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Regular Session, 2010
HOUSE BILL NO. 1460 (Substitute for House Bill No. 225 by Representative LaBruzzo)
BY REPRESENTATIVE LABRUZZO
RETIREMENT/STATE EMPS: Relative to the La. State Employees' Retirement System
(LASERS), allows benefits payable to children beneficiaries of deceased retirees to
be paid to a trust
AN ACT1
To amend and reenact R.S. 11:446(A)(2)(b) and to enact R.S. 11:446(G), relative to the2
Louisiana State Employees' Retirement System; to allow a trust to receive benefits3
on behalf of a retiree's child beneficiary; and to provide for related matters.4
Notice of intention to introduce this Act has been published5
as provided by Article X, Section 29(C) of the Constitution6
of Louisiana.7
Be it enacted by the Legislature of Louisiana:8
Section 1. R.S. 11:446(A)(2)(b) is hereby amended and reenacted and R.S.9
11:446(G) is hereby enacted to read as follows: 10
ยง446. Mode of payment where option elected11
* * *12
A. Upon application for retirement any member may elect to receive his13
benefit in a retirement allowance payable throughout his life, or he may elect at that14
time to receive the actuarial equivalent of his retirement allowance in a reduced15
retirement allowance payable throughout life, with the provision that:16
* * *17
(2)18
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(b) Option 2-B. Upon his death his reduced retirement allowance shall be1
continued throughout the life of and paid to the person he nominated by written2
designation and, upon the death of that designated person, his reduced benefit shall3
be continued throughout the life of the deceased member's mentally handicapped4
child or children, but such benefits shall be paid to the guardian of such child or5
children except as provided in Subsection G of this Section. The written designation6
provided for in this Subparagraph shall be duly acknowledged and filed with the7
board of trustees at the time of the member's retirement.8
* * *9
G.(1) If a retiree designates a child as a beneficiary under Option 1, Option10
2-A, Option 2-B, Option 3, or Option 4 as provided in Subsection A of this Section,11
or if a retiree designates children as beneficiaries under Option 2-B as provided in12
Subsection A of this Section, and a trust is created under law by the retiree for the13
benefit of the child designated as a beneficiary under Option 1, Option 2-A, Option14
2-B, Option 3, or Option 4 as provided in Subsection A of this Section, or for the15
benefit of the children designated as beneficiaries under Option 2-B as provided in16
Subsection A of this Section, if the terms of the trust so provide, and if the system17
is provided with a certified copy of the trust document, then the optional retirement18
allowance payable to a beneficiary pursuant to this Subsection upon the death of the19
retiree shall be paid to the trust for addition to the trust property.20
(2) If the trust is contested by any party, the system shall withhold all benefit21
payments or deposit them in the registry of the court if a concursus proceeding is22
filed until there is a final binding legal agreement or judgment regarding the proper23
payment of benefits.24
(3) If the trust terminates under the terms of the trust prior to the death of a25
designated beneficiary, then any optional retirement allowance payable after the date26
of termination of the trust shall be paid as provided for in Subsection A of this27
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(4) The trustee of the trust shall immediately notify the system in writing of1
the death of a beneficiary. Upon the death of a beneficiary, benefit payments from2
the system to the trust on behalf of the deceased beneficiary shall cease.3
(5) For purposes of this Subsection only, the term "child" shall mean a minor4
or major child, regardless of age, who is the issue of a marriage of a member of this5
system, the legally adopted child of a member of this system, a child born outside of6
marriage of a female member of this system, or the child of a male member of this7
system if acknowledged or filiated pursuant to the provisions of the Civil Code.8
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)]
LaBruzzo HB No. 1460
Abstract: Relative to the La. State Employees' Retirement System (LASERS), allows
benefits payable to children beneficiaries of deceased retirees to be paid to a trust.
Present law provides several payment options for retirement benefits under LASERS, from
which a retiree may choose if he wishes benefits to continue being paid to a designated
beneficiary upon his death. Such options will reduce the amount of the monthly benefit that
a retiree receives during his lifetime and may in turn reduce the amount of the monthly
benefit that his beneficiary receives upon his death.
Proposed law allows benefits to be paid to a trust created for the benefit of a retiree's child
beneficiary in the event of the retiree's death, in accordance with the payment option
selected.
(Amends R.S. 11:446(A)(2)(b); Adds R.S. 11:446(G))