SLS 10RS-354 ORIGINAL
Page 1 of 7
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2010
SENATE BILL NO. 694
BY SENATOR B. GAUTREAUX AND REPRESENTATI VE RITCHIE
TEACHERS RETIREMENT. Requires membership in the Teachers' Retirement System for
charter school teachers. (7/1/10)
AN ACT1
To amend and reenact R.S. 11:701(introductory paragraph), (10), (11), and (33)(b)(i), and2
728(A)(4), (C)(1)(a) and (b)(ii) and (iii) and (2), and 17:3997(A)(2), (3), and (4), to3
enact R.S. 11:701(33)(d) and (e) and 11:728(G), and to repeal R.S.4
11:701(33)(a)(xii), relative to the Teachers' Retirement System of Louisiana; to5
provide that membership in such system includes certain charter school employees;6
to provide an effective date; and to provide for related matters.7
Notice of intention to introduce this Act has been published.8
Be it enacted by the Legislature of Louisiana:9
Section 1. R.S. 11:701(introductory paragraph), (10), (11), and (33)(b)(i), and10
728(A)(4), (C)(1)(a) and (b)(ii) and (iii) and (2) are hereby amended and reenacted and R.S.11
11:701(33)(d) and (e) and 728(G) are hereby enacted to read as follows:12
§701. Definitions13
As used in this Chapter, the following words and phrases have the meaning14
ascribed to them in this Section unless a different meanings is plainly required by the15
context:16
* * *17 SB NO. 694
SLS 10RS-354 ORIGINAL
Page 2 of 7
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
(10) "Earnable compensation" means the compensation earned by a member1
during the full normal working time as a teacher. "Earnable compensation" shall not2
include per diem, post allowances, payment in kind, hazardous duty pay, or any other3
allowance for expense authorized and incurred as an incident to employment, nor4
payments in lieu of unused sick or annual leave, nor retroactive salary increases5
unless such increase was granted by legislative act or by a city/parish systemwide6
salary increase, nor payment for discontinuation of contractual services, unless the7
payment is made on a monthly basis. "Earnable compensation" shall not include8
any compensation paid to an employee of a charter school which exceeds the9
salary that would have been received if employed by the city, parish, or other10
local public school system whose boundaries include the charter school. If a11
member is granted an official leave and he makes contributions for the period of12
leave, "earnable compensation" shall not include compensation paid for other13
employment which would not have been possible without the leave. The board of14
trustees shall determine whether or not any other payments are to be classified as15
earnable compensation.16
(11) "Employer" means the State of Louisiana, the parish school board, the17
city school board, a charter school, the State Board of Education, the board of18
supervisors of the Louisiana State University or any other agency of and within the19
State by which a teacher is paid.20
* * *21
(33) * * *22
(b) "Teacher" shall not include any of the following:23
(i) Any employee of a city or parish school board or of a charter school who24
is employed as a school bus driver, school janitor, school custodian or a school25
maintenance employee, school bus aide, monitor or attendant, or anyone who26
actually works on a school bus helping with the transportation of school children.27
* * *28
(d)(i) "Teacher" shall also mean any employee of a charter school,29 SB NO. 694
SLS 10RS-354 ORIGINAL
Page 3 of 7
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
except as provided in Subparagraph (b) of this Paragraph.1
(ii) Any charter school employee who entered into an employment2
contract with the charter school before July 1, 2010, which does not provide for3
membership in this system shall not become a member of this system until the4
expiration of the term of the contract that is in effect on July 1, 2010.5
(e) In all cases of doubt, the board of trustees shall determine whether6
any person is a teacher within the scope of the definition set forth in this7
Paragraph.8
* * *9
§728. Prior service credit10
A. * * *11
(4) Payments to be made under the provisions of this Section shall be made12
in a lump sum. Effective January 1, 2002, payment for service credit under this13
Section shall be allowed by a trustee-to-trustee transfer of funds from a Code Section14
403(b) annuity or a Code Section 457 plan to the system; provided that no purchase15
of service credit under this Section shall be allowed by a trustee-to-trustee transfer16
of funds from a Code Section 403(b) annuity or a Code Section 457 plan to the17
pension after December 31, 2010.18
* * *19
C.(1)(a) Notwithstanding any other provision of this Chapter or of any other20
law to the contrary, any person who is a member of this system shall be eligible to21
obtain credit in this system for teaching service rendered in any charter school,22
nonpublic college or university in Louisiana , and/or state approved elementary or23
secondary nonpublic or parochial school in Louisiana.24
(b) * * *25
(ii) In addition, if the member is eligible to retire at the time he establishes26
credit for such service, there shall be paid into the system an amount equal to the27
present value of the additional retirement benefit payable on account of his service28
in charter schools or nonpublic or parochial schools or colleges should he retire at29 SB NO. 694
SLS 10RS-354 ORIGINAL
Page 4 of 7
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
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 made on an actuarially sound19
basis in accordance with the provisions of R.S. 11:158.20
* * *21
Section 2. R.S. 17:3997(A)(2), (3), and (4) are hereby amended and reenacted to read22
as 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 SB NO. 694
SLS 10RS-354 ORIGINAL
Page 5 of 7
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
to contribute to and be eligible for a member of the school employees' and or1
teachers' retirement systems system, and earn service time credit for the accrual of2
retirement benefits. However, service time while employed by a charter school shall3
not accrue toward the acquisition of permanent status.4
(3) Employment in any charter school for all employees other than those5
provided for in Paragraph (2) of this Subsection shall be deemed to be employment6
in a public elementary or secondary school in the state regarding eligibility for any7
or all benefits which would otherwise accrue under state law to such an employee in8
any other elementary or secondary school, including but not limited to membership9
in the school employees' and teachers' retirement systems. However, participation10
Participation of the charter school and its employees in such benefit programs shall11
be contingent upon provisions contained in the school's approved charter; however,12
each charter school employee who is a teacher as defined in R.S. 11:701(33)13
shall be a member of the Teachers' Retirement System of Louisiana and that14
employee's employing charter school shall be an employer as defined in R.S.15
11:701(11).16
(4) With regard to participation in the public retirement systems:17
(a) The compensation that the teacher or school employe e would have18
received if employed by the city, parish, or other local public school system whose19
boundaries include the charter school shall be used to determine employee and20
employer contributions levels of to be made to the respective retirement systems.21
(b) Any compensation paid to a teacher or school employee which exceeds22
the salary that would have been received if employed by the city, parish, or other23
local public school system whose boundaries include the charter school shall not24
be deemed as earnable compensation pursuant to R.S. 11:701 solely for the25
purpose of the calculation of future retirement benefits.26
* * *27
Section 3. R.S. 11:701(33)(a)(xii) is hereby repealed.28
Section 4. This Act shall become effective on July 1, 2010; if vetoed by the governor29 SB NO. 694
SLS 10RS-354 ORIGINAL
Page 6 of 7
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
and subsequently approved by the legislature, this Act shall become effective on July 1,1
2010, or on the day following such approval by the legislature, whichever is later.2
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Lauren B. Bailey.
DIGEST
Present law (R.S. 11:701)(10)) relative to the Teachers' Retirement System of Louisiana
(TRSL), defines "earnable compensation" as compensation earned by a member during the
full normal working time as a teacher. Provides for various limitations and exclusions.
Proposed law retains present law and provides that "earnable compensation" shall not
include any compensation paid to an employee of a charter school which exceeds the salary
that would have been received if employed by the city, parish, or other local public school
system whose boundaries include the charter school.
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.
Present law (R.S. 11:721) requires all teachers to become members of TRSL as a condition
of employment. Proposed law retains present law, and includes charter school employees
within the definition of "teacher".
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".
Proposed law provides that any charter school employee who entered into an employment
contract with the charter school before July 1, 2010, (the effective date of proposed law)
which does not provide for membership in this system shall not become a member of this
system until the expiration of the term of the contract that is in effect on July 1, 2010.
Present law (R.S. 11:728) provides generally for purchase of TRSL credit for prior service
rendered as a teacher.
Present law (R.S. 11:728(C)(1)(a)) provides for purchase of 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 purchase credit for teaching service
in any charter school in La.
Proposed law clarifies that any purchase of service credit for teaching not covered by TRSL
shall be made on an actuarially sound basis in accordance with present law. SB NO. 694
SLS 10RS-354 ORIGINAL
Page 7 of 7
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
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. Provides however that charter school participation in such benefit
programs is determined by the school's charter.
Proposed law retains present law and requires charter school employees to be members of
TRSL if they meet the definition of "teacher" contained in the laws relative to that system.
Effective July 1, 2010.
(Amends R.S. 11:701(intro. para.), (10), (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), (3), and (4); adds R.S.11:701(33)(d) and (e)
and R.S. 728(G); and repeals R.S. 11:701(33)(a)(xii))