HLS 10RS-260 REENGROSSED Page 1 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Regular Session, 2010 HOUSE BILL NO. 1337 BY REPRESENTATIVES ROBIDEAUX, TIM BURNS, CARMODY, CARTER, CORTEZ, GREENE, HARDY, HENDERSON, KATZ, LANDRY, LIGI, PEARSON, AND TUCKER RETIREMENT/STATE SYSTEMS: Relative to the state retirement systems, makes changes to the benefits for persons hired on or after January 1, 2011 AN ACT1 To amend and reenact R.S. 11:62(4), (5)(a) and (c) and (10), 203, 211, 212, 214, 231,2 403(5), 441(A) and (F), 444(A), 461(B), 471(A), 478(A), 551, 553 (introductory3 paragraph), 581, 601(B), 602, 701(5)(a), (b), and (c)(i), 761(A)(3), 768(B)(2),4 778(C) and (D), 779, 1002(6)(b), 1141(A), 1144(B)(2)(a) and (3), 1147(C)(2)(b),5 1151(A), 1307(A), 1310(A), 1313(B)(introductory paragraph), 1316(A),6 1317(A)(1)(introductory paragraph), 1318(A), 1319, 1320(A), 1321(A)(1),7 1322(A)(introductory paragraph) and to enact R.S. 11:62(5)(g), 471.1, Subpart D8 of Part VII of Chapter 1 of Subtitle II of Title 11 of the Louisiana Revised Statutes9 of 1950, to be comprised of R.S. 11:611 through 619, 761(A)(4), 779.1, 1002(6)(c),10 1144(B)(4), 1147(C)(2)(a)(iii), 1151.1, 1313(C), 1323, 1323.1, Part III of Chapter11 4 of Subtitle II of Title 11 of the Louisiana Revised Statutes of 1950, to be comprised12 of R.S. 11:1345.1 through 1345.9, and R.S. 24:36(M), relative to the Louisiana State13 Employees' Retirement System, the Teachers' Retirement System of Louisiana, the14 State Police Pension and Retirement System, and the Louisiana School Employees'15 Retirement System; to provide relative to membership, employee contributions,16 benefit calculation, survivor benefits, disability benefits, and retirement eligibility17 for members of such systems newly hired after a certain date; to provide an effective18 date; and to provide for related matters.19 HLS 10RS-260 REENGROSSED HB NO. 1337 Page 2 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Notice of intention to introduce this Act has been published1 as provided by Article X, Section 29(C) of the Constitution2 of Louisiana.3 Be it enacted by the Legislature of Louisiana:4 Section 1. R.S. 11:62(4), (5)(a) and (c) and (10), 203, 211, 212, 214, 231, 403(5),5 441(A) and (F), 444(A), 461(B), 471(A), 478(A), 551, 553 (introductory paragraph), 581,6 601(B), 602, 701(5)(a), (b), and (c)(i), 761(A)(3), 768(B)(2), 778(C) and (D), 779,7 1002(6)(b), 1141(A), 1144(B)(2)(a) and (3), 1147(C)(2)(b), 1151(A), 1307(A), 1310(A),8 1313(B)(introductory paragraph), 1316(A), 1317(A)(1)(introductory paragraph), 1318(A),9 1319, 1320(A), 1321(A)(1), 1322(A)(introductory paragraph) are hereby amended and10 reenacted and R.S. 11:62(5)(g), 471.1, Subpart D of Part VII of Chapter 1 of Subtitle II of11 Title 11 of the Louisiana Revised Statutes of 1950, comprised of R.S. 11:611 through 619,12 761(A)(4), 779.1, 1002(6)(c), 1144(B)(4), 1147(C)(2)(a)(iii), 1151.1, 1313(C), 1323, 1323.1,13 and Part III of Chapter 4 of Subtitle II of Title 11 of the Louisiana Revised Statutes of 1950,14 comprised of R.S. 11:1345.1 through 1345.9 are hereby enacted to read as follows: 15 §62. Employee contribution rates established16 Employee contributions to state and statewide public retirement systems shall17 be paid at the following rates:18 * * *19 (4) Louisiana School Employees' Retirement System - 7.5% :20 (a) Employed on or before December 31, 2010 - 7.5%21 (b) Employed on or after January 1, 2011 - 8%22 (5) Louisiana State Employees' Retirement System:23 (a) Judges, court officers, the governor, lieutenant governor and legislators24 - 11.5%. :25 (i) Employed on or before December 31, 2010 - 11.5%26 (ii) Employed on or after January 1, 2011 - 8%27 * * *28 HLS 10RS-260 REENGROSSED HB NO. 1337 Page 3 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (c) Clerk and sergeant at arms of the House of Representatives and Secretary1 and sergeant at arms of the Senate - 9.5%. :2 (i) Employed on or before December 31, 2010 - 9.5%3 (ii) Employed on or after January 1, 2011 - 8%4 * * *5 (g) "Members" of the Hazardous Duty Services Plan, as defined in R.S.6 11:612 - 9.5%.7 * * *8 (10) State Police Pension and Retirement System – 8.5%. :9 (a) Employed on or before December 31, 2010 - 8.5%10 (b) "Members" of the New State Police Retirement Plan as defined in R.S.11 11:1345.2 - 9.5%12 * * *13 §203. Teachers' Retirement System14 A. A member who becomes disabled, and who files for disability benefits15 while in service, and who upon medical examination and certification, as provided16 for elsewhere in this Subpart, is found to be totally disabled for any cause, shall be17 entitled to disability benefits under the provisions of R.S. 11:778(B), provided the18 member has at least five years of creditable service, and R.S. 11:778 and 779,19 provided that the disability was incurred while the member was an active20 contributing member in active service. However, if the application for disability21 benefits is not filed while the member is in service, it shall be presumed that the22 disability was not incurred while the member was an active contributing member in23 active service. Such presumption may be overcome only by clear, competent, and24 convincing evidence that the disability was incurred while the member was an active25 contributing member in active service. 26 B.(1) A person whose first employment making him eligible for system27 membership occurs on or before December 31, 2010, applying for a disability benefit28 shall have five years of actual credited service in order to qualify for a disability29 HLS 10RS-260 REENGROSSED HB NO. 1337 Page 4 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. benefit. Such member shall not use credit earned while receiving workers'1 compensation in order to meet the minimum five-year eligibility requirement.2 (2) A person whose first employment making him eligible for system3 membership occurs on or after January 1, 2011, applying for a disability benefit shall4 have ten years of actual credited service in order to qualify for a disability benefit.5 Such member shall not use credit earned while receiving workers' compensation in6 order to meet the minimum ten-year eligibility requirement. 7 B. C. A member covered by R.S. 11:801 of this system, who becomes8 disabled, and who files for disability benefits while in service, and who upon medical9 examination and certification as provided for elsewhere in this Subpart, is found to10 be totally disabled for any cause, shall be entitled to disability benefits under the11 provisions of R.S. 11:805, provided the member has at least five years of creditable12 service, and provided that the disability was incurred while the member was an13 active contributing member in active service. However, if the application for14 disability benefits is not filed while the member is in service, it shall be presumed15 that the disability was not incurred while the member was an active contributing16 member in active service. Such presumption may be overcome only by clear,17 competent, and convincing evidence that the disability was incurred while the18 member was an active contributing member in active service. 19 * * *20 §211. State Police Retirement Fund 21 A. A member whose first employment making him eligible for system22 membership occurs on or before December 31, 2010, who becomes disabled, and23 who files for disability benefits while in service, and who upon medical examination24 and certification as provided for elsewhere in this Subpart is found to be either25 totally or partially disabled solely as the result of injuries sustained in the26 performance of his official duties, or totally disabled for any cause, provided the27 member has at least five years of creditable service, and provided that the disability28 HLS 10RS-260 REENGROSSED HB NO. 1337 Page 5 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. was incurred while the member was an active contributing member in active service,1 shall be entitled to disability benefits under the provisions of R.S. 11:1313(B). 2 B. A member whose first employment making him eligible for system3 membership occurs on or after January 1, 2011, who becomes disabled and who4 files for disability benefits while in service, and who upon medical examination and5 certification as provided for elsewhere in this Subpart is found to be either totally or6 partially disabled solely as the result of injuries sustained in the performance of his7 official duties, or totally disabled for any cause, provided the member has at least ten8 years of creditable service, and provided that the disability was incurred while the9 member was an active contributing member in active service, shall be entitled to10 disability benefits under the provisions of R.S. 11:1357.11 C. However, if If the application for disability benefits is not filed while the12 member is in service, it shall be presumed that the disability was not incurred while13 the member was an active contributing member in active service. Such presumption14 may be overcome only by clear, competent, and convincing evidence that the15 disability was incurred while the member was an active contributing member in16 active service. 17 §212. Louisiana State Employees' Retirement System18 A. A member who becomes disabled, and who is not eligible for regular19 retirement, and who files for disability benefits while in service, and who upon20 medical examination and certification, as provided for elsewhere in this Subpart, is21 found to be totally disabled for any cause, shall be entitled to disability benefits22 under the provisions of R.S. 11:461(B), provided the member has at least ten years23 of creditable service, and provided that the disability was incurred while the member24 was an active contributing member in active state service. However, if the25 application for disability benefits is not filed while the member is in state service, it26 shall be presumed that the disability was not incurred while the member was an27 active contributing member in active state service; such presumption may be28 HLS 10RS-260 REENGROSSED HB NO. 1337 Page 6 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. overcome only by clear, competent, and convincing evidence that the disability was1 incurred while the member was an active contributing member in active state service.2 B.(1) Subject to the appropriation of funds for this purpose, a member of the3 Louisiana State Employees' Retirement System who is first employed as a4 correction officer, probation or parole officer, or security officer of the Department5 of Public Safety and Corrections on or before December 31, 2010, and who, upon6 medical examination and certification as provided in this Subpart, is found to be7 either totally disabled or partially disabled or incapacitated solely as the result of8 injuries sustained in the official performance of official duties of a hazardous nature,9 shall be entitled to disability benefits under the provisions of R.S. 11:461(B)10 regardless of the number of years of service, provided the member has been a11 correction officer, probation or parole officer, or a security officer of the Department12 of Public Safety and Corrections. 13 (2) Any member who is first employed as a correction officer, probation or14 parole officer, or security officer of the Department of Public Safety and Corrections15 on or after January 1, 2011, and who, upon medical examination and certification as16 provided in this Subpart, is found to be totally and permanently disabled solely as the17 result of injuries sustained in the official performance of official duties of a18 hazardous nature, or totally disabled other than in the performance of his duties, shall19 be entitled to disability benefits under the provisions of R.S. 11:617.20 C. If the application for disability or survivors' benefits is not filed while the21 member is in state service, it shall be presumed that the disability was not incurred22 while the member was an active contributing member in active service. Such23 presumption may be overcome only by clear, competent, and convincing evidence24 that the disability was incurred while the member was an active contributing member25 in active service.26 * * *27 HLS 10RS-260 REENGROSSED HB NO. 1337 Page 7 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. §214. Employees of the Enforcement Division enforcement division in the1 Department of Wildlife and Fisheries 2 (A)(1) A member of the Louisiana State Employees' Retirement System who3 is an employee of first employed by the enforcement division in the Department of4 Wildlife and Fisheries on or before December 31, 2010, and who upon medical5 examination and certification as provided for elsewhere in this Subpart, is found to6 be either totally disabled solely as the result of injuries sustained in the official7 performance of his official duties, or partially disabled or incapacitated for any8 reason, provided the member has been an employee of the enforcement division for9 at least ten years, and provided that the disability was incurred while the member10 was an active contributing member in active service, shall be entitled to disability11 benefits under the provisions of R.S. 11:583(B). 12 (2) A member who is first employed by the enforcement division in the13 Department of Wildlife and Fisheries on or after January 1, 2011, who becomes14 disabled and who files for disability benefits while in service, and who upon medical15 examination and certification as provided for elsewhere in this Subpart is found to16 be totally and permanently disabled solely as the result of injuries sustained in the17 performance of his official duties, or totally disabled for any cause, provided the18 member has at least ten years of creditable service, shall be entitled to disability19 benefits under the provisions of R.S. 11:617.20 B. However, if If the application for disability benefits is not filed while the21 member is in state service, it shall be presumed that the disability was not incurred22 while the member was an active contributing member in active service. Such23 presumption may be overcome only by clear, competent, and convincing evidence24 that the disability was incurred while the member was an active contributing member25 in active service.26 * * *27 HLS 10RS-260 REENGROSSED HB NO. 1337 Page 8 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. §231. Average compensation1 A. Notwithstanding any other provisions of law to the contrary, the2 provisions of this Section shall be applicable, unless specifically exempted in3 Subsection C below of this Section, to all members of the following public4 retirement systems:5 (1) Louisiana State Employees' Retirement System.6 (2) State Police Pension and Retirement System.7 (4) (1) Assessors' Retirement Fund.8 (5) (2) Clerks' of Court Retirement and Relief Fund.9 (6) (3) District Attorneys' Retirement System.10 (7) (4) Municipal Employees' Retirement System of Louisiana.11 (9) (5) Registrars of Voters Employees' Retirement System.12 (10) (6) Sheriffs' Pension and Relief Fund.13 (11) (7) Municipal Police Employees' Retirement System.14 B. For purposes of retirement benefit computation, average compensation,15 or its equivalent, shall be based on the thirty-six highest successive months of16 employment, or on the highest thirty-six successive joined months of employment17 where interruption of service occurred. The earnings to be considered for the18 thirteenth through the twenty-fourth month shall not exceed one hundred and19 twenty-five percent of the earnings of the first through the twelfth month. The20 earnings to be considered for the final twelve months shall not exceed one hundred21 and twenty-five percent of the earnings of the thirteenth through the twenty-fourth22 month. Nothing herein in this Subsection, however, shall change the method of23 determining the amount of earned compensation received.24 C.(1) This Section shall not apply to members of the State Police Pension25 and Retirement System who become members on or before September 8, 1978, but26 it shall apply to all persons who become members of the State Police Pension and27 Retirement System on or after September 9, 1978.28 HLS 10RS-260 REENGROSSED HB NO. 1337 Page 9 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (2) This Section shall not apply to members of the Louisiana State1 Employees' Retirement System whose first employment making them eligible for2 system membership began on or after July 1, 2006, or to any person who receives an3 additional benefit pursuant to R.S. 11:557, 582, or 602 or R.S. 24:36.4 (3) This Section shall not apply to members of the following retirement5 systems whose first employment making them eligible for system membership began6 on or after July 1, 2006:7 (a) Clerks' of Court Retirement and Relief Fund.8 (b) Municipal Employees' Retirement System.9 (c) Registrars of Voters Employees' Retirement System.10 (d) Sheriffs' Pension and Relief Fund.11 (4) (2) This Section shall not apply to members of the Parochial Employees'12 Retirement System whose first employment making them eligible for system13 membership began on or after January 1, 2007.14 (5) (3) This Section shall not apply to members of the Assessors' Retirement15 Fund whose first employment making them eligible for system membership began16 on or after October 1, 2006.17 (6) This Section shall not apply to members of the Louisiana School18 Employees' Retirement System whose first employment making them eligible for19 system membership began on or after July 1, 2006.20 * * *21 §403. Definitions22 The following words and phrases used in this Chapter shall have the23 following meanings, unless a different meaning is clearly required by the context:24 * * *25 (5)(a)(i) "Average compensation", for a member whose first employment26 making him eligible for membership in the system began on or before June 30, 2006,27 and for any person who receives an additional benefit pursuant to R.S.28 11:444(A)(2)(b) or (c), 557, 582, or 602 or R.S. 24:36 whose first employment29 HLS 10RS-260 REENGROSSED HB NO. 1337 Page 10 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. making him eligible for receiving such additional benefit began on or before1 December 31, 2010, means the average annual earned compensation of a state2 employee for the thirty-six highest months of successive employment, or for the3 highest thirty-six successive joined months of employment where interruption of4 service occurred; however, average compensation for part-time employees who do5 not use thirty-six months of full-time employment for average compensation6 purposes shall be based on the base pay the part-time employee would have received7 had he been employed on a full-time basis.8 (ii) The earnings to be considered for the thirteenth through the9 twenty-fourth month shall not exceed one hundred and twenty-five percent of the10 earnings of the first through the twelfth month. The earnings to be considered for the11 final twelve months shall not exceed one hundred and twenty-five percent of the12 earnings of the thirteenth through the twenty-f ourth month. Nothing in this13 Subparagraph, however, shall change the method of determining the amount of14 earned compensation received.15 (b)(i) "Average compensation", for a member whose first employment16 making him eligible for membership in the system began on or after July 1, 2006,17 and subject to the limitations provided in this Subparagraph, means the average18 annual earned compensation of a state employee for the sixty highest months of19 successive employment or for the highest sixty successive joined months of20 employment where interruption of service occurred; however, average compensation21 for part-time employees who do not use sixty months of full-time employment for22 average compensation purposes shall be based on the base pay the part-time23 employee would have received had he been employed on a full-time basis. This Item24 shall also be applicable to any judge, court officer, governor, lieutenant governor,25 clerk or sergeant-at-arms of the House of Representatives, secretary or sergeant-at-26 arms of the Senate, or state treasurer whose first employment making him eligible27 for membership began on or after January 1, 2011.28 HLS 10RS-260 REENGROSSED HB NO. 1337 Page 11 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (ii) The earnings to be considered for persons to whom Item (i) of this1 Subparagraph applies for the thirteenth through the twenty-fourth month shall not2 exceed one hundred fifteen percent of the earnings of the first through the twelfth3 month. The earnings to be considered for the twenty-fifth through the thirty-sixth4 month shall not exceed one hundred fifteen percent of the earnings of the thirteenth5 through the twenty-fourth month. The earnings to be considered for the thirty-6 seventh through the forty-eighth month shall not exceed one hundred fifteen percent7 of the earnings of the twenty-fifth through the thirty-sixth month. The earnings for8 the final twelve months shall not exceed one hundred fifteen percent of the earnings9 of the thirty-seventh through the forty-eighth month. The limitations on the10 computation of average compensation contained in this Item shall not apply to any11 twelve-month period during which compensation increased by more than fifteen12 percent over the previous twelve-month period solely because of an increase in13 compensation by a uniform systemwide increase adopted by the state Department of14 Civil Service and approved by the governor or because of a pay adjustment enacted15 by the legislature. This Item shall also be applicable to any judge, court officer,16 member of the Louisiana Legislature, governor, lieutenant governor, clerk or17 sergeant-at-arms of the House of Representatives, secretary or sergeant-at-arms of18 the Senate, or state treasurer whose first employment making him eligible for19 membership began on or after January 1, 2011.20 (iii) The provisions of this Subparagraph shall not apply to any person who21 receives an additional benefit pursuant to R.S. 11:444(A)(2)(b) or (c), 557, 582, or22 602 or R.S. 24:36 whose first employment making him eligible for receiving such23 additional benefit began on or after January 1, 2011.24 * * *25 §441. Eligibility for retirement26 A.(1) Any member hired on or before June 30, 2006, or and any member27 who receives a benefit calculated pursuant to R.S. 11:444(A)(2)(b) and was hired on28 or before December 31, 2010, shall be eligible for retirement if he has:29 HLS 10RS-260 REENGROSSED HB NO. 1337 Page 12 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (a) Thirty years or more of service, at any age.1 (b) Twenty-five years or more of service, at age fifty-five or thereafter.2 (c) Ten years or more of service, at age sixty or thereafter.3 (d) Twenty years of service credit at any age, exclusive of military service4 and unused annual and sick leave, but any person retiring under this Subparagraph5 shall have his benefit, inclusive of military service credit and allowable unused6 annual and sick leave, actuarially reduced from the earliest age that he would7 normally become eligible for a regular retirement benefit under Subparagraph (a),8 (b), or (c) of this Paragraph if he had continued in service to that age. Any employee9 who elects to retire under the provisions of this Subparagraph shall not be eligible10 to participate in the Deferred Retirement Option Plan provided by R.S. 11:447 or the11 Initial Benefit Option provided by R.S. 11:446(A)(5).12 (2)(a) Any member hired on or after July 1, 2006, shall be eligible for13 retirement if he has ten years or more of service, at age sixty or thereafter.14 (b) Except for members of the Hazardous Duty Services Plan, as defined in15 R.S. 11:612, any member whose first employment making him eligible for16 membership began on or after January 1, 2011, including any judge, court officer,17 governor, lieutenant governor, clerk or sergeant-at-arms of the House of18 Representatives, secretary or sergeant-at-arms of the Senate, or state treasurer, shall19 be eligible for retirement if he has:20 (i) Five years or more of service, at age sixty or thereafter.21 (ii) Twenty years of service credit at any age, exclusive of military service22 and unused annual and sick leave, but any person retiring under this Item shall have23 his benefit, inclusive of military service credit and allowable unused annual and sick24 leave, actuarially reduced from the earliest age that he would normally become25 eligible for a regular retirement benefit under Item (i) of this Subparagraph if he had26 continued in service to that age. Any employee who elects to retire under the27 provisions of this Item shall not be eligible to participate in the Deferred Retirement28 HLS 10RS-260 REENGROSSED HB NO. 1337 Page 13 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Option Plan provided by R.S. 11:447 or the Initial Benefit Option provided by R.S.1 11:446.2 (3) Any full-time law enforcement personnel, supervisor, or administrator3 who is employed with the Department of Revenue, office of alcohol and tobacco4 control, on June 30, 2007, or thereafter, but on or before December 31, 2010, who5 is P.O.S.T.-certified, who has the power to arrest, and who holds a commission from6 such office shall be eligible to retire if he has:7 (a) Twenty-five years or more of service, at any age.8 (b) Ten years or more of service, at age sixty or thereafter.9 (c) Twenty years of service credit at any age, exclusive of military service10 and unused annual and sick leave, but any person retiring under this Subparagraph11 shall have his benefit, inclusive of military service credit and allowable unused12 annual and sick leave, actuarially reduced from the earliest age that he would13 normally become eligible for a regular retirement benefit under Subparagraph (a) or14 (b) of this Paragraph if he had continued in service to that age. Any employee who15 elects to retire under the provisions of this Subparagraph shall not be eligible to16 participate in the Deferred Retirement Option Plan provided by R.S. 11:447 or the17 Initial Benefit Option provided by R.S. 11:446(A)(5).18 * * *19 F. Notwithstanding the provisions of Subsection A of this Section or any20 other provision of law to the contrary, employees of persons who are first employed21 by the bridge police section of the Crescent City Connection Division of the22 Department of Transportation and Development on or before December 31, 2010,23 who are members of the system shall be eligible for retirement at any age upon24 attaining twenty-five or more years of service credit, at least ten of which were25 served immediately prior to application for retirement in a position with the bridge26 police section of the Crescent City Connection Division of the Department of27 Transportation and Development. 28 * * *29 HLS 10RS-260 REENGROSSED HB NO. 1337 Page 14 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. §444. Computation of retirement benefit1 A.(1)(a) A member who retires effective on or after July 1, 1973, shall2 receive a maximum retirement allowance equal to two and one-half percent of3 average compensation, as determined under R.S. 11:231, for every year of creditable4 service, plus three hundred dollars.5 (b) The additional sum of three hundred dollars referenced in Subparagraph6 (a) of this Paragraph shall only apply to a person who became a member prior to July7 1, 1986.8 (2)(a) Public safety service employees as those employees are referred to as9 "member" or "members" in R.S. 11:601(B) whose first employment making them10 eligible for membership began on or before December 31, 2010, shall receive a11 retirement allowance computed in accordance with R.S. 11:602.12 (b) Peace officers, as defined by R.S. 40:2402 (1)(3)(a), employed by the13 Department of Public Safety and Corrections, office of state police, other than state14 troopers, whose first employment making them eligible for membership began on15 or before December 31, 2010, shall receive a maximum retirement allowance in16 accordance with the following:17 (i)(aa) Any person employed as a peace officer on or before June 30, 2006,18 shall receive a benefit equal to three and one-third percent of average compensation,19 as determined under R.S. 11:231, for every year of creditable service in the20 retirement system whether or not such service was rendered as a peace officer, not21 to exceed one hundred percent of the member's average compensation.22 (bb) Any person employed as a peace officer on or before June 30, 2006,23 who was participating in the Deferred Retirement Option Plan on June 30, 2007, or24 who had continued in employment as of such date after completion of plan25 participation shall have his base benefit recalculated to reflect the increase in benefits26 provided pursuant to Subitem (aa) of this Item. The balance in his plan account and27 any subsequent contributions to such account shall be increased to reflect such28 benefit increase.29 HLS 10RS-260 REENGROSSED HB NO. 1337 Page 15 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (ii) Any person first employed as a peace officer after June 30, 2006, but1 before December 31, 2010, shall receive a benefit equal to three and one-third2 percent of average compensation, as determined under R.S. 11:231, for every year3 of creditable service as a peace officer, not to exceed one hundred percent of the4 member's average compensation.5 (iii) Any peace officer to whom this Subparagraph applies who continues in6 employment after participation in the Deferred Retirement Option Plan shall receive7 a supplemental benefit pursuant to R.S. 11:450(D) for such continued employment8 calculated using the accrual rate of three and one-third percent.9 (c)(i) Full-time law enforcement personnel, supervisors, and administrators10 who are employed with the Department of Revenue, office of alcohol and tobacco11 control, on June 30, 2007, who are P.O.S.T.-certified, who have the power to arrest,12 and who hold a commission from such office shall receive a maximum retirement13 allowance equal to three and one-third percent of average compensation, as14 determined pursuant to R.S. 11:231, for:15 (aa) Every year of creditable service in the retirement system earned on or16 before June 30, 2007, as a peace officer as defined in R.S. 40:2402(1)(3)(a) in17 compliance with the certification requirements applicable when such credit was18 earned, whether or not such service was rendered as such a commissioned alcohol19 and tobacco control officer, and20 (bb) Every year of creditable service earned thereafter as such a21 commissioned alcohol and tobacco control officer.22 (ii) Full-time law enforcement personnel, supervisors, and administrators23 who become employed by the Department of Revenue, office of alcohol and tobacco24 control, on or after July 1, 2007, but before December 31, 2010, who are P.O.S.T.-25 certified, who have the power to arrest, and who hold a commission from such office26 shall receive a maximum retirement allowance equal to three and one-third percent27 of average compensation, as determined pursuant to R.S. 11:231, for every year of28 HLS 10RS-260 REENGROSSED HB NO. 1337 Page 16 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. creditable service in the retirement system earned as such a commissioned alcohol1 and tobacco control officer.2 (3) In computing retirement allowances, any fractional period of service shall3 be taken into account and a proportionate amount of such retirement allowance,4 annuity, or benefit shall be granted. The retirement benefits provided pursuant to the5 provisions of this Chapter shall not exceed one hundred percent of the member's6 average compensation.7 * * *8 §461. Eligibility; certification9 * * *10 B. The board of trustees shall award disability benefits to eligible members11 who have been officially certified as disabled by the State Medical Disability Board.12 The disability benefit shall be determined as follows:13 (1) Except as otherwise provided in this Section, a member shall receive a14 maximum disability retirement benefit which shall be equivalent to the regular15 retirement formula without reduction by reason of age.16 (2) Subject to the appropriation of funds for this purpose, a corrections17 officer, probation or parole officer, or a security officer of the Louisiana Department18 of Public Safety and Corrections who becomes disabled solely as a result of19 disabilities sustained in the official performance of official duties of a hazardous20 nature shall receive a maximum disability benefit of sixty percent of average21 compensation. The agency shall certify that the disability was sustained while the22 member was performing official duties while on active status and the disability must23 be certified by a physician on the State Medical Disability Board. Any such officer24 whose first employment as a corrections officer, probation or parole officer, or a25 security officer of the Louisiana Department of Public Safety and Corrections began26 on or after January 1, 2011, shall be subject to provisions of R.S. 11:617.27 (3)(a) For any person whose employment first making him eligible for28 membership in the system occurred on or before June 30, 2006, or who has attained29 HLS 10RS-260 REENGROSSED HB NO. 1337 Page 17 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. the age of sixty regardless of hire date, or anyone who receives an additional benefit1 pursuant to R.S. 11:444(A)(2)(b) or (c) or 557 or R.S. 24:36 whose first employment2 making him eligible for such additional benefit began on or before December 31,3 2010, the disability retiree may retire under any of the regular retirement plans which4 applies to him.5 (b) Any person who has not attained the age of sixty and whose employment6 first making him eligible for membership in the system occurred on or after July 1,7 2006, shall receive a disability benefit equal to two and one-half percent of average8 compensation for every year of creditable service. When the disability retiree attains9 the age of sixty, he shall receive his regular retirement benefit upon making10 application therefor to the board. The provisions of this Subparagraph shall not11 apply to any person who receives an additional benefit pursuant to R.S.12 11:444(A)(2)(b) or (c) or 557 or R.S. 24:36 whose first employment making him13 eligible for such additional benefit began on or before December 31, 2010.14 (4) Selection of retirement option need not shall be made when application15 is filed. Selection may be made after the applicant receives his disability retirement16 estimate. Upon the death of a disability retiree, his benefit shall be payable in17 accordance with the option selected at the time of application for disability18 retirement. Accumulated annual leave for which payment cannot be made upon19 retirement and unused sick leave accumulated upon retirement shall be credited to20 the extension of service in the computation of disability retirement benefits.21 * * *22 §471. Survivors' benefits; members hired on or before December 31, 201023 A. Surviving minor children. Benefits for the surviving children of members24 whose first employment making them eligible for membership in the system25 occurred on or before December 31, 2010, shall be calculated as set forth in this26 Section. The benefit or benefits shall be based on the average compensation of the27 member. A benefit shall be payable to surviving unmarried minor children of a28 member who had at least five years of creditable service, at least two years of which29 HLS 10RS-260 REENGROSSED HB NO. 1337 Page 18 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. was earned immediately prior to death, and was in state service at the time of death1 or had twenty years or more of service credit regardless of when earned and whether2 the deceased member was in the state service at the time of death.3 * * *4 §471.1. Survivors' benefits; members hired on or after January 1, 20115 A. Survivors benefits shall be due and payable by the system effective the6 first day of the next month following the death of a member whose first employment7 making him eligible for membership in the system occurred on or after January 1,8 2011, but shall not be paid until a properly completed and acceptable application is9 received by the system and all proper certifications have been received by the10 system.11 B.(1) A surviving spouse with a minor or handicapped child, or mentally12 disabled child, or children shall be paid per month, for so long as one or more13 children remain eligible for benefits under Subsection C of this Section, fifty percent14 of the benefit to which the member would have been entitled if he had retired on the15 date of his death using the member's applicable accrual rate regardless of years of16 service or age, or six hundred dollars per month, whichever is greater, provided the17 deceased member was an active member at the time of death and had five or more18 years of service credit, at least two years of which were earned immediately prior to19 death or provided the deceased member had twenty or more years of service credit20 regardless of when earned or whether the deceased member was in active service at21 the time of death.22 (2)(a) Benefits shall cease upon remarriage, and the surviving spouse shall23 be liable to the system for repayment of any survivor benefits received subsequent24 to his remarriage. The surviving spouse shall notify the system in writing within25 thirty days of his remarriage. Failure to provide such notice shall constitute fraud for26 purposes of R.S. 11:543.27 (b) Benefits shall resume upon a subsequent divorce or death of a new28 spouse.29 HLS 10RS-260 REENGROSSED HB NO. 1337 Page 19 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (c) Notwithstanding the provisions Subparagraph (a) of this Paragraph, if the1 member was eligible to retire on the date of his death, benefits shall not cease upon2 remarriage.3 (3) When all surviving children cease to be eligible for benefits under4 Subsection C of this Section, the surviving spouse shall cease to receive benefits5 provided by this Subsection and thereafter, if eligible, shall receive benefits in6 accordance with the provisions of Subsection D of this Section.7 C. In addition to the amount payable in accordance with Subsection B of this8 Section, for the benefit of the surviving minor or handicapped child, or mentally9 disabled child, or children, there shall be paid for each such child, subject to a10 maximum of two children, per month fifty percent of the benefit to which a spouse11 would be entitled under Subsection B of this Section. Benefits shall be payable to12 such children even if no spouse eligible for survivor benefits is present, provided the13 member had at least five years of service credit. Benefits for a child shall cease14 when the child is no longer a minor child as defined by this Chapter. No surviving15 minor child shall receive more than one survivor's benefit at any one time. If two16 benefits are applicable, only the larger shall be paid.17 D.(1) A surviving spouse without a minor or handicapped child, or mentally18 disabled child, or children shall be paid per month, for the remainder of his life, the19 Option 2-A equivalent of the benefit amount based on years of service that the20 member had earned to the date of his death using the applicable accrual rate; or six21 hundred dollars per month, whichever is greater, provided the surviving spouse had22 been married to the deceased member for at least one year prior to death, and23 provided the deceased member was an active member at the time of death and had24 ten or more years of service credit, at least two years of which were earned25 immediately prior to death or provided the deceased member had twenty or more26 years of service credit regardless of when earned or whether the deceased member27 was in active service at the time of death.28 HLS 10RS-260 REENGROSSED HB NO. 1337 Page 20 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (2)(a) Benefits shall cease upon remarriage, and the surviving spouse shall1 be liable to the system for repayment of any survivor benefits received subsequent2 to his remarriage. The surviving spouse shall notify the system in writing within3 thirty days of his remarriage. Failure to provide such notice shall constitute fraud for4 purposes of R.S. 11:543.5 (b) Benefits shall resume upon a subsequent divorce or death of a new6 spouse.7 (c) Notwithstanding the provisions of Subparagraph (a) of this Paragraph,8 if the member was eligible to retire on the date of his death, benefits shall not cease9 upon remarriage.10 E. The accumulated contributions of a deceased member shall be paid in a11 lump sum refund to the natural person or persons that he designated as his12 beneficiary, or to his succession if there is no designated beneficiary, but only if no13 benefits under Subsection A, B, C, D, F, or G of this Section are payable. Payment14 of accumulated contributions shall be made only upon receipt of the deceased15 member's death certificate. Said payment to the named beneficiary or the estate16 cancels all liability of the system to the deceased member, his named beneficiary, or17 his estate.18 F. In the event of death of a member leaving a surviving spouse and19 dependent children, the total of the benefits payable under Subsections B and C of20 this Section shall not be less each month than what would have been payable under21 Subsection D of this Section for as long as both spouse and children are eligible to22 receive benefits under Subsection B and C of this Section.23 G. If a member dies, even after retirement, eligible minor children shall24 receive the benefits under Subsection C of this Section.25 H. The benefits payable under Subsection C of this Section shall be paid to26 the person having legal custody of the property of the child, except in those cases27 when a trust created under law has been created by the deceased member for the28 benefit of the child, the terms of the instrument creating the trust so provide and the29 HLS 10RS-260 REENGROSSED HB NO. 1337 Page 21 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. system has been provided with a certified copy of the trust document, then the1 survivor benefit shall be paid to the trust for addition to the trust property. In the2 event that the trust is contested by any party, the system shall withhold all benefit3 payments or deposit them in the registry of the court if a concursus proceeding is4 filed, until there is a final binding legal agreement or judgment regarding the proper5 payment of benefits. If the trust terminates under the terms of the trust prior to the6 death of the child, then benefits shall be payable as otherwise provided under this7 Subsection. The trustee of the trust shall immediately notify the system in writing8 of the death of the child.9 * * *10 §478. Benefits payable to certain members killed in the line of duty; survivor11 benefits; corrections officers hired on or before December 31, 201012 A. Notwithstanding any other provision of law to the contrary, if a13 correctional officer, probation or parole officer, or a security officer of the Louisiana14 Department of Public Safety and Corrections, whose first employment in such15 position occurred on or before December 31, 2010, is killed in the line of duty while16 serving in his official capacity, survivor benefits shall be payable to qualified17 survivors as provided for in accordance with this Section, except that a surviving18 spouse shall be eligible for benefits under this Section, without regard to the amount19 of time that the surviving spouse was married to the deceased officer and without20 regard to the amount of time that the deceased officer was a member of this system.21 This benefit is payable only if the member dies as a direct result of injuries sustained22 in the official performance of his official duties while on active duty status.23 * * *24 §551. Eligibility for membership 25 A. Notwithstanding anything in R.S. 11:413 to the contrary, except for R.S.26 11:413(7) which is specifically applicable, the judges and court officers set forth in27 R.S. 11:553 who take office on and after July 1, 1983, shall become members of the28 Louisiana State Employees' Retirement System and be eligible to obtain credit in and29 HLS 10RS-260 REENGROSSED HB NO. 1337 Page 22 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. transfer credit to the system, as set forth herein. Judges and court officers in office1 prior to July 1, 1983, shall continue to be governed by the law applicable to them2 prior to July 1, 1983. 3 B. Beginning January 1, 2011, the provisions of this Subpart shall not be4 applicable to judges or court officers to whom R.S. 11:553 would otherwise apply5 but whose first employment making them eligible for system membership began on6 or after such date. Such persons shall continue to be members of the Louisiana State7 Employees' Retirement System but shall be subject to the provisions of this Chapter8 otherwise applicable to system members.9 * * *10 §553. Eligible judges and court officers 11 This Subpart shall apply to all present and future judges and court officers12 hereinafter enumerated in this Section whose first employment making them eligible13 for system membership began on or before December 31, 2010: 14 * * *15 §581. Application; definitions16 A. Any other provisions of Chapter 1 of Subtitle II of Title 11 or any other17 laws to the contrary notwithstanding, the retirement of wildlife agents employed by18 the enforcement division of the Louisiana Wildlife and Fisheries Commission on or19 before December 31, 2010, who are members of Louisiana State Employees'20 Retirement System, and all benefits accruing from such membership, shall be21 governed by the provisions of this Subpart; provided that with respect to matters not22 specifically covered by the provisions of this Subpart, reference shall be made to23 applicable provisions of Chapter 1 of Subtitle II of Title 11. Beginning January 1,24 2011, the provisions of this Subpart shall not be applicable to wildlife agents whose25 first employment making them eligible for system membership began on or after26 such date.27 HLS 10RS-260 REENGROSSED HB NO. 1337 Page 23 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. B. For purposes of this Subpart:1 (1) The words "member", "members", "employee", or "employees" shall2 mean wildlife agents of the enforcement division of the Louisiana Department of3 Wildlife and Fisheries, whose first employment making them eligible for system4 membership began on or before December 31, 2010, who are members of the5 Louisiana State Employees' Retirement System and shall not include any other6 members of said retirement system or members of any other retirement system to7 which the state makes contribution or otherwise.8 (2) The term "board of trustees" shall mean and refer to the board of trustees9 of the Louisiana State Employees' Retirement System created and provided for by10 Chapter 1 of Subtitle II of Title 11 of the Louisiana Revised Statutes of 1950.11 * * *12 §601. Application; definitions13 * * *14 B. For purposes of the secondary component, the words "member" or15 "members" shall mean wardens, correctional officers, probation and parole officers,16 and security personnel who are employed by the Department of Public Safety and17 Corrections on or before December 31, 2010, and who are or who upon enrollment18 as an employee would be members of the primary component, but shall not include19 any other members of the primary component or members of any other retirement20 system to which the state makes contributions. Beginning January 1, 2011, the21 provisions of this Subpart shall not be applicable to wardens, correctional officers,22 probation and parole officers, and security personnel who are employed by the23 Department of Public Safety and Corrections on or after such date.24 §602. Eligibility for retirement25 A. A member shall be eligible for retirement if he has attained at least26 twenty-five years of service credit, regardless of age. A member shall be eligible for27 retirement if he has:28 (1) Attained at least twenty-five years of service, regardless of age.29 HLS 10RS-260 REENGROSSED HB NO. 1337 Page 24 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (2) Attained at least ten years of service, at age sixty or thereafter.1 B. A member shall be eligible for retirement if he has attained at least ten2 years of service at age sixty or thereafter.3 C. A member shall receive a maximum retirement allowance equal to three4 and one-third percent of average compensation for every year of creditable service,5 not to exceed one hundred percent of the member's average compensation. 6 * * *7 SUBPART D. HAZARDOUS DUTY SERVI CES PLAN8 §611. Creation of Hazardous Duty Services Plan9 A.(1) The legislature recognizes that certain state service requires employees10 to carry weapons and routinely be put in harm's way. These hazardous duty services11 employees, because of the dangerous and unpredictable nature of their12 responsibilities, should be entitled to unique retirement benefits.13 (2) The legislature further recognizes that current law provides myriad14 hazardous duty services plans, but that a single plan applied consistently and15 comprehensively to all hazardous duty services positions is preferred.16 (3) The legislature further recognizes the need for an adequate funding17 source for all retirement benefits as required by Article X, Section 29 of the18 Constitution of Louisiana. The Hazardous Duty Services Plan is therefore created19 for persons whose first employment making them eligible for system membership20 occurs on or after January 1, 2011, in hazardous duty positions, as defined in this21 Subpart.22 (4) Funding for this plan shall be actuarially sound with employee and23 employer contribution rates calculated and established at levels necessary to fund all24 benefits provided.25 (5) Members of existing hazardous duty plans may retain membership in26 those plans.27 B. Any other provisions of this Chapter or any other laws to the contrary28 notwithstanding, the retirement of hazardous duty services employees shall be29 HLS 10RS-260 REENGROSSED HB NO. 1337 Page 25 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. governed by the provisions of this Subpart; however, if provisions of this Chapter1 cover matters not specifically addressed by the provisions of this Subpart or if any2 of the provisions of this Chapter are made applicable in this Subpart, then those3 provisions shall apply to members governed by this Subpart.4 §612. Application; definitions5 Terms not specifically defined in this Section shall have the meanings6 provided in R.S. 11:403 unless a different meaning is clearly required by the context.7 For purposes of this Subpart:8 (1) "Average compensation" means the average annual earned compensation9 of a member for the sixty highest months of successive employment, or for the10 highest sixty successive joined months of employment where interruption of service11 occurred; however, average compensation for part-time employees who do not use12 sixty months of full-time employment for average compensation purposes shall be13 based on the base pay the part-time employee would have received had he been14 employed on a full-time basis. The earnings to be considered for the thirteenth15 through the twenty-fourth month shall not exceed one hundred fifteen percent of the16 earnings of the first through the twelfth month. The earnings to be considered for the17 twenty-fifth through the thirty-sixth month shall not exceed one hundred fifteen18 percent of the earnings of the thirteenth through the twenty-fourth month. The19 earnings to be considered for the thirty-seventh through the forty-eighth month shall20 not exceed one hundred fifteen percent of the earnings of the twenty-fifth through21 the thirty-sixth month. The earnings for the final twelve months shall not exceed one22 hundred fifteen percent of the earnings of the thirty-seventh through the forty-eighth23 month. The limitations on the computation of average compensation contained in24 this Paragraph shall not apply to any twelve-month period during which25 compensation increased by more than fifteen percent over the previous twelve-month26 period solely because of an increase in compensation by a uniform systemwide27 increase adopted by the state Department of Civil Service and approved by the28 governor or because of a pay adjustment enacted by the legislature.29 HLS 10RS-260 REENGROSSED HB NO. 1337 Page 26 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (2) "Member" or "members" shall include the following persons whose first1 employment making them eligible for system membership occurs on or after January2 1, 2011:3 (a) Wildlife agents of the enforcement division of the Department of4 Wildlife and Fisheries.5 (b) Wardens, correctional officers, security personnel, and probation and6 parole officers employed by the Department of Public Safety and Corrections.7 (c) Employees of the bridge police section of the Crescent City Connection8 Division of the Department of Transportation and Development.9 (d) Full-time law enforcement personnel, supervisors, and administrators10 who are employed with the Department of Revenue, office of alcohol and tobacco11 control, who are P.O.S.T.-certified, who have the power to arrest, and who hold a12 commission from such office.13 (e) Peace officers, as defined by R.S. 40:2402(3)(a), employed by the14 Department of Public Safety and Corrections, office of state police, other than state15 troopers.16 (f) Arson investigators employed by the office of state fire marshal who are17 P.O.S.T.-certified, who have the power to arrest, and who hold a commission from18 such office.19 (g) Park rangers employed by the Department of Culture, Recreation and20 Tourism, office of state parks, who are P.O.S.T.-certified, who have the power to21 arrest, and who hold a commission from such office.22 (h) Campus police officers employed by the various colleges and23 universities, who are P.O.S.T.-certified, who have the power to arrest, and who hold24 a commission from such office.25 (i) Hospital security officers employed by Louisiana State University Health26 Sciences Center, who are P.O.S.T.-certified, who have the power to arrest, and who27 hold a commission from such office.28 HLS 10RS-260 REENGROSSED HB NO. 1337 Page 27 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (j) Investigators of the Department of Justice who are in a position required1 to be P.O.S.T.-certified.2 (k) All personnel employed in a position required to be P.O.S.T.-certified,3 who have the power to arrest, and who hold a commission from such office, who are4 otherwise members of the Louisiana State Employees' Retirement System, and are5 not members of any other retirement system.6 (3) "Plan" means the Hazardous Duty Services Plan created by this Subpart7 for certain hazardous duty services employees within the Louisiana State Employees'8 Retirement System.9 (4) "Qualified Survivors" means a surviving spouse, a minor child as defined10 in R.S. 11:403, and a handicapped or mentally incapacitated child.11 (5) "System" means the Louisiana State Employees' Retirement System.12 §613. Eligibility for membership13 Each person who becomes an employee in state service in one of the14 positions enumerated in R.S. 11:612(2) shall become a member of the Hazardous15 Duty Services Plan of the system as a condition of employment.16 §614. Eligibility for retirement17 A. Any member shall be eligible for retirement if he has:18 (1) Twenty-five years or more of service, at any age.19 (2) Twelve years or more of service, at age fifty-five or thereafter.20 (3) Twenty years of service credit at any age, exclusive of military service21 and unused annual and sick leave, but any person retiring under this Paragraph shall22 have his benefit, inclusive of military service credit and allowable unused annual and23 sick leave, actuarially reduced. Any member retiring under this Paragraph who is24 in state service at the time of his retirement shall have his benefit actuarially reduced25 from the earliest age that he would normally become eligible for a regular retirement26 benefit under Paragraph (1) or (2) of this Subsection if he had continued in service27 to that age. Any member retiring under this Paragraph who is out of state service at28 the time of his retirement shall have his benefit actuarially reduced from the earliest29 HLS 10RS-260 REENGROSSED HB NO. 1337 Page 28 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. age that he would normally become eligible for a regular retirement benefit under1 Paragraph (1) or (2) of this Subsection based upon his years of service as of the date2 of retirement. Any employee who elects to retire under the provisions of this3 Paragraph shall not be eligible to participate in the Deferred Retirement Option Plan4 provided by R.S. 11:447 or the Initial Benefit Option provided by R.S. 11:446(A)(5).5 B. Notwithstanding Subsection A of this Section, to be eligible to retire6 under this plan, the member's last ten years of system eligible service shall have been7 in one of the hazardous duty positions defined in R.S. 11:612(2). With less than ten8 years hazardous duty service, he shall be eligible to retire at two and one-half percent9 of his average compensation for the actual number of years of service credit provided10 he has sufficient system service as required in Subsection A of this Section.11 §615. Retirement benefit12 A. A member shall receive a retirement benefit, except as provided in R.S.13 11:614(B), equal to three and one-third percent of average compensation for every14 year of creditable service in the Hazardous Duty Services Plan, not to exceed one15 hundred percent of the member's average compensation.16 B. Retirement benefits for members who had service in nonhazardous duty17 or service under existing plans prior to entering the Hazardous Duty Services Plan18 shall upon retirement eligibility receive a retirement benefit for that prior service19 based on the applicable accrual rate when earned.20 C. Upon application for retirement, members of this plan may choose any21 of the options specified in R.S. 11:446.22 §616. Deferred Retirement Option Plan23 A member, except as specified in R.S. 11:614(A)(3), shall have the option of24 participating in the Deferred Retirement Option Plan in accordance with the25 provisions of R.S. 11:447 through 454.26 §617. Disability retirement27 A. Upon approval of a member's retirement based upon a total and28 permanent disability resulting solely from injuries sustained in the performance of29 HLS 10RS-260 REENGROSSED HB NO. 1337 Page 29 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. his official duties, a member shall receive a disability benefit equal to seventy-five1 percent of his average compensation regardless of years of service. This benefit is2 payable only if the injury or injuries were sustained while on active duty status.3 B. If a member's disability occurs for reasons other than in the performance4 of his duties and the member has earned at least ten years of hazardous duty service5 credit, then the member shall be entitled to disability benefits under the provisions6 of R.S. 11:461(B)(1).7 C. The disability retirement procedures contained in R.S. 11:216 through8 225, which are not in conflict with this Section, shall apply to members.9 D. The provisions of R.S. 11:461(B)(4) shall apply to members.10 §618. Survivor's benefit for members killed in the line of duty11 A. If a member's death occurs in the line of duty or is a direct result of an12 injury sustained while in the line of duty, survivor benefits shall be payable to13 qualified survivors as provided for in this Section, except that a survivor shall be14 eligible for benefits under this Section without regard to the amount of time that the15 surviving spouse was married to the deceased member and without regard to the16 amount of time that the deceased was a member of this plan. This benefit is payable17 only if the injury or injuries were sustained while on active duty status.18 B. If the member has a surviving spouse, minor, or handicapped or mentally19 incapacitated child or children, the amount of the total benefit shall equal eighty20 percent of the member's average compensation. The benefit shall be shared equally21 by the surviving spouse and children. When a child who is not handicapped or22 mentally incapacitated no longer meets the definition of minor child under R.S.23 11:403, his benefit shall cease, and the remaining beneficiaries shall have their24 shares adjusted accordingly.25 C. The provisions of R.S. 11:472 through 477, concerning procedures for26 payment of survivor benefits which are not in conflict with this Section, shall apply27 to members.28 HLS 10RS-260 REENGROSSED HB NO. 1337 Page 30 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. §619. Survivor's benefit for death other than in the line of duty1 A. The surviving spouse or children of any active member whose death2 occurs other than in the performance of his duties shall have the same pension rights3 as provided in R.S. 11:471.1.4 B. The provisions of R.S. 11:472 through 477, concerning procedures for5 payment of survivor benefits which are not in conflict with this Section, shall apply6 to members.7 §701. Definitions8 As used in this Chapter, the following words and phrases have the meaning9 meanings ascribed to them in this Section unless a different meaning is plainly10 required by the context:11 * * *12 (5)(a) "Average compensation" subject to the other provisions of this13 Paragraph, for any teacher whose first employment making him eligible for system14 membership occurred on or before December 31, 2010, means the average earnable15 compensation of a teacher for the three highest successive years of employment, or16 the highest three successive joined years of employment where interruption of17 service occurred. For any teacher whose first employment making him eligible for18 system membership occurred on or after January 1, 2011, average compensation19 means his average earnable compensation for the five highest successive years of20 employment, or the highest five successive joined years where interruption of service21 occurred. The computation of such average compensation shall be in accordance22 with the following guidelines:23 (i) The amount for the first through the twelfth month shall not exceed the24 compensation for the immediately preceding twelve months by more than ten percent25 for a teacher whose first employment making him eligible for system membership26 occurs on or before December 31, 2010, or by more than fifteen percent for a teacher27 hired on or after January 1, 2011.28 HLS 10RS-260 REENGROSSED HB NO. 1337 Page 31 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (ii) The amount for the thirteenth through the twenty-fourth month shall not1 exceed the lesser of the maximum allowable compensation amount or the actual2 compensation amount for the first through twelfth month by more than ten percent3 for a teacher whose first employment making him eligible for system membership4 occurs on or before December 31, 2010, or by more than fifteen percent for a teacher5 hired on or after January 1, 2011.6 (iii) The amount for the twenty-fifth through the thirty-sixth month shall not7 exceed the lesser of the maximum allowable compensation amount or the actual8 compensation amount for the thirteenth through twenty-fourth month by more than9 ten percent for a teacher whose first employment making him eligible for system10 membership occurs on or before December 31, 2010, or by more than fifteen percent11 for a teacher whose first employment making him eligible for system membership12 occurs on or after January 1, 2011.13 (iv) The amount for the thirty-seventh through the forty-eighth month shall14 not exceed the lesser of the maximum allowable compensation amount or the actual15 compensation amount for the twenty-fifth through the thirty-sixth month by more16 than fifteen percent.17 (v) The amount for the final twelve months shall not exceed the lesser of the18 maximum allowable compensation amount or the actual compensation amount for19 the thirty-seventh through the forty-eighth month by more than fifteen percent.20 (b) The thirty-six or sixty months used for average compensation, as the case21 may be, cannot cover a period when the member receives more than three years or22 five years of service credit respectively.23 (c)(i) The limitations on the computation of average compensation in this24 Paragraph shall not apply to any of the twelve-month periods where compensation25 increased by more than ten percent the amount allowable in Subparagraph (a) of this26 Paragraph over the previous twelve-month period solely because of an increase in27 HLS 10RS-260 REENGROSSED HB NO. 1337 Page 32 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. compensation by legislative act, by city/parish systemwide salary increase, or by a1 systemwide increase at a college or university.2 * * *3 §761. Retirement benefits; application; eligibility requirements; effective date;4 cancellation; errors and omissions5 A.6 * * *7 (3) Any person whose first employment making him eligible for system8 membership occurs on or after January 1, 2011, may retire upon written application9 to the board of trustees, if at the time of application the member:10 (a) Has attained the age of sixty years and has credit for five years of11 accredited service.12 (b) Has twenty years of service credit at any age, exclusive of military13 service and unused annual and sick leave, but any person retiring under this14 Subparagraph shall have his benefit, inclusive of military service credit and15 allowable unused annual and sick leave, actuarially reduced from the earliest age that16 he would normally become eligible for a regular retirement benefit under17 Subparagraph (a) of this Paragraph if he had continued in service to that age. Any18 member who elects to retire under the provisions of this Subparagraph shall not be19 eligible to participate in the Deferred Retirement Option Plan provided by R.S.20 11:786 or the Initial Lump-Sum Benefit option provided by R.S. 11:783.21 (4)(a) A properly executed application for retirement shall be considered as22 officially filed when received by the board of trustees of this system. Retirement23 benefits shall become effective as of the date a properly executed application for24 retirement is received by the board of trustees of this system or the day after the25 member terminates from teaching service, whichever is later.26 HLS 10RS-260 REENGROSSED HB NO. 1337 Page 33 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (b) A member may cancel his application for retirement only prior to1 negotiating, cashing, or depositing any benefit check including an estimated benefit2 check.3 * * *4 §768. Retirement allowances5 * * *6 B.7 * * *8 (2) Notwithstanding the provisions of Paragraph (1) of this Subsection, any9 person who became a member on or after July 1, 1999, but on or before December10 31, 2010, having twenty years of service credit, exclusive of military service and11 unused annual and sick leave, but who is less than sixty years of age, may retire but12 he shall have his maximum benefit inclusive of military service credit and allowable13 unused annual and sick leave actuarially reduced from the earlier of the following:14 (a) The date he would reach sixty years of age.15 (b) The earliest age that he would first become eligible for a retirement16 benefit as provided in Paragraph (A)(2) of this Section, if he had continued in service17 to that age and without regard to the date he became a member.18 * * *19 §778. Disability retirement20 * * *21 C. Upon the application of a member in service or of his employer, any22 member whose first employment making him eligible for membership in the system23 occurred on or before December 31, 2010, and who has five or more years of24 creditable service may be retired by the board of trustees, not less than thirty nor25 more than ninety days following the date of filing such application, on a disability26 retirement allowance, provided that the medical board, after a medical examination27 of the member, certifies that the member is mentally or physically incapacitated for28 the further performance of the duties currently being performed, that the incapacity29 HLS 10RS-260 REENGROSSED HB NO. 1337 Page 34 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. is likely to be total and permanent, and that the member should be retired. Any1 member whose first employment making him eligible for membership in the system2 occurred on or after January 1, 2011, shall be eligible for disability benefits if he has3 ten or more years of creditable service. 4 D. Disability retirees whose first employment making them eligible for5 membership in the system occurred on or before December 31, 2010, and who had6 at least fifteen years of service prior to being certified as disabled and who have been7 receiving disability benefits for at least ten years and who have attained at least age8 fifty shall be eligible to convert from disability benefits to regular retirement9 benefits, provided that any such retiree's regular retirement benefits shall be based10 on the number of years actually credited to the member's account, and provided that11 such conversion does not produce a benefit that creates an actuarial cost to the12 system.13 * * *14 §779. Allowance on disability retirement ; members hired on or before December15 31, 201016 A. The provisions of this Section shall apply to members whose first17 employment making them eligible for membership in the system began on or before18 December 31, 2010.19 A. B.(1) Upon retirement for disability, a member shall receive a disability20 retirement allowance equal to two and one-half percent of his average compensation21 multiplied by his years of creditable service, but not more than fifty percent of his22 average compensation. In no event shall such disability retirement allowance be less23 than the lesser of forty percent of the state minimum salary for a beginning teacher24 with a bachelor's degree, or seventy-five percent of his average compensation. Such25 retiree shall not be allowed an optional allowance.26 (2) In addition to the benefit provided by Paragraph (1) of this Subsection,27 if a disability retiree has a minor child, the disability retiree shall be paid an added28 benefit equal to fifty percent of his disability benefit for so long as he has a minor29 HLS 10RS-260 REENGROSSED HB NO. 1337 Page 35 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. child, provided that the total benefit payable to the disability retiree does not exceed1 seventy-five percent of his average compensation.2 B. C.(1) If a disability retiree dies and leaves a surviving spouse who had3 been married to the deceased disability retiree for at least two years before the death4 of the disability retiree and there are no minor children or there are minor children5 who are the children of both the disability retiree and the surviving spouse, the6 surviving spouse shall receive a survivor's benefit equal to seventy-five percent of7 the benefit being received by the disability retiree at the time of his death, and no8 benefits shall be paid under R.S. 11:762.9 (2) If a disability retiree dies and leaves a surviving spouse who had been10 married to the deceased disability retiree for at least two years before the death of the11 disability retiree and there are surviving minor children of the deceased disability12 retiree who are not the children of the surviving spouse, the surviving spouse shall13 receive a survivor's benefit equal to thirty-seven and one-half percent of the benefit14 being received by the disability retiree at the time of his death. Benefits equal to a15 total of thirty-seven and one-half percent of the benefit being received by the16 disability retiree at the time of his death shall be divided equally among the minor17 children who are not the children of the surviving spouse for the duration of their18 minority, and no benefits shall be paid under R.S. 11:762. When there are no longer19 any minor children of the deceased disability retiree who are not the children of the20 surviving spouse, the spousal benefit shall revert to seventy-five percent of the21 benefit being received by the disability retiree at the time of his death.22 (3) If a disability retiree dies and leaves a surviving spouse who had been23 married to the deceased disability retiree for at least two years before the death of the24 disability retiree and there are minor children of the deceased disability retiree who25 are not the children of the surviving spouse and also minor children of both the26 deceased disability retiree and the surviving spouse, the surviving spouse shall27 receive a survivor's benefit equal to fifty percent of the benefit being received by the28 disability retiree at the time of his death, and the minor children of the deceased29 HLS 10RS-260 REENGROSSED HB NO. 1337 Page 36 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. disability retiree who are not the children of the surviving spouse shall receive and1 divide equally twenty-five percent of the benefit being received by the disability2 retiree at the time of his death for the duration of their minority, and no benefits shall3 be paid under R.S. 11:762. When there are no longer minor children of the deceased4 disability retiree who are not the children of the surviving spouse, the spousal benefit5 shall revert to seventy-five percent of the benefit being received by the disability6 retiree at the time of his death.7 (4) If a disability retiree dies and does not leave a surviving spouse, or the8 surviving spouse dies after the death of the disability retiree, and there is a minor9 child or children of the disability retiree, the minor child or children shall be entitled10 to a total benefit equal to fifty percent of the benefit being received by the disability11 retiree at the time of his death for so long as there is a minor child, and no benefits12 shall be paid under R.S. 11:762.13 C. D. A disability retiree, upon attainment of the earliest age that he would14 have become eligible for a retirement benefit, if he had continued in service without15 further change in compensation, shall become a regular retiree using only his years16 of creditable service; however, his maximum benefit shall not be less than his17 disability benefit as provided by Paragraph A B(1) of this Section and shall not18 include the benefit provided by Paragraph A B(2) of this Section. The benefit19 provided by Paragraph A B(2) of this Section shall continue, but only be paid to the20 retiree and only for so long as the retiree has a minor child. The years that he is on21 disability retirement shall not be used in the computation of his regular retirement22 benefit. If a member dies after converting from disability retiree to regular retiree23 and leaves a minor child or children, the applicable benefits provided by Paragraph24 A B(2) of this Section shall be paid on behalf of the minor child or children, and no25 benefits shall be paid under R.S. 11:762 and 783(B).26 HLS 10RS-260 REENGROSSED HB NO. 1337 Page 37 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. §779.1 Allowance on disability retirement; members hired on or after January 1,1 20112 Any member whose first employment making him eligible for membership3 in the system began on or after January 1, 2011, shall receive a maximum disability4 retirement benefit which shall be equivalent to the regular retirement formula5 without reduction by reason of age. Selection of a retirement option shall be made6 when application for disability is filed. If the disability retiree dies, the option7 selected upon disability retirement shall be applied to his disability retirement8 benefit.9 * * *10 §1002. Definitions11 As used in this Chapter, the following words and phrases shall have the12 meaning meanings ascribed to them in this Section unless a different meaning is13 plainly required by the context:14 * * *15 (6)16 * * *17 (b) "Average compensation", for a member whose first employment making18 him eligible for membership in the system began on or after July 1, 2006, but on or19 before December 31, 2010, shall be based on the sixty highest successive months of20 employment, or on the highest sixty successive joined months of employment where21 interruption of service occurred; however, the average compensation amount for the22 thirteenth through the twenty-fourth month shall not exceed the actual compensation23 amount for the first through the twelfth month by more than ten percent. The amount24 for the twenty-fifth through the thirty-sixth month shall not exceed the lesser of the25 maximum allowable compensation amount or the actual compensation amount for26 the thirteenth through the twenty-fourth month by more than ten percent. The27 amount for the thirty-seventh through the forty-eighth month shall not exceed the28 lesser of the maximum allowable compensation amount or the actual compensation29 HLS 10RS-260 REENGROSSED HB NO. 1337 Page 38 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. amount for the twenty-fifth through the thirty-sixth month by more than ten percent.1 The amount for the forty-ninth through the sixtieth month shall not exceed the lesser2 of the maximum allowable compensation amount or the actual compensation amount3 for the thirty-seventh through the forty-eighth month by more than ten percent. The4 limitations on the computation of average compensation contained in this Paragraph5 shall not apply to any twelve-month period during which compensation increased by6 more than one hundred ten percent over the previous twelve-month period solely7 because of an increase in compensation by legislative act or by a city/parish8 system-wide salary increase.9 (c) "Average compensation", for a member whose first employment making10 him eligible for membership in the system began on or after January 1, 2011, shall11 be based on the sixty highest successive months of employment , or on the highest12 sixty successive joined months of employment where interruption of service13 occurred; however, the average compensation amount for the thirteenth through the14 twenty-fourth month shall not exceed the actual compensation amount for the first15 through the twelfth month by more than fifteen percent. The amount for the16 twenty-fifth through the thirty-sixth month shall not exceed the lesser of the17 maximum allowable compensation amount or the actual compensation amount for18 the thirteenth through the twenty-fourth month by more than fifteen percent. The19 amount for the thirty-seventh through the forty-eighth month shall not exceed the20 lesser of the maximum allowable compensation amount or the actual compensation21 amount for the twenty-fifth through the thirty-sixth month by more than fifteen22 percent. The amount for the forty-ninth through the sixtieth month shall not exceed23 the lesser of the maximum allowable compensation amount or the actual24 compensation amount for the thirty-seventh through the forty-eighth month by more25 than fifteen percent. The limitations on the computation of average compensation26 contained in this Subparagraph shall not apply to any twelve-month period during27 which compensation increased by more than one hundred fifteen percent over the28 HLS 10RS-260 REENGROSSED HB NO. 1337 Page 39 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. previous twelve-month period solely because of an increase in compensation by1 legislative act or by a city/parish system-wide salary increase.2 * * *3 §1141. Retirement benefits; application; eligibility requirements; effective date;4 cancellation5 A. Any member , whose first employment making him eligible for system6 membership began on or before December 31, 2010, may retire upon written7 application to the board of trustees, if the member at the time of application has8 attained the age of sixty years and has credit for ten years of accredited service or has9 attained the age of fifty-five years and has credit for twenty-five or more years of10 accredited service or at any age with thirty or more years of accredited service. Any11 member whose first employment making him eligible for system membership began12 on or after January 1, 2011, may retire upon written application to the board of13 trustees, if the member at the time of application has attained the age of sixty years14 and has credit for five years of accredited service. An application for retirement15 shall be officially filed with the board when received in the office of the director.16 Retirement benefits shall become effective as of the date an application for17 retirement is filed in the office of the director or the day after the member terminates18 from service, whichever is later. A member may only cancel his application for19 retirement prior to negotiating, cashing, or depositing any benefit check including20 an estimated benefit check.21 * * *22 §1144. Retirement allowance; regular, minimum, and supplemental23 * * *24 B. Minimum allowance. 25 * * *26 HLS 10RS-260 REENGROSSED HB NO. 1337 Page 40 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (2)(a) The provisions of this Paragraph shall apply to any member who1 retires on or after July 1, 2001, but shall not apply to any member to whom2 Paragraph (4) of this Subsection is applicable.3 * * *4 (3) In the event that the funded status of this system should fall below one5 hundred percent, the employee contribution rate shall be increased in an amount6 sufficient to fund any cost to the system resulting from the application of the benefit7 accrual rates provided for in this Paragraphs (1) and (2) of this Subsection, with the8 loss being amortized in accordance with the provisions of R.S. 11:102(B)(3)(d)(i).9 (4) The provisions of this Paragraph shall apply to any member whose first10 employment making him eligible for membership in the system began on or after11 January 1, 2011. The minimum allowance for such members shall be no less than12 an amount which provides a total allowance equal to two and one-half percent13 multiplied by the total years of accredited service and multiplied by the average14 compensation for such person as provided in R.S. 11:1002(6)(c).15 * * *16 §1147. Disability retirement17 * * *18 C.19 * * *20 (2)(a)21 * * *22 (iii) A disability retiree whose first employment making him eligible for23 system membership occurs on or after January 1, 2011, shall receive a maximum24 disability retirement benefit which shall be equivalent to the regular retirement25 formula without reduction by reason of age.26 (b)(i) If a disability retiree whose membership in the system began on or27 before December 31, 2010, dies and leaves a surviving spouse who had been married28 to the deceased disability retiree for at least two years prior to the death of the29 HLS 10RS-260 REENGROSSED HB NO. 1337 Page 41 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. disability retiree, the surviving spouse shall receive a survivor's benefit equal to1 seventy-five percent of the benefit being received by the disability retiree at his2 death. Benefits shall cease upon remarriage.3 (ii) For disability retirees whose membership began on or after January 1,4 2011, selection of a retirement option shall be made when application for disability5 is filed. If the disability retiree dies, the option selected upon disability retirement6 shall be applied to his disability retirement benefit.7 * * *8 §1151. Survivor benefits; members hired on or before December 31, 20109 A. This Section shall apply to members whose membership in the system10 began on or after January 1, 2011. Survivor's benefits are payable upon application11 therefor and become effective as of the day following the death of the member.12 * * *13 §1151.1. Survivors' benefits; members hired on or after January 1, 201114 A. Survivor benefits shall be due and payable by the system effective the15 first day of the next month following the death of a member whose first employment16 making him eligible for membership in the system occurred on or after January 1,17 2011, but shall not be paid until a properly completed and acceptable application is18 received by the system and all proper certifications have been received by the19 system.20 B.(1) A surviving spouse with a minor or handicapped child, or mentally21 disabled child, or children shall be paid per month, for so long as one or more22 children remain eligible for benefits under Subsection C of this Section, fifty percent23 of the benefit to which the member would have been entitled if he had retired on the24 date of his death using the member's applicable accrual rate regardless of years of25 service or age, or six hundred dollars per month, whichever is greater, provided the26 deceased member was an active member at the time of death and had five or more27 years of service credit, at least two years of which were earned immediately prior to28 death or provided the deceased member had twenty or more years of service credit29 HLS 10RS-260 REENGROSSED HB NO. 1337 Page 42 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. regardless of when earned or whether the deceased member was in active service at1 the time of death.2 (2) Benefits shall cease upon remarriage and shall resume upon a subsequent3 divorce or death of a new spouse; however, if the member was eligible to retire on4 the date of his death, benefits shall not cease upon remarriage.5 (3) When all surviving children cease to be eligible for benefits under6 Subsection C of this Section, the surviving spouse shall cease to receive benefits7 provided by this Subsection and thereafter, if eligible, shall receive benefits in8 accordance with the provisions of Subsection D of this Section.9 C. In addition to the amount payable in accordance with Subsection B of this10 Section, for the benefit of the surviving minor or handicapped child, or mentally11 disabled child, or children, there shall be paid for each such child, subject to a12 maximum of two children, per month fifty percent of the benefit to which a spouse13 would be entitled under Subsection B of this Section. Benefits shall be payable to14 such children even if no spouse eligible for survivor benefits is present, provided the15 member had at least five years of service credit. Benefits for a child shall cease16 when the child is no longer a minor child as defined by this Chapter. No surviving17 minor child shall receive more than one survivor's benefit at any one time. If two18 benefits are applicable, only the larger shall be paid.19 D.(1) A surviving spouse without a minor or handicapped child, or mentally20 disabled child, or children shall be paid per month, for the remainder of his life, the21 benefit payable in accordance with R.S. 11:1150(B)(2) based on years of service that22 the member had earned to the date of his death using the applicable accrual rate; or23 six hundred dollars per month, whichever is greater, provided the surviving spouse24 had been married to the deceased member for at least one year prior to death, and25 provided the deceased member was an active member at the time of death and had26 ten or more years of service credit, at least two years of which were earned27 immediately prior to death or provided the deceased member had twenty or more28 HLS 10RS-260 REENGROSSED HB NO. 1337 Page 43 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. years of service credit regardless of when earned or whether the deceased member1 was in active service at the time of death.2 (2) Benefits shall cease upon remarriage and shall resume upon a subsequent3 divorce or death of the new spouse; however, if the member was eligible to retire on4 the date of his death, benefits shall not cease upon remarriage.5 E. The accumulated contributions of a deceased member shall be paid in a6 lump sum refund to the natural person or persons that he designated as his7 beneficiary, or to his succession if there is no designated beneficiary, but only if no8 benefits under Subsection A, B, C, D, F, or G of this Section are payable. Payment9 of accumulated contributions shall be made only upon receipt of the deceased10 member's death certificate. The payment to the named beneficiary or the estate11 cancels all liability of the system to the deceased member, his named beneficiary, or12 his estate.13 F. In the event of death of a member leaving a surviving spouse and14 dependent children, the total of the benefits payable under Subsections B and C of15 this Section shall not be less each month than what would have been payable under16 Subsection D of this Section for as long as both spouse and children are eligible to17 receive benefits under Subsections B and C of this Section.18 G. If a member dies, even after retirement, eligible minor children shall19 receive the benefits under Subsection C of this Section.20 H. The benefits payable under Subsection C of this Section shall be paid to21 the person having legal custody of the property of the child, unless a trust created22 under Louisiana law has been created by the deceased member for the benefit of the23 child, the terms of the instrument creating the trust so provide and the system has24 been provided with a certified copy of the trust document, then the survivor benefit25 shall be paid to the trust for addition to the trust property. In the event that the trust26 is contested by any party, the system shall withhold all survivor benefit payments or27 deposit them in the registry of the court if a concursus proceeding is filed, until there28 is a final binding legal agreement or judgment regarding the proper payment of the29 HLS 10RS-260 REENGROSSED HB NO. 1337 Page 44 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. survivor benefits. If the trust terminates under the terms of the trust prior to the1 death of the child, then benefits shall be payable as otherwise provided under this2 Subsection. The trustee of the trust shall immediately notify the system in writing3 of the death of the child.4 I. Each survivor benefit recipient shall be required to establish proof5 annually or at such other times as the board of trustees may deem necessary that they6 are still legally entitled to the survivor benefits provided in this Section. The board7 of trustees shall have the right to suspend or cancel any survivor benefit wherein the8 recipient fails to provide proper certification of eligibility.9 * * *10 §1307. Persons eligible to retire on basis of service and age; retirement salaries11 A. Upon application to the board as provided in R.S. 11:1306, members of12 this system shall be retired by the board at salaries benefits fixed as follows:13 (1) Any member of the system , whose initial date of employment occurred14 on or before December 31, 2010, and who has attained age fifty and who has credit15 for at least ten years of service shall be paid a monthly salary benefit equal to the16 sum of three and one-third percent multiplied by the member's monthly average17 salary, and further multiplied by the number of years of service credited to the18 member's account, but the total annual benefit shall not exceed one hundred percent19 of the member's final average annual salary.20 (2)(a) Any member of the system whose initial date of employment was21 prior to September 8, 1978, regardless of age, who has credit for at least twenty years22 of service shall be paid a monthly salary benefit equal to the sum of three and one-23 third percent multiplied by the member's monthly average salary, and further24 multiplied by the number of years of service credited to the member's account, but25 the total annual benefit shall not exceed one hundred percent of the member's final26 average annual salary.27 (b) Any member of the system whose initial date of employment occurred28 on or after September 8, 1978, but on or before December 31, 2010, regardless of29 HLS 10RS-260 REENGROSSED HB NO. 1337 Page 45 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. age, who has credit for at least twenty-five years of service , regardless of age, shall1 be paid a monthly salary benefit equal to the sum of three and one-third percent2 multiplied by the member's monthly average salary, and further multiplied by the3 number of years of service credited to the member's account, but the total annual4 benefit shall not exceed one hundred percent of the member's final average annual5 salary.6 (3) Notwithstanding any other provision of law to the contrary, any member7 of the system who participated in the Deferred Retirement Option Plan on or before8 June 30, 2003, and who continued in employment after participation in the Deferred9 Retirement Option Plan without a break in service and who remained in such10 continuous employment on July 1, 2003, shall be paid a monthly salary equal to the11 greater of the monthly benefit computed under R.S. 11:1307.1 or the sum of the12 member's original benefit plus twenty percent of the member's original average13 monthly salary, but the total annual benefit, including any additional benefit accrued14 after termination of participation in the Deferred Retirement Option Plan, shall not15 exceed one hundred percent of the member's final average annual salary.16 * * *17 §1310. Average salary; method of determining 18 A.(1) With respect to persons employed prior to September 8, 1978, the term19 "average salary" as used in this Chapter for the purpose of determining pension20 payments and retirement is the average salary including any additional pay or salary21 provided by the legislature over and above that set by the Civil Service Commission,22 received for the year ending on the last day of the month immediately preceding the23 date of retirement or date of death or for any one-year period, whichever is the24 greatest. For the purposes of computation, "average salary" shall not include25 overtime, expenses expenses, or clothing allowances.26 (2)(a) With respect to persons becoming employed on and after September27 8, 1978, but on or before December 31, 2010, the term "average salary" as used in28 this Chapter for the purpose of determining pension payments and retirement is the29 HLS 10RS-260 REENGROSSED HB NO. 1337 Page 46 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. average salary including any additional pay or salary provided by the legislature over1 and above that set by the Civil Service Commission, received for the thirty-six month2 period ending on the last day of the month immediately preceding the date of3 retirement or date of death or for any thirty-six consecutive months, whichever is the4 greatest. For the purposes of computation, "average salary" shall not include5 overtime, expenses expenses, or clothing allowances. 6 (b) The earnings to be considered for the thirteenth through the twenty-fourth7 month shall not exceed one hundred and twenty-five percent of the earnings of the8 first through the twelfth month. The earnings to be considered for the final twelve9 months shall not exceed one hundred and twenty-five percent of the earnings of the10 thirteenth through the twenty-fourth month. Nothing in this Subparagraph, however,11 shall change the method of determining the amount of earned compensation12 received.13 * * *14 §1313. Disability retirement; eligibility15 * * *16 B. The board of trustees shall award disability benefits to any sworn,17 commissioned law enforcement officer of the office of state police whose initial date18 of employment occurred on or before December 31, 2010, who is eligible and who19 has been officially certified as disabled by the State Medical Disability Board. The20 disability benefit shall be determined as follows:21 * * *22 C. The board of trustees shall award disability benefits to any sworn,23 commissioned law enforcement officer of the office of state police whose initial date24 of employment occurred on or after January 1, 2011, who is eligible and who has25 been officially certified as disabled by the State Medical Disability Board. The26 disability benefit shall be determined as provided in R.S. 11:1345.7.27 * * *28 HLS 10RS-260 REENGROSSED HB NO. 1337 Page 47 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. §1316. Death in the line of duty; certain members hired on or before December 31,1 2010; pension of surviving spouse of deceased employee; minor children2 with no surviving spouse3 A. This Section shall apply to any sworn commissioned law enforcement4 officer of the office of state police of the Department of Public Safety and5 Corrections whose initial date of employment occurred on or before December 31,6 2010. The surviving spouse of any such sworn commissioned law enforcement7 officer of the office of state police of the Department of Public Safety and8 Corrections who is killed in the discharge of his duties, or dies from immediate9 effects of any injury received as the result of an act of violence occurring while10 engaged in the discharge of his duties, shall be pensioned at seventy-five percent of11 the salary being received by the employee at the time of the decedent's death or12 injury, provided the surviving spouse was married to the decedent at the time of the13 event which resulted in the officer's death.14 * * *15 §1317. Pension of children of deceased employee and children of deceased retired16 employees ; certain members hired on or before December 31, 2010 17 A.(1) This Section shall apply to any employee whose initial date of18 employment occurred on or before December 31, 2010. If there is no surviving19 spouse to receive the pension due a spouse of any police employee or retired20 employee under R.S. 11:1320 or 1322, or if the spouse has remarried and forfeited21 his or her benefit under R.S. 11:1321, the minor children of the deceased employee22 or deceased retired employee, if any, shall receive a monthly pension equal to the23 greater of:24 * * *25 §1318. Pension of physically handicapped or mentally disabled children of deceased26 employee hired on or before December 31, 201027 A. The surviving totally physically handicapped or mentally disabled child28 or children of a deceased member whose initial date of employment occurred on or29 HLS 10RS-260 REENGROSSED HB NO. 1337 Page 48 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. before December 31, 2010, whether under or over the age of eighteen years, shall be1 entitled to the same benefits, payable in the same manner as provided by this Chapter2 for surviving spouses.3 * * *4 §1319. Pension of parents of deceased employee hired on or before December 31,5 20106 If For any employee whose initial date of employment occurred on or before7 December 31, 2010, if there is no surviving spouse and no minor children, a monthly8 pension of twenty-five percent of the average salary of the deceased employee shall9 be paid to the parent or parents of the deceased employee, if they, or either of them,10 derived their main support from the employee.11 §1320. Death of employee not in performance of duty; certain members hired on or12 before December 31, 2010; payments 13 A. This Section shall apply to any sworn commissioned law enforcement14 officer of the office of state police of the Department of Public Safety and15 Corrections whose initial date of employment occurred on or before December 31,16 2010. On and after January 1, 1973, the surviving spouse of any such sworn,17 commissioned law enforcement officer of the office of state police whose death18 occurs other than in the line of duty, but who at the time of death was a member of19 the system and had less than twenty years of service credit with the department, shall20 be pensioned at twenty-five percent of his average salary if the officer, at the time21 of death, had under five years of service credit, thirty percent of his average salary22 if he had five years but under ten years of service credit, forty percent of his average23 salary if he had ten years but under fifteen years of service credit, and fifty percent24 of his average salary if he had fifteen years but under twenty years of service credit.25 On and after September 9, 1977, if the employee had twenty years of service or26 more, the surviving spouse shall receive a pension equal to the retirement benefit the27 HLS 10RS-260 REENGROSSED HB NO. 1337 Page 49 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. employee would have received had the employee elected to retire at the time of his1 death.2 * * *3 §1321. Surviving spouse remarrying; forfeiture of pension ; employees hired on or4 before December 31, 20105 A.(1) This Section shall apply to any employee whose initial date of6 employment occurred on or before December 31, 2010. If the surviving spouse of7 a deceased employee remarries while receiving the surviving spouse's pension under8 the provisions of this Chapter, such spouse thereupon forfeits all rights to the9 spouse's pension.10 * * *11 §1322. Death of former or retired employee hired on or before December 31, 2010;12 pension payable to survivors13 A. This Section shall apply to any employee whose initial date of14 employment occurred on or before December 31, 2010. The surviving spouse of a15 deceased former employee shall receive a pension in an amount equal to the monthly16 retirement pay that would have been payable to the decedent, provided all of the17 following conditions exist:18 * * *19 §1323. Death of employee not in performance of duty; employees hired on or after20 January 1, 201121 A. This Section shall apply to any member whose initial date of employment22 occurred on or after January 1, 2011, and whose death occurs other than in the line23 of duty. Survivor benefits shall be due and payable by the system effective the first24 day of the next month following the death of such member, but shall not be paid until25 a properly completed and acceptable application is received by the system and all26 proper certifications have been received by the system.27 B.(1) A surviving spouse with a minor or handicapped child, or mentally28 disabled child, or children shall be paid per month, for so long as one or more29 HLS 10RS-260 REENGROSSED HB NO. 1337 Page 50 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. children remain eligible for benefits under Subsection C of this Section, fifty percent1 of the benefit to which the member would have been entitled if he had retired on the2 date of his death using the member's applicable accrual rate regardless of years of3 service or age, or six hundred dollars per month, whichever is greater, provided the4 deceased member was an active member at the time of death and had five or more5 years of service credit, at least two years of which were earned immediately prior to6 death or provided the deceased member had twenty or more years of service credit7 regardless of when earned or whether the deceased member was in active service at8 the time of death.9 (2) Benefits shall cease upon remarriage and shall resume upon a subsequent10 divorce or death of a new spouse; however, if the member was eligible to retire on11 the date of his death, benefits shall not cease upon remarriage.12 (3) When all surviving children cease to be eligible for benefits under13 Subsection C of this Section, the surviving spouse shall cease to receive benefits14 provided by this Subsection and thereafter, if eligible, shall receive benefits in15 accordance with the provisions of Subsection D of this Section.16 C. In addition to the amount payable in accordance with Subsection B of this17 Section, for the benefit of the surviving minor or handicapped child, or mentally18 disabled child, or children, there shall be paid for each such child, subject to a19 maximum of two children, per month fifty percent of the benefit to which a spouse20 would be entitled under Subsection B of this Section. Benefits shall be payable to21 such children even if no spouse eligible for survivor benefits is present, provided the22 member had at least five years of service credit. Benefits for a child shall cease23 when the child is no longer a minor child as defined by this Chapter. No surviving24 minor child shall receive more than one survivor's benefit at any one time. If two25 benefits are applicable, only the larger shall be paid.26 D.(1) A surviving spouse without a minor or handicapped child, or mentally27 disabled child, or children shall be paid per month, for the remainder of his life, the28 benefit payable in accordance with R.S. 11:1323.1(A)(2)(a) based on years of service29 HLS 10RS-260 REENGROSSED HB NO. 1337 Page 51 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. that the member had earned to the date of his death using the applicable accrual rate,1 or six hundred dollars per month, whichever is greater, provided the surviving spouse2 had been married to the deceased member for at least one year prior to death, and3 provided the deceased member was an active member at the time of death and had4 ten or more years of service credit, at least two years of which were earned5 immediately prior to death or provided the deceased member had twenty or more6 years of service credit regardless of when earned or whether the deceased member7 was in active service at the time of death.8 (2) Benefits shall cease upon remarriage and shall resume upon a subsequent9 divorce or death of the new spouse; however, if the member was eligible to retire on10 the date of his death, benefits shall not cease upon remarriage.11 E. The accumulated contributions of a deceased member shall be paid in a12 lump sum refund to the natural person or persons that he designated as his13 beneficiary, or to his succession if there is no designated beneficiary, but only if no14 benefits under Subsection A, B, C, D, F, or G of this Section are payable. Payment15 of accumulated contributions shall be made only upon receipt of the deceased16 member's death certificate. Such payment to the named beneficiary or the estate17 cancels all liability of the system to the deceased member, his named beneficiary, or18 his estate.19 F. In the event of death of a member leaving a surviving spouse and20 dependent children, the total of the benefits payable under Subsections B and C of21 this Section shall not be less each month than what would have been payable under22 Subsection D of this Section for as long as both spouse and children are eligible to23 receive benefits under Subsections B and C of this Section.24 G. If a member dies, even after retirement, eligible minor children shall25 receive the benefits under Subsection C of this Section.26 H. The benefits payable under Subsection C of this Section shall be paid to27 the person having legal custody of the property of the child, unless a trust created28 under Louisiana law has been created by the deceased member for the benefit of the29 HLS 10RS-260 REENGROSSED HB NO. 1337 Page 52 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. child, the terms of the instrument creating the trust so provide and the system has1 been provided with a certified copy of the trust document, then the survivor benefit2 shall be paid to the trust under the terms of the trust for addition to the trust property.3 In the event that the trust is contested by any party, the system shall withhold all4 survivor benefit payments or deposit them in the registry of the court if a concursus5 proceeding is filed, until there is a final binding legal agreement or judgment6 regarding the proper payment of the survivor benefits.7 I. Each survivor benefit recipient shall be required to establish proof8 annually or at such other times as the board of trustees may deem necessary that they9 are still legally entitled to the survivor benefits provided in this Section. The board10 of trustees shall have the right to suspend or cancel any survivor benefit wherein the11 recipient fails to provide proper certification of eligibility.12 §1323.1. Mode of payment where option elected; employees hired on or after13 January 1, 201114 A. Upon application for retirement any member may elect to receive his15 benefit in a retirement allowance payable throughout his life, or he may elect at that16 time to receive the actuarial equivalent of his retirement allowance in a reduced17 retirement allowance payable throughout life, with the following options:18 (1) Option 1. If he dies before he has received in annuity payments the value19 of the member's annuity as it was at the time of his retirement, the balance shall be20 paid to his legal representatives or to the person he nominates by written designation21 duly acknowledged and filed with the board.22 (2)(a) Option 2-A. Upon his death his reduced retirement allowance shall23 be continued throughout the life of and paid to the person he nominated by written24 designation duly acknowledged and filed with the board of trustees at the time of his25 retirement.26 (b) Option 2-B. Upon his death his reduced retirement allowance shall be27 continued throughout the life of and paid to the person he nominated by written28 designation and, upon the death of that designated person, his reduced benefit shall29 HLS 10RS-260 REENGROSSED HB NO. 1337 Page 53 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. be continued throughout the life of the deceased member's mentally handicapped1 child or children, but such benefits shall be paid to the guardian of such child or2 children. The written designation provided for in this Subparagraph shall be duly3 acknowledged and filed with the board of trustees at the time of the member's4 retirement.5 (c) Unless otherwise specified, any reference in law to this Paragraph or to6 Option 2, without reference to a particular Subparagraph or to Option 2-A or Option7 2-B shall mean Subparagraph (a) of this Paragraph or Option 2-A.8 (3) Option 3. Upon his death one-half of his reduced retirement allowance9 shall be continued throughout the life of and be paid to the person he nominated by10 written designation duly acknowledged and filed with the board of trustees at the11 time of his retirement.12 (4) Option 4. Some other benefit or benefits shall be paid either to the13 member or to the person or persons he nominated, provided the other benefit or14 benefits, together with the reduced retirement allowance, shall be certified by the15 actuary to be of equivalent actuarial value to his retirement allowance and shall be16 approved by the board.17 * * *18 Part III. NEW STATE POLICE RETIREMENT PLAN19 §1345.1. Creation; application20 There is hereby created a retirement plan within this system for persons who21 would otherwise be eligible for membership in the State Police Employees' Pension22 and Retirement System but whose initial date of employment began on or after23 January 1, 2011. Such plan shall be known as the New State Police Retirement Plan.24 Any other provisions of this Chapter or any other laws to the contrary25 notwithstanding, the retirement of such persons shall be governed by the provisions26 of this Part; however, if provisions of this Chapter cover matters not specifically27 addressed by the provisions of this Part or if any of the provisions of this Chapter are28 HLS 10RS-260 REENGROSSED HB NO. 1337 Page 54 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. made applicable in this Part, then those provisions shall apply to members governed1 by this Part.2 §1345.2. Application; definitions3 Terms not specifically defined in this Section shall have the meanings4 provided in R.S. 11:1301 unless a different meaning is clearly required by the5 context. For purposes of this Part:6 (1) "Average compensation" means the average annual earned compensation7 of a member for the sixty highest months of successive employment, or for the8 highest sixty successive joined months of employment where interruption of service9 occurred; however, average compensation for part-time employees who do not use10 sixty months of full-time employment for average compensation purposes shall be11 based on the base pay the part-time employee would have received had he been12 employed on a full-time basis. The earnings to be considered for the thirteenth13 through the twenty-fourth month shall not exceed one hundred fifteen percent of the14 earnings of the first through the twelfth month. The earnings to be considered for the15 twenty-fifth through the thirty-sixth month shall not exceed one hundred fifteen16 percent of the earnings of the thirteenth through the twenty-fourth month. The17 earnings to be considered for the thirty-seventh through the forty-eighth month shall18 not exceed one hundred fifteen percent of the earnings of the twenty-fifth through19 the thirty-sixth month. The earnings for the final twelve months shall not exceed one20 hundred fifteen percent of the earnings of the thirty-seventh through the forty-eighth21 month. The limitations on the computation of average compensation contained in22 this Item shall not apply to any twelve-month period during which compensation23 increased by more than fifteen percent over the previous twelve-month period solely24 because of an increase in compensation by a uniform systemwide increase adopted25 by the state Department of Civil Service and approved by the governor or because26 of a pay adjustment enacted by the legislature.27 HLS 10RS-260 REENGROSSED HB NO. 1337 Page 55 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (2) "Member" or "members" shall include persons who would be eligible1 for system membership pursuant to R.S. 11:1305 but whose initial date of2 employment began on or after January 1, 2011.3 (3) "Plan" means the New State Police Retirement Plan created by this4 Subpart.5 (4) "System" means the State Police Pension and Retirement System.6 §1345.3. Eligibility for membership7 Each person who would be eligible for system membership pursuant to R.S.8 11:1305 but whose initial date of employment began on or after January 1, 2011,9 shall become a member of the New State Police Retirement Plan of the system as a10 condition of employment.11 §1345.4. Eligibility for retirement12 Any member shall be eligible for retirement if he has:13 A. Twenty-five years or more of service, at any age.14 B. Twelve years or more of service, at age fifty-five or thereafter.15 C. Twenty years of service credit at any age, exclusive of military service16 and unused annual and sick leave, but any person retiring under this Paragraph shall17 have his benefit, inclusive of military service credit and allowable unused annual and18 sick leave, actuarially reduced from the earliest age that he would normally become19 eligible for a regular retirement benefit under Subsection A or B of this Section if he20 had continued in service to that age. Any employee who elects to retire under the21 provisions of this Paragraph shall not be eligible to participate in the Back-Deferred22 Retirement Option Program provided by R.S. 11:1312.1.23 §1345.5. Retirement benefit24 A member shall receive a retirement equal to three and one-third percent of25 average compensation for every year of creditable service in the plan, not to exceed26 one hundred percent of the member's average compensation.27 HLS 10RS-260 REENGROSSED HB NO. 1337 Page 56 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. §1345.6. Back-Deferred Retirement Option Plan1 A member, except as specified in R.S. 11:1345.4(C), shall have the option2 of participating in the Back-Deferred Retirement Option Plan in accordance with the3 provisions of R.S. 11:1312.1.4 §1345.7. Disability retirement5 A. Upon approval of a member's retirement based upon a total and6 permanent disability resulting solely from injuries sustained in the performance of7 his official duties, a member shall receive a disability benefit equal to seventy-five8 percent of his average compensation regardless of years of service. This benefit is9 payable only if the injury or injuries were sustained while on active duty status.10 B. If a member's disability occurs for reasons other than in the performance11 of his duties and the member has earned at least ten years of service credit in this12 Plan, then the member shall be entitled to disability benefits under the provisions of13 R.S. 11:1313(B)(2).14 C. The disability retirement procedures contained in R.S. 11:216 through 22515 which are not in conflict with this Section shall apply to members.16 §1345.8. Survivor's benefit for members killed in the line of duty17 A. If a member's death occurs in the line of duty or is a direct result of an18 injury sustained while in the line of duty, survivor benefits shall be payable to19 qualified survivors as provided for in this Section, except that a survivor shall be20 eligible for benefits under this Section without regard to the amount of time that the21 surviving spouse was married to the deceased member and without regard to the22 amount of time that the deceased was a member of this plan. This benefit is payable23 only if the injury or injuries were sustained while on active duty status.24 B. If the member has a surviving spouse, minor, or handicapped or mentally25 incapacitated child or children, the amount of the total benefit shall equal eighty26 percent of the member's average compensation. The benefit shall be shared equally27 by the surviving spouse and children. When a child who is not handicapped or28 mentally incapacitated no longer meets the definition of minor child under R.S.29 HLS 10RS-260 REENGROSSED HB NO. 1337 Page 57 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. 11:1301, his benefit shall cease, and the remaining beneficiaries shall have their1 shares adjusted accordingly.2 §1345.9. Survivor's benefit for death other than in the line of duty3 The surviving spouse or children of any active member whose death occurs4 other than in the performance of his duties shall have the same pension rights as5 provided in R.S. 11:1320.6 Section 2. R.S. 24:36(M) is hereby enacted to read as follows:7 §36. Additional benefits payable to legislators; certain legislative personnel;8 governor; lieutenant governor; political subdivision service credit; credit for9 service previously rendered; additional contributions; computation of10 benefits payable; membership11 * * *12 M. Beginning January 1, 2011, the provisions of this Section shall not be13 applicable to any person whose first employment making him eligible for14 membership in any public retirement system, plan, or fund, began on or after such15 date.16 Section 3. The cost of this Act, if any, shall be funded through additional employee17 contributions as provided in this Act and with additional employer contributions in18 compliance with Article X, Section 29(E)(5)(b) of the Constitution of Louisiana.19 Section 4. This Act shall become effective on January 1, 2011.20 DIGEST The digest printed below was prepared by House Legislative Services. It constitutes no part of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)] Robideaux HB No. 1337 Abstract: For members hired on or after Jan. 1, 2011, changes the benefit structure and employee contribution rates for the four state retirement systems: the La. State Employees' Retirement System (LASERS), the Teachers' Retirement System of La. (TRSL), the State Police Pension and Retirement System (LSPRS), and the La. School Employees' Retirement System (LSERS). Proposed law generally makes changes to the benefit structure of the four state retirement systems, which are the La. State Employees' Retirement System (LASERS), the Teachers' Retirement System of La. (TRSL), the La. School Employees' Retirement System (LSERS), HLS 10RS-260 REENGROSSED HB NO. 1337 Page 58 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. and the State Police Pension and Retirement System (LSPRS), for members hired on or after Jan. 1, 2011, in the following respects: (1)Employee contribution rates. (2)Final average compensation. (3)Benefit accrual rates. (4)Retirement eligibility. (5)Disability benefits. (6)Survivor benefits. Present law, relative to LASERS, provides generally for several plans that provide enhanced benefits (i.e. retirement benefits, disability benefits, survivor benefits, etc.) to certain individuals: (1)Wildlife agents of the enforcement division of the Dept. of Wildlife and Fisheries. (2)Wardens, correctional officers, security personnel, and probation and parole officers employed by the Dept. of Public Safety and Corrections (DPS&C). (3)Full-time law enforcement personnel, supervisors, and administrators who are employed with the Dept. of Revenue, office of alcohol and tobacco control, who are Peace Officers Standard and Training (P.O.S.T.)-certified, who have the power to arrest, and who hold a commission from such office. (4)Peace officers, as defined by R.S. 40:2402(3)(a), employed by the DPS&C, office of state police, other than state troopers. (5)Judges. (6)The governor, lieutenant governor, and certain legislators. (7)The clerk of the House and secretary of the Senate, and the sergeant at arms of the House and Senate. Proposed law closes all such subplans and eliminates such enhanced benefit provision within LASERS relative to such persons listed above, who are hired on or after Jan. 1, 2011. Provides for consolidation of all hazardous duty personnel in LASERS into the newly created Hazardous Duty Services Plan within LASERS, regardless of whether such persons receive enhanced benefits under present law. Further provides that the individuals referenced in (5), (6), and (7) above, who are hired on or after Jan. 1, 2011, will receive the same benefits as rank-and-file members. Proposed law generally creates the Hazardous Duty Services Plan within LASERS for certain law enforcement personnel hired on or after Jan. 1, 2011, who are members of LASERS, and provides that members of existing hazardous duty plans may retain membership in those plans. Provides that with respect to any matters not addressed within the provisions of the Hazardous Duty Services Plan, the generally applicable LASERS provisions shall apply. The law enforcement personnel eligible for the Hazardous Duty Services Plan include the following persons hired on or after Jan. 1, 2011: (1)Wildlife agents of the enforcement division of the Dept. of Wildlife and Fisheries. HLS 10RS-260 REENGROSSED HB NO. 1337 Page 59 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (2)Wardens, correctional officers, security personnel, and probation and parole officers employed by DPS&C. (3)Employees of the bridge police section of the Crescent City Connection Division of the DOTD. (4)Full-time law enforcement personnel, supervisors, and administrators who are employed with the Dept. of Revenue, office of alcohol and tobacco control, who are P.O.S.T.-certified, who have the power to arrest, and who hold a commission from such office. (5)Peace officers, as defined by R.S. 40:2402(1)(a), employed by DPS&C, office of state police, other than state troopers. (6)Arson investigators employed by the office of state fire marshal who are P.O.S.T.-certified, who have the power to arrest, and who hold a commission from such office. (7)Park rangers employed by the Dept. of Culture, Recreation and Tourism, office of state parks, who are P.O.S.T.-certified, who have the power to arrest, and who hold a commission from such office. (8)Campus police officers employed by the various colleges and universities, who are P.O.S.T.-certified, who have the power to arrest, and who hold a commission from such office. (9)Hospital security officers employed by LSU Health Sciences Center, who are P.O.S.T.-certified, who have the power to arrest, and who hold a commission from such office. (10)Investigators of the Dept. of Justice who are in a position required to be P.O.S.T.- certified. (11)All personnel employed in a position required to be P.O.S.T.-certified, who have the power to arrest, and who hold a commission from such office, who are otherwise members of LASERS and are not members of any other retirement system. Proposed law establishes within LSPRS a plan similar to the LASERS Hazardous Duty Services Plan, called the New State Police Retirement Plan, for members of LSPRS hired on or after Jan. 1, 2011. EMPLOYEE CONTRIBUTIONS Present law establishes the employee contribution rates in the following amounts for members of the four state retirement systems: (1)LASERS: Rank-and-file state employees - 7.5% if hired on or before June 30, 2006; 8% if hired on or after July 1, 2006. (2)LASERS: Judges, court officers, the governor, lieutenant governor, and certain legislators - 11.5%. (3)LASERS: Certain correctional employees employed by the DPS&C; peace officers employed by the DPS&C, office of state police, other than state troopers; and personnel employed by the Dept. of Revenue, office of alcohol and tobacco control, as provided in R.S. 11:444(A)(2)(c) - 9%. (4)LASERS: Clerk of the House and secretary of the Senate - 9.5%. HLS 10RS-260 REENGROSSED HB NO. 1337 Page 60 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (5)LASERS: Wildlife agents - 9.5%. (6)LASERS: Bridge police of the Crescent City Connection Division of the DOTD - 8.5%. (7)TRSL: 8% for regular members, 9.1% for School Lunch Plan A members, and 5% for School Lunch Plan B members. (8)LSERS: 7.5%. (9)LSPRS: 8.5%. Proposed law requires rank-and-file members of state retirement systems hired on or after Jan. 1, 2011, to pay 8% in employee contributions. Further requires hazardous duty members in the Hazardous Duty Services Plan in LASERS and the New State Police Retirement Plan to pay 9.5% in employee contributions. Requires the legislative sergeants at arms to pay 9.5% in employee contributions if employed prior to December 31, 2010; and 8% if employed thereafter. AVERAGE COMPENSATI ON I. LASERS Present law provides that, for purposes of retirement benefit computation, average compensation of a LASERS rank-and-file members hired on or before June 30, 2006, shall be based on the 36 highest successive months of employment or on the highest 36 successive joined months of employment where interruption of service occurred. The earnings to be considered for the first, second, and last 12-month period shall not increase by more than 25% (anti-spiking provisions). Present law provides the same 36-month average compensation provisions apply to certain persons, regardless of hire date, who receive an additional benefit pursuant to present law (certain peace officers, wildlife agents, public safety services employees, judicial administrators, judges, certain legislators, the governor, lieutenant governor, the clerk and sergeant at arms of the House of Representatives, the secretary and the sergeant at arms of the Senate). Present law provides that, for any rank-and-file member hired on or after July 1, 2006, average compensation shall be calculated over a 60-month period, and the anti-spiking provisions prohibit an increase in earnings over 15% each year of such period. Proposed law retains present law but provides that persons hired on or after Jan. 1, 2011, who would receive an additional benefit pursuant to present law (certain peace officers, wildlife agents, public safety services employees, judicial administrators, judges, certain legislators, the governor, lieutenant governor, the clerk and sergeant at arms of the House of Representatives, the secretary and the sergeant at arms of the Senate), shall have their average compensation calculated over a 60-month period and shall be subject to the 15% anti-spiking if hired on or after Jan. 1, 2011. II.TRSL Present law provides that average compensation for a teacher shall mean the three highest consecutive years of employment or the three highest joined successive years where break in service occurred. Furthermore, anti-spiking provisions prohibit an increase in earnings over 10% each year of such period. Proposed law retains present law but provides that average compensation for any teacher hired on or after Jan. 1, 2011, shall be calculated over the highest five years, and the anti- HLS 10RS-260 REENGROSSED HB NO. 1337 Page 61 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. spiking provisions relative to such persons prohibit an increase in earnings over 15% each year of such period. III.LSERS Present law provides that average compensation for a school employee hired on or before June 30, 2006, shall mean the three highest consecutive years of employment or the three highest joined successive years where break in service occurred. Provides that average compensation for any school employee hired on or after July 1, 2006, shall be calculated over five years. Furthermore, anti-spiking provisions prohibit an increase in earnings over 10% each year of such period. Proposed law retains present law with regard to the 5-year FAC, but provides that for members hired on or after Jan. 1, 2011, the anti-spiking provisions relative to such persons prohibit an increase in earnings over 15% each year of such period. IV.LSPRS Present law provides that average compensation for a member of the system hired before Sept. 8, 1978, shall be based on the highest one-year period. Present law provides that average compensation for a member of the system hired on or after Sept. 8, 1978, shall be based on the highest three-year period. Furthermore, anti-spiking provisions prohibit an increase in earnings over 25% during any year of such period. Proposed law retains present law but, pursuant to the New State Police Retirement Plan created under proposed law, provides that for any member of the system hired on or after Jan. 1, 2011, average compensation shall be calculated over the highest five years. Furthermore, anti-spiking provisions prohibit an increase in earnings over 15% during any year in such period. RETIREMENT ELIGIBILITY I. LASERS Present law provides for retirement eligibility for members of LASERS. Rank-and-file members hired on or before June 30, 2006, may retire: (1) at age 60 with 10 years of service credit; (2) at age 55 with 25 years of service credit; (3) at any age with 30 years of service credit; and (4) at any age with 20 years of service credit, but subject to an actuarial reduction of benefits. Provides that rank-and-file members hired on or after July 1, 2006, may only retire at age 60 with 10 years of service credit. Proposed law allows rank-and-file members hired on or after Jan. 1, 2011, to retire: (1) at age 60 with five years of service credit; and (2) at any age with 20 years of service credit, but subject to an actuarial reduction of benefits. Present law also provides various eligibility provisions for several hazardous duty subplans within LASERS, including plans for: (1)Wildlife agents of the enforcement division of the Dept. of Wildlife and Fisheries: (a)10 years of service at age 55 if hired before July 1, 2003. (b)20 years of service at any age if hired before July 1, 2003. (c)10 years of service at age 60 if hired on or after July 1, 2003. (d)25 years of service at any age if hired on or after July 1, 2003. (2)Wardens, correctional officers, security personnel, and probation and parole officers employed by DPS&C: HLS 10RS-260 REENGROSSED HB NO. 1337 Page 62 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (a)10 years of service at age 60. (b)25 years of service at any age. (3)Full-time law enforcement personnel, supervisors, and administrators who are employed with the Dept. of Revenue, office of alcohol and tobacco control, who are Peace Officers Standard and Training (P.O.S.T.)-certified, who have the power to arrest, and who hold a commission from such office: (a)10 years of service at age 60. (b)25 years of service at any age. (c)20 years of service at any age, but subject to an actuarial reduction of benefits. (4)Peace officers, employed by DPS&C, office of state police, other than state troopers: (a)10 years of service at age 60. (b)25 years of service at age 55. (c)30 years of service at any age. (d)20 years of service at any age, but subject to an actuarial reduction of benefits. (5)Bridge police in the Crescent City Connection Division of the DOTD: (a)10 years of service at age 60. (b)25 years of service at any age. (c)20 years of service at any age, but subject to an actuarial reduction of benefits. Proposed law retains present law for hazardous duty personnel hired on or before Dec. 31, 2010. However, pursuant to the Hazardous Duty Services Plan created by proposed law, any hazardous duty personnel hired on or after Jan. 1, 2011, shall only be eligible to retire with: (a)12 years of service at age 55. (b)25 years of service at any age. (c)20 years of service at any age, but subject to an actuarial reduction of benefits. Present law provides a subplan within LASERS for judges and court officers containing special retirement eligibility requirements and benefit provisions: (a)10 years as a judge / court officer at age 65. (b)18 years as a judge / court officer at any age. (c)20 years of service at age 50 (with 12 years served as judge / court officer). (d)12 years at age 55 (with 12 years served as judge / court officer). (e)Age 70 with no service requirements. Proposed law retains present law for judges and court officers hired on or before Dec. 31, 2010. However, any judges or court officers hired on or after Jan. 1, 2011, shall only be eligible to retire: (1) at age 60 with five years of service credit; and (2) at any age with 20 years of service credit, but subject to an actuarial reduction of benefits. II.TRSL Present law provides for retirement eligibility for members of TRSL. Members hired before July 1, 1999, may retire: (1) at the age of 60 with five years of service credit; or (2) at any age with 20 years of service credit. Members hired on or afer July 1, 1999, may retire: (1) at the age of 60 with five years of service credit; (2) at the age of 55 with 25 years of service HLS 10RS-260 REENGROSSED HB NO. 1337 Page 63 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. credit; (3) at any age with 30 years of service credit; and (4) at any age with 20 years of service credit, but subject to an actuarial reduction in benefits. Proposed law retains present law but provides that present law's retirement eligibility requirements apply only to members hired on or before Dec. 31, 2010. Provides that members hired on or after Jan. 1, 2011, may retire: (1) at age 60 with five years of service credit; and (2) at any age with 20 years of service credit, but subject to an actuarial reduction of benefits. III.LSERS Present law provides for retirement eligibility for members of LSERS. Members may retire: (1) at the age of 60 with 10 years of service credit; (2) at the age of 55 with 25 years of service credit; (3) at any age with 30 years of service credit; and (4) at any age with 20 years of service credit, but subject to an actuarial reduction in benefits. Proposed law retains present law but provides that present law's retirement eligibility requirements apply only to members hired on or before Dec. 31, 2010. Provides that members hired on or after Jan. 1, 2011, may retire: (1) at age 60 with five years of service credit; and (2) at any age with 20 years of service credit, but subject to an actuarial reduction of benefits. IV.LSPRS Present law provides that a member of LSPRS may retire if he has: (1)10 years of service at age 50. (2)20 years of service at any age if hired before Sept. 8, 1978. (3)25 years of service at any age if hired on or after Sept. 8, 1978. Proposed law retains present law but provides that, in accordance with the New State Police Retirement Plan established under proposed law, a member of LSPRS hired on or after Jan. 1, 2011, shall only be able to retire if he has: (1)12 years of service at age 55. (2)25 years of service at any age. (3)20 years of service at any age, but subject to an actuarial reduction of benefits. V. GOVERNOR, LIEUTENANT GOVERNOR, LEGISLATORS, HOUSE CLERK, SERGEANT AT ARMS, SENATE SECRETARY, AND STATE TREASURER. Present law provides the following retirement eligibility provisions for the governor, legislators, the clerk or sergeant at arms of the House of Representatives, the secretary or sergeant at arms of the Senate, and the state treasurer, in any actuarially funded retirement system: 20 years of service (at least 12 served in the designated position) at age 50 (or the age requirement of the system of which he is a member). Present law also permits the governor, lieutenant governor, or member of the legislature to retire with: (1)16 years in such position at any age. (2)12 years in such position at age 55. Proposed law provides that such members, hired or elected on or after Jan. 1, 2011, may retire: (1) at age 60 with five years of service credit; and (2) at any age with 20 years of service credit, but subject to an actuarial reduction of benefits. HLS 10RS-260 REENGROSSED HB NO. 1337 Page 64 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. BENEFIT ACCRUAL RATE Present law generally provides for a benefit calculation formula for each state system typically consisting of: (years of service) x (accrual rate) x (average compensation)], where the accrual rate is a percentage of pay, typically equal to 2.5%, 3%, 3-1/3%, or 3.5%, depending on the member's job classification and the retirement system he is in. I. LASERS Present law provides for an accrual rate of 2.5% for rank-and-file members, and 3% to 3- 1/3% for certain hazardous duty personnel. Also provides for a 2.5% accrual rate with an extra 1% accrual for every year of service as a judge or court officer. Present law provides for a 3-1/3% accrual rate for the following groups: (1)Wildlife agents of the enforcement division of the Dept. of Wildlife and Fisheries. (2)Wardens, correctional officers, security personnel, and probation and parole officers employed by DPS&C. (3)Full-time law enforcement personnel, supervisors, and administrators who are employed with the Dept. of Revenue, office of alcohol and tobacco control, who are P.O.S.T.-certified, who have the power to arrest, and who hold a commission from such office. (4)Peace officers, as defined by R.S. 40:2402(1)(a), employed by DPS&C, office of state police, other than state troopers. Proposed law provides, pursuant to the Hazardous Duty Services Plan created by proposed law, that all hazardous duty personnel in such plan hired on or after Jan. 1, 2011, shall receive a 3-1/3% accrual rate. Furthermore, proposed law eliminates the extra 1% accrual for years of service as a judge or court officer, for such persons hired on or after Jan. 1, 2011. II.LSERS Present law, relative to members of LSERS, provides for accrual rates of 2.5%, 3%, or 3- 1/3%, depending on the member's retirement date. Proposed law retains present law, but provides that members hired on or after Jan. 1, 2011, shall only receive an accrual rate of 2.5%. III.LSPRS Present law, relative to members of LSPRS, provides for accrual rates of 3-1/3%. Proposed law's New State Police Retirement Plan retains present law. IV.GOVERNOR, LIEUTENANT GOVERNOR, LEGISLATORS, HOUSE CLERK, SERGEANT AT ARMS, SENATE SECRETARY Present law provides for an extra 1% accrual rate in any actuarially funded retirement system for every year of service as a the governor, a legislator, the clerk or sergeant at arms of the House of Representatives, and the secretary or sergeant at arms of the Senate. Proposed law retains present law but eliminates the extra 1% accrual for years of service for such persons hired on or after Jan. 1, 2011. HLS 10RS-260 REENGROSSED HB NO. 1337 Page 65 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. DISABILITY RETIREMENT I. LASERS - injuries not sustained in the line of duty Present law provides a variety of disability retirement provisions for the following groups of employees for injuries sustained not in the line of duty: (1)Rank-and-file members hired on or before June 30, 2006, or peace officers, enforcement personnel in the Dept. of Revenue, office of alcohol and tobacco control, judges, the governor, lieutenant governor, the clerk and sergeant at arms of the House of Representatives, the secretary and the sergeant at arms of the Senate, regardless of hire date. Must have 10 years of service credit in order to receive a disability benefit. Such members shall receive a disability benefit that is the same as provided under the regular retirement provisions applicable to them. (2)Rank-and-file members hired on or after July 1, 2006. Must have 10 years of service credit in order to receive a disability benefit. Such members shall receive a disability benefit calculated based on a 2.5% accrual rate. (3)Wildlife agents. Must have 10 years of service credit. Shall receive disability benefits equal to 75% of their regular retirement benefit. Proposed law retains present law for rank-and-file members. Furthermore, provides that judges, the governor, lieutenant governor, the clerk and sergeant at arms of the House of Representatives, the secretary and the sergeant at arms of the Senate hired on or after Jan. 1, 2011, shall be treated as rank-and-file and shall receive the same disability as rank-and- file members in (2) above for injuries not sustained in the line of duty. Proposed law provides that disability benefits for all hazardous duty personnel hired on or after Jan. 1, 2011, pursuant to the Hazardous Duty Services Plan established in proposed law, must have 10 years of service credit in order to receive a disability benefit. Such members shall receive a disability benefit based on a 3-1/3% accrual rate for injuries not sustained in the line of duty. II.LASERS - injuries sustained in the line of duty Present law provides a variety of disability retirement provisions for the following groups of hazardous duty personnel for injuries sustained in the line of duty: (1)Wildlife agents - 60% of FAC (Final Average Compensation) with 10 years of service credit. (2)Corrections officers - 40% of FAC if less than 10 years of service credit. If he has 10 or more years of service, his disability retirement benefit shall be the greater of 40% of FAC or the amount that he would have received under regular retirement. (3)Peace officers - same as not in the line of duty above. (4)Enforcement personnel in the Dept. of Revenue, office of alcohol and tobacco control - same as not in the line of duty above. Proposed law provides that hazardous duty personnel hired on or after Jan. 1, 2011, subject to the Hazardous Duty Services Plan established by proposed law shall receive a disability benefit equal to 75% of FAC for injuries sustained in the line of duty. III.TRSL HLS 10RS-260 REENGROSSED HB NO. 1337 Page 66 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Present law provides that members who have five years of service credit shall receive a disability benefit equal to 2.5% x years of service x FAC, which shall not be less than the lesser of: (1) 40% of the minimum beginning teacher salary; or (2) 75% of FAC. Present law also provides a multitude of benefits to the surviving spouse and children upon the disability retiree's death. Proposed law provides that a member hired on or after Jan. 1, 2011, must have 10 years of service credit in order to receive a disability benefit. Such members shall receive a disability benefit that is the same as provided under the regular retirement provisions applicable to them. Upon the death of the disability retiree, the normal retirement benefit payment options selected by the retiree shall apply. III.LSERS Present law provides that members hired on or before June 30, 2006, must have five years of service credit in order to receive a disability benefit, which benefit shall equal 2.5% x years of service x FAC, but shall not be less than 33-1/3% of FAC. Members hired on or after July 1, 2006, must have 10 years of service credit in order to receive a disability benefit, which benefit shall equal 3% x years of service x FAC. Upon the disability retiree's death, the surviving spouse shall receive 75% of the retiree's disability benefit. Proposed law provides that a member hired on or after Jan. 1, 2011, must have 10 years of service credit in order to receive a disability benefit. Such members shall receive a disability benefit that is the same as provided under the regular retirement provisions applicable to them (2.5% x years of service x FAC for members hired on or after Jan. 1, 2011). Upon the death of the disability retiree, the normal retirement benefit payment options selected by the retiree shall apply. IV.LSPRS Present law provides that a member must have five years of service credit in order to receive a disability benefit for injuries not sustained in the line of duty. Such members shall receive a disability benefit equal to 50% of FAC + 1.5% of FAC for every year of service in excess of 10 years. Proposed law provides that in accordance with the New State Police Retirement Plan established by proposed law, members hired on or after Jan. 1, 2011, must have 10 years of service credit in order to receive a disability benefit. Such members shall receive a disability benefit that is the same as provided under the regular retirement provisions applicable to them (3-1/3% x years of service x FAC) for injuries not sustained in the line of duty. Present law provides that a member may receive a disability benefit for injuries sustained in the line of duty regardless of years of service credit. Such members shall receive a disability benefit equal to 50% of FAC + 1.5% of FAC for every year of service in excess of 10 years. Proposed law provides that in accordance with the New State Police Retirement Plan established by proposed law, members hired on or after Jan. 1, 2011, shall receive a disability benefit equal to 75% of FAC for injuries sustained in the line of duty. SURVIVOR BENEFITS I. LASERS - death not sustained in the line of duty Present law provides for benefits payable to surviving spouses and children upon the death of a member not yet retired who dies other than in the line of duty. HLS 10RS-260 REENGROSSED HB NO. 1337 Page 67 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Present law provides for different survivor benefit amounts for surviving spouses and children typically expressed as a percentage of FAC. Provides that a spouse with children shall receive 25% of FAC for the spouse and 50% of FAC for the children. A spouse with no children shall receive 50% of FAC. Children with no surviving spouse shall receive 75% of FAC divided equally among them. Proposed law retains present law for members hired on or before Dec. 31, 2010, but for members hired on or after Jan. 1, 2011, provides that a spouse with children shall receive 50% of what the member's normal retirement benefit would have been. Additionally, any children shall each receive 50% of what the spouse would be entitled to under proposed law. A spouse with no children shall receive an actuarially reduced benefit. II.LASERS - death sustained in the line of duty Present law provides for numerous survivor benefits payable to surviving spouses and children of the wildlife agents and correctional officers who die while in the line of duty. Proposed law provides, pursuant to the Hazardous Duty Services Plan established by proposed law, that for hazardous duty personnel hired on or after Jan. 1, 2011, the surviving spouse and children of a member in hazardous duty services who dies in the line of duty shall receive 80% of FAC, which benefit shall be shared equally between the spouse and children. III.TRSL Present law provides that upon the death of member not yet retired, a spouse with children shall receive 50% of what the member's normal retirement benefit would have been. Additionally, any children shall each receive 50% of what the spouse would be entitled to under present law. A spouse with no children shall receive an actuarially reduced benefit. Proposed law retains present law. IV.LSERS Present law provides that upon the death of member not yet retired, a surviving spouse with children shall receive 75% of FAC, 1/3 of which shall go to the spouse and 2/3 to go to the children. Children with no surviving spouse shall receive 75% of FAC. A spouse with no child shall receive 50% of FAC. Proposed law retains present law for members hired on or before Dec. 31, 2010, but for members hired on or after Jan. 1, 2011, provides that a spouse with children shall receive 50% of what the member's normal retirement benefit would have been. Additionally, any children shall each receive 50% of what the spouse would be entitled to under proposed law. A spouse with no children shall receive an actuarially reduced benefit. V. LSPRS - survivor benefits for death not sustained in the line of duty Present law provides for benefits payable to surviving spouses and children upon the death of a member not yet retired who dies other than in the line of duty. Provides that a surviving spouse shall receive a survivor benefit equal to 25% of FAC if the member had less than five years of service credit; 30% of FAC if he had more than five but less than 10 years of service credit; 40% if he had at least 10 but less than 15 years of service credit; and 50% if he had at least 15 but less than 20 years. If the member had 20 or more years of service, the surviving spouse shall receive a benefit equal to what the member's regular retirement benefit would have been. Surviving children, without a surviving spouse, shall receive the greater of 60% of FAC or the regular retirement that the member would have received. Provides that in lieu of a surviving spouse or children, the member's parents shall receive 25% of FAC. HLS 10RS-260 REENGROSSED HB NO. 1337 Page 68 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Proposed law retains present law for members hired on or before Dec. 31, 2010, but for members hired on or after Jan. 1, 2011, provides that a spouse with children shall receive 50% of what the member's normal retirement benefit would have been. Additionally, any children shall each receive 50% of what the spouse would be entitled to under proposed law. A spouse with no children shall receive an actuarially reduced benefit. VI.LSPRS - survivor benefits for death sustained in the line of duty Present law provides that for a death sustained in the line of duty a member's surviving spouse shall receive 75% of the salary being received by the member. Surviving children, without a surviving spouse, shall receive 75% of FAC. Proposed law provides, pursuant to the New State Police Retirement Plan established by proposed law, that for members hired on or after Jan. 1, 2011, the surviving spouse and children of a member in hazardous duty services who dies in the line of duty shall receive 80% of FAC, which benefit shall be shared equally between the spouse and children. Proposed law requires that any cost of proposed law be funded with additional employee and employer contributions in compliance with Art. X, §29(E)(5)(b) of the constitution of La. Effective Jan. 1, 2011. (Amends R.S. 11:62(4), (5)(a) and (c) and (10), 203, 211, 212, 214, 231, 403(5), 441(A) and (F), 444(A), 461(B), 471(A), 478(A), 551, 553 (intro. para.), 581, 601(B), 602, 701(5)(a), (b), and (c)(i), 761(A)(3), 768(B)(2), 778(C) and (D), 779, 1002(6)(b), 1141(A), 1144(B)(2)(a) and (3), 1147(C)(2)(b), 1151(A), 1307(A), 1310(A), 1313(B)(intro. para.), 1316(A), 1317(A)(1)(intro. para.), 1318(A), 1319, 1320(A), 1321(A)(1), 1322(A)(intro. para.); Adds R.S. 11:62(5)(g), 471.1, 611-619, 761(A)(4), 779.1, 1002(6)(c), 1144(B)(4), 1147(C)(2)(a)(iii), 1151.1, 1313(C), 1323, 1323.1, 1345.1-1345.9 and R.S. 24:36(M)) Summary of Amendments Adopted by House Committee Amendments Proposed by House Committee on Retirement to the original bill. 1. Eliminates requirement that members to whom proposed law applies shall pay employee contributions in the amount of one-half of the system's normal cost, and instead required non-hazardous duty members to pay 8% and hazardous duty members to pay 9.5% in employee contributions. 2. For non-hazardous duty members to whom proposed law applied, changes retirement eligibility provisions from 10 years of service at age 60 to five years of service at age 60, and added a provision allowing such person to retire early with 20 years of service at any age subject to an actuarial reduction of benefits. 3. For hazardous duty members to whom proposed law applies, changes the 10 years at age 60 retirement eligibility provision to 12 years of service at age 55. 4. Relative to LASERS disability provisions, makes technical corrections clarifying that disability must be total and permanent. 5. Relative to LASERS provisions requiring survivor benefits to cease upon remarriage of the beneficiary, requires the beneficiary to notify LASERS within 30 days of remarriage. 6. Relative to the payment of survivor benefits to trusts of beneficiaries under proposed law, provides that if the trust terminates prior to the death of the HLS 10RS-260 REENGROSSED HB NO. 1337 Page 69 of 69 CODING: Words in struck through type are deletions from existing law; words underscored are additions. beneficiary, the benefits shall be paid to the person having legal custody of the beneficiary. 7. Relative to LASERS Hazardous Duty Services Plan members under proposed law choosing early retirement, provides that for a person who is in state service at the time of retirement, his benefit shall be reduced from the earliest age that he would normally become eligible for regular retirement, as though he had continued working to that age. For a person out of state service at the time of retirement, the years of service he has accrued at the time of retirement shall be used to determine the earliest age that he would normally become eligible for regular retirement. House Floor Amendments to the engrossed bill. 1. Adds provisions relative to the employee contributions paid by legislative sergeants at arms.