HLS 20RS-42 ENGROSSED
2020 Regular Session
HOUSE BILL NO. 10
BY REPRESENTATIVE EDMONDS
RETIREMENT/TEACHERS: Provides relative to the calculation of average compensation
of members of the Teachers' Retirement System of Louisiana
1 AN ACT
2To amend and reenact R.S. 11:701(5)(e) and to enact R.S. 11:701(5)(f), relative to the
3 calculation of average compensation of members of the Teachers' Retirement System
4 of Louisiana; to provide for the applicability of certain limits on average
5 compensation when there is an interruption in service; and to provide for related
6 matters.
7 Notice of intention to introduce this Act has been published
8 as provided by Article X, Section 29(C) of the Constitution
9 of Louisiana.
10Be it enacted by the Legislature of Louisiana:
11 Section 1. R.S. 11:701(5)(e) is hereby amended and reenacted and R.S. 11:701(5)(f)
12is hereby enacted to read as follows:
13 ยง701. Definitions
14 * * *
15 (5)
16 * * *
17 (e) If the twelve months preceding the first month that would be considered
18 in the calculation provided for in Item (a)(i) of this Paragraph are not consecutive
19 because of an interruption in service of more than ten years, the member's average
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 20RS-42 ENGROSSED
HB NO. 10
1 compensation shall be calculated without regard to the limit on compensation
2 provided by Item (a)(i) of this Paragraph.
3 (f) Notwithstanding any other provision of law to the contrary, "average
4 compensation" shall not include any amount in excess of the limitation provided in
5 R.S. 11:785.1.
6 * * *
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 10 Engrossed 2020 Regular Session Edmonds
Abstract: Changes the computation of average compensation for retirees in the Teachers'
Retirement System of La. (TRSL) when such calculation is affected by a gap in
service that spans more than 10 years.
Present law provides for the calculation of average compensation in the formula used to
calculate a retiree's retirement benefits.
Present law provides that average compensation is calculated over a three-year period for
any teacher whose first employment making him eligible for membership in one of the state
retirement systems occurred on or before Dec. 31, 2010, and over a five-year period for a
teacher whose first employment occurs after that date.
Present law provides that certain compensation is excluded from average compensation if
year-over-year compensation increases exceed specified limits.
Proposed law provides that limits on compensation in the first year of the average
compensation calculation period do not apply if the 12 previous months of employment
spanned an interruption in service of more than 10 years.
(Amends R.S. 11:701(5)(e); Adds R.S. 11:701(5)(f))
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.