Louisiana House Bill HB907

Louisiana 2016 Regular Session

• Introduced: 3/15/16
• Refer: 3/16/16
• Report Pass: 4/28/16
• Engrossed: 5/9/16
• Refer: 5/10/16
• Report Pass: 5/23/16
• Refer: 5/24/16
• Report Pass: 5/26/16

Caption

Increases the earnings allowed in the Teachers' Retirement System of La. for retirees who are reemployed as substitute classroom teachers to fill certain vacancies (EGF INCREASE APV)

Impact

The changes proposed by HB 907 involve increasing the waiting period for reemployment from 12 months to 36 months for most retirees, except those filling positions in critical shortage areas. This shift is expected to impact state laws relating to retirement benefits and employment for retirees. The creation of a new category of 'Special Class E' retirees allows those reemployed in specific capacities to earn above the previously established limit without jeopardizing their pension. While this aspect may aid in addressing teacher shortages, the extended waiting period has sparked discussions around the balance between workforce needs and retiree benefits.

Summary

House Bill 907 addresses the earnings limits for retirees of the Teachers' Retirement System of Louisiana (TRSL) who reenter the workforce as substitute classroom teachers. Specifically, the bill aims to facilitate the reemployment of retirees filling in for positions created by extended leave vacancies, allowing these individuals to earn up to 50% of their annual pension without a reduction in benefits. By altering the reemployment rules, the bill encourages retirees to return to work in critical areas of teacher shortages while managing their pension benefits effectively.

Sentiment

The overall sentiment regarding HB 907 appears to be supportive among advocates concerned with educational staffing shortages. However, some concerns were raised about the implications of extending the waiting period, reflecting diverging opinions on the balance between supporting reemployment opportunities for retirees and protecting the integrity of the retirement system. Stakeholders expressed a mix of optimism regarding increased staffing flexibility and caution regarding potential financial impacts on the retirement system and local funding sources.

Contention

Notable contention stems from the potential fiscal impact of increased pension expenditures and contributions required due to the changes in earnings limitations. While proponents argue that the bill can mitigate staffing shortages by making reemploying retirees more attractive, opponents caution that the projected costs—estimated to exceed $100,000 annually—could strain state and local retirement systems. Hence, the discussion around HB 907 also includes concerns regarding long-term budget implications and the sustainability of pension benefits for current and future retirees.