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ACT No. 951
Regular Session, 2010
HOUSE BILL NO. 1460 (Substitute for House Bill No. 225 by Representative LaBruzzo)
BY REPRESENTATIVES LABRUZZO, BARROW, HENRY BURNS, TI M BURNS,
LEGER, JANE SMITH, STIAES, TUCKER, WILLMOTT, AND WOOTON
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
A. Upon application for retirement any member may elect to receive his12
benefit in a retirement allowance payable throughout his life, or he may elect at that13
time to receive the actuarial equivalent of his retirement allowance in a reduced14
retirement allowance payable throughout life, with the provision that:15
* * *16
(2)17
* * *18
(b) Option 2-B. Upon his death his reduced retirement allowance shall be19
continued throughout the life of and paid to the person he nominated by written20
designation and, upon the death of that designated person, his reduced benefit shall21
be continued throughout the life of the deceased member's mentally handicapped22
child or children, but such benefits shall be paid to the guardian of such child or23 ENROLLEDHB NO. 1460
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children except as provided in Subsection G of this Section. The written designation1
provided for in this Subparagraph shall be duly acknowledged and filed with the2
board of trustees at the time of the member's retirement.3
* * *4
G.(1) If a retiree designates a child as a beneficiary under Option 1, Option5
2-A, Option 2-B, Option 3, or Option 4 as provided in Subsection A of this Section,6
or if a retiree designates children as beneficiaries under Option 2-B as provided in7
Subsection A of this Section, and a trust is created under law by the retiree for the8
benefit of the child designated as a beneficiary under Option 1, Option 2-A, Option9
2-B, Option 3, or Option 4 as provided in Subsection A of this Section, or for the10
benefit of the children designated as beneficiaries under Option 2-B as provided in11
Subsection A of this Section, if the terms of the trust so provide, and if the system12
is provided with a certified copy of the trust document, then the optional retirement13
allowance payable to a beneficiary pursuant to this Subsection upon the death of the14
retiree shall be paid to the trust for addition to the trust property.15
(2) If the trust is contested by any party, the system shall withhold all benefit16
payments or deposit them in the registry of the court if a concursus proceeding is17
filed until there is a final binding legal agreement or judgment regarding the proper18
payment of benefits.19
(3) If the trust terminates under the terms of the trust prior to the death of a20
designated beneficiary, then any optional retirement allowance payable after the date21
of termination of the trust shall be paid as provided for in Subsection A of this22
Section.23
(4) The trustee of the trust shall immediately notify the system in writing of24
the death of a beneficiary. Upon the death of a beneficiary, benefit payments from25
the system to the trust on behalf of the deceased beneficiary shall cease.26
(5) For purposes of this Subsection only, the term "child" shall mean a minor27
or major child, regardless of age, who is the issue of a marriage of a member of this28
system, the legally adopted child of a member of this system, a child born outside of29 ENROLLEDHB NO. 1460
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marriage of a female member of this system, or the child of a male member of this1
system if acknowledged or filiated pursuant to the provisions of the Civil Code.2
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: