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Regular Session, 2012
HOUSE BILL NO. 38
BY REPRESENTATIVE JONES
RETIREMENT SYSTEMS: Provides relative to certain rehired retirees
AN ACT1
To enact R.S. 11:142(M), relative to the payment of retirement benefits; to provide for2
reports when such benefits should be stopped; to provide for certification by the3
employee; to provide relative to the fiduciary duty of affected boards; to provide4
relative to the recovery of erroneously paid benefits; and to provide for related5
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. 11:142(M) is hereby enacted to read as follows: 11
ยง142. Reciprocal recognition of credited service in state, parochial, and municipal12
systems13
* * *14
M.(1) If a retired member covered by the provisions of this Section returns15
to active service in any state, municipal, or parochial system, and the employing16
agency notifies the system that such member is a reemployed retiree, then the system17
in which the retiree becomes a member by virtue of the return shall be responsible18
for notifying all other retirement systems from which benefits are certified as being19
received, pursuant to Paragraph (2) of this Subsection, by the member so that any20 HLS 12RS-248 ENGROSSED
HB NO. 38
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benefit payments otherwise due can be stopped pursuant to Subsection D of this1
Section.2
(2)(a) A prospective employee shall be required to list on his employment3
application all Louisiana public retirement systems from which he is receiving a4
retirement benefit. The prospective employee shall sign immediately beneath such5
list a certification attesting that the list is true, complete, and accurate to the best of6
the employee's knowledge.7
(b) If a prospective employee certifies that he is receiving benefits from any8
Louisiana public retirement system, within ten calendar days of his employment a9
copy of his employment application containing such certification shall be sent by the10
employer to all such retirement systems certified on the application.11
Section 2. Notwithstanding any provision of law to the contrary, any retired member12
of the Municipal Employees' Retirement System who paid into that system for at least fifteen13
years and who was also a member of the Louisiana State Employees' Retirement System and14
paid into that system for at least three and one-half years and who retired under a reciprocal15
retirement agreement with said systems prior to the effective date of this Act and who16
erroneously received retirement benefits while reemployed shall not be required to refund17
such erroneously received retirement benefits to any system. The application of this Section18
shall not be considered a violation of any trustee's fiduciary duty.19
Section 3. This Act shall become effective upon signature by the governor or, if not20
signed by the governor, upon expiration of the time for bills to become law without signature21
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If22
vetoed by the governor and subsequently approved by the legislature, this Act shall become23
effective on the day following such approval.24 HLS 12RS-248 ENGROSSED
HB NO. 38
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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. 38
Abstract: Requires retirement systems to notify each other when certain retirees return to
work.
Present law authorizes a member of a retirement system or an eligible survivor of a member
of a retirement system to combine years of service in different state, municipal, and
parochial systems so that the employee or survivor may attain eligibility for retirement,
disability, or survivor benefits.
Present law provides that each employer shall pay the benefits due to the employee for credit
in such employer's system. Further provides that no employee who retires under a reciprocal
recognition of benefits agreement shall receive benefits from any system while he is
reemployed in a state, municipal, or parochial system.
Proposed law provides if a retiree under the provisions of present law returns to active
service in any state, municipal, or parochial system, and the employing agency notifies the
system that such retiree is a reemployed retiree, then the hiring system is responsible for
notifying all other retirement systems from which the member is receiving benefits so that
any benefit payments otherwise due can be stopped.
Further requires a prospective employee to list on his employment application all La. public
retirement systems from which he is receiving a retirement benefit. Requires the employee
to certify that the list is true, accurate, and complete to the best of his knowledge.
Further provides that if a prospective employee who certifies he is receiving benefits is
hired, the employer must forward to each listed retirement system, within 10 calendar days,
a copy of the employee's completed employment application.
Proposed law further provides that any class of persons who meet certain criteria established
in proposed law shall not have to pay back benefits received in error. Provides that
application of this provision shall not be considered a breach of any system trustee's
fiduciary duty.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Adds R.S. 11:142(M))
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Retirement to the original
bill.
1. Adds requirements that the employee identify the retirement systems from which
he is receiving benefits and that the employing agency notify its retirement
system of receipt of such benefits. Provides that such notice from the employing
agency triggers the system-to-system notification otherwise required by proposed
law.
2. Provides that application of proposed law shall not be considered a violation of
any trustee's fiduciary duty.