§ 11:416 — Employment of retirees

§416. Employment of retirees
A. Regardless of age, if a retiree of the system is engaged or hereafter engages in
employment which otherwise would render him eligible for membership in the system, he
shall choose one of the following irrevocable options:
(1)(a) Option 1. Any person on regular retirement under the Louisiana State
Employees' Retirement System may be employed in any position covered by the system
during any fiscal year, provided that his earnings in such employment do not exceed fifty
percent of his annual retirement benefit for such fiscal year. For the purposes of this Section,
there shall be an annual cost-of-living adjustment to the annual retirement benefit figure used
in these computations. This cost-of-living adjustment shall be based upon and directly reflect
the annual percentage increase or decrease in the Consumer Price Index for all Urban
Consumers for the preceding year. The retiree may continue to receive his benefit until he
earns more than fifty percent of his annual retirement benefit as defined herein, during any
fiscal year, after which his retirement benefits shall be reduced so that the total reduction
equals the amount earned in excess of fifty percent of his annual retirement benefit as
adjusted under this Section. Retirees choosing this option shall not become contributing
members of this system.
(b) Notwithstanding the provisions of this Section or any other provision of law to
the contrary, any retiree of the system who has at least thirty years of service credited to his
account and is at least age seventy shall be exempt from any suspension or reduction of
benefits received from this system as the result of reemployment.
(2)(a) Option 2. The retiree may regain membership by repaying all retirement
benefits received from the system, plus interest thereon at the actuarial rate approved by the
board of trustees of the system compounded annually from date of receipt until paid. In
addition, the retiree shall pay into the system an amount equal to the employee and employer
contributions which would have been paid had the retiree become a member at the
commencement of the resumption of covered employment, plus interest thereon at the
actuarial rate compounded annually from date of service until paid. Upon such regaining of
membership, he shall have restored to his credit all service standing to his credit at the time
of retirement and shall receive service credit for all service rendered since becoming so
reemployed and thereafter shall be subject to the same conditions as are other members of
the system which are not in conflict herewith. Except as provided in Subparagraph (b) of this
Paragraph, reemployment pursuant to this Paragraph shall not be available to any member
who participated in the system's Deferred Retirement Option Plan or initial benefit option
plan or any early retirement provision applicable to the system.
(b) Any member of this system who retired pursuant to an early retirement provision
on or after August 31, 2005, and on or before June 30, 2006, whose last employment making
him eligible for system membership was with the state or an agency thereof located in a
parish designated under the Robert T. Stafford Disaster Relief and Emergency Assistance Act
as eligible for individual assistance, or individual assistance and public assistance following
Hurricane Katrina or Rita, and whose reemployment date occurs on or before December 31,
2008, may elect to be reemployed pursuant to the provisions of Subparagraph (a) of this
Paragraph.
(3)(a) Option 3. The retiree may request immediate suspension of his benefit and
become a member of this system, effective on the first day of reemployment. Upon such
regaining of membership, he shall contribute thereafter at the current contribution rate as
applicable to his position. Upon subsequent retirement, his suspended retirement allowance
shall be restored to full force and effect. In addition, if he has worked and contributed for
at least thirty-six months, his retirement allowance shall be increased by an amount
attributable to his service and average compensation since reemployment based on the
computation formula in effect at the time of subsequent retirement. If he has been
reemployed for a period less than thirty-six months, upon termination of reemployment the
contributions paid by the retiree since his reemployment shall, upon application, be refunded
to the retiree. 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. 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. No
change in the option originally selected by the member shall be permitted except as provided
in R.S. 11:446(C). In no event shall the supplemental benefit exceed an amount which, when
combined with the original benefit, equals one hundred percent of the average compensation
figure used to compute the supplemental 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 the state service during which he
continued to draw his retirement allowance.
(b) Notwithstanding the provisions of this Section or any other provision of law to
the contrary, any retiree of the system who meets the following requirements shall be exempt
from any increase, suspension, or reduction of benefits received from this system as a result
of reemployment:
(i) Has at least twenty-five years of service credited to his account.
(ii) Has been retired for at least one year.
(iii) Is eligible to receive his full retirement benefits.
(iv) Has been appointed by the governor to fill an unclassified civil service position.
(c) Notwithstanding the provisions of this Section or any other provision of law to
the contrary, any retiree of the system who has been retired for at least one year, is eligible
to receive his full retirement benefits, and has been appointed by the secretary of state to fill
the position of commissioner of elections shall be exempt from any increase, suspension, or
reduction in benefits received from this system as the result of reemployment; however, he
shall not be eligible to rejoin the system, nor shall his retirement benefits be enhanced by
such reemployment.
(d) Notwithstanding the provisions of this Section or any other provision of law to
the contrary, any retiree of the Harbor Police Retirement System who has been retired for at
least one year as of July 1, 2014, and is employed in a position making him eligible for
membership in this system on July 1, 2015, shall be exempt from any increase, suspension,
or reduction of benefits received from this system until the employee's subsequent retirement.
B. The retiree and the appointing authority of the employer agency covered by the
system shall immediately notify the system of the retiree's date of employment, the option
selected for reemployment purposes, the amount of his starting salary, any subsequent
changes in salary, the estimated duration of employment, and the date of termination of
employment.
C. Should any employer covered by the system employ a retiree and fail to submit
the report required by Subsection B of this Section, the retiree shall be considered as
returning to active service under the provisions of Option 3 above. His retirement benefit
shall be suspended during such active service and he shall be governed by the provisions of
this Section. Employers and employees failing to submit the report required by Subsection
B of this Section shall be liable for the repayment of contributions due from the date of
reemployment.
NOTE: See Acts 2002, 1st Ex. Sess., No. 165, §§2 and 3, relative to
implementation and applicability of the Act, severability of provisions, and
effect of a holding that application of the Act to certain persons is invalid.

Legislative History

Added by Acts 1978, No. 67, §2. Acts 1985, No. 472, §1; Redesignated from R.S. 42:557 by Acts 1991, No. 74, §3, eff. June 25, 1991; Acts 1995, No. 610, §1, eff. July 1, 1995; Acts 1997, No. 1201, §1, eff. July 15, 1997; Acts 1997, No. 1468, §1, eff. July 15, 1997; Acts 1999, No. 1334, §1; Acts 2001, No. 455, §1, eff. June 30, 2001; Acts 2002, 1st Ex. Sess., No. 165, §1, eff. May 9, 2002; Acts 2003, No. 1234, §1; Acts 2004, No. 690, §1, eff. July 6, 2004; Acts 2006, No. 770, §1, eff. June 30, 2006; Acts 2007, No. 252, §1, eff. July 1, 2007; Acts 2014, No. 648, §2, see Act for effective date; Acts 2025, No. 7, §1.