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Regular Session, 2010 ENROLLED
SENATE BILL NO. 274
BY SENATOR HEITMEIER
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) are 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
* * *18
(11) "Employer" means the State of Louisiana, the parish school board, the19
city school board, a charter school, the State Board of Elementary and Secondary20
Education, the board of supervisors of Louisiana State University or any other21
agency of and within the State by which a teacher is paid.22
* * *23
(33) * * *24
(b) "Teacher" shall not include any of the following:25
(i) Any employee of a city or parish school board or of a charter school who26
is employed as a school bus driver, school janitor, school custodian or a school27
ACT No. 999 SB NO. 274 ENROLLED
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maintenance employee, school bus aide, monitor or attendant, or anyone who1
actually works on a school bus helping with transportation of school children.2
* * *3
(d) "Teacher" shall also mean any employee of a charter school whose4
approved charter agreement requires continued active membership in the5
system for the duration of the member's charter school employment.6
(e) In all cases of doubt, the board of trustees shall determine whether7
any person is a teacher within the scope of the definition set forth in this8
Paragraph.9
* * *10
§728. Prior service credit11
A. * * *12
(4) Payments to be made under the provisions of this Section shall be made13
in a lump sum. Effective January 1, 2002, payment for service credit under this14
Section shall be allowed by a trustee-to-trustee transfer of funds from a Code Section15
403(b) annuity or a Code Section 457 plan to the system; provided that no purchase16
of service credit under this Section shall be allowed by a trustee-to-trustee transfer17
of funds from a Code Section 403(b) annuity or a Code Section 457 plan to the18
pension after December 31, 2010.19
* * *20
C.(1)(a) Notwithstanding any other provision of this Chapter or of any other21
law to the contrary, any person who is a member of this system shall be eligible to22
obtain credit in this system for teaching service rendered in any charter school,23
nonpublic college or university in Louisiana , and/or state approved elementary or24
secondary nonpublic or parochial school in Louisiana.25
(b) * * *26
(ii) In addition, if the member is eligible to retire at the time he establishes27
credit for such service, there shall be paid into the system an amount equal to the28
present value of the additional retirement benefit payable on account of his service29
in charter schools or nonpublic or parochial schools or colleges should he retire at30 SB NO. 274 ENROLLED
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the time credit for such service is established.1
(iii) If the member is not eligible to retire at the time he establishes credit for2
service in charter schools or nonpublic or parochial schools or colleges, there shall3
be paid into the system an amount which, if invested at regular interest, would4
accumulate to an amount equal to the present value of the additional retirement5
benefit payable on account of his service in charter schools or nonpublic or6
parochial schools or colleges should the member continue until the earliest date he7
is eligible to retire.8
(2)(a) In determining the present value of the additional benefit payable on9
account of service in charter schools or nonpublic or parochial schools or colleges10
and the amounts to be paid for credit for such service, regular interest, salary scales11
used to project future salary increases, and the tables of the system as adopted by the12
board of trustees shall be utilized.13
(b) Amounts paid to establish credit for teaching service in charter schools14
or nonpublic or parochial schools or colleges shall be credited to the member's15
account in the Annuity Savings Fund. Such amounts shall be paid in one lump sum.16
* * *17
G. Except as provided in Paragraph (A)(1) of this Section, any purchase18
of service credit pursuant to this Section shall be paid in accordance with the19
provisions of R.S. 11:158.20
* * *21
Section 2. R.S. 17:3997(A)(2) and (3) are hereby amended and reenacted to read as22
follows:23
§3997. Charter school employees24
A. * * *25
(2) Employees employed by any charter school who, previous to employment26
in the charter school, were employees of a local school board shall, if such27
employees desire, be placed on leave of absence pursuant to Subsection B of this28
Section. However, for the duration of such leave each such employee shall continue29
to contribute to and be eligible for a member of the school employees' and or30 SB NO. 274 ENROLLED
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teachers' retirement systems system, and earn service time credit for the accrual of1
retirement benefits. However, service time while employed by a charter school shall2
not accrue toward the acquisition of permanent status.3
(3) Employmen t in any charter school for all employees other than those4
provided for in Paragraph (2) of this Subsection shall be deemed to be employment5
in a public elementary or secondary school in the state regarding eligibility for any6
or all benefits which would otherwise accrue under state law to such an employee in7
any other elementary or secondary school, including but not limited to membership8
in the school employees' and teachers' retirement systems. However, participation9
of the charter school and its employees in such benefit programs shall be contingent10
upon provisions contained in the school's approved charter. These provisions may11
require only teachers employed by the charter school who, previous to12
employment in the charter school, were employees of a local school board to13
continue active membership in the Teachers' Retirement System of Louisiana14
for the duration of their employment as charter school teachers, regardless of15
their leave status.16
* * *17
Section 3. R.S. 11:701(33)(a)(xii) is hereby repealed.18
Section 4. The provisions of this Act shall not become effective until the Teachers'19
Retirement System of Louisiana is in receipt of a private letter ruling issued by the Internal20
Revenue Service, pursuant to request dated March 15, 2010, concluding that the provisions21
of this Act will not adversely affect the status of the Teachers' Retirement System of22
Louisiana as a qualified governmental plan under the Internal Revenue Code.23
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: