CHAPTER 2. TEACHERS' RETIREMENT SYSTEM
OF LOUISIANA
PART I. GENERAL PROVISIONS
§701. Definitions
As used in this Chapter, the following words and phrases have the meanings ascribed
to them in this Section unless a different meaning is plainly required by the context:
(1) "Accumulated contributions" means the sum of all the amounts deducted from
the compensation of a member plus any interest which has been credited to his individual
account in the annuity savings fund plus amounts credited to his account.
(2) "Actuarial equivalent" means a benefit of equivalent value to the accumulated
contributions, annuity, or benefits, as the case may be, computed on the basis of interest and
mortality assumptions adopted in accordance with the provisions of R.S. 11:834.
(3) "Annuity" means payments for life derived from the "accumulated contributions"
of a member. All annuities shall be payable in equal monthly installments.
(4) "Annuity reserve" means the present value of all payments to be made on account
of any annuity or benefit in lieu of any annuity computed upon the basis of mortality tables
adopted by the board of trustees, and regular interest.
(5)(a) "Average compensation" subject to the other provisions of this Paragraph, for
any teacher whose first employment making him eligible for membership in one of the state
systems occurred on or before December 31, 2010, means the average earnable compensation
of a teacher for the three highest successive years of employment, or the highest three
successive joined years of employment where interruption of service occurred. For any
teacher whose first employment making him eligible for membership in one of the state
systems occurred on or after January 1, 2011, "average compensation" means his average
earnable compensation for the five highest successive years of employment, or the highest
five successive joined years where interruption of service occurred. The computation of such
average compensation shall be in accordance with the following guidelines:
(i) The amount for the first through the twelfth month shall not exceed the
compensation for the immediately preceding twelve months by more than ten percent for a
teacher whose first employment making him eligible for membership in one of the state
systems occurred on or before December 31, 2010, or by more than fifteen percent for a
teacher whose first employment making him eligible for membership in one of the state
systems occurred on or after January 1, 2011.
(ii) The amount for the thirteenth through the twenty-fourth month shall not exceed
the lesser of the maximum allowable compensation amount or the actual compensation
amount for the first through twelfth month by more than ten percent for a teacher whose first
employment making him eligible for membership in one of the state systems occurred on or
before December 31, 2010, or by more than fifteen percent for a teacher whose first
employment making him eligible for membership in one of the state systems occurred on or
after January 1, 2011.
(iii) The amount for the twenty-fifth through the thirty-sixth month shall not exceed
the lesser of the maximum allowable compensation amount or the actual compensation
amount for the thirteenth through twenty-fourth month by more than ten percent for a teacher
whose first employment making him eligible for membership in one of the state systems
occurred on or before December 31, 2010, or by more than fifteen percent for a teacher
whose first employment making him eligible for membership in one of the state systems
occurred on or after January 1, 2011.
(iv) The amount for the thirty-seventh through the forty-eighth month shall not
exceed the lesser of the maximum allowable compensation amount or the actual
compensation amount for the twenty-fifth through the thirty-sixth month by more than
fifteen percent.
(v) The amount for the final twelve months shall not exceed the lesser of the
maximum allowable compensation amount or the actual compensation amount for the thirty-seventh through the forty-eighth month by more than fifteen percent.
(b) The thirty-six or sixty months used for average compensation, as the case may
be, cannot cover a period when the member receives more than three years or five years of
service credit respectively.
(c)(i) The limitations on the computation of average compensation in this Paragraph
shall not apply to any of the twelve-month periods where compensation increased by more
than the amount allowable in Subparagraph (a) of this Paragraph over the previous twelve-month period solely because of an increase in compensation by legislative act, by city/parish
systemwide salary increase, or by a systemwide increase at a college or university.
(ii) Any active member or retiree whose average compensation includes or would
include earnable compensation received between June 30, 1995 and June 30, 1997, as the
result of a legislative act, a city/parish systemwide salary increase, or a systemwide increase
at a college or university shall have his average compensation calculated without regard to
the limitations on the computation of average compensation imposed in this Paragraph for
that period. The provisions of this Item shall only apply to any such member or retiree whose
employer filed with this system on or before July 1, 1998, a written request or application for
coverage under this Subparagraph.
(iii) Any retiree to whom Item (ii) of this Subparagraph applies, whose benefits are
based, or by reason of Item (ii) of this Subparagraph would be based, on a calculation of
average compensation which includes earnable compensation between June 30, 1995, and
June 30, 1997, shall have his benefits recalculated in accordance with this Subparagraph and,
if an increase in benefits results, the retiree shall be paid such an amount to restore any prior
benefits that would have been paid if the benefits had originally been calculated in
accordance with this Subparagraph.
(d) Provided, however, in any case where a classroom teacher changes employment
to that of a classroom teacher in another parish, the amount for the twelve months of earnings
in the position of a classroom teacher in the second parish of employment shall not exceed
the compensation for the immediately preceding twelve months by more than twenty-five
percent.
(e) Notwithstanding any other provision of law to the contrary, "average
compensation" shall not include any amount in excess of the limitation provided in R.S.
11:785.1.
(6) "Beneficiary" means the eligible recipient of a pension, annuity, retirement
allowance, or other benefit provided in this Chapter. A beneficiary shall be a natural person
or the succession of a natural person, except as provided in R.S. 11:762(J).
(7) "Board of trustees" means the board provided for in Part V of this Chapter to
administer the retirement system.
(8) "Conduit individual retirement account" means an account which is covered by
the provisions of Section 408(a) of the United States Internal Revenue Code, provided the
account only contains assets rolled over to the account as an eligible rollover distribution
from a qualified plan, plus earnings on those assets, but does not contain any other assets.
(9) "Creditable service" means "Prior Service" plus "Membership Service" for which
credit is allowable as provided in Part III of this Chapter. A person may not obtain more than
one year of service credit during any fiscal year.
(10) "Earnable compensation" means the compensation earned by a member during
the full normal working time as a teacher. Earnable compensation shall include any
differential wage payment as defined by 26 U.S.C. 3401(h)(2) that is made by an employer
to any individual performing qualified military service. Earnable compensation shall not
include per diem, post allowances, payment in kind, hazardous duty pay, or any other
allowance for expense authorized and incurred as an incident to employment, nor payments
in lieu of unused sick or annual leave, nor retroactive salary increases unless such an increase
was granted by legislative Act or by a city or parish systemwide salary increase, nor payment
for discontinuation of contractual services, unless the payment is made on a monthly basis.
If a member is granted an official leave and he makes contributions for the period of leave,
earnable compensation shall not include compensation paid for other employment which
would not have been possible without the leave. The board of trustees shall determine
whether or not any other payments are to be classified as earnable compensation.
(11) "Eligible rollover distribution" means a distribution as defined in R.S.
11:792(B).
(12) "Employer" means the state of Louisiana, any city, parish, or other local school
board, the State Board of Elementary and Secondary Education, any board created by Article
VIII of the Constitution of Louisiana, or any other agency of and within the state or a
political subdivision by which a teacher is paid.
(13) "Excess benefit participant" means any member whose retirement benefit as
determined on the basis of all qualified plans of the employer without regard to the
limitations of R.S. 11:784.1 and comparable provisions of other qualified plans of the
employer would exceed the maximum benefit permitted under Section 415 of the Internal
Revenue Code.
(14) "Fiscal year" means the period beginning July first of any year and ending June
thirtieth of the next succeeding year. Teachers employed by year-round schools shall receive
a full year of service credit if they work all available days of the fiscal year.
(15) "Internal Revenue Code" means the United States Internal Revenue Code of
1986, as amended.
(16) "Maximum benefit" means the retirement benefit a member is entitled to receive
from the system set forth in Part IV of this Chapter in any month after giving effect to R.S.
11:784.1 and any similar provisions of any other qualified plans of the employer designed
to conform to Section 415 of the Internal Revenue Code.
(17) "Medical board" shall mean the State Medical Disability Board.
(18) "Member" means any teacher included in the membership of the system as
provided in Part II of this Chapter.
(19) "Membership service" means service as a teacher rendered while a member of
the retirement system.
(20) "Minor child" means an unmarried child under the age of twenty-one years or
an unmarried student under the age of twenty-three years who is the issue of a marriage of
a member of this system, the legally adopted child of a member of this system, a child born
outside of marriage of a female member of this system, or the child of a male member of this
system if a court of competent jurisdiction has, pursuant to the provisions of the Civil Code
rendered a judgment of filiation declaring the paternity of such member for the child. An
unmarried child who acquires a mental disability or a total and permanent physical disability
prior to age twenty-one, as certified by the medical board, shall be considered a "minor child"
for the purposes of the benefit provisions of this Chapter and shall remain a "minor child"
provided the medical board certifies he has a mental disability or a total and permanent
disability and provided he remains unmarried.
(21) "Natural person" means a human being.
(22) "Pension reserve" means the present value of all payments to be made on
account of any pension or benefit in lieu of any pension computed upon the basis of mortality
tables adopted by the board of trustees, and regular interest.
(23) "Pensions" means payments for life. All pensions shall be payable in equal
monthly installments.
(24) "Plan year" means the fiscal year.
(25) "Prior service" means service rendered prior to the date of establishment of the
retirement system for which credit is allowable under Part III of this Chapter.
(26) "Public school" means any school conducted within the state under the authority
and supervision of a city, parish, or other local school board and any educational institution
supported by and under the control of the state.
(27) "Qualified plan" means a trust which is covered by the provisions of Section
401(a) of the United States Internal Revenue Code.
(28) "Regular interest" means interest compounded annually at such a rate as shall
be determined by the board of trustees in accordance with R.S. 11:851.
(29) "Retirement" means withdrawal from active service with a retirement allowance
granted under the provisions of this Chapter.
(30) "Retirement allowance" means the sum of the annuity and the pensions or any
optional benefit payable in lieu thereof. These benefits are paid in advance on the first of the
month that they are due.
(31) "Retirement system" means the Teachers' Retirement System of Louisiana as
defined in R.S. 11:702.
(32) "Service" means service as a teacher within the meaning of Paragraph (33) of
this Section.
(33) "Spouse" shall mean a person who is legally married to a member of this system
and shall not include a person who is legally separated from a member of this system by a
judgment of separation, unless such person has voluntarily reconciled with the member and
which reconciliation is established by a court of competent jurisdiction.
(34) "Student" means a person who satisfies all of the provisions of this Paragraph.
(a) The student must be enrolled in a high school, vocational-technical school, or a
college or university, any of which must be duly accredited or approved by the appropriate
educational agency of the state in which it is located.
(b) The student must be enrolled in a sufficient number of courses and classes in
such institution to be classified as a full-time regular student under the criteria used by the
institution in which he is enrolled. The educational institution shall provide written
notification to the retirement system that the student is in full-time status.
(35)(a) "Teacher", except as provided in Subparagraph (b) of this Paragraph, shall
mean any of the following:
(i) Any employee of a city, parish, or other local school board, any parish, city, or
other local superintendent, or any assistant superintendent of public schools.
(ii)(aa) Any president, vice president, dean, teacher, school counselor, or unclassified
employee at any state college or university or any vocational-technical school or institution
or special school under the control of the State Board of Elementary and Secondary
Education, or any educational institution supported by and under the control of the state or
any city, parish, or other local school board.
(bb) Notwithstanding the provisions of Subitem (aa) of this Item, the person who is
the director for the Louisiana State University Laboratory School on the effective date of this
Subitem shall not be included in this definition.
(iii) Any full-time unclassified employees of boards created by Article VIII of the
Constitution of Louisiana who became employed on or after July 1, 1991, provided that such
persons employed on and after July 1, 1991, who are members of the Louisiana State
Employees' Retirement System shall remain members of the Louisiana State Employees'
Retirement System.
(iv) The president and staff of the Louisiana Federation of Teachers who were
members of the Teachers' Retirement System prior to such employment.
(v)(aa) The president or secretary and staff of the Louisiana Association of
Educators.
(bb) Notwithstanding the provisions of this Item or any other provision of law to the
contrary, any non-bargaining employee whose initial effective date of employment occurred
on or before June 30, 2001, shall be eligible to irrevocably elect to terminate his membership
in this system, provided such election to terminate membership is exercised on or before
September 30, 2001. Any non-bargaining employee whose initial effective date of
employment occurs on or after July 1, 2001, shall have the irrevocable option to not
participate in this system, provided that such option to not participate must be made within
sixty days after the effective date of his employment and any such employee who fails to
exercise the option not to participate shall become a participating member of this system.
For purposes of this Subitem, the phrase "non-bargaining employee" shall mean any
employee of the Louisiana Association of Educators whose employment is not covered by
a collective bargaining agreement.
(cc) Notwithstanding any other provision of law to the contrary, any non-bargaining
employee who retires from the Teachers' Retirement System and later is reemployed in a
position covered by the provisions of this Chapter shall not have his retirement benefits
reduced or suspended during such reemployment.
(vi) The employees of the Teachers' Retirement System of Louisiana, provided that
persons employed by the Teachers' Retirement System on and after July 1, 1991, who are
members of the Louisiana State Employees' Retirement System shall remain members of the
Louisiana State Employees' Retirement System.
(vii) The director and staff of the Associated Professional Educators of Louisiana.
(viii)(aa) Except as otherwise provided in this Item, the director, secretary, staff
members, or any other individual employed by the Louisiana High School Athletic
Association on or before June 30, 2011.
(bb) Notwithstanding the provisions of this Item or any other provision of law to the
contrary, any director, secretary, staff member, or any other individual employed by the
Louisiana High School Athletic Association on or after July 1, 2000, and on or before June
30, 2011, who does not have a valid Louisiana teacher's certificate shall not be required to
participate in the system.
(cc) Any individual employed by the Louisiana High School Athletic Association
on or before June 30, 2011, who has a valid Louisiana teacher's certificate shall be required
to participate in the system provided the person satisfies all other eligibility criteria set forth
in this Chapter.
(ix) For purposes hereof, staff personnel involved in the administration of a health
and welfare program for the benefit of employees of a school board, which program is
coordinated by the school board and a teacher association, and which staff personnel are so
designated by the school board, shall be considered to be employees of the school board
provided that such employees were previously members of this system.
(x) The director and staff of the Louisiana Resource Center for Educators.
(xi) An alien holding a J-1 visa who is teaching in a Louisiana public school through
a J-1 exchange visitor program.
(xii) All nonclassified employees of the state who are administrators, faculty
members, or other professional employees at the New Orleans Center for Creative Arts.
(xiii) Any person who has retained membership in the system pursuant to R.S.
11:723.
(xiv) The director of the Louisiana School Boards Association and any employee of
the association who was either hired by the association after June 30, 2021, or who, as of
June 30, 2021, has at least five years of creditable service in the system.
(xv) In all cases of doubt, the board of trustees shall determine whether any person
is a teacher within the scope of the definition set forth in this Paragraph.
(b) "Teacher" shall not include any of the following:
(i) Any employee of a city, parish, or other local school board who is employed as
a school bus driver, school janitor, school custodian, or school maintenance employee,
school bus aide, monitor, or attendant, or anyone who actually works on a school bus helping
with the transportation of school children.
(ii)(aa) Any classified state employee at any state college, university, vocational-technical school, or institution or special school under the control of the State Board of
Elementary and Secondary Education, or any educational institution supported by and under
the control of the state.
(bb) The person who is director for the Louisiana State University Laboratory School
on July 11, 2005.
(iii) Any employees of the State Department of Education except that persons
employed by the State Department of Education on and after July 1, 1991, who are members
of this system shall remain members of this system.
(iv) Board members and employees of any board created by Article VIII of the
Constitution of Louisiana, except as provided in Subparagraph (33)(a) of this Section.
(v) Aliens who teach in Louisiana based on J and F visas, except as provided in Item
(a)(xi) of this Paragraph.
(c) Repealed by Acts 2010, No. 861, §22.
(36) "Unrestricted benefit" means the monthly retirement benefit a member, or the
spouse or child of a member, would have received under the terms of all qualified plans of
the employer, except for the restrictions of R.S. 11:784.1 and any similar provisions of any
other qualified plans designed to conform to Section 415 of the Internal Revenue Code.
Acts 1971, No. 5, §1; Acts 1972, No. 589, §1; Acts 1975, No. 339, §1; Acts 1975,
Ex.Sess., No. 3, §2, eff. June 1, 1975; Acts 1978, No. 648, §1, eff. July 13, 1978; Acts 1978,
No. 727, §3, eff. Jan. 1, 1979; Acts 1982, No. 174, §1; Acts 1982, No. 579, §1, eff. July 22,
1982; Acts 1983, No. 17, §1, eff. July 1, 1983; Acts 1984, No. 34, §1; Acts 1984, No. 471,
§1; Acts 1985, No. 652, §1; Acts 1986, No. 786, §1; Acts 1986, No. 439, §1; Acts 1987, No.
591, §1; Acts 1988, No. 930, §1, eff. July 26, 1988; Acts 1989, No. 279, §1; Acts 1990, No.
631, §1, eff. July 1, 1990; Acts 1991, No. 216, §1, eff. July 1, 1991; Redesignated from R.S.
17:571 by Acts 1991, No. 74, §3, eff. June 25, 1991; Acts 1992, No. 160, §1, eff. June 5,
1992; Acts 1992, No. 212, §1, eff. July 1, 1992; Acts 1993, No. 597, §1, eff. July 1, 1993;
Acts 1993, No. 739, §1; Acts 1995, No. 571, §1, eff. July 1, 1995; Acts 1995, No. 577, §1,
eff. July 1, 1995; Acts 1995, No. 592, §1, eff. July 1, 1995; Acts 1995, No. 1268, §1, eff.
June 29, 1995; Acts 1997, No. 78, §1, eff. July 1, 1997; Acts 1997, No. 812, §1, eff. July 1,
1997; Acts 1997, No. 1353, §1, eff. July 1, 1997; Acts 1999, No. 40, §1, eff. July 1, 1999;
Acts 1999, No. 47, §1, eff. July 1, 1999; Acts 1999, No. 356, §1, eff. July 1, 1999; Acts
1999, No. 943, §1, eff. July 9, 1999; Acts 1999, No. 1330, §1, eff. July 12, 1999; Acts 2000,
1st Ex. Sess., No. 60, §1, eff. July 1, 2000; Acts 2001, No. 1046, §1, eff. June 28, 2001; Acts
2001, No. 1172, §1, eff. July 1, 2001; Acts 2001, No. 1174, §1, eff. July 1, 2001; Acts 2003,
No. 536, §1, eff. July 1, 2003; Acts 2003, No. 559, §1, eff. June 27, 2003; Acts 2004, No.
26, §6; Acts 2005, No. 455, §1, eff. July 11, 2005; Acts 2009, No. 412, §1; Acts 2010, No.
525, §1, eff. June 24, 2010; Acts 2010, No. 637, §§1, 2, eff. July 1, 2010; Acts 2010, No.
861, §4; Acts 2010, No. 992, §1, eff. Jan. 1, 2011; Acts 2010, No. 999, §§1, 3; Acts 2011,
No. 75, §1, eff. July 1, 2011; Acts 2012, No. 298, second §2; Acts 2012, No. 510, §1, eff.
July 1, 2012; Acts 2013, No. 220, §3, eff. June 11, 2013; Acts 2014, No. 727, §1, eff. July
1, 2014; Acts 2014, No. 811, §4, eff. June 23, 2014; Acts 2021, No. 138, §1, eff. June 11,
2021; Acts 2021, No. 275, §1.
NOTE: Acts 2014, No. 811 changed terminology referring to persons with
disabilities throughout the La. Revised Statutes and codes of law, and included a
listing of terms that were deleted and their respective successor terms (See Acts
2014, No. 811, §36). The Act provides that it is not the intent of the legislature that
changes in terminology effected therein alter or affect in any way the substance,
interpretation, or application of any law or administrative rule; further provides that
nothing in the Act shall be construed to expand or diminish any right of or benefit for
any person provided by any law or administrative rule (See Acts 2014, No. 811,
§35(C) and (D)).