Regular Session News #7: Senate Retirement Committee moves amended RTW bill
Apr 12, 2022
The Senate Retirement Committee met yesterday to consider three return-to-work (RTW) bills.
Senate Bill 434 (Sen. Fields) was reported favorably as amended. This bill would make changes to the 2010 and 2020 RTW laws. As amended, the bill proposes to:
- 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, military 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;
- change employer advertising and posting requirements for declaring a critical shortage for any position needing to be filled before July 1, 2025, as follows:
- at the beginning of each semester, requires the employer to post a general statement that the employer is soliciting applications for future employment of certified teachers at the designated career development entities of postsecondary institutions within 120 miles of the employer’s governing authority;
- requires the employer to advertise at least once per month in the official journal of the employer's governing authority that the employer is soliciting applications for future employment of certified teachers; and
- requires employers to prominently display a listing of positions that are unfilled or that are filled by re-employed retirees on the website of the employer's governing authority and of the employer, if the employer maintains a separate website.
- through June 30, 2025, allow retirees who retired on or before June 30, 2020, but returned to work on/after June 30, 2020, to choose to be subject to the 2010 RTW law; After June 30, 2025, such retiree may irrevocably elect to be subject to the 2020 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.
The following bills were voluntarily deferred and may be reheard by the committee at a later date:
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 as follows:
- 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.
Later this week:
The House Retirement Committee will meet at 9 a.m., Thursday, April 14, to consider five other RTW bills that originated in the House:
House Bill 22 (Rep. Edmonds) would temporarily increase the earnings limit from 25% to 50% per fiscal year of the retiree’s final average compensation (FAC) under Option 1 of the 2020 RTW law for retirees who returned to work for the first time on or after July 1, 2020, and before December 31, 2021. This change to the earnings limit would be in effect for the period July 1, 2022, through June 30, 2025.
House Bill 26 (Rep. Romero) would increase the earnings limit for RTW retirees from 25% to 50% per fiscal year of the retiree’s FAC for those who returned to work for the first time on or after July 1, 2020, under Option 1 of the 2020 RTW law.
House Bill 30 (Rep. Frieman) would repeal the 2010 RTW law and enact a new RTW law, which would authorize K-12 retirees to return to work under the following conditions:
- the retirement benefit of the RTW retiree would not be suspended or reduced;
- neither the retiree nor the employer would make contributions to TRSL for the duration of the re-employment; and
- the retiree would not earn service credit during re-employment.
House Bill 835 (Rep. McFarland) would allow retirees in the 2020 RTW group who were re-employed under contract or corporate contract prior to June 30, 2022, to return to work under the following conditions:
- the retirement benefit of the RTW retiree would not be suspended or reduced;
- the retiree would not be subject to the mandatory waiting period established in current law;
- neither the retiree nor the employer would make contributions to TRSL for the duration of the re-employment; and
- the retiree would not earn service credit during re-employment.
- requires the employer to post on its website for a period of 10 days and publish a notice at least once in the official journal of the employer's governing authority that a critical shortage of certified positions exists/positions sought to be filled; and
- removes the requirement that the employer must post notice with the designated career development entities within a 120-mile radius.
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.