HLS 24RS-93 ENGROSSED 2024 Regular Session HOUSE BILL NO. 39 BY REPRESENTATIVE MCCORMICK RETIREMENT/STATE EMPS: Provides relative to the reemployment of retired bus drivers of the Louisiana School Employees' Retirement System 1 AN ACT 2To amend and reenact R.S. 11:1006(D) and 1007(A)(1) and to repeal R.S. 11:1007(C)(3), 3 relative to the Louisiana School Employees' Retirement System; to provide for 4 reemployment of retired bus drivers; and to provide for related matters. 5 Notice of intention to introduce this Act has been published 6 as provided by Article X, Section 29(C) of the Constitution 7 of Louisiana. 8Be it enacted by the Legislature of Louisiana: 9 Section 1. R.S. 11:1006(D) and 1007(A)(1) are hereby amended and reenacted to 10read as follows: 11 §1006. Reemployment of retirees 12 * * * 13 D. The provisions of this Section shall not apply to any retiree of this system 14 who retired from service as a bus driver operator, who returns to active service in a 15 full-time or part-time position as a bus driver operator covered by the provisions of 16 this Chapter, and whose employer chooses to reemploy him pursuant to R.S. 17 11:1007. The full-time reemployment of such retired bus drivers shall be governed 18 by the provisions of that Section. Page 1 of 3 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 24RS-93 ENGROSSED HB NO. 39 1 §1007. Employment of retired bus drivers operators 2 A.(1)(a) Subject to the provisions of Subsection F of this Section, any retiree 3 of this system who was retired from service as a bus driver operator on or before 4 June 30, 2024, and who returns to active service in a full-time or part-time position 5 as a bus driver operator covered by the provisions of this Chapter within the twelve 6 six-month period immediately following the effective date of his retirement shall 7 have his retirement benefit suspended for the duration of such active service or the 8 lapse of twelve six months after the effective date of his retirement, whichever 9 occurs first, even if such service is based on employment by contract or corporate 10 contract. After the period of suspension of benefits as provided in this Subsection 11 Subparagraph, the retirement benefit of such retiree shall no longer be suspended. 12 (b) Subject to the provisions of Subsection F of this Section, any retiree of 13 this system who retired from service as a bus operator on or after July 1, 2024, and 14 who returns to active service in a full-time or part-time position as a bus operator 15 covered by the provisions of this Chapter within the twelve-month period 16 immediately following the effective date of his retirement shall have his retirement 17 benefit suspended for the duration of such active service or the lapse of twelve 18 months after the effective date of his retirement, whichever occurs first, even if such 19 service is based on employment by contract or corporate contract. After the period 20 of suspension of benefits as provided in this Subparagraph, the retirement benefit of 21 such retiree shall no longer be suspended. 22 * * * 23 Section 2. R.S. 11:1007(C)(3) is hereby repealed in its entirety. 24 Section 3. The cost of this Act, if any, shall be funded with additional employer 25contributions in compliance with Article X, Section 29(F) of the Constitution of Louisiana. Page 2 of 3 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 24RS-93 ENGROSSED HB NO. 39 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 39 Engrossed 2024 Regular Session McCormick Abstract: Provides for reemployment of retired bus drivers in the La. School Employees' Retirement System (LSERS). Present law provides relative to the reemployment of retirees of LSERS in positions covered by the system. For most employees, present law provides an earnings limitation of 50% of the retiree's average compensation; retirement benefits in the amount of earnings beyond that limit are repaid or suspended. Present law provides an exception for a retired bus driver who is reemployed as a full-time bus driver. For such retirees, benefits are suspended for the first 12 months after retirement but are not suspended or reduced after that. Proposed law makes present law also applicable to a retiree who returns to work as a part-time bus operator. Proposed law reduces the period of benefit suspension for full- or part-time bus operators who retired on or before June 30, 2024. Proposed law changes terminology from "bus driver" to "bus operator". Present law requires the superintendent of an employer who employs a retiree as a full-time bus driver to certify to the State Bd. of Elementary and Secondary Education that a shortage of qualified bus drivers exists in the school district. Proposed law repeals present law. Proposed law requires that any cost of proposed law be funded with additional employer contributions in compliance with Art. X, Sec. 29(F) of the state constitution. (Amends R.S. 11:1006(D) and 1007(A)(1); Repeals R.S. 11:1007(C)(3)) Summary of Amendments Adopted by House The Committee Amendments Proposed by House Committee on Retirement to the original bill: 1. Make six month benefit suspension period applicable only to bus operators who retired on or before June 30, 2024. 2. Make technical changes. Page 3 of 3 CODING: Words in struck through type are deletions from existing law; words underscored are additions.