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Regular Session, 2012
HOUSE BILL NO. 14
BY REPRESENTATIVE TALBOT
RETIREMENT/STATE-STWIDE: Relative to state and statewide retirement systems,
prohibits certain members who are reemployed after retirement from receiving
retirement benefits or accruing additional benefits
AN ACT1
To amend and reenact R.S. 11:149, 416(A)(introductory paragraph), 710(A), (F), and (G),2
1006, 1007(A)(1), 1311, 1413, 1513, 1631(F), 1762, 1928, 2078, 2220(A)(1)(e), (f),3
and (g)(introductory paragraph), 2256(A)(5) and to enact R.S. 11:416(D) and4
2175(E)(7), relative to state and statewide retirement systems; to prohibit certain5
reemployed retirees from receiving retirement benefits or accruing additional6
benefits during their reemployment; to provide relative to contributions during such7
period; to provide for reporting requirements; to provide an effective date; and to8
provide for related matters.9
Notice of intention to introduce this Act has been published10
as provided by Article X, Section 29(C) of the Constitution11
of Louisiana.12
Be it enacted by the Legislature of Louisiana:13
Section 1. R.S. 11:149, 416(A)(introductory paragraph), 710(A), (F), and (G), 1006,14
1007(A)(1), 1311, 1413, 1513, 1631(F), 1762, 1928, 2078, 2220(A)(1)(e), (f), and15
(g)(introductory paragraph), 2256(A)(5) are hereby amended and reenacted and R.S.16
11:416(D) and 2175(E)(7) is hereby enacted to read as follows:17
§149. Reemployment of retirees18
A. The provisions of this Section are applicable to the following public19
retirement or pension systems, plans, or funds, hereafter referred to in this Section20
as "systems":21 HLS 12RS-109 ORIGINAL
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(1) Assessors' Retirement Fund.1
(2) Clerks' of Court Retirement and Relief Fund.2
(3) District Attorneys' Retirement System.3
(4) Firefighters' Retirement System.4
(5) Louisiana School Employees' Retirement System.5
(6) Louisiana State Employees' Retirement System.6
(7) Municipal Employees' Retirement System of Louisiana.7
(8) Municipal Police Employees' Retirement System.8
(9) Parochial Employees' Retirement System of Louisiana.9
(10) Registrars of Voters Employees' Retirement System.10
(11) Sheriffs' Pension and Relief Fund.11
(12) State Police Pension and Retirement System.12
(13) Teachers' Retirement System of Louisiana.13
B. If a member of a system listed in Subsection A of this Section retires from14
such system on or after July 1, 2012, and engages in employment which otherwise15
would render him eligible for membership in any such system, his retirement benefit16
shall be suspended during the period of his reemployment. During such period of17
reemployment, neither he nor his employer shall make contributions to the system,18
nor shall he earn any additional service credit or supplemental benefit. Both the19
reemployed retiree and his employer shall immediately notify the system of the20
retiree's date of reemployment and the estimated duration of reemployment and,21
upon termination, the date of termination of reemployment. Should failure to give22
notice of return to employment result in any payment being made in violation of this23
Section, the employer shall be liable to the system for the repayment of such24
amounts.25
C. Notwithstanding any other provision of law to the contrary, any person26
who retires from employment with a department of state government as defined in27
Title 36 of the Louisiana Revised Statutes of 1950, on or before June 30, 2012, shall,28
upon reemployment by the same department of state government, be governed, with29 HLS 12RS-109 ORIGINAL
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respect to retirement, by the laws governing the retirement system from which he1
retired. 2
B. D. Any person who retires under any early retirement incentive plan of3
the state of Louisiana for state employees shall not be reemployed by any department4
of state government for two years after the effective date of their retirement. The5
provisions of this Subsection shall not apply to seasonal fire fighting firefighting6
personnel employed by the office of forestry in the Department of Agriculture and7
Forestry, and election-related personnel in the Department of State. Reemployment8
of election personnel shall not exceed six weeks prior to an election and two weeks9
following an election.10
* * *11
§416. Employment of retirees12
A. Regardless of age, if a retiree of the system who retires on or before June13
30, 2012, and is engaged or hereafter engages in employment which otherwise would14
render him eligible for membership in the system, he shall choose one of the15
following irrevocable options:16
* * *17
D. Any member who retires on or after July 1, 2012, and engages in18
employment which otherwise would render him eligible for membership in the19
system shall be subject to the provisions of R.S. 11:149.20
* * *21
§710. Employment of retirees22
A.(1) Any member of this system who retires on or after July 1, 2012, shall23
be subject to the provisions of R.S. 11:149. Except as provided by R.S. 11:149, the24
provisions of this Section shall apply to any member of this system who retires and25
returns to active service covered by the provisions of this Chapter.26
(2) For purposes of this Section, "retired teacher" shall mean any of the27
following:28 HLS 12RS-109 ORIGINAL
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(1) (a) A retired member who returns to active service covered by the1
provisions of this Chapter as a full-time or part-time classroom teacher who teaches2
any student in kindergarten through twelfth grade in a critical teacher shortage area.3
For purposes of this Paragraph, "critical shortage area" shall mean any subject area4
where a shortage of certified teachers exists in that subject area, subject to the5
provisions of Subsection F of this Section. For purposes of this Paragraph,6
"classroom teacher" shall mean any employee, whose position of employment7
requires a valid Louisiana teaching certificate and who is assigned the professional8
activities of instructing pupils in courses in classroom situations for which daily9
pupil attendance figures for the school system are kept. Such classroom situations10
may include teaching in a school classroom or in other settings such as a home or11
hospital or other learning situations such as cocurricular activities, which instruction12
may be provided in person or through an approved medium such as television, radio,13
computer, Internet, multimedia telephone, and correspondence that is delivered14
inside or outside the classroom or in other teacher-student settings.15
(2) (b) A retired member who returns to active service as a full-time certified16
speech therapist, speech pathologist, or audiologist whose position of employment17
requires a valid Louisiana ancillary certificate approved and issued by the state18
Department of Education in a school district where a shortage exists.19
(3) (c) A retired member who returns to active service covered by the20
provisions of this Chapter on or before June 30, 2010.21
(4) (d) A retired member who returns to active service covered by the22
provisions of this Chapter who retired on or after May 1, 2009, and on or before June23
30, 2010, in a position requiring a valid Louisiana teaching certificate or a valid24
Louisiana ancillary certificate.25
* * *26
F. No "retired teacher" as defined in Paragraph (A)(1) Subparagraph27
(A)(2)(a) of this Section shall receive a benefit during the period of his28
reemployment as provided in this Section unless and until the superintendent and29 HLS 12RS-109 ORIGINAL
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personnel director of his employing school have certified to the Board of Elementary1
and Secondary Education and the board of trustees of this system that a shortage of2
teachers exists in the critical shortage area in which the retired teacher was hired to3
teach. Prior to making such certification for any full-time teaching position, the4
employer shall cause to be advertised in the official journal of the employer's5
governing authority, on two separate occasions, notice that a shortage of certified6
teachers exists and the positions sought to be filled. If a certified applicant who is7
not a retiree applies for an advertised position, such person shall be hired before any8
certified retired teacher is employed, unless fewer than three teachers have applied9
for the position each of whom are certified in the critical shortage area being filled.10
G. No "retired teacher" as defined in Paragraph (A)(2) Subparagraph11
(A)(2)(b) of this Section shall receive a benefit during the period of his12
reemployment as provided in this Section unless and until the employing school13
board has certified to the Board of Elementary and Secondary Education and the14
board of trustees of this system that a shortage of speech therapists, speech15
pathologists or audiologists exists in the school district where reemployed.16
* * *17
§1006. Reemployment of retirees18
A. Any service retiree of this system who retires on or after July 1, 2012,19
shall be subject to the provisions of R.S. 11:149. Except as provided by R.S. 11:149,20
the provisions of this Section or R.S. 11:1007 shall apply to any service retiree who21
returns to active service covered by the provisions of this Chapter.22
(1) B.(1) Any service retiree of the Louisiana School Employees' Retirement23
System may be reemployed in any position covered by the system as a full-time,24
part-time, temporary, or substitute employee subject to the provisions of this Section.25
(2) The employing agency shall transmit monthly, by the fifteenth day after26
the end of the month, a report with the name, social security number, and the amount27
of earnings of the retiree during the previous month.28 HLS 12RS-109 ORIGINAL
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(3) For the purposes of this Section, there shall be an annual cost-of-living1
adjustment to the average compensation figure used in these computations. This2
cost-of-living adjustment shall be based upon and directly reflect the annual3
percentage increase or decrease in the Consumer Price Index for the preceding year.4
B. C. If the earnings of the reemployed retiree in any fiscal year are in excess5
of fifty percent of average compensation, an amount equal to the amount of the6
earnings in excess of fifty percent of average compensation for the fiscal year shall7
be repaid to the retirement system, either through direct reimbursement to the system8
or by suspension of benefits; however, the repayment amount shall not exceed the9
amount of retirement benefits received by the retiree for the fiscal year.10
C. D. Should any employing agency fail to submit the report required by11
Subsection A of this Section Paragraph (B)(2) of this Section, the employing agency12
shall be liable to the retirement system for the repayment of any overpayments to the13
retiree by the system.14
D. E. The provisions of this Section shall not apply to any retiree of this15
system who retired from service as a bus driver, who returns to active service in a16
full-time position as a bus driver covered by the provisions of this Chapter, and17
whose employer chooses to reemploy him pursuant to R.S. 11:1007. The full-time18
reemployment of such retired bus drivers shall be governed by the provisions of that19
Section.20
§1007. Employment of retired bus drivers21
A.(1) Subject to the provisions of Subsection F of this Section, any retiree22
of this system who was retired from service as a bus driver on or before June 30,23
2012, and who returns to active service in a full-time position as a bus driver covered24
by the provisions of this Chapter within the twelve-month period immediately25
following the effective date of his retirement shall have his retirement benefit26
suspended for the duration of such active service or the lapse of twelve months after27
the effective date of his retirement, whichever occurs first, even if such service is28
based on employment by contract or corporate contract. After the period of29 HLS 12RS-109 ORIGINAL
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suspension of benefits as provided in this Subsection, the retirement benefit of such1
retiree shall no longer be suspended.2
* * *3
§1311. Reemployment of retiree4
A. Any member of this system who retires on or after July 1, 2012, shall be5
subject to the provisions of R.S. 11:149. Except as provided by R.S. 11:149, the6
provisions of this Section shall apply to any member of this system who retires and7
returns to active service covered by the provisions of this Chapter.8
B.(1) Whenever a retiree returns to employment as a sworn, commissioned9
law enforcement officer of the office of state police in any office, section, agency,10
commission, or branch of the Department of Public Safety and Corrections as11
defined in Title 36 of the Louisiana Revised Statutes of 1950, whether by executive12
order or by any other authorized action or authority, such person shall not be entitled13
to renew his membership in or become a member of the system. If his earnings in14
such employment are more than fifty percent of his average final compensation,15
payment of his retirement benefit shall be suspended for every month of such16
employment. Upon the subsequent separation of such employment or upon death17
prior thereto, the retirement allowance to which he shall then be entitled and the18
benefits to which any of his dependents shall then be entitled shall be the same as19
those to which he and/or his dependents or beneficiaries were entitled prior to and20
at the time of such employment.21
B. (2) Notwithstanding the provisions of R.S. 11:149(A)(C), whenever a22
retiree returns to employment with the Department of Public Safety and Corrections23
in any capacity other than as a sworn, commissioned law enforcement officer of the24
state police, his employment shall, if otherwise applicable, be governed, with respect25
to retirement, by the laws governing the Louisiana State Employees' Retirement26
System.27
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§1413. Reemployment of a retiree1
A retiree Any member of this system who retires on or after July 1, 2012,2
shall be subject to the provisions of R.S. 11:149. Except as provided by R.S. 11:149,3
a member who retired and is receiving retirement benefits from the system may be4
temporarily reemployed by an assessor but the retiree shall not be or become a5
member of the system during such reemployment. If the retiree is reemployed in any6
capacity for more than one hundred working days during any calendar year, or the7
equivalent thereof, during any calendar year, the benefits payable to the retiree shall8
be reduced by the amount he earned after thirty working days, or the equivalent9
thereof. The retiree and the assessor shall immediately notify the board of the date10
of reemployment, the amount of salary paid, any changes in salary, the number of11
hours employed per week, the estimated duration of reemployment, and the date of12
the termination of the reemployment. If the retiree dies during reemployment,13
benefits shall be paid to any other person as if death occurred regardless of14
reemployment pursuant to any option which may have been selected by the retiree15
at the time of retirement.16
* * *17
§1513. Reemployment of a retiree18
A. Any member of this system who retires on or after July 1, 2012, shall be19
subject to the provisions of R.S. 11:149. Except as provided by R.S. 11:149, the20
provisions of this Section shall apply to any member of this system who retires and21
returns to active service covered by the provisions of this Chapter. 22
B.(1) Except as provided in Subsection B of this Section, a retiree Paragraph23
(2) of this Subsection, a member who retired and is receiving retirement benefits24
from the system may be temporarily reemployed by a clerk, but the retiree shall not25
be or become a member of the system during such reemployment. If the retiree is26
reemployed in any capacity for more than sixty working days, or the equivalent27
thereof, during any calendar year, the benefits payable to the retiree shall be reduced28
by the amount he earned after sixty working days, or the equivalent thereof. The29 HLS 12RS-109 ORIGINAL
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retiree and the clerk shall immediately notify the board of the date of reemployment,1
the amount of salary paid, any changes in salary, the number of hours employed per2
week, the estimated duration of reemployment, and the date of the termination of the3
reemployment. If the retiree dies during reemployment, benefits shall be paid to any4
other person as if death occurred regardless of reemployment pursuant to any option5
which may have been selected by the retiree at the time of retirement.6
B.(1) (2)(a) A retiree who has terminated employment and was receiving7
retirement benefits from the system on January 1, 2007, may be temporarily8
reemployed by a clerk whose office is located in a parish designated under the9
Robert T. Stafford Disaster Relief and Emergency Assistance Act as eligible for10
individual assistance, or individual assistance and public assistance following11
Hurricane Katrina or Rita; however, the retiree shall not be or become a member of12
the system during such reemployment. If the retiree is reemployed by such a clerk13
in any capacity for more than one hundred eighty working days, or the equivalent14
thereof, during any calendar year, the benefits payable to the retiree shall be reduced15
by the amount he earned after one hundred eighty working days, or the equivalent16
thereof. The retiree and the clerk shall immediately notify the board of the date of17
reemployment, the amount of salary paid, any changes in salary, the number of hours18
employed per week, the estimated duration of reemployment , and the date of the19
termination of the reemployment. If the retiree dies during reemployment, benefits20
shall be paid to any other person as if death occurred regardless of reemployment21
pursuant to any option which may have been selected by the retiree at the time of22
retirement.23
(2)(b) The provisions of this Subsection Paragraph shall expire on July 1,24
2012, and thereafter shall be null and void and of no effect.25
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§1631. Retirement benefits; application; eligibility requirements1
* * *2
F.(1) Except as provided in Paragraph (2) Paragraphs (2) and (3) of this3
Subsection, if any member who has retired from this system is reemployed as an4
employee by any district attorney in the state, his retirement benefit shall be5
suspended during said employment, and he shall not be paid any benefits for the6
period covered by such employment. He shall, upon such reemployment, again7
become an active contributing member of the system, with the option of establishing8
service credit for any period of full-time employment as district attorney or assistant9
district attorney since returning to such employment following retirement by10
payment into the system the employer and employee amount plus interest that would11
have been withheld and paid into the system for that period based upon his total12
salary for such period. He shall accrue a supplemental retirement benefit based on13
his service rendered after reemployment. If the member continues employment after14
retirement for a period of less than thirty-six months, his supplemental monthly15
retirement benefit shall equal the benefit accrued under R.S. 11:1632 or 1633,16
whichever is applicable, based on the lesser of his average final compensation at his17
original retirement date or his average compensation during the period of his18
subsequent reemployment. If the member continues in employment after retirement19
for a period of thirty-six months or more, his supplemental monthly retirement20
benefit shall equal the benefit accrued under R.S. 11:1632 or 1633, whichever is21
applicable, based on his average final compensation during his period of22
reemployment. Upon retirement subsequent to reemployment, his benefit shall be23
equal to the benefits he was receiving immediately prior to reemployment plus the24
supplemental benefit earned during his reemployment.25
(2) Notwithstanding the provisions of Paragraph (1) of this Subsection, if26
any district attorney or assistant district attorney has retired in accordance with R.S.27
11:1633(A)(1)(b) or (c) and is reemployed by any district attorney in this state and28
paid a salary of less than the annual salary provided for in R.S. 16:11(A)(1), his29 HLS 12RS-109 ORIGINAL
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benefit shall not be suspended, and he shall not be considered a member, nor shall1
he earn additional credit or be required to pay contributions.2
(3) Any member of this system who retires on or after July 1, 2012, shall be3
subject to the provisions of R.S. 11:149.4
* * *5
§1762. Reemployment of retirees6
A. Any member of this system who retires on or after July 1, 2012, shall be7
subject to the provisions of R.S. 11:149. Except as provided by R.S. 11:149, the8
provisions of this Section shall apply to any member of this system who retires and9
returns to active service covered by the provisions of this Chapter: 10
B. Whenever a retired member receiving normal retirement benefits becomes11
reemployed by an employer such that his monthly earnings are equal to or less than12
the difference between his monthly average final compensation and his monthly13
retirement benefit, his retirement benefits shall continue, and he shall not be a14
member of the system.15
B. C. Whenever a retired member receiving normal retirement benefits16
becomes reemployed by an employer such that his monthly earnings exceed the17
difference between his monthly average final compensation and his monthly18
retirement benefit, his retirement benefits shall be reduced by the amount his19
monthly earnings exceed the difference between his monthly average final20
compensation and his monthly retirement benefit for every month of such21
employment, and he shall not be a member of the system.22
C. D. The retired member and the employer shall immediately notify the23
board of the retiree's date of employment, the amount of his monthly salary, and any24
changes in salary, number of hours employed per week, estimated duration of25
employment, and date of termination of employment.26
D. E. For purposes of this Section, there shall be an annual cost-of-living27
adjustment to the average final compensation figure used to determine whether28
benefits are to be continued or reduced. This cost-of-living adjustment shall be29 HLS 12RS-109 ORIGINAL
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based upon and directly reflect the annual percentage increase or decrease in the1
Consumer Price Index for the preceding calendar year.2
* * *3
§1928. Temporary employment of retirees; permanently employed retirees;4
membership; calculation of additional benefit; retirees in elected positions5
A. Any service retiree of this system who retires on or after July 1, 2012,6
shall be subject to the provisions of R.S. 11:149. Except as provided by R.S. 11:149,7
the provisions of this Section shall apply to any service retiree who retires and8
returns to active service covered by the provisions of this Chapter.9
B. Any person who has retired retires under the provisions of this Chapter10
may be temporarily employed by an employer participating in this plan, subject to11
the following limitations. If a retiree is under age sixty-five or has not been retired12
at least three years, he may be employed no more than four hundred eighty hours in13
a calendar year. If a retiree is age sixty-five or older and has been retired at least14
three years, he may be employed no more than one thousand forty hours in a15
calendar year. However, if the retiree is employed longer than the maximum hours16
stated above, his retirement benefit will be reduced by the amount earned after the17
allowed number of hours.18
B.(1) C.(1) If the retired member, who is otherwise eligible, becomes19
permanently employed by an employer participating in this plan, the retired member20
and the employer shall immediately notify the board of the retiree's date of21
employment, the amount of his monthly salary, any changes in salary, number of22
hours employed per week, estimated duration of employment, and date of23
termination of employment. However, this Section shall not apply to retirees who24
are elected to office and are prohibited from joining this system under Article X,25
Section 29.1(A) of the Constitution of Louisiana.26
(2) At the time the retired member returns to permanent employment, the27
benefit of the retiree shall be suspended and he shall be considered as returning to28
active service and employee and employer contributions shall resume.29 HLS 12RS-109 ORIGINAL
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C. D. Upon subsequent termination of employment of a retired contributing1
member, the retired contributing member shall begin receiving his original2
retirement benefit and shall receive an additional benefit based on his additional3
service and the compensation earned during the period of additional service.4
D. E. Notwithstanding the provisions of R.S. 11:1902(12)(a) or 1921(A)(3),5
if a retired member of the system is subsequently elected to an office covered by the6
system, sixty days after taking the oath of office his monthly retirement benefit shall7
be reduced by the amount of his monthly earnings.8
* * *9
§2078. Reemployment of retirees10
A. Any service retiree of this system who retires on or after July 1, 2012,11
shall be subject to the provisions of R.S. 11:149. Except as provided by R.S. 11:149,12
the provisions of this Section shall apply to any service retiree who retires and13
returns to active service covered by the provisions of this Chapter.14
B. In the event any retiree of the system is employed by an employer covered15
by this system, the retiree and the employer shall immediately notify the system of16
the retiree's date of employment, the amount of salary paid, any changes in salary17
while reemployed, number of hours employed per week, estimated duration of18
employment, and date of termination of reemployment.19
B.(1) C.(1) Any retiree may be employed by an employer covered by this20
system without suspension of benefits provided the retiree has terminated21
employment for at least six consecutive months. Such retiree may be employed for22
no more than sixty days, or four hundred eighty hours, in a calendar year. Should23
the portion of the calendar year available for employment be less than twelve24
months, the period of employment without reduction in benefits shall be reduced on25
a pro rata basis.26
(2) Should any retiree be employed in excess of the amount of time provided27
for in Paragraph (1) of this Subsection, his retirement benefit shall be reduced by an28
amount equal to the amount earned in excess of the limitation. The reduction in29 HLS 12RS-109 ORIGINAL
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benefits shall begin with the next payroll after the system receives notification of1
such employment.2
C. D. Should any retiree be employed by an employer covered by this system3
within six months of termination of employment, his retirement benefit shall be4
reduced by an amount equal to that earned during such employment. Such reduction5
shall begin with the next payroll after the system receives notification of such6
employment.7
D. E. Should any retiree who retires on or before June 30, 2012, return to8
full-time permanent employment by an employer covered by this system at any time9
after termination of employment, his retirement benefit shall be suspended and he10
shall become an active contributing member of the system. Upon his subsequent11
retirement, he shall receive his original benefit plus a supplemental benefit based on12
his salary and service earned since his reemployment. No change shall be permitted13
in the member's original option; however, at the end of the period of reemployment,14
the member shall select any option authorized as to any supplemental benefit earned.15
* * *16
§2175. Blanket fidelity insurance policy; powers of board; refund of contributions;17
restrictions on payments; warrants; deposits; investments18
* * *19
E.20
* * *21
(7) The provisions of this Subsection shall not apply to any member who22
retires on or after July 1, 2012; such persons shall be subject to the provisions of R.S.23
11:149.24
* * *25
§2220. Benefits; contribution limit26
A. Eligibility for normal retirement, early retirement, and limitations.27
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(1)1
* * *2
(e) Regardless Except as provided by R.S. 11:149, regardless of age, if a3
retiree of this system becomes an employee as defined in R.S. 11:2213(11), payment4
of retirement benefits shall be suspended and the employee and employer shall5
contribute to the system toward creditable service.6
(f) Upon Except as provided by R.S. 11:149, upon termination of7
employment, the monthly benefit which had been suspended shall resume being paid8
to the retiree. The retiree may not change the option which was elected under the9
original retirement computation.10
(g) Upon Except as provided by R.S. 11:149, upon termination of11
employment, the retiree shall receive an additional retirement benefit based on his12
additional service rendered since reemployment using the normal method of13
computation of benefits or as provided in Subparagraph (h) of this Paragraph, subject14
to the following:15
* * *16
§2256. Benefits; refund of contributions, application, and payment17
A.18
* * *19
(5)(a) Upon returning For any member who retirees on or before June 30,20
2012, and returns to work as a full-time employee covered by this system, retirement21
benefits shall cease and the employee and employer shall contribute to the system22
towards creditable service. The member may not change the option which was23
selected under the first retirement computation.24
(b) Any member who retires on or after July 1, 2012, shall be subject to the25
provisions of R.S. 11:149.26
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Section 2. This Act shall become effective on July 1, 2012, if vetoed by the governor1
and subsequently approved by the legislature, this Act shall become effective on July 1,2
2012, or on the day following such approval by the legislature, whichever is later.3
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)]
Talbot HB No. 14
Abstract: Relative to state and statewide retirement systems, requires the suspension of
benefits for reemployed retirees who retire on or after July 1, 2012, and prohibits the
accrual of additional benefits during such period.
Proposed law, relative to state and statewide retirement systems, requires the suspension of
benefits for reemployed retirees of such systems who retire on or after July 1, 2012, and
prohibits the accrual of additional benefits during such period. Furthermore, proposed law
requires employers and reemployed retirees to notify the systems of reemployment.
Requires the employer to compensate the system for any benefit payments to reemployed
retirees if the system has not received the required notification of reemployment.
Various provisions of present law provide with respect to reemployed retirees in the 13 state
and statewide retirement systems in the following manner. Present law remains applicable
to members who retire on or before June 30, 2012.
STATE RETIREMENT SYSTEMS
(1)La. State Employees' Retirement System (LASERS) - provides three options for a
reemployed retiree. Option 1: The retiree's earnings while reemployed cannot
exceed 50% of his annual retirement benefit in a fiscal year. If his earnings exceed
the 50% cap, his retirement benefits shall be reduced by the amount over the 50%
cap; Option 2: The retiree may regain membership in the retirement system by
paying back all his benefits plus interest plus all employer and employee
contributions that would have been paid; Option 3: The retiree may request a
suspension of his benefits. If he works past 36 months, he accumulates a
supplemental benefit.
(2)Teachers' Retirement System of Louisiana (TRSL) - generally requires suspension
of benefits during reemployment but authorizes certain "retired teachers" to receive
a retirement benefit during reemployment.
(3)La. School Employees' Retirement System (LSERS) - provides for a two-fold
approach to reemployed retirees: (a) The "50% rule", which is the default option for
rehired retirees. Under this rule, the retiree's earnings in a given year cannot exceed
50% of his "average compensation"; (b) The "100% rule" provides that if a retiree
is reemployed within 12 months of his retirement date, his benefit will be suspended.
After 12 months has passed (from his date of retirement), he can start collecting his
benefit. The "100% rule" is only available to retired bus drivers, and is a voluntary
reemployment option for individual employers who must pay the actuarial cost of
reemploying such person under the "100% rule". HLS 12RS-109 ORIGINAL
HB NO. 14
Page 17 of 18
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(4)State Police Pension and Retirement System (STPOL) - provides that if a retiree is
reemployed and his earnings exceed 50% of his average final compensation, his
benefit shall be suspended.
STATEWIDE RETIREMENT SYSTEMS
(1)La. Assessor's Retirement Fund (LARF) - provides that if a retiree is reemployed for
more than 100 working days, the benefits payable to him shall be reduced by the
amount he earned (in salary) after 30 working days.
(2)Clerks' of Court Retirement and Relief Fund (CCRS) - if a retiree is reemployed for
more than 60 working days, the benefits payable to him shall be reduced by the
amount of salary earned after 60 working days.
(3)District Attorneys' Retirement System (DARS) - provides that a reemployed retiree's
benefits are suspended, but during the period of reemployment he shall accrue a
supplemental benefit. Provides an exception allowing a district attorney or assistant
district attorney to be reemployed without having his benefit suspended if his salary
is less than $45,000, but he shall not accrue a supplemental benefit while
reemployed.
(4)Municipal Employees' Retirement System (MERS) - provides that a reemployed
retiree's benefits shall continue only if his monthly earnings (salary) are equal to or
less than the difference between his average final compensation and his retirement
benefits. If his salary exceeds this difference, then his benefits will be reduced by
the amount of such difference.
(5)Parochial Employees' Retirement System (PERS) - provides that a reemployed
retiree who has been retired at least three years and is 65 or older, may work for up
to 1,040 hours in the calendar year. A retiree who does not meet these criteria may
work up to 480 hours during the calendar year. If a retiree exceeds such limits, his
retirement benefit will be reduced by the amount of salary earned in excess of those
limits.
(6)Registrars of Voters Employees' Retirement System (ROVERS) - provides that a
retiree can be rehired without a suspension in benefits if he has terminated
employment for at least six months and is employed for no more than 60 days or 480
hours in a calendar year. Employment in excess of this requires a reduction of the
benefit by an amount equal to the amount earned in excess of the limitation. Any
retiree reemployed within six months shall have his benefit reduced by the amount
earned during his reemployment. For any retiree returning to work full-time, his
benefit will be suspended during reemployment, and he will earn a supplemental
benefit for such period.
(7)Sheriffs' Pension and Relief Fund (SPRF) - provides that a reemployed retiree may
return to work part time, in which case his earnings shall not exceed 50% of his final
average compensation; however, a full-time reemployed retiree's benefits shall be
suspended during reemployment, but he shall accrue a supplemental benefit.
(8)Municipal Police Employees' Retirement System (MPERS) - provides that a
reemployed retiree's benefit shall be suspended but the retiree shall accumulate a
supplemental benefit during his period of reemployment. HLS 12RS-109 ORIGINAL
HB NO. 14
Page 18 of 18
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(9)Firefighters' Retirement System (FRS) - provides that a reemployed retiree's benefit
shall be suspended, but such person shall earn a supplemental benefit during the
period of his reemployment.
Effective July 1, 2012.
(Amends R.S. 11:149, 416(A)(intro. para.), 710(A), (F), and (G), 1006, 1007(A)(1), 1311,
1413, 1513, 1631(F), 1762, 1928, 2078, 2220(A)(1)(e), (f), and (g)(intro. para.), 2256(A)(5);
Adds R.S. 11:416(D) and 2175(E)(7))