HLS 14RS-450 ORIGINAL Page 1 of 9 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Regular Session, 2014 HOUSE BILL NO. 29 BY REPRESENTATIVE COX RETIREMENT/TEACHERS: Provides relative to rehired retirees of the Teachers' Retirement System of Louisiana AN ACT1 To amend and reenact R.S. 11:710, relative to the rehiring of retirees in the Teacher's2 Retirement System of Louisiana; to provide relative to eligibility; to provide relative3 to salary restrictions; to provide relative to reporting requirements; to provide4 relative to suspension of benefits in certain circumstances; 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. 11:710 is hereby amended and reenacted to read as follows:11 §710. Employment of retirees12 A.(1) A retired member's earnings from his return to active service shall not13 exceed twenty-five percent of his benefit during any fiscal year. If actual earnings14 exceed this amount, the benefits payable to the retiree shall be reduced by the15 amount in excess of twenty-five percent of his benefit.16 (2) The earnings limitation provided in Paragraph (1) of this Subsection shall17 not apply to the earnings of a retired teacher. For purposes of this Section, "retired18 teacher" shall mean any of the following:19 HLS 14RS-450 ORIGINAL HB NO. 29 Page 2 of 9 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (1)(a) A retired member who returns to active service covered by the1 provisions of this Chapter as a full-time or part-time classroom teacher who teaches2 any student in kindergarten through twelfth grade in a critical teacher shortage area.3 For purposes of this Paragraph Subparagraph, "critical shortage area" shall mean any4 subject area where a shortage of certified teachers exists in that subject area, subject5 to the provisions of Subsection F of this Section. For purposes of this Section,6 "classroom teacher" shall mean any employee, whose position of employment7 requires a valid Louisiana teaching certificate and who is assigned the professional8 activities of instructing pupils in courses in classroom situations for which daily9 pupil attendance figures for the school system are kept. Such classroom situations10 may include teaching in a school classroom or in other settings such as a home or11 hospital or other learning situations such as cocurricular activities, which instruction12 may be provided in person or through an approved medium such as television, radio,13 computer, Internet, multimedia telephone, and correspondence that is delivered14 inside or outside the classroom or in other teacher-student settings. F. No such15 retired member "retired teacher" as defined in Paragraph (A)(1) of this Section shall16 receive a benefit during the period of his reemployment as provided in excess of the17 limitation provided for in Paragraph (1) of this Section Subsection unless and until18 the superintendent and personnel director of his employing school have certified to19 the Board of Elementary and Secondary Education and the board of trustees of this20 system that a shortage of teachers exists in the critical shortage area in which the21 retired teacher was hired to teach. Prior to making such certification for any full-22 time teaching position, the employer shall cause to be advertised in the official23 journal of the employer's governing authority, on two separate occasions, notice that24 a shortage of certified teachers exists and the positions sought to be filled. If a25 certified applicant who is not a retiree applies for an advertised position, such person26 shall be hired before any certified retired teacher is employed, unless fewer than27 three teachers have applied for the position each of whom are certified in the critical28 shortage area being filled.29 HLS 14RS-450 ORIGINAL HB NO. 29 Page 3 of 9 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (2)(b) A retired member who returns to active service as a full-time certified1 speech therapist, speech pathologist, or audiologist whose position of employment2 requires a valid Louisiana ancillary certificate approved and issued by the state3 Department of Education in a school district where a shortage exists. G. No such4 retired member "retired teacher" as defined in Paragraph (A)(2) of this Section shall5 receive a benefit during the period of his reemployment as provided in excess of the6 limitation provided for in Paragraph (1) of this Section Subsection unless and until7 the employing school board has certified to the Board of Elementary and Secondary8 Education and the board of trustees of this system that a shortage of speech9 therapists, speech pathologists, or audiologists exists in the school district where10 reemployed.11 (3)(c) A retired member who returns to active service covered by the12 provisions of this Chapter on or before June 30, 2010.13 (4)(d) A retired member who returns to active service covered by the14 provisions of this Chapter who retired on or after May 1, 2009, and on or before June15 30, 2010, in a position requiring a valid Louisiana teaching certificate or a valid16 Louisiana ancillary certificate.17 (5) A retired member who returns to active service covered by the provisions18 of this Chapter as a substitute classroom teacher who teaches any student in pre-19 kindergarten through twelfth grade. For purposes of this Paragraph "substitute20 classroom teacher" shall mean a classroom teacher employed in a temporary capacity21 to fill the position of another classroom teacher who is unavailable to teach for any22 reason. Such substitute classroom teacher's earnings from his return to active service23 shall not exceed twenty-five percent of his benefit during any fiscal year. If actual24 earnings exceed this amount in any fiscal year, the benefits payable to the retiree25 shall be reduced by the amount in excess of twenty-five percent of his benefit.26 (6)(e) A retired member who holds an advanced degree in speech therapy,27 speech pathology, or audiology.28 HLS 14RS-450 ORIGINAL HB NO. 29 Page 4 of 9 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (7) A retired member who has a valid Louisiana teaching certificate who1 returns to active service covered by the provisions of this Chapter who is assigned2 the professional activities of instructing adults through an adult education or literacy3 program administered through a public institution of elementary or secondary4 education. Such individual's earnings from his return to active service shall not5 exceed twenty-five percent of his benefit during any fiscal year. If actual earnings6 exceed this amount in any fiscal year, the benefits payable to the retiree shall be7 reduced by the amount in excess of twenty-five percent of his benefit.8 (8) A retired member who returns to active service covered by the provisions9 of this Chapter as an adjunct professor. For purposes of this Paragraph "adjunct10 professor" shall mean part-time faculty, including instructors, assistant professors,11 associate professors, and professors, assigned the professional activities of12 instructing pupils or conducting research at a public institution of postsecondary13 education. Such instruction may be provided in person or through an approved14 medium such as television, radio, computer, Internet, multimedia telephone, or15 correspondence and may be delivered inside or outside the classroom or in other16 teacher-student settings. Such an adjunct professor's earnings from his return to17 active service shall not exceed twenty-five percent of his benefit during any fiscal18 year. If actual earnings exceed this amount in any fiscal year, the benefits payable19 to the retiree shall be reduced by the amount in excess of twenty-five percent of his20 benefit.21 (3) If a retired member returns to active service in more than one position22 and any position is subject to the earnings limitation provided in Paragraph (1) of23 this Subsection, the earnings limitation shall apply to the total earnings of the retired24 member for all the member's covered employment in a fiscal year.25 B.(1)(a) Any retired teacher member who returns to active service covered26 by the provisions of this Chapter within the twelve-month period immediately27 following the effective date of such his retirement shall have his retirement benefits28 suspended for the duration until termination of such active service or the lapse of29 HLS 14RS-450 ORIGINAL HB NO. 29 Page 5 of 9 CODING: Words in struck through type are deletions from existing law; words underscored are additions. twelve months from the effective date of his retirement, whichever occurs first, even1 if such service is based on employment by contract or corporate contract. If any2 retired member returns to active service in a position qualifying him as a retired3 teacher under more than one provision of this Section providing for earning4 limitations, the most restrictive earnings limitation shall apply to the total earnings5 of the retired teacher for all such positions in a fiscal year.6 (b) If the reemployment of a retired teacher member is based on an7 agreement between the retired teacher member and his employer where such and the8 agreement was perfected prior to such teacher's the member's effective date of9 retirement and where the agreement allows for such a teacher to become reemployed10 within twelve months immediately following the effective date of the teacher's his11 retirement, such teacher shall not be the member is not eligible to receive retirement12 benefits for the twelve-month period immediately following the effective date of13 such reemployment, regardless of whether such agreement is express or implied.14 The provisions of this Subparagraph shall be applied prospectively beginning on15 July 1, 2001.16 (c) The twelve-month period immediately following the effective date of a17 retired teacher's retirement shall be known as the "waiting period".18 (2) Any retired teacher member who retires based on a disability shall not19 be authorized to return to service pursuant to the provisions of this Section.20 Disability retirees shall be covered by the provisions of this Chapter applicable to21 disability retirees.22 C.(1) C. During the period of his return to active service, the retired teacher23 member and his employer shall make contributions to the retirement system as24 provided by this Chapter, but such teacher shall receive no additional service credit25 nor accrue any additional retirement benefits in the retirement system. Upon26 termination of such active service, the retired teacher shall, upon application, be27 refunded the employee contributions paid since reemployment. The refund shall be28 without interest. The retirement system shall retain the employer contributions.29 HLS 14RS-450 ORIGINAL HB NO. 29 Page 6 of 9 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (2) Any retired member not considered a retired teacher as defined in1 Subsection A of this Section shall have his benefit suspended for the duration of his2 period of reemployment in such position even if such reemployment is based on3 employment by contract or corporate contract. Such member and his employer shall4 not make contributions to the system during such time, and he shall receive no5 additional service credit nor accrue any additional retirement benefits.6 (3) The provisions of this Subsection shall not apply to any retiree7 reemployed in a part-time position with the Louisiana High School Athletic8 Association on June 27, 2003.9 D. When any retiree returns to active service with an employer covered by10 the provisions of this Chapter, the employing agency shall, within thirty days11 thereafter, notify the board of trustees in writing of such employment, the date on12 which employment commenced, and a determination by the employer as to whether13 such person is a "retired teacher" rehired retiree pursuant to Subsection A of this14 Section. Upon termination, the agency shall provide the same notice. In addition,15 the employing agency shall also report to the retirement system within forty-five16 days after June thirtieth of each year, the name of all persons being paid by the17 employing agency and all persons having received a benefit pursuant to the18 provisions of this Section, along with such individuals' social security numbers, their19 positions, their designation as part-time or full-time, and the amount of their earnings20 during the previous fiscal year ending on June thirtieth of the reporting year.21 Additionally, the employing agency shall transmit a monthly contributions report22 pursuant to R.S. 11:888(A). Such monthly reports shall be transmitted within thirty23 days of the last day of each month and shall include the salary paid to all individuals24 identified as a "retired teacher" retirees rehired pursuant to Subsection A of this25 Section. Should failure to give notice of return to active service or failure to report26 any other information required by this Section result in any payment being made in27 violation of this Section, the employing agency shall be liable to the system for the28 repayment of such amounts.29 HLS 14RS-450 ORIGINAL HB NO. 29 Page 7 of 9 CODING: Words in struck through type are deletions from existing law; words underscored are additions. E.(1) The salary of any retired teacher member who is reemployed pursuant1 to the provisions of this Section shall be based on the salary schedule which accounts2 for all prior years of teaching service and pertinent experience.3 (2) The status of any retired teacher member who is reemployed pursuant to4 the provisions of this Section shall be the same as a full-time active employee and5 shall be governed by the applicable rules, procedures, policies, and statutes that6 apply to all such full-time active employees.7 Section 2. The cost of this Act, if any, shall be funded with additional employer8 contributions in compliance with Article X, Section 29(F) of the Constitution of Louisiana.9 Section 3. This Act shall become effective upon signature by the governor or, if not10 signed by the governor, upon expiration of the time for bills to become law without signature11 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If12 vetoed by the governor and subsequently approved by the legislature, this Act shall become13 effective on the day following such approval.14 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)] Cox HB No. 29 Abstract: Provides that any member who retires from the Teachers' Retirement System of La. (TRSL) on or after July 1, 2010, may return to work and receive his full benefit while reemployed subject to a 25% earnings restriction on such reemployment. Present law prohibits any retiree of TRSL other than a "retired teacher" from receiving a retirement benefit while reemployed. Further 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 in a school district where a shortage exists. (3)Any retired member who returned to active service on or before June 30, 2010. HLS 14RS-450 ORIGINAL HB NO. 29 Page 8 of 9 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (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 La. teaching certificate or ancillary certificate. (5)Any retired member who returns to work as a substitute classroom teacher instructing grades pre-kindergarten through twelfth. Restricts any earnings in a year from such position to no more than 25% of the retired member's annual benefit. (6)Any retired member who returns to work instructing adults through adult education of literacy programs administered through a public institution of elementary or secondary education. Restricts any earnings in a year from such position to no more than 25% of the retired member's annual benefit. (7)Any retired member who holds an advanced degree in speech therapy, speech pathology, or audiology. (8)Any retired member who returns to work as an adjunct professor engaged in research or instructions of students. Restricts any earnings in a year from such position to no more than 25% of the retired member's annual benefit. Proposed law generally provides that any member who retires from TRSL may return to work and receive his full benefit while reemployed. Restricts any earnings in a year from such position to no more than 25% of the retired member's annual benefit. Proposed law further retains the following present law exceptions allowing return to work without a salary restriction: (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 in a school district where a shortage exists. (3)Any retired member who returned 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 La. teaching certificate or ancillary certificate. (5)Any retired member who holds an advanced degree in speech therapy, speech pathology, or audiology. Present law provides that if a retired member authorized to return to active service returns under more than one provision with an earnings limitation, the most restrictive earnings limitation shall apply to the total annual salary earned by the member. Proposed law applies the earnings limitation to the total annual salary of a member who returns to work in more than one position if any such position is subject to the limitation. Present law requires any rehired retiree who is authorized to receive his benefit while reemployed to make employee contributions to the system on his salary. Upon termination of reemployment, such rehired retiree receives a refund of his contributions. Prohibits such rehired retiree from accruing additional service credit in the system for such reemployment. Further requires the employer to make employer contributions to TRSL on the salary earned by the rehired retiree. Upon termination of the rehired retiree's reemployment, the system retains the employer contributions made during the period of reemployment. Proposed law retains present law. HLS 14RS-450 ORIGINAL HB NO. 29 Page 9 of 9 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Present law requires annual reports from employing agencies to TRSL on the salary and position of any retiree who returns to active service who is authorized to receive his benefit while reemployed. Proposed law retains present law. Proposed law requires that any cost of proposed law be funded with additional employer contributions in compliance with Art. X, §29(F) of the state constitution. Effective upon signature of governor or lapse of time for gubernatorial action. (Amends R.S. 11:710)