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Regular Session, 2011
HOUSE BILL NO. 417
BY REPRESENTATIVE CORTEZ
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
RETIREMENT/TEACHERS: Relative to the Teachers' Retirement System of Louisiana
(TRSL), allows retirees rehired as substitute teachers to collect retirement benefits
during reemployment under certain circumstances
AN ACT1
To amend and reenact R.S. 11:710(A)(1), (C)(2), and (D), to enact R.S. 11:710(A)(4), and2
to repeal R.S. 11:710(H), relative to the Teachers' Retirement System of Louisiana;3
to allow certain retirees reemployed as substitute teachers to receive benefits during4
reemployment; to provide limitations; to provide an effective date; and to provide5
for 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(A)(1), (C)(2), and (D) are hereby amended and reenacted and11
R.S. 11:710(A)(4) is hereby enacted to read as follows: 12
ยง710. Employment of retirees13
A. For purposes of this Section, "retired teacher" shall mean any of the14
following:15
(1) A retired member who returns to active service covered by the provisions16
of this Chapter as a full-time or part-time classroom teacher who teaches any student17
in kindergarten through twelfth grade in a critical teacher shortage area. For18
purposes of this Paragraph, "critical shortage area" shall mean any subject area19 HLS 11RS-54 ENGROSSED
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where a shortage of certified teachers exists in that subject area, subject to the1
provisions of Subsection F of this Section. For purposes of this Paragraph Section,2
"classroom teacher" shall mean any employee, whose position of employment3
requires a valid Louisiana teaching certificate and who is assigned the professional4
activities of instructing pupils in courses in classroom situations for which daily5
pupil attendance figures for the school system are kept. Such classroom situations6
may include teaching in a school classroom or in other settings such as a home or7
hospital or other learning situations such as cocurricular activities, which instruction8
may be provided in person or through an approved medium such as television, radio,9
computer, Internet, multimedia telephone, and correspondence that is delivered10
inside or outside the classroom or in other teacher-student settings.11
* * *12
(4) A retired member who returns to active service covered by the provisions13
of this Chapter as a substitute classroom teacher who teaches any student in14
kindergarten through twelfth grade. For purposes of this Paragraph "substitute15
classroom teacher" shall mean a classroom teacher employed in a temporary capacity16
to fill the position of another classroom teacher who is unavailable to teach for any17
reason. Such substitute classroom teacher's earnings from his return to active service18
shall not exceed twenty-five percent of his benefit during any fiscal year. If actual19
earnings exceed this amount in any fiscal year, the benefits payable to the retiree20
shall be reduced by the amount in excess of twenty-five percent of his benefit.21
* * *22
C.23
* * *24
(2) Any retired member not considered a retired teacher as defined in25
Subsection A of this Section shall have his benefit suspended for the duration of his26
period of reemployment in such position even if such reemployment is based on27
employment by contract or corporate contract. Such member and his employer shall28 HLS 11RS-54 ENGROSSED
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not make contributions to the system during such time, and he shall receive no1
additional service credit nor accrue any additional retirement benefits.2
* * *3
D. When any retiree returns to active service with an employer covered by4
the provisions of this Chapter, the employing agency shall, within thirty days5
thereafter, notify the board of trustees in writing of such employment, the date on6
which employment commenced, and a determination by the employer as to whether7
such person is a "retired teacher" pursuant to Subsection A of this Section. Upon8
termination, the agency shall provide the same notice. In addition, the employing9
agency shall also report to the retirement system within forty-five days after June10
thirtieth of each year, the name of all persons being paid by the employing agency11
and all persons having received a benefit pursuant to the provisions of this Section,12
their along with such individuals' social security numbers, their positions, and the13
amount of their earnings during the previous fiscal year ending on June thirtieth of14
the reporting year. Additionally, the employing agency must transmit a monthly15
contributions report pursuant to R.S. 11:888(A). Such monthly reports shall be16
transmitted within thirty days of the last day of each month and shall include the17
salary paid to all individuals identified as a "retired teacher" pursuant to Subsection18
A of this Section. Should failure to give notice of return to active service or failure19
to report any other information required by this Section result in any payment being20
made in violation of this Section, the employing agency shall be liable to the system21
for the repayment of such amounts.22
* * *23
H. By August 15, 2010, each employer shall report to the system and to the24
House and Senate committees on retirement the names, positions, and salaries of25
each person reemployed by such employer as of January 1, 2010, who was receiving26
a retirement benefit pursuant to the provisions of this Section. Each calendar year27
thereafter, by January fifteenth of such year, the employer shall report to the system28
and to the House and Senate committees on retirement the names, positions, and29 HLS 11RS-54 ENGROSSED
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salaries of each person reemployed by such employer as of January first of that year1
who was receiving a retirement benefit pursuant to the provisions of this Section.2
Section 2. R.S. 11:710(H) is hereby repealed in its entirety.3
Section 3. The cost of this Act, if any, shall be funded with additional employer4
contributions in compliance with Article X, Section 29(F) of the Constitution of Louisiana.5
Section 4. This Act shall become effective on July 1, 2011; if vetoed by the governor6
and subsequently approved by the legislature, this Act shall become effective on July 1,7
2011, 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)]
Cortez HB No. 417
Abstract: Relative to the Teachers' Retirement System of La. (TRSL), allows certain
retirees reemployed as substitute teachers to receive a retirement benefit during
reemployment.
Present law prohibits any TRSL retiree other than a "retired teacher" from receiving a
retirement benefit while reemployed. Provides that anyone other than a "retired teacher"
shall have his benefit suspended during reemployment. Defines "retired teacher" as:
(1)Any retired member who returns to work full-time or part-time as a classroom
teacher offering instructional services to any student in grades K through 12 in a
"critical shortage area".
(2)Any other retired member reemployed on or before June 30, 2010.
(3)Any retired member who returns to active service as a full-time certified speech
therapist, speech pathologist, or audiologist whose position of employment requires
a valid La. ancillary certificate approved and issued by the state Dept. of Education
in a school district where a shortage exists.
Proposed law adds to the definition of "retired teacher", and therefore to the list of
reemployed retirees who may receive a benefit during reemployment, retirees who are
reemployed as substitute K through 12 classroom teachers.
Proposed law provides that the earnings of any such substitute teacher shall not exceed 25%
of his retirement benefit in any fiscal year. If earnings exceed this amount, such substitute's
retirement benefit will be reduced by the amount in excess of the 25%.
Present law requires each employer to report to the system and to the House and Senate
committees on retirement the names, positions, and salaries of each person reemployed by
such employer as of Jan. 1, 2010, who was receiving a retirement benefit pursuant to the
provisions of present law. Requires such reports annually. HLS 11RS-54 ENGROSSED
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Proposed law changes the date of such reporting to within 45 days after June 30th. No
longer requires reporting to the House and Senate committees on retirement, and instead
requires such information to be reported to TRSL only. Additionally requires monthly
reporting by an employer of a rehired retiree's salary information.
Present law provides that if a failure by an employing agency to report on a reemployed
retiree causes any overpayment of benefits, the employer shall be liable to TRSL for
repayment of such overpayment.
Proposed law retains present law and provides further that the failure of the employing
agency to report to TRSL any information required by present law or proposed law shall
cause the employer to be liable to TRSL for any overpayment of benefits.
Requires that any cost of proposed law be funded by additional employer contributions in
compliance with Art. X, Sec. 29(F) of the Constitution of La.
Effective July 1, 2011.
(Amends R.S. 11:710(A)(1), (C)(2), and (D); Adds R.S. 11:710(A)(4); Repeals R.S. 11: 710
(H))
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Retirement to the original
bill.
1. Deletes requirement that a TRSL retiree reemployed as a substitute teacher be at
least age 60 or have 30 years of service credit in order to receive a benefit during
reemployment under proposed law.
2. With regards to employment limitations of such substitute teachers, deletes
language limiting the reemployment of a substitute teacher to 90 working days
in a fiscal year. Instead prohibits the earnings of such substitute from exceeding
25% of his retirement benefit.
3. Adds provision that present law and proposed law apply to reemployed retirees
within TRSL even if reemployment is through contract or corporate contract.
4. Adds requirement that employe rs report monthly to TRSL the salaries and
earnings of all persons paid by such employer within 30 days of the last day of
each month.