Regular Session News #6: PBI bill heads to House Retirement; Senate RTW bills to be heard Monday
Apr 8, 2022
On Wednesday, the full Senate passed Senate Bill 6 (Sen. Price), which would authorize a 2% permanent benefit increase (PBI) to eligible TRSL retirees, beneficiaries, and survivors calculated on the first $68,396 of their annual retirement benefit. The PBI would be payable on July 1, 2022.
If this legislation is enacted, individuals who meet the following criteria on July 1, 2022, would be granted a 2% monthly benefit increase:
- Regular retiree: Must have received a benefit for at least one year and be 60 years of age
- Disability retiree: Must have been retired at least one year regardless of age
- Beneficiary of retired member: Retiree or beneficiary (or both combined) must have received a benefit for at least one year, and the deceased retiree would have been 60 years of age at the time the PBI is payable
- Survivor of non-retired member: Must have received a benefit for at least one year and the benefits must have originated from the service of a deceased member who would have been 60 years of age at the time the PBI is payable
The Senate Retirement Committee will meet at 1:30 p.m. on Monday, April 11, to consider several return-to-work (RTW) bills:
Senate Bill 419 (Sen. Cathey) would allow any TRSL retiree to return to work, through June 30, 2027, with no required waiting period and no suspension or reduction of their retirement benefit if the retiree is employed as a classroom teacher or as a teacher’s aide or paraprofessional assisting a classroom teacher.
Senate Bill 425 (Sen. Ward) would make changes to the 2010 and 2020 RTW laws. This bill proposes to:
- allow those who retired on/before June 30, 2020, to return to work under the 2010 RTW law;
- allow employers, under certain circumstances, to hire retirees certified in any subject area to fill a vacancy in any critical shortage area;
- change the posting/advertising requirements for critical shortage job vacancies;
- make the 2020 RTW law applicable to any retiree who retired on/after July 1, 2020—rather than who returned to work for the first time on/after July 1, 2020; and
- allow retirees who retired before June 30, 2020, to choose to be subject to the 2010 RTW law.
- allow retirees subject to the 2010 RTW law, after a 12-month waiting period, to be directly re-employed without a suspension or reduction in retirement benefit through June 30, 2025, if: 1) the retiree is certified to teach mathematics, science, English language arts, or special education (excluding gifted/talented), or 2) the retiree is re-employed to fill a vacancy created by maternity leave, sabbatical leave, or extended sick leave;
- allow employers, under certain circumstances, to hire retirees certified in any subject area to fill a vacancy in any critical shortage area;
- allow retirees who retired before June 30, 2020, to choose to be subject to the 2010 RTW law;
- make the 2020 RTW law applicable to any retiree who retired on/after July 1, 2020–rather than who returned to work for the first time on/after July 1, 2020; and
- require the Louisiana Department of Education to conduct a study and make recommendations for policy changes related to critical shortages at TRSL-participating and non-participating schools.
Other news:
Yesterday, the House Retirement Committee reported House Concurrent Resolution 11 (Rep. M. Johnson) favorably. This resolution urges and requests state legislatures to ask Congress to review and eliminate or reduce the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) Social Security benefit reductions. The resolution also requests that the Louisiana Attorney General explore legal action to restore benefits lost to the GPO and WEP. House Concurrent Resolution 11 will now go to the full House for consideration.
The committee reported an amended House Bill 32 (Rep. Tarver) favorably. House Bill 32 is a companion bill to House Bill 31 by the same author. House Bill 31, a constitutional amendment, would require that the lesser of $50 million or the balance of nonrecurring state revenue (after certain allocations) fund a one-time supplemental benefit to retirees, beneficiaries, and survivors of TRSL, Louisiana State Employees’ Retirement System (LASERS), Louisiana School Employees’ Retirement System (LSERS), and Louisiana State Police Retirement System (LSPRS). House Bill 32 would require the Public Retirement Systems’ Actuarial Committee (PRSAC) to annually certify the number of system benefit recipients eligible for the one-time supplemental benefit. The amendment to House Bill 32 was technical in nature. The bill will now go to the full House for consideration.
You can view all meeting schedules and agendas on the Louisiana State Legislature website. Visit the Legislation page of this website to see all legislation impacting the retirement system. Stay tuned for future updates.