Teachers May Have New Options in Funding Retirement

Teachers in two states may have new options for funding retirement, if measures before their legislatures are enacted. 

Working After Retirement

A bill before the Missouri Senate would adjust provisions of the law concerning time and salary limitations on working after retirement for members of the Public School Retirement System and the Public Education Employee Retirement System.

Sen. Mike Bernskoetter (R-Morgan) introduced SB 1286 on Jan. 25, 2024. The bill would change the rules governing retirement benefits of those who retire from the Missouri Public School Retirement System. 

The bill provides that after retirement such an individual may earn up to 50% of the annual compensation of the person who last held the position or 50% of the limit set by the employer's school board for the position. Current law states that such an individual may work after retirement in a certified position with a covered employer without their retirement benefits being discontinued if the individual does not exceed 550 hours of work each school year and 50% of the annual compensation to the person who last held the position.

Current law says that if such an individual earns more than the limitations, he or she is ineligible to receive the retirement allowance for any month so employed. SB 1286 provides that (1) such an individual would not be eligible to receive the retirement allowance for any month so employed; or (2) the retirement system shall recover the amount earned in excess of the limitations, whichever is less.

The bill was referred to the Missouri Senate Veterans, Military Affairs and Pensions Committee. 

Transfers to the Louisiana Teachers’ Pension Plan

A bill before the Louisiana House of Representatives would change the law governing transfers into the defined benefit plan of the Teachers' Retirement System of Louisiana.

Rep. Barbara Reich Freiberg (R-East Baton Rouge) introduced HB31 on Jan. 25, 2024. 

Current law allows an optional retirement plan (ORP) participant to transfer to the DB plan of the Teachers' Retirement System of Louisiana (TRSL). 

Employees of a public institution of higher education may elect to enter the ORP when he or she is first hired in an eligible TRSL-covered position. The choice to participate in the ORP is irrevocable and renders one ineligible for membership in TRSL after joining the ORP. 

Freiberg’s bill provides that an active, contributing participant in the ORP on June 30, 2024, may elect, through written notice to TRSL, to stop contributing to the ORP and begin membership in the regular retirement plan at TRSL as a new member on or before Dec. 30, 2024. 

HB31 also provides that:

• Contributions to the ORP shall cease on Jan. 31, 2025, and contributions and accrual in the regular retirement plan at TRSL shall begin on Feb. 1, 2025. 
• Distributions from the ORP shall be made in accordance with present law. 
• Any cost of the legislation would be funded with additional employer contributions.

The bill has been referred to the Louisiana House Committee on Retirement.