Louisiana 2012 2012 Regular Session

Louisiana Senate Bill SB19 Introduced / Bill

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Regular Session, 2012
SENATE BILL NO. 19
BY SENATOR CORTEZ 
TEACHERS RETIREMENT.  Provides relative to the Teachers' Retirement System of La.
and provides relative to rehired retirees. (2/3 - CA 10s29(F)) (7/1/12)
AN ACT1
To amend and reenact R.S. 11:710(A)(1) and (4), (B)(1)(a), (C)(2), and (D), and to repeal2
R.S. 11:710(H), relative to the Teachers' Retirement System of Louisiana; to allow3
certain retirees reemployed as substitute teachers to receive benefits during4
reemployment; to provide limitations; to provide for an effective date; and to provide5
for related matters.6
Notice of intention to introduce this Act has been published.7
Be it enacted by the Legislature of Louisiana:8
Section 1. R.S. 11:710(A)(1) and (4), (B)(1)(a), (C)(2) and (D) are hereby amended9
and reenacted to read as follows: 10
ยง710. Employment of retirees11
A. For purposes of this Section, "retired teacher" shall mean any of the12
following:13
(1) A retired member who returns to active service covered by the provisions14
of this Chapter as a full-time or part-time classroom teacher who teaches any student15
in kindergarten through twelfth grade in a critical teacher shortage area.  For16
purposes of this Paragraph, "critical shortage area" shall mean any subject area17 SB NO. 19
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where a shortage of certified teachers exists in that subject area, subject to the1
provisions of Subsection F of this Section. For purposes of this Paragraph Section,2
"classroom teacher" shall mean any employee, whose position of employment3
requires a valid Louisiana teaching certificate and who is assigned the professional4
activities of instructing pupils in courses in classroom situations for which daily5
pupil attendance figures for the school system are kept. Such classroom situations6
may include teaching in a school classroom or in other settings such as a home or7
hospital or other learning situations such as cocurricular activities, which instruction8
may be provided in person or through an approved medium such as television, radio,9
computer, Internet, multimedia telephone, and correspondence that is delivered10
inside or outside the classroom or in other teacher-student settings.11
*          *          *12
(4) A retired member who returns to active service covered by the provisions13
of this Chapter who retired on or after May 1, 2009, and on or before June 30, 2010,14
in a position requiring a valid Louisiana teaching certificate or a valid Louisiana15
ancillary certificate as a substitute classroom teacher who teaches any student in16
kindergarten through twelfth grade. For purposes of this Paragraph17
"substitute classroom teacher" shall mean a classroom teacher employed in a18
temporary capacity to fill the position of another classroom teacher who is19
unavailable to teach for any reason.  Such substitute classroom teacher's20
earnings from his return to active service shall not exceed twenty-five percent21
of his benefit during any fiscal year.  If actual earnings exceed this amount in22
any fiscal year, the benefits payable to the retiree shall be reduced by the23
amount in excess of twenty-five percent of his benefit.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 SB NO. 19
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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 than2
one provision of this Section providing for an earnings limitation of twenty-five3
percent of his retirement benefit in any fiscal year, the twenty-five percent4
earnings limitation shall apply to the total earnings of such retired teacher for5
all such 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 reemployment is based on12
employment by contract or corporate contract. Such member and his employer13
shall not make contributions to the system during such time, and he shall receive no14
additional service credit nor accrue any additional retirement benefits.15
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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 this25
Section, their along with such individuals' social security numbers, their positions,26
and the amount of their earnings during the previous fiscal year ending on June27
thirtieth of the reporting year. Additionally, the employing agency shall transmit28
a monthly contributions report pursuant to R.S. 11:888(A). Such monthly29 SB NO. 19
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reports shall be transmitted within thirty days of the last day of each month and1
shall include the salary paid to all individuals identified as a "retired teacher"2
pursuant to Subsection A of this Section. Should failure to give notice of return to3
active service or failure to report any other information required by this Section4
result in any payment being made in violation of this Section, the employing agency5
shall be liable to the system for the repayment of such amounts.6
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Section 2. R.S. 11:710(H) is hereby repealed in its entirety.8
Section 3. The cost of this Act, if any, shall be funded with additional employer9
contributions in compliance with Article X, Section 29(F) of the Constitution of Louisiana.10
Section 4. This Act shall become effective on July 1, 2012; if vetoed by the governor11
and subsequently approved by the legislature, this Act shall become effective on July 1,12
2012, or on the day following such approval by the legislature, whichever is later.13
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Lauren B. Bailey.
DIGEST
Present law prohibits any retiree of the Teachers' Retirement System of Louisiana (TRSL)
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 through 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. Member reemployed on or before June
30, 2010.
(3)Any retired member who returns to active service on or before June 30, 2010.
(4)Any retired member who returns to active service who retired on or after May 1,
2009, and on or before June 30, 2010, in a position requiring a valid Louisiana
teaching certificate or a valid Louisiana ancillary certificate.
Proposed law retains present law (1), (2), and (3); however, replaces (4) with 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 SB NO. 19
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retirement benefit will be reduced by the amount in excess of the 25%.
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 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 	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, 2012.
(Amends R.S. 11:710(A)(1) and (4), (B)(1)(a), (C)(2), and (D); repeals R.S. 11: 710 (H))