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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. 602
BY SENATOR B. GAUTREAUX
RETIREMENT SYSTEMS. Relative to Louisiana State Employees' Retirement System,
Teachers' Retirement System of Louisiana, and Louisiana School Employees' Retirement
System, places restrictions on participation in the Deferred Retirement Option Plan. (7/1/10)
AN ACT1
To enact R.S. 11:447(F), 786(F), and 1152(M), relative to state retirement systems; to2
restrict participation in the Deferred Retirement Option Plan; to provide for an3
effective date; and to provide for related matters.4
Notice of intention to introduce this Act has been published.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 11:447(F), 786(F), and 1152(M) are hereby enacted to read as7
follows: 8
§447. Deferred Retirement Option Plan9
* * *10
F. No member of this system whose membership begins after July 1,11
2010, shall be permitted to participate in the plan.12
* * *13
§786. Deferred Retirement Option Plan14
* * *15
F. No member of this system whose membership begins after July 1,16
2010, shall be permitted to participate in the plan.17 SB NO. 602
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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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§1152. Deferred Retirement Option Plan2
* * *3
M. No member of this system whose membership begins after July 1,4
2010, shall be permitted to participate in the plan.5
* * *6
Section 2. The cost of this Act, if any, shall be funded with additional employer7
contributions in compliance with Article X, Section 29(E)(5)(b) of the Constitution of8
Louisiana.9
Section 3. This Act shall become effective on July 1, 2010; if vetoed by the governor10
and subsequently approved by the legislature, this Act shall become effective on July 1,11
2010, or on the day following such approval by the legislature, whichever is later.12
The original instrument was prepared by Lauren Bailey. The following
digest, which does not constitute a part of the legislative instrument, was
prepared by McHenry Lee.
DIGEST
B. Gautreaux (SB 602)
Present law provides for various options for payment of retirement benefits among which
a member of the Louisiana State Employees' Retirement System (LASERS), the Teachers'
Retirement System of Louisiana (TRSL), or the Louisiana School Employees' Retirement
System (LSERS) may choose upon application for retirement.
Present law establishes a Deferred Retirement Option Plan (DROP) for members of each
system. Provides that a member who is eligible for regular retirement may, for a limited
time after first reaching eligibility, elect to participate in DROP in lieu of terminating
employment.
Present law: DROP provisions generally provide that a DROP participant "freezes" his
retirement accruals as of the date he enters DROP and has his "base benefit" calculated.
Provides that during participation in DROP, the member continues working and receiving
a salary. Further provides that the "base benefit" shall be deposited in a special subaccount
within the system's trust fund. Provides that upon termination of DROP participation and
employment, the person begins to receive a monthly annuity, and has access to the
accumulated DROP balance.
Present law provides, among the various payment options, for a retiree who has not
participated in DROP to elect to receive an initial lump-sum benefit and an actuarially
reduced monthly annuity.
Proposed law retains present law but provides that no member of LASERS, TRSL, or
LSERS whose membership begins after July 1, 2010, shall be permitted to participate in
DROP. SB NO. 602
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Proposed law requires that any cost of proposed law be funded with additional employer
contributions in compliance with Art. X, Sec. 29(E)(5)(b) of the state constitution.
Effective July 1, 2010.
(Adds R.S. 11:447(F), 786(F), and 1152(M))
Summary of Amendments Adopted by Senate
Senate Floor Amendments to engrossed bill.
1. Deletes proposed provision which would have restricted the participation in
DROP, any member who has less than 10 years of creditable service on July
1, 2010.
2. Provides, instead, that no member of the specified system whose membership
begins after July 1, 2010, shall be permitted to participate in DROP.