Louisiana 2012 2012 Regular Session

Louisiana Senate Bill SB19 Engrossed / Bill

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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
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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
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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
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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
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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
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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.