The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Angela L. De Jean.
DIGEST
SB 513 Original 2020 Regular Session Reese
Present law, applicable to the Parochial Employees Retirement System (PERS), provides that any
person who has retired under the provisions of present law may be temporarily employed by an
employer participating in the plan, subject to certain limitations. If a retiree is under age 65 or has
not been retired at least three years, he may be employed no more than 480 hours in a calendar year.
If a retiree is age 65 or older and has been retired at least three years, he may be employed no more
than 1,040 hours in a calendar year. However, if the retiree is employed longer than the maximum
hours stated above, his retirement benefit will be reduced by the amount earned after the allowed
number of hours.
Present law provides that if the retired member, who is otherwise eligible, becomes permanently
employed by an employer participating in PERS, the retired member and the employer shall
immediately notify the board of the retiree's date of employment, the amount of his monthly salary,
any changes in salary, number of hours employed per week, estimated duration of employment, and
date of termination of employment. However, present law shall not apply to retirees who are elected
to office and are prohibited from joining PERS under present law.
Present law provides that at the time the retired member returns to permanent employment, the
benefit of the retiree shall be suspended, and he shall be considered as returning to active service and
employee and employer contributions shall resume.
Present law provides that upon subsequent termination of employment of a retired contributing
member, the retired contributing member shall begin receiving his original retirement benefit and
shall receive an additional benefit based on his additional service and the compensation earned
during the period of additional service.
Present law provides that notwithstanding the provisions of present law, if a retired member of the
system is subsequently elected to an office covered by the system, 60 days after taking the oath of
office his monthly retirement benefit shall be reduced by the amount of his monthly earnings.
Proposed law provides that notwithstanding present law, in a parish with a population of no more
than 50,000, according to the latest federal decennial census, any retiree of PERS who has been
retired from service for at least one year and who returns to active service in a critical shortage
position shall not have his retirement benefit suspended during his reemployment. A retiree shall not
be allowed to return to active service in a full-time position covered by the provisions of proposed
law prior to the lapse of 12 months after the effective date of his retirement.
Proposed law provides that no member of PERS who retires based on a disability shall return to
service pursuant to the provisions of proposed law. Disability retirees shall be governed by the provisions of present law applicable to disability retirees.
Proposed law provides that during the period of his return to active service pursuant to proposed law,
the reemployed retiree and his employer shall make contributions to the retirement system as
provided by proposed law. However, the reemployed retiree shall receive no additional service credit
and shall not accrue any additional benefits in the retirement system.
Proposed law provides that after termination of active service and upon application therefor, the
retiree shall be refunded the employee contributions paid during reemployment. The refund shall be
without interest. The retirement system shall retain all interest and employer contributions.
Proposed law provides that the employing agency that elects to reemploy a retiree pursuant to
proposed law shall certify to the retirement system that a critical shortage of skilled employees exists
in the parish of such employer.
Proposed law provides that a retiree who is employed pursuant to proposed law shall not receive a
benefit during the period of his reemployment unless and until the board of trustees of PERS has
received certification that a critical shortage exists. Prior to making such certification for any full-
time critical shortage position, the employer shall cause to be advertised in the official journal of the
employer's governing authority, on two separate occasions, notice that a critical shortage of skilled
employees exists and the positions sought to be filled.
Proposed law provides that additionally, the employer shall cause notice to be posted at the career
development office, or similar such entity, of every post-secondary institution and the regional office
of the La. Workforce Commission, within a 120-mile radius of the employer's governing authority.
Proposed law provides that if a qualified applicant who is not a retiree applies for an advertised
position, such person shall be hired before any qualified retiree is employed, unless fewer than three
applicants have applied for the position each of whom is qualified for the critical shortage position
being filled.
Effective August 1, 2020.
(Adds R.S. 11:1928(E))