HLS 11RS-449 ORIGINAL
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Regular Session, 2011
HOUSE BILL NO. 571
BY REPRESENTATIVE ROBIDEAUX
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
RETIREMENT/STATE SYSTEMS: Relative to state retirement systems, makes changes
to provisions affected by Act 992 of the 2010 Regular Session
AN ACT1
To amend and reenact R.S. 11:203(B)(1), 471.1(C), 612(2)(f) and (l), 613, 614, 616, 620(A),2
(B), (C), and (D), 621(B) and (C)(1), 783(A)(3)(a), 786(A), 1151.1(C), 1152(A),3
1323(C), and 1345.9 and to enact R.S. 11:612(2)(m), 11:618(D), 701(33)(b)(ii)(cc)4
and (dd), relative to the Louisiana State Employees' Retirement System, the5
Teachers' Retirement System of Louisiana, the Louisiana School Employees'6
Retirement System, and the State Police Pension and Retirement System; to make7
certain technical, remedial, and substantive changes to provisions of the law affected8
by Act 992 of the 2010 Regular Legislative Session and other provisions of law to9
conform with such Act; to provide with respect to benefits, survivors' benefits,10
disability benefits, membership, retirement eligibility, Deferred Retirement Option11
Plan participation, retirement options, transfers, and the Hazardous Duty Services12
Plan; to provide an effective date; and to provide for related matters.13
Notice of intention to introduce this Act has been published14
as provided by Article X, Section 29(C) of the Constitution15
of Louisiana.16
Be it enacted by the Legislature of Louisiana:17
Section 1. R.S. 11:203(B)(1), 471.1(C), 612(2)(f) and (l), 613, 614, 616, 620(A), (B),18
(C), and (D), 621(B) and (C)(1), 783(A)(3)(a), 786(A), 1151.1(C), 1152(A), 1323(C), and19 HLS 11RS-449 ORIGINAL
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1345.9 are hereby amended and reenacted and R.S. 11:612(2)(m), 11:618(D),1
701(33)(b)(ii)(cc) and (dd) are hereby enacted to read as follows: 2
§203. Teachers' Retirement System3
* * *4
B.(1) A person whose first employment making him eligible for membership5
in one of the state systems occurred on or before December 31, 2010, applying for6
a disability benefit shall have five years of actual credited service in order to qualify7
for a disability benefit. Such member shall not use credit earned while receiving8
workers' compensation in order to meet the minimum five-year eligibility9
requirement.10
* * *11
§471.1. Survivors' benefits; members hired on or after January 1, 201112
* * *13
C.(1) In addition to the amount payable in accordance with Subsection B of14
this Section, for the benefit of the surviving minor or handicapped child, or mentally15
disabled child, or children, there shall be paid for each such child, subject to a16
maximum of two children, per month fifty percent of the benefit to which a spouse17
would be entitled under Subsection B of this Section. Benefits shall be payable to18
such children even if no spouse is eligible for survivor benefits, provided the member19
had at least five years of service credit. Benefits for a child shall cease when the20
child is no longer a minor child as defined by this Chapter. No surviving minor child21
shall receive more than one survivor's benefit at any one time. If two benefits are22
applicable, only the larger shall be paid.23
(2)(a) In addition to the amount payable in accordance with Subsection B of24
this Section, the surviving totally physically handicapped or mentally disabled child25
or children of a deceased member, whether under or over the age of eighteen years,26
shall be entitled to the same benefits, payable in the same manner, as are provided27
by this Section for minor children, if the child was totally physically handicapped or28 HLS 11RS-449 ORIGINAL
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mentally disabled at the time of the death of the member and is dependent upon the1
surviving spouse or other legal guardian.2
(b) The surviving spouse or legal guardian shall provide adequate proof of3
handicap or mental disability of such surviving child or children and shall notify the4
board of any subsequent changes in the child's condition which cause the child to no5
longer be dependent upon the surviving spouse or legal guardian and any changes6
in the assistance being received from other state agencies. The board may require7
a certified statement of the child's eligibility status at the end of each calendar year.8
* * *9
§612. Application; definitions10
Terms not specifically defined in this Section shall have the meanings11
provided in R.S. 11:403 unless a different meaning is clearly required by the context.12
For purposes of this Subpart:13
* * *14
(2) "Member" or "members" shall include the following persons whose first15
employment making them eligible for membership in one of the state systems16
occurred on or after January 1, 2011:17
* * *18
(f) Arson investigators employed by the office of state fire marshal who are19
P.O.S.T.-certified, who have the power to arrest, and who hold a commission from20
such office, and any person in the office of state fire marshal who is required to be,21
at a minimum, a certified Firefighter I or a certified First Responder.22
* * *23
(l) All campus chiefs of police employed by any institution of higher24
education who are P.O.S.T.-certified, who have the power to arrest, and who hold a25
commission as required for employment as such officers.26
(m) All personnel employed in positions required to be P.O.S.T.-certified,27
who have the power to arrest, who hold a commission as required for employment28 HLS 11RS-449 ORIGINAL
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in such positions, who are otherwise members of the Louisiana State Employees'1
Retirement System, and who are not members of any other retirement system.2
* * *3
§613. Eligibility for plan membership4
A. Each person who becomes an employee in state service in one of the5
positions defined in R.S. 11:612(2) shall become a member of the Hazardous Duty6
Services Plan of the system as a condition of employment.7
(B) Notwithstanding the provisions of Subparagraph (A) of this Section, no8
person who participated in the Deferred Retirement Option Plan as a member of any9
other retirement plan in this system or who retired under the provisions of any other10
retirement plan in this system who is reemployed under Option 1 or Option 3 as11
provided in R.S. 11:416 shall be eligible for membership in the Hazardous Duty12
Services Plan.13
§614. Eligibility for retirement14
A. Any member of this plan shall be eligible for retirement if he has:15
(1) Twenty-five years or more of service, at any age.16
(2) Twelve years or more of service, at age fifty-five or thereafter.17
(3) Twenty years of service credit at any age, exclusive of military service18
and unused annual and sick leave, but any person retiring under this Paragraph shall19
have his benefit, inclusive of military service credit and allowable unused annual and20
sick leave, actuarially reduced. Any member retiring under this Paragraph who is21
in state service at the time of his retirement shall have his benefit actuarially reduced22
from the earliest age that he would normally become eligible for a regular retirement23
benefit under Paragraph (1) or (2) of this Section if he had continued in service to24
that age. Any member retiring under this Paragraph who is out of state service at the25
time of his retirement shall have his benefit actuarially reduced from the earliest age26
that he would normally become eligible for a regular retirement benefit under27
Paragraph (1) or (2) of this Section based upon his years of service as of the date of28
retirement. Any employee who elects to retire under the provisions of this Paragraph29 HLS 11RS-449 ORIGINAL
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shall not be eligible to participate in the Deferred Retirement Option Plan provided1
by R.S. 11:447 or the Initial Benefit Option provided by R.S. 11:446(A)(5).2
B.(1) Notwithstanding the provisions of R.S. 11:441(A)(2)(b) or any other3
provision of law to the contrary, any member of this plan who is not eligible for4
retirement under Subsection A of this Section may elect to retire under the provisions5
of R.S. 11:441(A)(2)(b)(i) with five years or more of service credit at age sixty or6
thereafter.7
(2)(a) The retirement benefit and survivor benefit provisions of this Subpart,8
including but not limited to R.S. 11:615 and 11:621, shall not apply to any member9
of this plan who elects to retire under the provisions of R.S. 11:441(A)(2)(b)(i).10
(b) Any member of this plan who elects to retire under the provisions of R.S.11
11:441(A)(2)(b)(i) shall receive a retirement benefit equal to two and one-half12
percent of his average compensation for every year of creditable service.13
(c) Retirement benefits for any member of this plan who elects to retire14
under the provisions of R.S. 11:441(A)(2)(b)(i) shall be paid in accordance with R.S.15
11:446. 16
* * *17
§616. Deferred Retirement Option Plan; Initial Benefit Option; Annual Cost-of-18
Living Adjustment Option19
A. A member who is eligible for regular retirement may elect to participate20
in the Deferred Retirement Option Plan in accordance with the provisions of R.S.21
11:447 through 454, or the Initial Benefit Option provided by R.S. 446(A)(5).22
B. Any member of this plan may elect to participate in the Annual23
Cost-of-Living Adjustment Option provided by R.S. 11:446(A)(6).24
* * *25
§618. Survivors' benefits for members killed in the line of duty26
* * *27
D. The provisions of this Section shall not apply to any member of this plan28
who:29 HLS 11RS-449 ORIGINAL
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(1) Has participated in the Deferred Retirement Option Plan; or1
(2) Is a retiree of the system who is reemployed under Option 1 or Option 32
as provided in R.S. 11:416.3
* * *4
§620. Transfer of other service credit5
A. Any member of this system or of another state or statewide system, who6
would otherwise be eligible for benefits under the plan except that his first7
employment making him eligible for membership in any state system occurred on8
or before December 31, 2010, and who has not participated in the Deferred9
Retirement Option Plan in the system of which he is a member and who is not a10
reemployed retiree of his system or a retiree of this system reemployed under Option11
1 or Option 3 as provided in R.S. 11:416, shall have the right to irrevocably elect to12
become a member of the plan by submitting an application to the board of trustees13
to be effective on or after January 1, 2011.14
B. Any member who elects to join the Hazardous Duty Services Plan from15
an existing system or plan shall have the option of:16
(1)(a) Maintaining prior service credit in the existing system or plan pursuant17
to the provisions of that system or plan and accruing service credit and benefits in18
the Hazardous Duty Services Plan after the date he joins the plan.19
(b) For any member who joins the Hazardous Duty Services Plan after the20
effective date of this Subparagraph, if such member elects to maintain prior service21
credit in his existing system or plan and that election results in an actuarial cost to22
this system, then the member shall pay the system the amount of such actuarial cost23
prior to his retirement.24
(2)(a) An internal actuarial transfer from plan to plan in accordance with the25
provisions of R.S. 11:143(C) and (D) in which this system is both the transferring26
and receiving system in which the member transfers all of his service credit from27
each other system or plan in this system and maintains prior service credit at the28
accrual rate at which it was earned in the existing system or plan prior to joining the29 HLS 11RS-449 ORIGINAL
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Hazardous Duty Services Plan. In the event that the amount of funds transferred is1
less than the actuarial cost of the service transferred to the plan, the member2
transferring, except as otherwise provided in this Section, shall pay the deficit or3
difference including the interest thereon at the board-approved actuarial valuation4
rate of the system.5
(b) In lieu of paying the deficit or difference plus interest, the member may6
at his option, but only at the time of transfer, be granted an amount of credit in the7
plan which is based on the amount of funds actually transferred plus any additional8
funds less than the deficit paid by the member.9
(c) Except as otherwise provided in Subparagraph (d) of this Subsection, a10
member who completes a transfer under the provisions of this Section shall have his11
retirement benefit calculated using the accrual rate of the system or plan from which12
he transferred based on the number of years transferred.13
(d) A member choosing an internal actuarial transfer shall be eligible to14
upgrade any the service credit that was actuarially transferred pursuant to this15
Subsection to the accrual rate of the Hazardous Duty Services Plan by paying an16
amount that totally offsets the increase in actuarial liability resulting from the17
upgrade in accordance with R.S. 11:158.18
C.(1) An employee who is a contributing member of any other plan in this19
or another state or statewide system who would otherwise be required to become a20
member of this plan as a condition of employment in a position which would21
otherwise qualify him for such membership on or after January 1, 2011, may elect22
at the time of his employment in such position to remain a contributing member of23
the last plan in this system of which he was a member or of such other system for24
which he remains eligible for membership.25
(2) For an employee who elects to remain a member of a plan in this system,26
applicable to members employed in hazardous duty positions, which plan was in27
existence on or before December 31, 2010, service credit earned on or after January28 HLS 11RS-449 ORIGINAL
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1, 2011, in one of the hazardous duty positions defined in R.S. 11:612(2) shall be1
deemed as service credit earned in a position covered by such plan.2
D. A member whose first employment making him eligible for membership3
in a state retirement system occurred on or before December 31, 2010, who elects to4
transfer to join this plan shall thereafter for purposes of all state retirement systems5
be treated as an employee whose first eligibility for membership occurred on or after6
January 1, 2011.7
* * *8
§621. Survivors' benefits for former or retired members9
* * *10
B. The surviving spouse of a deceased retired member or Deferred11
Retirement Option Plan participant shall receive a benefit in an amount equal to12
seventy-five percent of the monthly retirement benefit that was being paid to the13
decedent on the date of death.14
C.(1) If there is no surviving spouse eligible to receive benefits pursuant to15
Subsection A or B of this Section, the minor children of the decedent shall be entitled16
to benefits as provided in R.S. 11:471.1.17
* * *18
§701. Definitions19
As used in this Chapter, the following words and phrases have the meanings20
ascribed to them in this Section unless a different meaning is plainly required by the21
context:22
* * *23
(33)(a)24
* * *25
(b) "Teacher" shall not include any of the following:26
* * *27
(ii)28
* * *29 HLS 11RS-449 ORIGINAL
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(cc) Any unclassified campus chief of police employed by any institution of1
higher education whose first employment making him eligible for membership in2
one of the state systems occurred on or after January 1, 2011 who is3
P.O.S.T.-certified, who has the power to arrest, and who holds a commission as4
required for employment in such position.5
(dd) Any unclassified campus chief of police employed by any institution of6
higher education whose first employment making him eligible for membership in7
one of the state systems occurred on or before December 31, 2010, and who is8
P.O.S.T.-certified, has the power to arrest, who holds a commission as required for9
employment in such position, and has joined the Hazardous Duty Services Plan in10
the Louisiana State Employees' Retirement Plan pursuant to R.S. 11:620.11
* * *12
§783. Selection of option for method of payment after death of member13
A.14
* * *15
(3) Initial Lump-Sum Benefit. (a) If a member has not participated in the16
Deferred Retirement Option Plan provided by the provisions of this Chapter and ,17
he shall be eligible to select an initial lump sum benefit. The initial lump-sum18
benefit shall be available to any member of the system whose first employment19
making him eligible for membership in one of the state retirement systems occurred20
on or before December 31, 2010, and who has thirty years of creditable service, or21
is age fifty-five and has twenty-five years of creditable service, or is age sixty and22
has ten years of creditable service, and. Any member of the system whose first23
employment making him eligible for membership in one of the state retirement24
systems occurred on or after January 1, 2011, may select the initial lump-sum benefit25
if he is age sixty and has 5 years of service. if If the maximum benefit, Option 2,26
2A, 3, 3A, 4, or 4A above is chosen, then the member may further elect to receive27
a reduced retirement allowance plus an initial benefit. The creditable service28 HLS 11RS-449 ORIGINAL
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referenced in this Paragraph shall not include unused accumulated sick leave and1
unused accumulated annual leave.2
* * *3
§786. Deferred Retirement Option Plan4
A.(1) In lieu of terminating employment and accepting a retirement5
allowance, any member of this system whose first employment making him eligible6
for membership in one of the state retirement systems occurred on or before7
December 31, 2010, and who is not covered by R.S. 11:801 and who has thirty years8
of service credit at any age, twenty-five years of service credit and is at least age9
fifty-five, or has twenty years of service credit exclusive of military service and is10
at least age sixty-five may elect to participate in the Deferred Retirement Option11
Plan. A member with ten years of service credit exclusive of military service and12
who is at least age sixty may elect to participate in the plan, but all benefits payable13
at any time shall only be calculated using a two percent benefit formula. Any14
member of this system who is covered by the provisions of R.S. 11:801 who has15
thirty years of service credit and is at least age fifty-five or has ten years of service16
credit and is at least age sixty may elect to participate in the Deferred Retirement17
Option Plan.18
(2) Any member of this system whose first employment making him eligible19
for membership in one of the state retirement systems occurred on or after January20
1, 2011, and who is not covered by R.S. 11:801 and who has five years of service21
credit and is at least age sixty may elect to participate in the Deferred Retirement22
Option Plan. 23
(3) Any member of this system who is covered by the provisions of R.S.24
11:801 who has thirty years of service credit and is at least age fifty-five or has ten25
years of service credit and is at least age sixty may elect to participate in the26
Deferred Retirement Option Plan.27
* * *28
§1151.1. Survivors' benefits; members hired on or after January 1, 201129 HLS 11RS-449 ORIGINAL
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* * *1
C.(1) In addition to the amount payable in accordance with Subsection B of2
this Section, for the benefit of the surviving minor or handicapped child, or mentally3
disabled child, or children, there shall be paid for each such child, subject to a4
maximum of two children, per month fifty percent of the benefit to which a spouse5
would be entitled under Subsection B of this Section. Benefits shall be payable to6
such children even if no spouse eligible for survivor benefits is present, provided the7
member had at least five years of service credit. Benefits for a child shall cease8
when the child is no longer a minor child as defined by this Chapter. No surviving9
minor child shall receive more than one survivor's benefit at any one time. If two10
benefits are applicable, only the larger shall be paid.11
(2)(a) In addition to the amount payable in accordance with Subsection B of12
this Section, the surviving totally physically handicapped or mentally disabled child13
or children of a deceased member, whether under or over the age of eighteen years,14
shall be entitled to the same benefits, payable in the same manner, as are provided15
by this Section for minor children, if the child was totally physically handicapped or16
mentally disabled at the time of the death of the member and is dependent upon the17
surviving spouse or other legal guardian.18
(b) The surviving spouse or legal guardian shall provide adequate proof of19
handicap or mental disability of such surviving child or children and shall notify the20
board of any subsequent changes in the child's condition which cause the child to no21
longer be dependent upon the surviving spouse or legal guardian and any changes22
in the assistance being received from other state agencies. The board may require23
a certified statement of the child's eligibility status at the end of each calendar year.24
* * *25
§1152. Deferred Retirement Option Plan26
A. In lieu of terminating employment and accepting a service retirement27
allowance pursuant to this Part, any member who has ten or more years of creditable28
service at sixty years of age, twenty-five or more years of creditable service at fifty-29 HLS 11RS-449 ORIGINAL
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five years of age, or thirty or more years of creditable service at any age is eligible1
for regular retirement may elect to participate in the Deferred Retirement Option2
Plan and defer the receipt of benefits in accordance with the provisions of this3
Section.4
* * *5
§1323. Death of employee not in performance of duty; employees hired on or after6
January 1, 20117
* * *8
C.(1) In addition to the amount payable in accordance with Subsection B of9
this Section, for the benefit of the surviving minor or handicapped child, or mentally10
disabled child, or children, there shall be paid for each such child, subject to a11
maximum of two children, per month fifty percent of the benefit to which a spouse12
would be entitled under Subsection B of this Section. Benefits shall be payable to13
such children even if no spouse eligible for survivor benefits is present, provided the14
member had at least five years of service credit. Benefits for a child shall cease15
when the child is no longer a minor child as defined by this Chapter. No surviving16
minor child shall receive more than one survivor's benefit at any one time. If two17
benefits are applicable, only the larger shall be paid.18
(2)(a) In addition to the amount payable in accordance with Subsection B of19
this Section, the surviving totally physically handicapped or mentally disabled child20
or children of a deceased member, whether under or over the age of eighteen years,21
shall be entitled to the same benefits, payable in the same manner, as are provided22
by this Section for minor children, if the child was totally physically handicapped or23
mentally disabled at the time of the death of the member and is dependent upon the24
surviving spouse or other legal guardian.25
(b) The applicant shall provide adequate proof of handicap or mental26
disability of such surviving child or children and shall notify the board of any27
subsequent changes in the child's condition to such an extent that the child is no28 HLS 11RS-449 ORIGINAL
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longer dependent upon the surviving spouse or legal guardian and any changes in the1
assistance being received from other state agencies. The board may require a2
certified statement of the child's eligibility status at the end of each calendar year.3
* * *4
§1345.9. Survivors' benefits for death other than in the line of duty5
The surviving spouse or children of any active member whose death occurs6
other than in the performance of his duties shall have the same pension rights as7
provided in R.S. 11:1320 1323.8
* * *9
Section 2. The cost of this Act, if any, shall be funded with additional employer10
contributions in compliance with Article X, Section 29(F) of the Constitution of Louisiana.11
Section 3. This Act shall become effective on July 1, 2011; if vetoed by the governor12
and subsequently approved by the legislature, this Act shall become effective on July 1,13
2011, or on the day following such approval by the legislature, whichever is later.14
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)]
Robideaux HB No. 571
Abstract: Relative to the 4 state retirement systems: La. State Employees' Retirement
System (LASERS), the Teachers' Retirement System of La. (TRSL), the La. School
Employees' Retirement System (LSERS), and the State Police Pension and
Retirement System (STPOL); makes certain technical, remedial, and substantive
changes to provisions of the law affected by Act 992 of the 2010 Regular Legislative
Session.
Present law, pursuant to Act 992 of the 2010 Regular Legislative Session, generally made
sweeping changes to the benefit structure of the four state retirement systems for persons
whose first employment making them eligible for membership in any state retirement system
occurs on or after Jan. 1, 2011, in the following respects:
(1)Employee contribution rates.
(2)Final average compensation.
(3)Benefit accrual rates.
(4)Retirement eligibility.
(5)Disability benefits. HLS 11RS-449 ORIGINAL
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(6)Survivor benefits.
Proposed law makes certain technical, remedial, and substantive changes to provisions of
the law affected by Act 992.
SURVIVOR BENEFITS
Present law, relative to LASERS, LSERS, and STPOL, for members whose first
employment making them eligible for membership in any of the state retirement systems
occurs on or after Jan. 1, 2011, provides that a spouse with children shall receive 50% of the
amount that the member's normal retirement benefit would have been. Additionally, any
minor or handicapped children shall each receive 50% of what the spouse would be entitled
to under present law. Provides further that the child's benefit shall cease upon his having
reached the age of majority.
Proposed law provides that the survivor benefit payable to mentally or physically
handicapped children shall not cease upon reaching the age of majority, but shall continue
past the age of majority, subject to certain requirements.
DISABILITY BENEFITS
Present law (R.S. 11:203(B)(1)), relative to TRSL, requires a member hired on or before
December 31, 2010, applying for disability benefits to have 5 years of service credit in order
to qualify for such benefits. Provides that credit earned on workers' compensation shall not
be used toward meeting the 5 years of service.
Proposed law retains present law but removes prohibition and, thus, provides that credit
earned on workers' compensation may be used toward meeting the 5 years of service
required to qualify for disability benefits.
DEFERRED RETIREMENT OPTION PLAN (DROP) ELIGIBILITY
Present law (R.S. 11:786), relative to TRSL members, allows for DROP participation if the
member has:
(1)30 years of service at any age.
(2)25 years of service at age 55.
(3)20 years of service at age 65.
(4)10 years of service at age 60.
Proposed law retains present law with regard to TRSL members hired on or before
December 31, 2010. With regard to members hired on or after January 1, 2011, allows for
DROP participation if the member has 5 years of service credit at age 60 to conform with
the retirement eligibility provisions provided by Act 992 of 2010 for such members.
Present law (R.S. 11:1152), relative to LSERS members, allows for DROP participation if
the member has:
(1)30 years of service at any age.
(2)25 years of service at age 55.
(3)20 years of service at age 65.
(4)10 years of service at age 60. HLS 11RS-449 ORIGINAL
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Proposed law provides that an LSERS member shall be eligible for DROP participation upon
reaching regular retirement eligibility.
INITIAL LUMP-SUM BENEFIT (ILSB) OPTION
Present law (R.S. 11:783(A)(3)) provides for a payment option at retirement known as the
ILSB, which allows a member to receive a lump sum benefit upon retirement subject to an
actuarial reduction in monthly benefits. Provides that a member may select the ILSB if the
member has:
(1)30 years of service at any age.
(2)25 years of service at age 55.
(3)10 years of service at age 60.
Proposed law retains present law with regard to TRSL members hired on or before
December 31, 2010. With regard to members hired on or after January 1, 2011, allows for
ILSB participation if the member has 5 years of service credit at age 60 to conform with the
retirement eligibility provisions provided by Act 992 of 2010 for such members.
HAZARDOUS DUTY SERVI CES PLAN (LASERS)
Membership
Present law (R.S. 11:611 - 621), relative to LASERS, generally creates the Hazardous Duty
Services Plan (HDSP) within LASERS for certain law enforcement personnel whose first
employment making them eligible for membership in any state retirement system occurs on
or after Jan. 1, 2011, who are members of LASERS, and provides that members of existing
hazardous duty plans may retain membership in those plans or become members of the
HDSP subject to certain conditions.
Proposed law prohibits anyone having participated in LASERS' Deferred Retirement Option
Plan (DROP), as well as certain rehired retirees from becoming members of the HDSP.
Present law (R.S. 11:612(2)(f)) provides that arson investigators in the Department of Public
Safety and Corrections, office of state fire marshal shall be members of the HDSP.
Proposed law provides additionally that employees in the office of state fire marshal who
are required to be Firefighter I or First Responder certified shall be members of the HDSP.
Proposed law provides additionally that campus police chiefs of public institutions of higher
education, who are hired on or after January 1, 2011, shall no longer be members of TRSL
and shall be members of the HDSP.
Retirement Eligibility
Present law (R.S. 11:614), pursuant to the provisions of the HDSP, provides that any
hazardous duty personnel whose first employment making them eligible for membership in
any state retirement system hired on or after Jan. 1, 2011, shall be eligible to retire with:
(a)12 years of service at age 55.
(b)25 years of service at any age.
(c)20 years of service at any age, but subject to an actuarial reduction of benefits. HLS 11RS-449 ORIGINAL
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Present law provides a 3.33% accrual rate for calculation of retirement benefits under the
HDSP.
Present law (R.S. 11:441) also provides that certain rank-and-file members of LASERS shall
be eligible to retire with:
(a)5 years of service at age 60.
(b)20 years of service at any age, but subject to an actuarial reduction of benefits.
Present law (R.S. 11:444) provides for a 2.5% accrual rate for the calculation of retirement
benefits for rank-and-file members of LASERS.
Proposed law allows any member of the HDSP, if he has does not meet retirement eligibility
under the HDSP, to retire under rank-and-file provisions with 5 years of service at age 60.
Provides that such member's retirement benefit will be calculated using a 2.5% accrual rate.
Retirement Options
Present law (R.S. 11:616) allows members of the HDSP to enter DROP upon reaching
retirement eligibility.
Proposed law additionally allows members of the HDSP to select the Initial Benefit Option
(IBO), which allows a member to receive a lump sum benefit upon retirement subject to an
actuarial reduction in monthly benefits. Further clarifies that HDSP may select an optional
Cost-of-Living Adjustment (COLA), available to members of this system and others, which
provides a lifetime COLA subject to an actuarial reduction in monthly benefits.
Survivor Benefits for DROP Participants
Present law (R.S. 11:618), relative to the HDSP, provides for survivor benefits for the
surviving spouse and children of a member who dies in the line of duty, in the amount of
80% of the member's Final Average Compensation (FAC).
Present law (R.S. 11:621), relative to the HDSP, also provides a benefit for the surviving
spouse and children of a retiree who dies. A surviving spouse shall receive 75% of the
member's retirement benefit. If no spouse, surviving children shall each receive a benefit
under present law (R.S. 11:471.1(C)) (25% of the member's benefit for each child).
Proposed law, clarifies that the 80% FAC in-the-line-of-duty survivor benefit of present law
(R.S. 11:618) shall not apply to DROP participants or certain rehired retirees. Rather, the
provisions of present law (R.S.11:621) shall apply.
Transfer Provisions
Present law (R.S. 11:620) generally requires hazardous duty personnel in LASERS hired on
or after January 1, 2011, to become members of the HDSP. Present law (R.S. 11:620(B)(1)
and (2)) also allows a member of LASERS, hired on or before December 31, 2010, to
become a member of the HDSP under the following options:
(1)Maintaining prior service credit in his previous plan under the provisions of that plan
but accruing service and benefits in the HDSP going forward.
(2)Electing an internal actuarial transfer within LASERS, in which the member
transfers his funds from the previous plan into the HDSP, but maintains the accrual
rate of the previous plan. Such member may pay to upgrade his prior service to the
3.33% accrual rate of the HDSP. HLS 11RS-449 ORIGINAL
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Proposed law allows members of other state and statewide retirement systems, who would
otherwise be eligible for membership in the HDSP, except they were hired on or before
December 31, 2010, to utilize the above transfer provisions to join the HDSP.
Proposed law provides that if any member chooses (1) above (after proposed law becomes
effective) and it results in an actuarial cost to the system, the member shall pay such cost to
the system upon his retirement.
Proposed law further provides that if any member chooses (2) above and elects to upgrade
his prior service to the 3.33% accrual rate of the HDSP, he shall upgrade all of such service.
Present law (R.S. 11:620(C)) allows a member of another plan or system, whose
employment would qualify him for membership in the HDSP if it were on or after January
1, 2011, to remain a member of such plan or system.
Proposed law further clarifies that if a member of another hazardous duty plan within
LASERS chooses to remain in that plan his service credit going forward will be considered
having been earned in that plan.
Proposed law provides that the cost of proposed law, if any, shall be funded with additional
employer contributions in compliance with Const. Art. X, §29(F).
Effective July 1, 2011
(Amends R.S. 11:203(B)(1), 471.1(C), 612(2)(f) and (l), 613, 614, 616, 620(A), (B), (C), and
(D), 621(B) and (C)(1), 783(A)(3)(a), 786(A), 1151.1(C), 1152(A), 1323(C), and 1345.9 ;
Adds R.S. 11:612(2)(m), 11:618(D), 701(33)(b)(ii)(cc) and (dd))