HLS 12RS-218 REENGROSSED Page 1 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Regular Session, 2012 HOUSE BILL NO. 19 BY REPRESENTATIVES HOFFMANN, BARROW, WESLEY BISHOP, BROWN, BURFORD, HENRY BURNS, CARMODY, CHANEY, COX, DIXON, GAINES, HARRIS, HILL, HOLLIS, HOWARD, HUNTER, KATRINA JACKSON, JAMES, JEFFERSON, JOHNSON, JONES, KLECKLEY, LEGER, LIGI, MONTOUCET, JAY MORRIS, NORTON, PEARSON, POPE, PRICE, PYLANT, REYNOLDS, SMITH, THOMPSON, ALFRED WILLIAMS, AND WILLMOTT RETIREMENT/TEACHERS: Relative to the Teachers' Retirement System of La. (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)(5), 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 for5 reporting to the system; 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)(5) is hereby enacted to read as follows: 12 §710. 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 12RS-218 REENGROSSED HB NO. 19 Page 2 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. 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 (5) A retired member who returns to active service covered by the provisions15 of this Chapter as a substitute classroom teacher who teaches any student in pre-16 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 B.(1)(a) Any retired teacher who returns to active service covered by the24 provisions of this Chapter within the twelve-month period immediately following the25 effective date of such retirement shall have his retirement benefits suspended for the26 duration of such active service or the lapse of twelve months from the effective date27 of his retirement, whichever occurs first, even if such service is based on28 employment by contract or corporate contract. If a retired member returns to active29 HLS 12RS-218 REENGROSSED HB NO. 19 Page 3 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. service in a position qualifying him as a retired teacher under more than one1 provision of this Section providing for earnings limitations, the most restrictive2 earnings limitation shall apply to the total earnings of the retired teacher for all such3 positions in a fiscal year.4 * * *5 C.6 * * *7 (2) Any retired member not considered a retired teacher as defined in8 Subsection A of this Section shall have his benefit suspended for the duration of his9 period of reemployment in such position even if such reemployment is based on10 employment by contract or corporate contract. Such member and his employer shall11 not make contributions to the system during such time, and he shall receive no12 additional service credit nor accrue any additional retirement benefits.13 * * *14 D. When any retiree returns to active service with an employer covered by15 the provisions of this Chapter, the employing agency shall, within thirty days16 thereafter, notify the board of trustees in writing of such employment, the date on17 which employment commenced, and a determination by the employer as to whether18 such person is a "retired teacher" pursuant to Subsection A of this Section. Upon19 termination, the agency shall provide the same notice. In addition, the employing20 agency shall also report to the retirement system, within forty-five days after June21 thirtieth of each year, the name of all persons being paid by the employing agency22 and all persons who received a benefit pursuant to the provisions of this Section,23 their along with such individuals' social security numbers, their positions, and the24 amount of their earnings during the previous fiscal year ending on June thirtieth of25 the reporting year. Additionally, the employing agency shall transmit a monthly26 contributions report pursuant to R.S. 11:888(A). Contribution reports shall include27 the salary paid to each individual identified as a retired teacher as defined in28 Subsection A of this Section. Should failure to give notice of return to active service29 HLS 12RS-218 REENGROSSED HB NO. 19 Page 4 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. or failure to report any other information required by this Section result in any1 payment being made in violation of this Section, the employing agency shall be2 liable to the system for the repayment of such amounts.3 * * *4 Section 2. R.S. 11:710(H) is hereby repealed in its entirety.5 Section 3. The cost of this Act, if any, shall be funded with additional employer6 contributions in compliance with Article X, Section 29(F) of the Constitution of Louisiana.7 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)] Hoffmann HB No. 19 Abstract: Authorizes a retired member of the Teachers' Retirement System of La. (TRSL) to return to work as a substitute classroom teacher and continue to receive a retirement benefit; limits amount earned from such reemployment to 25% of the member's retirement benefit; provides relative to reporting requirements. 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-12 in a "critical shortage area". (2)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. (3)Any other retired member reemployed on or before June 30, 2010. (4)Any retired member who retired between May 1, 2009, and June 30, 2010, who returns to active service in a position requiring a valid La. teaching certificate or a valid La. ancillary certificate. 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 pre-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 an earnings limitation shall not exceed the most restrictive limit if such retired teacher is reemployed in multiple positions subject to a limit. HLS 12RS-218 REENGROSSED HB NO. 19 Page 5 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Present law requires each employer to annually 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. Proposed law changes the date of such reporting to within 45 days after June 30. Removes requirement for 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 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, §29(F) of the Constitution of La. (Amends R.S. 11:710(A)(1), (B)(1)(a), (C)(2), and (D); Adds R.S. 11:710(A)(5); Repeals R.S. 11:710(H)) Summary of Amendments Adopted by House House Floor Amendments to the engrossed bill. 1. Makes proposed law applicable to substitute pre-kindergarten teachers.