Regular Session News #18: Governor signs return-to-work bill into law
May 31, 2024
House Bill 967 (Rep. Riser) was signed into law by the governor this week, becoming Act 394. The new law creates additional opportunities for TRSL retirees to return to work in a TRSL-eligible position without the suspension or reduction of their retirement benefits, but subject to a 12-month waiting period.Summary of Act 394:
- For retirees who retired before July 1, 2020: Allows these retirees to return to work part-time after a 12-month waiting period in certain critical shortage positions without a suspension or reduction in retirement benefits. Under current law, retirees reemployed in these critical shortage positions must work full-time to avoid impacting their benefits.
- For retirees who retired on or after July 1, 2020: Adds a critical shortage provision to the law that, after a 12-month waiting period, allows these retirees to return to work:
- Full-time/Part-time: PreK-12 classroom teacher (in a specific subject area), or
- Full-time/Part-time: In certain critical shortage positions (same as referenced above) without a suspension or reduction in retirement benefits.
Last week, the governor signed House Bill 31 (Rep. Freiberg) into law. The new Act 109 creates a window of opportunity for certain ORP participants to make a one-time, irrevocable decision to join TRSL’s defined benefit plan.
Summary of Act 109:
- For active, contributing ORP participants as of June 30, 2024, whose first ORP-eligible employment began on or before July 31, 2020:
- Will be eligible to make a one-time choice to join the TRSL defined benefit plan by submitting the necessary paperwork to TRSL no later than June 30, 2025.
- Individuals making this request by December 31, 2024, will cease contributing to their ORP accounts on January 31, 2025, and on February 1, 2025 will start contributing to and accruing service credit in the TRSL defined benefit plan as a member first eligible for membership in a state system on that date.
- All others in this group that make the one-time choice to join the TRSL defined benefit plan, will do so as a new member effective the first day of the month following the month in which TRSL receives the request. (e.g., If request is received in March 2025, membership in the TRSL defined benefit plan will be effective May 1, 2025.)
- For active, contributing ORP participants whose first ORP-eligible employment began on or after August 1, 2020:
- Will be eligible to make a one-time choice to join the TRSL defined benefit plan at any time within five years of the individual’s first ORP-eligible employment.
- ORP participants who choose this option will join the TRSL defined benefit plan as a new member effective the first day of the month following the month in which TRSL receives the request.
Additionally, Act 109 provides that ORP participants that elect to join the TRSL defined benefit plan will retain their ORP accounts and receive eventual distributions from those accounts as provided in existing law; and that the ORP administrative fee will be paid by participants and employers.
Visit the Legislation page of this website, to see all legislation impacting the retirement system. You can view all bills and the legislative schedule on the Louisiana State Legislature website.