HLS 10RS-579 ORIGINAL
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2010
HOUSE BILL NO. 331
BY REPRESENTATIVE FOIL
RETIREMENT/TEACHERS: Relative to the Teachers' Retirement System of La., allows
a member in the optional retirement plan to make a one-time, irrevocable election
to transfer to the defined benefit plan
AN ACT1
To enact R.S. 11:925(D), relative to the optional retirement plan of the Teachers' Retirement2
System of Louisiana; to provide for eligibility; to provide for transfer from the3
optional retirement plan to the defined benefit plan; to provide for transfer of service4
credit and the purchase thereof; to provide an effective date; and to provide for5
related matters.6
Notice of intention to introduce this Act has been published7
as provided by Article X, Section 29(C) of the Constitution8
of Louisiana.9
Be it enacted by the Legislature of Louisiana:10
Section 1. R.S. 11:925(D) is hereby enacted to read as follows: 11
§925. Eligibility12
* * *13
D.(1) Notwithstanding any other provision of this Part, any person who14
elected to participate in the optional retirement plan pursuant to Subsection A of this15
Section, on or before January 1, 1991, may, on or before December 31, 2010, make16
a one-time, irrevocable election to withdraw from the optional retirement plan and17
regain membership in the defined benefit plan by transferring his entire optional18
retirement plan account balance, together with any interest or earnings, to the defined19 HLS 10RS-579 ORIGINAL
HB NO. 331
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benefit plan. A person who exercises the option provided in this Paragraph shall not1
have credit in both plans.2
(2) The system actuary shall determine the amount of service credit in the3
defined benefit plan which shall be credited to the person making the election4
authorized in Paragraph (1) of this Subsection based on the person's total account5
balance, together with all interest or earnings, in the optional retirement plan,6
calculated in accordance with the actuarial cost provisions of R.S. 11:158 and such7
that the account balance totally offsets the increase in accrued liability resulting from8
the optional retirement plan participant's election to enter the defined benefit plan.9
(3) Any person electing to withdraw from the optional retirement plan10
pursuant to Paragraph (1) of this Subsection shall be eligible to receive credit for11
service not transferred pursuant to Paragraph (2) of this Subsection for the time he12
participated in the optional retirement plan by paying to the system the greater of the13
amount calculated in accordance with the actuarial cost provisions of R.S. 11:158 or14
the employee and employer contributions plus interest based on the member's current15
salary. Such payment shall totally offset the increase in the accrued liability of the16
system resulting from the receipt of the credit by the member.17
Section 2. Any cost of this Act not funded through an actuarial transfer of funds18
from optional retirement plan accounts as provided in the Act or through actuarial purchase19
of service credit as provided in the Act, shall be funded with additional employer20
contributions in compliance with Article X, Section 29(E)(5)(b) of the Constitution of21
Louisiana.22
Section 3. This Act shall become effective on July 1, 2010; if vetoed by the governor23
and subsequently approved by the legislature, this Act shall become effective on July 1,24
2010, or on the day following such approval by the legislature, whichever is later.25 HLS 10RS-579 ORIGINAL
HB NO. 331
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are additions.
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)]
Foil HB No. 331
Abstract: Relative to the optional retirement plan (ORP) of the Teachers' Retirement
System of La. (TRSL) applicable to academic and administrative employees of
public institutions of higher education and their governing boards, allows a person
who became a member of the ORP prior to Jan. 1, 1991, to elect to withdraw from
membership and enter the TRSL defined benefit plan, subject to certain conditions.
Present law (R.S. 11:925(A)) provides that certain persons who are eligible for membership
in TRSL shall have the irrevocable option to participate in ORP, a defined contribution plan.
Provides that if an employee fails to make an election, he shall be a member of TRSL's
defined benefit plan. Academic and administrative employees of public institutions of
higher education and their governing boards are among those eligible for ORP.
Proposed law, relative to such higher education and governing board employees, provides
that, notwithstanding present law, any person who elected to participate in ORP prior to Jan.
1, 1991, shall be entitled to make a one-time, irrevocable election to regain membership in
the defined benefit plan, on or before Dec. 31, 2010, by transferring the entire ORP account
balance, together with any interest or earnings, to the defined benefit plan. Provides that a
person choosing to elect the option provided in proposed law shall not have credit in both
plans. Proposed law provides that the system actuary shall determine the amount of service
credit to be transferred based on the participant's total account balance, together with all
interest or earnings, in ORP, calculated in accordance with the actuarial cost provisions of
present law.
Proposed law provides that any person electing to withdraw from ORP pursuant to proposed
law shall be eligible to receive credit for service not transferred pursuant to proposed law
above for the time he participated in ORP by paying to the system the greater of the amount
calculated in accordance with the actuarial cost provisions of present law regarding actuarial
purchase of credit, or the employee and employer contributions plus interest based on the
member's current salary.
Proposed law requires that any cost of proposed law, not funded as required by proposed
law, be funded with additional employer contributions in compliance with Art. X,
§29(E)(5)(b) of the Const. of La.
Effective July 1, 2010.
(Adds R.S. 11:925(D))