Regular Session News #8: Amended return-to-work bill passes Senate Retirement Committee
May 26, 2020
The Senate Retirement Committee met Friday, May 22, and considered two pieces of legislation affecting TRSL.
House Bill 8 (Rep. Bourriaque) was reported favorably, after being amended. When it left the House, HB 8 would have waived the 25% cap on earnings (per fiscal year) for re-employed retirees hired as PreK-12 substitute classroom teachers.
As amended, HB 8 does the following:
- Provides that the current return-to-work law will only apply to retirees who have returned to work with an employer covered by TRSL on or before June 30, 2020, and to retirees in the original grandfathered group (members who were retired on or before June 30, 2010).
- Provides that a retiree who returns to work with an employer covered by TRSL on or after July 1, 2020, and who has been retired at least 12 months, will have the following two options:
- Option 1: Have an earnings limitation of 25% (per fiscal year) of the retiree’s final average compensation (FAC) with a reduction in the benefit if the cap is exceeded, or
- Option 2: Have benefits suspended for the duration of re-employment while the retiree accrues a supplemental benefit. If re-employed for at least 36 months, the supplemental benefit will be calculated based on the retiree’s FAC and the computation formula in effect at subsequent retirement. If re-employed less than 36 months, the supplemental benefit will be calculated based on the retiree’s FAC used to calculate the original benefit.
- Option 2: Have benefits suspended for the duration of re-employment while the retiree accrues a supplemental benefit. If re-employed for at least 36 months, the supplemental benefit will be calculated based on the retiree’s FAC and the computation formula in effect at subsequent retirement. If re-employed less than 36 months, the supplemental benefit will be calculated based on the retiree’s FAC used to calculate the original benefit.
- Provides that a retiree returning to work under Option 1 can convert to Option 2 once the allowable 25% earnings limitation (per fiscal year) of the retiree’s FAC has been met.
- Provides that a retiree covered by the current return-to-work law can elect to be covered by the provisions of proposed law.
- Provides that disability retirees cannot return to work under any of the proposed provisions.
- Provides that employer return-to-work reporting requirements, including penalties for failure to report, will be the same as under current law.
The Senate Retirement Committee also favorably reported House Concurrent Resolution 9 (Rep. M. Johnson). HCR 9 requests that Congress consider eliminating the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) Social Security benefit reductions.
HB 8 and HCR 9 now head to the full Senate for consideration.
Coming up
Today, the full House is scheduled to consider two bills - Senate Bill 189 (Sen. White) and House Bill 307 (Rep. Zeringue) that would make a supplemental appropriation to the TRSL initial unfunded accrued liability (IUAL) from a portion of the FY 2018-19 surplus funds in the state treasury.
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.