Title 11. Consolidated Public Retirement Systems
Subtitle II. State Systems
Chapter 2. Teachers’ Retirement System of Louisiana
Part I. General Provisions
11:710.1 Employment of retirees on or after July 1, 2020
A. Except as otherwise provided in this Section, any retiree who returns to active service with an employer covered by the provisions of this Chapter on or after July 1, 2020, shall for that period of employment choose one of the following irrevocable options, which shall be made in writing and filed with the appropriate officer of the employer:
(1) Option 1. (a) Any retiree may be employed in any position covered by this system during any fiscal year, provided that his earnings in such employment do not exceed twenty-five percent of his final average compensation during any fiscal year. If actual earnings exceed this amount in any fiscal year, the benefits payable to the retiree shall be reduced by the amount in excess of twenty-five percent of his final average compensation.
(b) During the period of his return to active service, the retiree and his employer shall make contributions to the retirement system as otherwise provided by law, but the retiree shall receive no additional service credit and shall not accrue any additional retirement benefits in the retirement system. Upon termination of active service, the retiree shall, upon application, be refunded the employee contributions paid since reemployment. The refund shall be without interest. The retirement system shall retain the employer contributions.
(c) Any retiree employed in a full-time position exercising Option 1 as provided in this Paragraph may prospectively exercise Option 2 any time prior to or after reaching twenty-five percent of his final average compensation. In such case, all employee contributions made in accordance with this Paragraph prior to the exercise of Option 2 shall be refunded at that time. If a retiree has earned in excess of twenty-five percent of his final average compensation prior to an election made pursuant to this Subparagraph, the employee contributions eligible for refund or the benefits payable to the retiree shall be reduced by said amount.
(2) Option 2. Any retiree employed in a full-time position covered by this system may request immediate suspension of his benefit, which may include all Deferred Retirement Option Plan and Initial Lump Sum Benefit distributions, and become a member of this system, effective on the first day of reemployment or on the first day a retiree notifies the system of his election to suspend his benefits after using Option 1. Upon such regaining of membership, the retiree and his employer shall make contributions to the retirement system as otherwise provided by law. Upon subsequent retirement, his suspended retirement allowance shall be restored to full force and effect effective as of the date a properly executed application for subsequent retirement is received by the board of trustees of this system or the date after the member terminates from service, whichever is later. The retiree shall be eligible for a supplemental benefit under this option using the same computation formula used at the retiree’s original retirement. If the retiree has been reemployed and contributed for less than thirty-six months, his original final average compensation shall be used in the calculation of his supplemental benefit. If the retiree has been reemployed and contributed for at least thirty-six months, the final average compensation used to calculate the supplemental benefit shall be the greater of his original final average compensation or his final average compensation since reemployment. In no event shall the member receive duplicate credit for unused sick and annual leave that had been included in the computation of his original retirement allowance. Any supplemental benefit shall be based on reemployment service credit only and shall not include any other specific amount which may otherwise be provided in the regular retirement benefit computation formula, including sick and annual leave. No supplemental benefit shall be payable until ninety days after the date of termination of reemployment as certified by the employer. In the event of the member’s death prior to subsequent retirement, payment of benefits to the designated beneficiary or survivor shall be in accordance with the option selected by the member at the time of his original retirement in accordance with R.S. 11:783(A)(2) and in accordance with any benefit payable in accordance with R.S. 11:762(C) and (I). No change in the option originally selected by the member in accordance with R.S. 11:783(A)(2) shall be permitted. In no event shall the supplemental benefit exceed an amount which, when combined with the original benefit, equals one hundred percent of the greater of the average compensation figure used to compute the supplemental benefit or the average compensation figure used to compute the original benefit. Under no circumstances shall any person who has regained membership pursuant to the provisions of this Paragraph be allowed to purchase service credit for any period employed in public service during which he continued to draw his retirement allowance. Upon regaining membership pursuant to this Paragraph and subsequent retirement, if a retiree has any subsequent employment that is not full-time employment, he shall be permitted to select Option 1 for such reemployment as well as full-time employment thereafter.
B. Any retiree who continues to be covered by R.S. 11:710 may elect to be covered by the provisions of this Section. Any retiree who makes an election to be covered by this Section shall no longer be covered by the provisions of R.S. 11:710.
C. (1) Any retiree who returns to active service covered by the provisions of this Chapter within the twelve-month period immediately following the effective date of such retirement shall have his retirement benefits suspended for the duration of such active service or the lapse of twelve months from the effective date of his retirement, whichever occurs first, even if such service is based on employment by contract or corporate contract.
(2) No person who retires based on a disability shall be authorized to return to service pursuant to the provisions of this Section. Disability retirees shall be covered by the provisions of law applicable to disability retirees.
(3) Any retiree who returns to active service with an employer covered by the provisions of this Chapter shall have his benefit suspended for the duration of his period of reemployment if such reemployment is based on a contract or corporate contract. The retiree and his employer shall not make contributions to the system during such time, and he shall receive no additional service credit and shall not accrue any additional retirement benefits.
D. (1) When any retiree covered by this Section returns to active service with an employer covered by the provisions of this Chapter, the employing agency shall, within thirty days thereafter, notify the board of trustees in writing of such employment and the date on which employment commenced. Upon termination, the agency shall provide the same notice. In addition, the employing agency shall also report to the retirement system within forty-five days after June thirtieth of each year, the names of all persons being paid by the employing agency and all persons having received a benefit, whether by contract or corporate contract, pursuant to the provisions of this Section, along with such individuals’ social security numbers, their positions, their designations as part-time or full-time, and the amount of their earnings during the previous fiscal year ending on June thirtieth of the reporting year. Additionally, the employing agency shall transmit a monthly contributions report pursuant to R.S. 11:888(A). Such monthly reports shall be transmitted within thirty days of the last day of each month and shall include the salary paid to each individual retiree to whom this Section applies. Should failure to give notice of return to active service or failure to report any other information required by this Section result in any payment being made in violation of this Section, the employing agency shall be liable to the system for the repayment of such amounts.
(2) Should any employer covered by the system employ a retiree subject to this provision and fail to submit the report required by this Subsection, the retiree shall be considered as returning to active service under the provisions of Option 1 above.
E. (1) The salary of any retiree who is reemployed pursuant to the provisions of this Section shall be based on the salary schedule which accounts for all prior years of teaching service and pertinent experience.
(2) The status of any retiree who is reemployed pursuant to the provisions of this Section shall be the same as a full-time active employee and shall be governed by the applicable rules, procedures, policies, and statutes that apply to all such full-time active employees.
Added by Acts 2020, No. 337, § 1.