HLS 12RS-908 ORIGINAL
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Regular Session, 2012
HOUSE BILL NO. 1062
BY REPRESENTATIVE JONES
RETIREMENT SYSTEMS: Provides for notice to employees when a charter school
withdraws from the Teachers' Retirement System of La. or the La. School
Employees' Retirement System
AN ACT1
To amend and reenact R.S. 17:3997(A)(3) as amended by Act No. 999 of the 2010 Regular2
Session of the Legislature, relative to notice of withdrawal from a public retirement3
system by a charter school; to provide for notice to employees of a charter school;4
to provide for notice to the affected system or systems; to provide deadlines and5
requirements; to provide limitations; to provide an effective date; and to provide for6
related matters.7
Notice of intention to introduce this Act has been published8
as provided by Article X, Section 29(C) of the Constitution9
of Louisiana.10
Be it enacted by the Legislature of Louisiana:11
Section 1. This Act shall be known as "The Educator Retirement Fair Notice Act".12
Section 2. R.S. 17:3997(A)(3) as amended by Act No. 999 of the 2010 Regular13
Session of the Legislature is hereby amended and reenacted to read as follows: 14
ยง3997. Charter school employees15
A.16
* * *17
(3)(a) Employment in any charter school for all employees other than those18
provided for in Paragraph (2) of this Subsection shall be deemed to be employment19 HLS 12RS-908 ORIGINAL
HB NO. 1062
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in a public elementary or secondary school in the state regarding eligibility for any1
or all benefits which would otherwise accrue under state law to such an employee in2
any other elementary or secondary school, including but not limited to membership3
in the school employees' and teachers' retirement systems. However, participation4
of the charter school and its employees in such benefit programs shall be contingent5
upon provisions contained in the school's approved charter. These provisions may6
require only teachers employed by the charter school who, previous to employment7
in the charter school, were employees of a local school board to continue active8
membership in the Teachers' Retirement System of Louisiana for the duration of9
their employment as charter school teachers, regardless of their leave status.10
(b) If a charter school participating in the Louisiana School Employees'11
Retirement System or the Teachers' Retirement System of Louisiana elects to12
terminate its participation in one or both of these retirement systems, the school shall13
give notice of its intent to terminate participation to each of its employees and to14
each affected retirement system. The notice shall be given in writing by the January15
first preceding the school year in which the termination is to become effective. The16
notice shall be given to each employee at the location where he is employed and at17
his home address.18
* * *19
Section 3. The provisions of this Act shall not become effective until the Teachers'20
Retirement System of Louisiana is in receipt of a private letter ruling issued by the Internal21
Revenue Service, pursuant to request dated March 15, 2010, concluding that the provisions22
of Act No. 999 of the 2010 Regular Session of the Legislature will not adversely affect the23
status of the Teachers' Retirement System of Louisiana as a qualified governmental plan24
under the Internal Revenue Code.25 HLS 12RS-908 ORIGINAL
HB NO. 1062
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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)]
Jones HB No. 1062
Abstract: Provides for notice to employees and the affected retirement systems if a charter
school elects to withdraw from a public retirement system or systems.
Present law (R.S. 17:3997) provides for membership in a public retirement system for all
employees of certain charter schools if the approved charters provide for such membership.
Present law, which has not yet become effective, provides that a charter may provide for
only teachers employed by the charter school who, previous to employment in the charter
school, were employees of a local school board to continue active membership in the
Teachers' Retirement System of La. for the duration of their employment as charter school
teachers.
Proposed law provides that if a charter school elects to withdraw from a public retirement
system, then the school shall give notice, in writing, to the affected retirement system and
to all employees of the charter school. Further provides that such notice shall be given by
the Jan. 1 preceding the school year in which the termination is to become effective. Further
provides that the notice must be given to employees at their place of employment and at their
home addresses.
Effective contingent upon receipt of a private letter ruling issued by the Internal Revenue
Service, pursuant to a request dated March 15, 2010, concluding that the provisions of Act
No. 999 of 2010 R.S. will not adversely affect the status of the TRSL as a qualified
governmental plan under the Internal Revenue Code.
(Amends R.S. 17:3997(A)(3) as amended by Act No. 999 of the 2010 R.S.)