Retirees who return to work may keep benefits without reduction only if they meet the stated earnings/service conditions; otherwise benefits are reduced, and both the retiree and employer must notify the board and make required contributions.
§1762. Part-time reemployment of retirees NOTE: Subsection A terminates June 30, 2028. See Acts 2024, No. 634. A.(1) Whenever a retiree receiving normal retirement benefits becomes reemployed by an employer but the retiree does not meet the definition of an employee and either his monthly earnings are equal to or less than the difference between his monthly average final compensation and his monthly retirement benefit or the retiree has more than thirty years of creditable service and is at least age sixty, his retirement benefits shall continue without any reduction, and the retiree shall not be a member of the system. (2) Whenever a retiree who has thirty years or less of creditable service and who is receiving normal retirement benefits becomes reemployed by an employer but the retiree does not meet the definition of an employee and his monthly earnings exceed the difference between his monthly average final compensation and his monthly retirement benefit, his retirement benefits shall be reduced by the amount that his monthly earnings exceed the difference between his monthly average final compensation and his monthly retirement benefit for every month of such employment, and the retiree shall not be a member of the system. The calculation of monthly earnings shall not include income attributable to service as a part-time elected official listed in R.S. 11:164. B. For a retired member first reemployed on or after July 1, 2016, during a period of reemployment by an employer without his meeting the definition of an employee, the retiree and his employer shall make contributions to the retirement system as provided by this Chapter, but the retiree shall receive no additional service credit and shall not accrue any additional retirement benefit in the retirement system. Upon termination of reemployment, employee contributions paid since reemployment shall, upon application, be refunded to the retiree without interest. The retirement system shall retain the employer contributions and interest on contributions made pursuant to this Subsection. C. The retired member and the employer shall immediately notify the board of the retiree's date of employment, the amount of his monthly salary, and any changes in salary, number of hours employed per week, estimated duration of employment, and date of termination of employment. D. For purposes of this Section, there shall be an annual cost-of-living adjustment to the average final compensation figure used to determine whether benefits are to be continued or reduced. This cost-of-living adjustment shall be based upon and directly reflect the annual percentage increase or decrease in the Consumer Price Index for the preceding calendar year. Added by Acts 1981, No. 225, §1; Redesignated from R.S. 33:7202 by Acts 1991, No. 74, §3, eff. June 25, 1991; Acts 1992, No. 1081, §1, eff. Oct. 1, 1992; Acts 2016, No. 649, §1, eff. June 17, 2016; Acts 2017, No. 314, §1, eff. June 30, 2017; Acts 2019, No. 416, §1, eff. June 20, 2019; Acts 2024, No. 634, §1. NOTE: Subsection A terminates June 30, 2028. See Acts 2024, No. 34, §2.