The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by LG Sullivan.
DIGEST
SB 425 Original 2022 Regular Session Ward
Present law governs the payment of benefits to retirees of the Teachers' Retirement System of
Louisiana (Teachers') including retirees who return to work in positions covered by the retirement
system. Present law generally requires payment of a retiree's benefit to be suspended for the duration
of reemployment with some exceptions. Requires suspension of benefit without exception for any
reemployment within the first 12 months of retirement. Requires payment of employer and employee
contributions during reemployment. Provides for refund of employee contributions without interest
after the reemployment ends.
Proposed law retains present law.
One present law exception (commonly referred to as "critical shortage") allows the receipt of
retirement benefits without suspension for the duration of reemployment if all of the following apply
to the retiree:
(1)He retired on or before June 30, 2010, OR retired after that date and returned to a Teachers'-
covered position on or before June 30, 2020.
(2)He is employed to fill a position certified as a critical shortage position.
(3)He is certified to teach in the critical shortage area.
Present law, applicable to anyone who retired after June 30, 2010, and who first returned to work
in a Teachers'-covered position after June 30, 2020, does not contain a critical shortage provision.
Present law provides a process by which an employer certifies that a critical shortage exists. Requires
the employer to advertise twice in the locality's official journal and to post notice at each post-
secondary institution within a 120-mile radius of the employer's governing authority.
Proposed law generally retains present law. Proposed law additionally:
(1)Applies present critical shortage law to any certified retiree, not just to one certified in the
critical shortage area.
(2)Allows anyone who retired before July 1, 2020, to be rehired under present critical shortage
law.
(3)Until July 1, 2025, allows the employer to fulfill the advertising and posting requirements
of present law by (a) posting notice each semester at the specified post-secondary institutions and advertising monthly in the official journal that the employer is soliciting applications for
future employment of certified teachers and (b) prominently displaying a list of positions that
are unfilled or that are filled by reemployed retirees on specified websites.
Proposed law provides that any cost of proposed law shall be funded with increased employer
contributions in compliance with provisions of present constitution.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 11:710(F)(1) and (G) and 710.1(A)(intro para); adds R.S. 11:710.1(F))