paragraph), (11), and (33)(b)(i), 728(A)(4),2
(C)(1)(a) and (b)(ii) and (iii) and (2) and 17:3997(A)(2) and (3), to enact R.S.3
11:701(33)(d) and (e) and 728(G), and to repeal R.S. 11:701(33)(a)(xii), relative to4
the Teachers' Retirement System of Louisiana; to provide for definitions; to provide5
that membership in such system includes certain charter school employees; to6
provide for purchase of service credit; to provide for an effective date; and to provide7
for related matters.8
Notice of intention to introduce this Act has been published.9
Be it enacted by the Legislature of Louisiana:10
Section 1. R.S. 11:701(introductory paragraph), (11), and (33)(b)(i), 728(A)(4),11
(C)(1)(a) and (b)(ii) and (iii) and (2) are hereby amended and reenacted and R.S.12
11:701(33)(d) and (e) and 728(G) is hereby enacted to read as follows:13
§701. Definitions14
As used in this Chapter, the following words and phrases have the meanings15
ascribed to them in this Section unless a different meaning is plainly required by the16
context:17 SB NO. 274
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* * *1
(11) "Employer" means the State of Louisiana, the parish school board, the2
city school board, a charter school, the State Board of Education, the board of3
supervisors of Louisiana State University or any other agency of and within the State4
by which a teacher is paid.5
* * *6
(33) * * *7
(b) "Teacher" shall not include any of the following:8
(i) Any employee of a city or parish school board or of a charter school who9
is employed as a school bus driver, school janitor, school custodian or a school10
maintenance employee, school bus aide, monitor or attendant, or anyone who11
actually works on a school bus helping with transportation of school children.12
* * *13
(d) "Teacher" shall also mean any employee of a charter school whose14
approved charter agreement requires continued active membership in the15
system for the duration of the member's charter school employment.16
(e) In all cases of doubt, the board of trustees shall determine whether17
any person is a teacher within the scope of the definition set forth in this18
Paragraph.19
* * *20
§728. Prior service credit21
A. * * *22
(4) Payments to be made under the provisions of this Section shall be made23
in a lump sum. Effective January 1, 2002, payment for service credit under this24
Section shall be allowed by a trustee-to-trustee transfer of funds from a Code Section25
403(b) annuity or a Code Section 457 plan to the system; provided that no purchase26
of service credit under this Section shall be allowed by a trustee-to-trustee transfer27
of funds from a Code Section 403(b) annuity or a Code Section 457 plan to the28
pension after December 31, 2010.29 SB NO. 274
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* * *1
C.(1)(a) Notwithstanding any other provision of this Chapter or of any other2
law to the contrary, any person who is a member of this system shall be eligible to3
obtain credit in this system for teaching service rendered in any charter school,4
nonpublic college or university in Louisiana , and/or state approved elementary or5
secondary nonpublic or parochial school in Louisiana.6
(b) * * *7
(ii) In addition, if the member is eligible to retire at the time he establishes8
credit for such service, there shall be paid into the system an amount equal to the9
present value of the additional retirement benefit payable on account of his service10
in charter schools or nonpublic or parochial schools or colleges should he retire at11
the time credit for such service is established.12
(iii) If the member is not eligible to retire at the time he establishes credit for13
service in charter schools or nonpublic or parochial schools or colleges, there shall14
be paid into the system an amount which, if invested at regular interest, would15
accumulate to an amount equal to the present value of the additional retirement16
benefit payable on account of his service in charter schools or nonpublic or17
parochial schools or colleges should the member continue until the earliest date he18
is eligible to retire.19
(2)(a) In determining the present value of the additional benefit payable on20
account of service in charter schools or nonpublic or parochial schools or colleges21
and the amounts to be paid for credit for such service, regular interest, salary scales22
used to project future salary increases, and the tables of the system as adopted by the23
board of trustees shall be utilized.24
(b) Amounts paid to establish credit for teaching service in charter schools25
or nonpublic or parochial schools or colleges shall be credited to the member's26
account in the Annuity Savings Fund. Such amounts shall be paid in one lump sum.27
* * *28
G. Except as provided in Paragraph (A)(1) of this Section, any purchase29 SB NO. 274
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of service credit pursuant to this Section shall be paid in accordance with the1
provisions of R.S. 11:158.2
* * *3
Section 2. R.S. 17:3997(A)(2) and (3) are hereby amended and reenacted to read as4
follows:5
§3997. Charter school employees6
A. * * *7
(2) Employees employed by any charter school who, previous to employment8
in the charter school, were employees of a local school board shall, if such9
employees desire, be placed on leave of absence pursuant to Subsection B of this10
Section. However, for the duration of such leave each such employee shall continue11
to contribute to and be eligible for a member of the school employees' and or12
teachers' retirement systems system, and earn service time credit for the accrual of13
retirement benefits. However, service time while employed by a charter school shall14
not accrue toward the acquisition of permanent status.15
(3) Employment in any charter school for all employees other than those16
provided for in Paragraph (2) of this Subsection shall be deemed to be employment17
in a public elementary or secondary school in the state regarding eligibility for any18
or all benefits which would otherwise accrue under state law to such an employee in19
any other elementary or secondary school, including but not limited to membership20
in the school employees' and teachers' retirement systems. However, participation21
of the charter school and its employees in such benefit programs shall be contingent22
upon provisions contained in the school's approved charter. These provisions may23
require only teachers employed by the charter school who, previous to24
employment in the charter school, were employees of a local school board to25
continue active membership in Teachers' Retirement System of Louisiana for26
the duration of their employment as charter school teachers, regardless of their27
leave status.28
* * *29 SB NO. 274
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Section 3. R.S. 11:701(33)(a)(xii) is hereby repealed.1
Section 4. The provisions of this Act shall not become effective until the Teachers'2
Retirement System of Louisiana is in receipt of a private letter ruling issued by the Internal3
Revenue Service concluding that the provisions of this Act will not adversely affect the4
status of the Teachers' Retirement System of Louisiana as a qualified governmental plan5
under the Internal Revenue Code.6
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Lauren B. Bailey.
DIGEST
Heitmeier SB No. 274
Present law (R.S. 11:701)(11)) defines "employer" as the State of La., the parish school
board, the city school board, the State Board of Education, the board of supervisors of LSU
or any other agency of and within the State. Proposed law retains present law and adds
charter schools to the list of employers within the definition.
Present law (R.S. 11:701(33)) defines "teacher" to include certain individuals, including any
employee of a city or parish school board, parish or city superintendent, or assistant
superintendent of public schools. Proposed law retains present law, and includes any charter
school employees whose approved charter agreement requires continued active membership
in TRSL for the duration of the employee's charter school employment within the definition
of "teacher."
Present law (R.S. 11:721) requires all teachers to be TRSL members as a condition of
employment.
Present law (R.S. 11:701(33)) excludes certain individuals from the definition of "teacher"
for membership purposes, including any school employee who is employed as a bus driver,
janitor, maintenance worker, school custodian, school bus aide, monitor, attendant, or other
persons working on a school bus. Proposed law retains present law and provides that charter
school employees filling such positions shall not be considered "teachers."
Present law (R.S. 11:728(C)(1)(a)) provides for members eligibility to purchase credit in
TRSL for teaching service rendered in any nonpublic college or university in La., and/or
state approved elementary or secondary nonpublic or parochial schools in La. Proposed law
retains present law and adds eligibility to obtain credit for teaching service in any charter
school in La.
Proposed law provides that any purchase of service credit shall be made on an actuarially
sound basis in accordance with present law.
Present law (R.S. 17:3997) generally provides that employment in a charter school is
deemed to be employment in a public elementary or secondary school for purposes of
eligibility for all benefits of public school employment, including but not limited to
retirement benefits. However, provides that charter school participation in such benefit
programs is determined by the school's charter.
Proposed law retains present law except allows the charter schools to require only those
teachers who were members of TRSL due to previous employment to continue active
membership in TRSL throughout the duration of their employment at the charter school. All SB NO. 274
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other teachers may not be eligible to participate in TRSL if the charter school so chooses.
Effective date is contingent upon receipt of a private letter ruling issued by the Internal
Revenue Service concluding that the provisions of this Act will not adversely affect the
status of the TRSL as a qualified governmental plan under the Internal Revenue Code.
(Amends R.S. 11:701(intro. para.), (11), and (33)(b)(i), and 728(A)(4), and (C)(1)(a) and
(b)(ii) and (iii) and (2), and 17:3997(A)(2) and (3); adds R.S.11:701(33)(d) and (e), and
728(G); repeals R.S. 11:701(33)(a)(xii))