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Regular Session, 2011
HOUSE BILL NO. 417
BY REPRESENTATIVES CORTEZ, ARMES, ARNOLD, BOBBY BADON, BALDONE,
BARRAS, BISHOP, BURFORD, HENRY BURNS, BURREL L, CARMODY,
CARTER, CHAMPAGNE, CHANDLER, CHANEY, DIXON, DOWNS, FANNIN,
GISCLAIR, GUINN, HARDY, HENDERSON, HOFFMANN, HOWARD, SAM
JONES, KATZ, LANDRY, LEBAS, LOPINTO, MONTOUCET, NOWLIN, POPE,
RICHARD, RICHARDSON, SCHRODER, SEABAUGH, GARY SMITH, JANE
SMITH, THIBAUT, AND WOOTON
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), (B)(1)(a), (C)(2), and (D), to enact R.S.2
11:710(A)(4), and to repeal R.S. 11:710(H), relative to the Teachers' Retirement3
System of Louisiana; to allow certain retirees reemployed as substitute teachers to4
receive benefits during reemployment; to provide limitations; to provide an effective5
date; and to provide 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), (B)(1)(a), (C)(2), and (D) are hereby amended and11
reenacted and 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 HLS 11RS-54 REENGROSSED
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in kindergarten through twelfth grade in a critical teacher shortage area. For1
purposes of this Paragraph, "critical shortage area" shall mean any subject area2
where a shortage of certified teachers exists in that subject area, subject to the3
provisions of Subsection F of this Section. For purposes of this Paragraph Section,4
"classroom teacher" shall mean any employee, whose position of employment5
requires a valid Louisiana teaching certificate and who is assigned the professional6
activities of instructing pupils in courses in classroom situations for which daily7
pupil attendance figures for the school system are kept. Such classroom situations8
may include teaching in a school classroom or in other settings such as a home or9
hospital or other learning situations such as cocurricular activities, which instruction10
may be provided in person or through an approved medium such as television, radio,11
computer, Internet, multimedia telephone, and correspondence that is delivered12
inside or outside the classroom or in other teacher-student settings.13
* * *14
(4) A retired member who returns to active service covered by the provisions15
of this Chapter as a substitute classroom teacher who teaches any student in16
kindergarten through twelfth grade. For purposes of this Paragraph "substitute17
classroom teacher" shall mean a classroom teacher employed in a temporary capacity18
to fill the position of another classroom teacher who is unavailable to teach for any19
reason. Such substitute classroom teacher's earnings from his return to active service20
shall not exceed twenty-five percent of his benefit during any fiscal year. If actual21
earnings exceed this amount in any fiscal year, the benefits payable to the retiree22
shall be reduced by the amount in excess of twenty-five percent of his benefit.23
* * *24
B.(1)(a) Any retired teacher who returns to active service covered by the25
provisions of this Chapter within the twelve-month period immediately following the26
effective date of such retirement shall have his retirement benefits suspended for the27
duration of such active service or the lapse of twelve months from the effective date28
of his retirement, whichever occurs first, even if such service is based on29 HLS 11RS-54 REENGROSSED
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employment by contract or corporate contract. If any retired member returns to1
active service in a position qualifying him as a retired teacher under more than one2
provision of this Section providing for an earnings limitation of twenty-five percent3
of his retirement benefit in any fiscal year, the twenty-five percent earnings4
limitation shall apply to the total earnings of such retired teacher for all such5
positions in such fiscal year.6
* * *7
C.8
* * *9
(2) Any retired member not considered a retired teacher as defined in10
Subsection A of this Section shall have his benefit suspended for the duration of his11
period of reemployment in such position even if such reemploymen t is based on12
employment by contract or corporate contract. Such member and his employer shall13
not make contributions to the system during such time, and he shall receive no14
additional service credit nor accrue any additional retirement benefits.15
* * *16
D. When any retiree returns to active service with an employer covered by17
the provisions of this Chapter, the employing agency shall, within thirty days18
thereafter, notify the board of trustees in writing of such employment, the date on19
which employment commenced, and a determination by the employer as to whether20
such person is a "retired teacher" pursuant to Subsection A of this Section. Upon21
termination, the agency shall provide the same notice. In addition, the employing22
agency shall also report to the retirement system within forty-five days after June23
thirtieth of each year, the name of all persons being paid by the employing agency24
and all persons having received a benefit pursuant to the provisions of this Section,25
their along with such individuals' social security numbers, their positions, and the26
amount of their earnings during the previous fiscal year ending on June thirtieth of27
the reporting year. Additionally, the employing agency must transmit a monthly28
contributions report pursuant to R.S. 11:888(A). Such monthly reports shall be29 HLS 11RS-54 REENGROSSED
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transmitted within thirty days of the last day of each month and shall include the1
salary paid to all individuals identified as a "retired teacher" pursuant to Subsection2
A of this Section. Should failure to give notice of return to active service or failure3
to report any other information required by this Section result in any payment being4
made in violation of this Section, the employing agency shall be liable to the system5
for the repayment of such amounts.6
* * *7
H. By August 15, 2010, each employer shall report to the system and to the8
House and Senate committees on retirement the names, positions, and salaries of9
each person reemployed by such employer as of January 1, 2010, who was receiving10
a retirement benefit pursuant to the provisions of this Section. Each calendar year11
thereafter, by January fifteenth of such year, the employer shall report to the system12
and to the House and Senate committees on retirement the names, positions, and13
salaries of each person reemployed by such employer as of January first of that year14
who was receiving a retirement benefit pursuant to the provisions of this Section.15
Section 2. R.S. 11:710(H) is hereby repealed in its entirety.16
Section 3. The cost of this Act, if any, shall be funded with additional employer17
contributions in compliance with Article X, Section 29(F) of the Constitution of Louisiana.18
Section 4. This Act shall become effective on July 1, 2011; if vetoed by the governor19
and subsequently approved by the legislature, this Act shall become effective on July 1,20
2011, or on the day following such approval by the legislature, whichever is later.21
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: HLS 11RS-54 REENGROSSED
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(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%.
Proposed law provides that the total earnings of any "retired teacher" upon whom proposed
law imposes a 25% earnings limitation shall not exceed the 25% limit if such retired teacher
is reemployed in multiple positions which make him eligible to receive a retirement benefit
during reemployment in positions that are subject to the 25% limit.
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.
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 employi ng 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), (B)(1)(a), (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. HLS 11RS-54 REENGROSSED
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2. With regards to employment limitations of such substitute teachers, deletes
language limiting the reemployme nt 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 employers 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.
House Floor Amendments to the engrossed bill.
1. Provides that the total earnings of any "retired teacher" upon whom proposed law
imposes a 25% earnings limitation shall not exceed the 25% limit if such retired
teacher is reemployed in multiple positions which would make him eligible to
receive a retirement benefit during reemployment in positions that are subject to
the 25% limit.