SLS 10RS-158 ORIGINAL
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2010
SENATE BILL NO. 315
BY SENATOR MORRISH
SCHOOL EMPLOYEES RET. Authorizes certain persons who entered the Deferred
Retirement Option Plan of the system before July 1, 2001, to have their pre-DROP
retirement benefits recalculated at an accrual rate of 3 1/3% per year under certain
circumstances. (7/1/10)
AN ACT1
To amend and reenact R.S. 11:62(4) and 1144(B)(2)(a), and to enact R.S. 11:1144(B)(2)(c),2
relative to the Louisiana School Employees' Retirement System; to increase the3
employee contribution rate; to authorize recalculation of retirement benefits in4
limited circumstances; to provide for an effective date; and to provide for related5
matters.6
Notice of intention to introduce this Act has been published.7
Be it enacted by the Legislature of Louisiana:8
Section 1. R.S. 11:62(4) and 1144(B)(2)(a) are hereby amended and reenacted and9
R.S. 11:1144(B)(2)(c) is hereby enacted to read as follows: 10
§62. Employee contribution rates established11
Employee contributions to state and statewide public retirement systems shall be paid12
at the following rates:13
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(4) Louisiana School Employees' Retirement System - 7.5 8.0%.15
* * *16
§1144. Retirement allowance; regular, minimum, and supplemental17 SB NO. 315
SLS 10RS-158 ORIGINAL
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
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B. Minimum allowance.2
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(2)(a) The provisions of this Paragraph shall apply to any member who retires on or4
after July 1, 2001 , except as provided in Subparagraph (c) of this Paragraph.5
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(c) Any person who was participating in the Deferred Retirement Option Plan7
on July 1, 2001, or any person who continued in employment after completing8
participation in the Deferred Retirement Option Plan and was employed on July 1,9
2001, shall have his base retirement benefit recalculated effective July 1, 2010, under10
the benefit formula contained in this Paragraph, using the final average compensation11
and years of service credit applicable at the time of entry into the Deferred Retirement12
Option Plan. The balance in the employee's Deferred Retirement Option Plan account13
shall be unaffected by the recalculation of the base retirement benefit. The adjustment14
of benefits pursuant to this Subparagraph shall not be retroactive and shall apply only15
to retirement benefits due and payable on or after July 1, 2010.16
* * *17
Section 2. The cost of this Act, if any, shall be funded with additional employer18
contributions in compliance with Article X, Section 29(E)(5)(b) of the Constitution of19
Louisiana.20
Section 3. This Act shall become effective on July 1, 2010; if vetoed by the governor21
and subsequently approved by the legislature, this Act shall become effective on July 1,22
2010, or on the day following such approval by the legislature, whichever is later.23
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Lauren B. Bailey.
DIGEST
Present law provides for employee contributions to the Louisiana School Employees'
Retirement System (LSERS) to be 7.5% of pay.
Proposed law increases the employee contributions for LSERS from 7.5% to 8.0%. SB NO. 315
SLS 10RS-158 ORIGINAL
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Present law (R.S. 11:1152(E)) provides that upon entering the LSERS' Deferred Retirement
Option Plan (DROP), a DROP participant's active membership in LSERS shall terminate and
the person shall be considered retired.
Present law provides for a 3 1/3% per year accrual rate for all years of service for members
of LSERS, who retire on or after July 1, 2001.
Proposed law retains present law, and applies the 3 1/3% accrual rate to all years of service
of LSERS members who were in DROP or who had completed DROP and continued their
LSERS employment as of July 1, 2001. Specifies that any adjustment of benefit pursuant to
proposed law shall not be retroactive and shall apply only to benefits due and payable on or
after July 1, 2010.
Effective July 1, 2010.
(Amends R.S. 11:62(4) and 1144(B)(2)(a); adds R.S. 11:1144(B)(2)(c))