HLS 16RS-1141 ORIGINAL 2016 Regular Session HOUSE BILL NO. 907 BY REPRESENTATIVE LEBAS RETIREMENT/TEACHERS: Increases the earnings allowed in the Teachers' Retirement System of La. for retirees who are reemployed as substitute classroom teachers 1 AN ACT 2To amend and reenact R.S. 11:710(B)(1)(b), relative to the reemployment of retirees of the 3 Teachers' Retirement System of Louisiana; to provide relative to the earnings 4 limitation applicable to retirees who return to work as substitute classroom teachers; 5 and to provide for related matters. 6 Notice of intention to introduce this Act has been published 7 as provided by Article X, Section 29(C) of the Constitution 8 of Louisiana. 9Be it enacted by the Legislature of Louisiana: 10 Section 1. R.S. 11:710(B)(1)(b) is hereby amended and reenacted to read as follows: 11 §710. Employment of retirees 12 * * * 13 B.(1) 14 * * * 15 (b)(i) The earnings of any retiree returning to active service in a 16 reemployment-eligible position shall not exceed twenty-five percent of his benefit 17 during any fiscal year. If actual earnings exceed this amount the applicable earnings 18 limit provided by this Subparagraph in any fiscal year, the benefits payable to the 19 retiree shall be reduced by the amount in excess of twenty-five percent of his benefit 20 such earnings limit. 21 (ii) Notwithstanding the provisions of Item (i) of this Subparagraph, the 22 earnings of a retired teacher in a reemployment-eligible position as defined by Page 1 of 2 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 16RS-1141 ORIGINAL HB NO. 907 1 Subparagraph (A)(5)(a) of this Section shall not exceed fifty percent of his benefit 2 in any fiscal year that begins more than one full fiscal year after the termination of 3 the twelve-month benefits suspension period provided for in Subparagraph (a) of this 4 Paragraph. 5 * * * 6 Section 2. The cost of this Act, if any, shall be funded with additional employer 7contributions in compliance with Article X, Section 29(F) of the Constitution of Louisiana. 8 Section 3. This Act shall become effective on July 1, 2016; if vetoed by the governor 9and subsequently approved by the legislature, this Act shall become effective on July 1, 102016, or on the day following such approval by the legislature, whichever is later. 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)] HB 907 Original 2016 Regular Session LeBas Abstract: Provides for a salary cap increase for a retiree of the Teachers' Retirement System of La. (TRSL) who returns to work as a substitute classroom teacher. Present law prohibits a retired member of TRSL from receiving his benefit check while he is reemployed in a position covered by TRSL. Present law provides exceptions to this prohibition. Proposed law retains present law. Present law further provides that for the first 12 months after a retiree's date of retirement, his benefits are suspended entirely if the retiree returns to work (hereafter referred to as the "waiting period"). Proposed law retains present law. Present law provides that after his waiting period terminates, a retired member may return to work as a substitute classroom teacher and draw his full benefit check while working, but may only earn up to 25% of his annual benefit. Provides that any amount earned in excess of the earnings limit is deducted from the retiree's benefit check. Proposed law increases the earnings limit for a person who returns to work as a substitute classroom teacher to 50%, but the increase does not apply until more than one full fiscal year after the end of the waiting period has lapsed. Otherwise 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 July 1, 2016. (Amends R.S. 11:710(B)(1)(b)) Page 2 of 2 CODING: Words in struck through type are deletions from existing law; words underscored are additions.