Louisiana 2014 2014 Regular Session

Louisiana House Bill HB29 Introduced / Bill

                    HLS 14RS-450	ORIGINAL
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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
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(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
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(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
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(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
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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
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(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
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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
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(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
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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)