SLS 12RS-82 REENGROSSED Page 1 of 6 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Regular Session, 2012 SENATE BILL NO. 19 BY SENATORS CORTEZ AND WALSWORTH 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), to enact R.S.2 11:710(A)(5) and (6), and to repeal R.S. 11:710(H), relative to the Teachers'3 Retirement System of Louisiana; to provide for definitions; to allow certain retirees4 reemployed as substitute teachers to receive benefits during reemployment; to allow5 certain retirees reemployed as an instructor of adult education or literacy program6 to receive benefits during reemployment; to provide limitations; to provide for an7 effective date; and to provide for related matters.8 Notice of intention to introduce this Act has been published.9 Be it enacted by the Legislature of Louisiana:10 Section 1. R.S. 11:710(A)(1) and (4), (B)(1)(a), (C)(2) and (D) are hereby amended11 and reenacted and R.S. 11:710(A)(5) and (6) are hereby enacted to read as follows: 12 ยง710. 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 SB NO. 19 SLS 12RS-82 REENGROSSED Page 2 of 6 Coding: Words which are struck through are deletions from existing law; words in boldface type and 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 (4) A retired member who returns to active service covered by the provisions15 of this Chapter who retired on or after May 1, 2009, and on or before June 30, 2010,16 in a position requiring a valid Louisiana teaching certificate or a valid Louisiana17 ancillary certificate as a substitute classroom teacher who teaches any student in18 pre-kindergarten through twelfth grade. For purposes of this Paragraph19 "substitute classroom teacher" shall mean a classroom teacher employed in a20 temporary capacity to fill the position of another classroom teacher who is21 unavailable to teach for any reason. Such substitute classroom teacher's22 earnings from his return to active service shall not exceed twenty-five percent23 of his benefit during any fiscal year. If actual earnings exceed this amount in24 any fiscal year, the benefits payable to the retiree shall be reduced by the25 amount in excess of twenty-five percent of his benefit.26 (5) A retired member who holds an advanced degree in speech therapy,27 speech pathology, or audiology.28 (6) A retired member who has a valid Louisiana teaching certificate who29 SB NO. 19 SLS 12RS-82 REENGROSSED Page 3 of 6 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. returns to active service covered by the provisions of this Chapter who is1 assigned the professional activities of instructing adults through an adult2 education or literacy program administered through a public institution of3 elementary or secondary education. Such individual's earnings from his return4 to active service shall not exceed twenty-five percent of his benefit during any5 fiscal year. If actual earnings exceed this amount in any fiscal year, the benefits6 payable to the retiree shall be reduced by the amount in excess of twenty-five7 percent of his benefit.8 B.(1)(a) Any retired teacher who returns to active service covered by the9 provisions of this Chapter within the twelve-month period immediately following the10 effective date of such retirement shall have his retirement benefits suspended for the11 duration of such active service or the lapse of twelve months from the effective date12 of his retirement, whichever occurs first, even if such service is based on13 employment by contract or corporate contract. If any retired member returns to14 active service in a position qualifying him as a retired teacher under more than15 one provision of this Section providing for an earnings limitation of twenty-five16 percent of his retirement benefit in any fiscal year, the twenty-five percent17 earnings limitation shall apply to the total earnings of such retired teacher for18 all such positions in such fiscal year.19 * * *20 C.21 * * *22 (2) Any retired member not considered a retired teacher as defined in23 Subsection A of this Section shall have his benefit suspended for the duration of his24 period of reemployment in such position even if such reemployment is based on25 employment by contract or corporate contract. Such member and his employer26 shall not make contributions to the system during such time, and he shall receive no27 additional service credit nor accrue any additional retirement benefits.28 * * *29 SB NO. 19 SLS 12RS-82 REENGROSSED Page 4 of 6 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. D. When any retiree returns to active service with an employer covered by1 the provisions of this Chapter, the employing agency shall, within thirty days2 thereafter, notify the board of trustees in writing of such employment, the date on3 which employment commenced, and a determination by the employer as to whether4 such person is a "retired teacher" pursuant to Subsection A of this Section. Upon5 termination, the agency shall provide the same notice. In addition, the employing6 agency shall also report to the retirement system within forty-five days after June7 thirtieth of each year, the name of all persons being paid by the employing agency8 and all persons having received a benefit pursuant to the provisions of this9 Section, their along with such individuals' social security numbers, their positions,10 their designation as part-time or full-time, and the amount of their earnings during11 the previous fiscal year ending on June thirtieth of the reporting year. Additionally,12 the employing agency shall transmit a monthly contributions report pursuant13 to R.S. 11:888(A). Such monthly reports shall be transmitted within thirty days14 of the last day of each month and shall include the salary paid to all individuals15 identified as a "retired teacher" pursuant to Subsection A of this Section.16 Should failure to give notice of return to active service or failure to report any17 other information required by this Section result in any payment being made in18 violation of this Section, the employing agency shall be liable to the system for the19 repayment of such amounts.20 * * *21 Section 2. R.S. 11:710(H) is hereby repealed in its entirety.22 Section 3. The cost of this Act, if any, shall be funded with additional employer23 contributions in compliance with Article X, Section 29(F) of the Constitution of Louisiana.24 Section 4. This Act shall become effective on July 1, 2012; if vetoed by the governor25 and subsequently approved by the legislature, this Act shall become effective on July 1,26 2012, or on the day following such approval by the legislature, whichever is later.27 SB NO. 19 SLS 12RS-82 REENGROSSED Page 5 of 6 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. The original instrument was prepared by Lauren Bailey. The following digest, which does not constitute a part of the legislative instrument, was prepared by Michelle Broussard-Johnson. DIGEST Cortez (SB 19) 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. 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 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 adds to the definition of "retired teacher": (a)retired members who are instructing adults through adult education of literacy programs administered through a public institution of elementary or secondary education, and (b)retired members who hold advanced degrees in speech therapy, speech pathology, and audiology. 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. Requires reporting of whether the reemployment is part-time or full-time. 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. SB NO. 19 SLS 12RS-82 REENGROSSED Page 6 of 6 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. 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); adds R.S. 11:710(A)(5) and (6); repeals R.S. 11: 710 (H)) Summary of Amendments Adopted by Senate Senate Floor Amendments to engrossed bill. 1. Technical amendments made. 2. Adds the group of those retired holding an advanced degree in speech therapy, speech pathology, or audiology to the definition of "retired teacher". 3. Changes application to substitutes from K through 12 classroom teachers to pre-K through 12 classroom teachers. 4. Adds certain retirees who are reemployed as instructors of adult education or literacy programs to those who may receive benefits during reemployment. Limits the earnings to 25% of benefits during any fiscal year.