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words in boldface type and underscored are additions.
Regular Session, 2012 ENROLLED
SENATE BILL NO. 31
BY SENATOR HEITMEIER
AN ACT1
To amend and reenact R.S. 11:728(C)(1)(a) and (b)(ii) and (iii) and (2)(a) and (b) and R.S.2
17:3997(A)(2) and (3) and to repeal Act 999 of the 2010 Regular Session, relative3
to the Teachers' Retirement System of Louisiana; to provide relative to membership4
in the system of charter school teachers; to provide for purchase of service credit by5
charter school teachers; to provide for an effective date; and to provide for related6
matters.7
Notice of intention to introduce this Act has been published.8
Be it enacted by the Legislature of Louisiana:9
Section 1. R.S. 11:728(C)(1)(a) and (b)(ii) and (iii) and (2)(a) and (b) are hereby10
amended and reenacted to read as follows:11
§728. Prior service credit12
* * *13
C.(1)(a) Notwithstanding any other provision of this Chapter or of any other14
law to the contrary, any person who is a member of this system shall be eligible to15
obtain credit in this system for teaching service rendered in any charter school,16
nonpublic college or university in Louisiana , and/or state approved elementary or17
secondary nonpublic or parochial school in Louisiana.18
(b)(i) * * *19
(ii) In addition, if the member is eligible to retire at the time he establishes20
credit for such service, there shall be paid into the system an amount equal to the21
present value of the additional retirement benefit payable on account of his service22
in charter schools or nonpublic or parochial schools or colleges should he retire at23
the time credit for such service is established.24
(iii) If the member is not eligible to retire at the time he establishes credit for25
service in charter schools or nonpublic or parochial schools or colleges, there shall26
be paid into the system an amount which, if invested at regular interest, would27
ACT No. 298 SB NO. 31 ENROLLED
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accumulate to an amount equal to the present value of the additional retirement1
benefit payable on account of his service in charter schools or nonpublic or2
parochial schools or colleges should the member continue until the earliest date he3
is eligible to retire.4
(2)(a) In determining the present value of the additional benefit payable on5
account of service in charter schools or nonpublic or parochial schools or colleges6
and the amounts to be paid for credit for such service, regular interest, salary scales7
used to project future salary increases, and the tables of the system as adopted by the8
board of trustees shall be utilized.9
(b) Amounts paid to establish credit for teaching service in charter schools10
or nonpublic or parochial schools or colleges shall be credited to the member's11
account in the Annuity Savings Fund. Such amounts shall be paid in one lump sum.12
* * *13
Section 2. R.S. 17:3997(A)(2) and (3) are hereby amended and reenacted to read as14
follows:15
§3997. Charter school employees16
A.(1) * * *17
(2) Employees employed by any charter school who, previous to employment18
in the charter school, were employees of a local school board shall, if such19
employees desire, be placed on leave of absence pursuant to Subsection B of this20
Section. However, for the duration of such leave each such employee shall continue21
to contribute to and be eligible for a member of the school employees' and or22
teachers' retirement systems system, and earn service time credit for the accrual of23
retirement benefits. However, service time while employed by a charter school shall24
not accrue toward the acquisition of permanent status.25
(3)(a) Employment in any charter school for all employees other than those26
provided for in Paragraph (2) of this Subsection shall be deemed to be employment27
in a public elementary or secondary school in the state regarding eligibility for any28
or all benefits which would otherwise accrue under state law to such an employee in29
any other elementary or secondary school, including but not limited to membership30 SB NO. 31 ENROLLED
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in the school employees' and teachers' retirement systems. However, participation1
of the charter school and its employees in such benefit programs shall be contingent2
upon provisions contained in the school's approved charter.3
(b)(i) The provisions of such charter may require only teachers employed4
by the charter school who previous to employment in the charter school were5
employees of a local school board to continue active membership in the6
Teachers' Retirement System of Louisiana for the duration of their employment7
as charter school teachers, regardless of their leave status.8
(ii) The provisions of Item (i) of this Subparagraph enacted by the Act9
that originated as Senate Bill No. 31 of the 2012 Regular Session of the10
Legislature shall not become effective until the Teachers' Retirement System of11
Louisiana is in receipt of a private letter ruling issued by the Internal Revenue12
Service, pursuant to a request by the system for such a ruling, concluding that13
the provisions of Item (i) of this Subparagraph will not adversely affect the14
status of the system as a qualified governmental plan under the Internal15
Revenue Code.16
* * *17
Section 2. Act 999 of the 2010 Regular Session is hereby repealed.18
Section 3. This Act shall become effective on July 1, 2012; if vetoed by the governor19
and subsequently approved by the legislature, this Act shall become effective on July 1,20
2012, or on the day following such approval by the legislature, whichever is later.21
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: