GREEN SHEET REDIGEST HB 907 2016 Regular Session LeBas (KEYWORD, SUMMARY, AND DIGEST as amended by Senate committee amendments) RETIREMENT/TEACHERS: Increases the earnings allowed in the Teachers' Retirement System of La. for retirees who are reemployed as substitute classroom teachers to fill certain vacancies DIGEST Present law prohibits a retired member of the Teachers' Retirement System of La. (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 requires any teacher who returns to active service covered by the provisions of present law within the 12-month period immediately following the effective date of retirement shall have his retirement benefit suspended for the duration of active service or, if earlier, the lapse of the 12 months. Proposed law retains present law for any teacher who returns to active service in a critical shortage position or who returned to work under the provisions of present law on or before May 15, 2016. For all others, increases the mandatory suspension period from 12 months to 36 months. Present law provides that after his mandatory suspension period ends, a retiree may return to work as a substitute classroom teacher and draw his full benefit 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. Proposed law increases the earnings limit to 50% of annual benefit for a person who returns to work as a substitute classroom teacher to fill an extended leave vacancy, which is a vacancy created by extended sick leave, maternity leave, military leave, or sabbatical taken by a K-12 teacher in a regular or special school. Proposed law otherwise retains present law. Proposed law requires that in addition to the employers' reporting requirements imposed by present law, employers must also report whether a retired teacher is filling an extended leave vacancy. Proposed law requires any cost of proposed law to be funded with additional employer contributions in compliance with Art. X, ยง29(F) of the state constitution. Effective July 1, 2016. (Amends R.S. 11:710(B)(1)(a), (b), and (d) and (D); adds R.S. 11:710(A)(9) and (B)(1)(e) and (f)) Summary of Amendments Adopted by House The Committee Amendments Proposed by House Committee on Retirement to the original bill: 1. Define extended leave vacancy. 2. Increase the earnings cap to 50% of a retired teacher's retirement benefit for retired teachers filling extended leave vacancies. 3. Require employers to report if a rehired teacher is filling an extended leave vacancy. Page 1 of 2 Prepared by Margaret M. Corley. Summary of Amendments Adopted by Senate Committee Amendments Proposed by Senate Committee on Retirement to the engrossed bill 1. Changes the mandatory benefit suspension period immediately following retirement from present law 12 months to 36 months. 2. Retains the present law 12-month suspension period for any retiree filling a critical shortage position or who has returned to work under the provisions of present law prior to May 15, 2016. Page 2 of 2 Prepared by Margaret M. Corley.