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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 No. 992 of the 2010 R.S.
AN ACT1
To amend and reenact R.S. 11:62(4), 203(B)(1), 471.1(C), 612(2)(f) and (l), 613, 614, 616,2
620(A), (B), (C), and (D), 621(B) and (C)(1), 783(A)(3)(a), 786(A), 1002(6)(b) and3
(c), 1141(A) and (C)(1)(a), 1144(B)(4), 1147(C)(2)(a)(ii) and (iii) and (b), 1151(A),4
1151.1(A) and (C), 1152(A), 1323(C), and 1345.9 and to enact R.S. 11:612(2)(m),5
618(D), 701(33)(b)(ii)(cc) and (dd), relative to the Louisiana State Employees'6
Retirement System, the Teachers' Retirement System of Louisiana, the Louisiana7
School Employees' Retirement System, and the State Police Pension and Retirement8
System; to make certain technical, remedial, and substantive changes to provisions9
of the law affected by Act No. 992 of the 2010 Regular Session of the Legislature10
and other provisions of law to conform with such Act; to provide with respect to11
benefits, survivors' benefits, disability benefits, membership, retirement eligibility,12
Deferred Retirement Option Plan participation, retirement options, transfers, and the13
Hazardous Duty Services Plan; to provide an effective date; and to provide for14
related matters.15
Notice of intention to introduce this Act has been published16
as provided by Article X, Section 29(C) of the Constitution17
of Louisiana.18 HLS 11RS-449 ENGROSSED
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Be it enacted by the Legislature of Louisiana:1
Section 1. R.S. 11:62(4), 203(B)(1), 471.1(C), 612(2)(f) and (l), 613, 614, 616,2
620(A), (B), (C), and (D), 621(B) and (C)(1), 783(A)(3)(a), 786(A), 1002(6)(b) and (c),3
1141(A) and (C)(1)(a), 1144(B)(4), 1147(C)(2)(a)(ii) and (iii) and (b), 1151(A), 1151.1(A)4
and (C), 1152(A), 1323(C), and 1345.9 are hereby amended and reenacted and R.S.5
11:612(2)(m), 618(D), 701(33)(b)(ii)(cc) and (dd) are hereby enacted to read as follows: 6
§62. Employee contribution rates established7
Employee contributions to state and statewide public retirement systems shall8
be paid at the following rates, except as otherwise provided by law:9
* * *10
(4) Louisiana School Employees' Retirement System:11
(a) Employees whose first employment making them eligible for12
membership in one of the state systems occurred on or before December 31, 201013
June 30, 2010 - 7.5%.14
(b) Employees whose first employment making them eligible for15
membership in one of the state systems occurred on or after January 1, 2011 July 1,16
2010 - 8%.17
* * *18
§203. Teachers' Retirement System19
* * *20
B.(1) A person whose first employment making him eligible for membership21
in one of the state systems occurred on or before December 31, 2010, applying for22
a disability benefit shall have five years of actual credited service in order to qualify23
for a disability benefit. Such member shall not use credit earned while receiving24
workers' compensation in order to meet the minimum five-year eligibility25
requirement.26
* * *27
§471.1. Survivors' benefits; members hired on or after January 1, 201128
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C.(1) In addition to the amount payable in accordance with Subsection B of1
this Section, for the benefit of the surviving minor or handicapped child, or mentally2
disabled child, or children, there shall be paid for each such child, subject to a3
maximum of two children, per month fifty percent of the benefit to which a spouse4
would be entitled under Subsection B of this Section. Benefits shall be payable to5
such children even if no spouse is eligible for survivor benefits, provided the member6
had at least five years of service credit. Benefits for a child shall cease when the7
child is no longer a minor child as defined by this Chapter. No surviving minor child8
shall receive more than one survivor's benefit at any one time. If two benefits are9
applicable, only the larger shall be paid.10
(2)(a) In addition to the amount payable in accordance with Subsection B of11
this Section, the surviving totally physically handicapped or mentally disabled child12
or children of a deceased member, whether under or over the age of eighteen years,13
shall be entitled to the same benefits, payable in the same manner, as are provided14
by this Section for minor children, if the child was totally physically handicapped or15
mentally disabled at the time of the death of the member and is dependent upon the16
surviving spouse or other legal guardian.17
(b) The surviving spouse or legal guardian shall provide adequate proof of18
handicap or mental disability of such surviving child or children and shall notify the19
board of any subsequent changes in the child's condition which cause the child to no20
longer be dependent upon the surviving spouse or legal guardian and any changes21
in the assistance being received from other state agencies. The board may require22
a certified statement of the child's eligibility status at the end of each calendar year.23
* * *24
§612. Application; definitions25
Terms not specifically defined in this Section shall have the meanings26
provided in R.S. 11:403 unless a different meaning is clearly required by the context.27
For purposes of this Subpart:28
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(2) "Member" or "members" shall include the following persons whose first1
employm ent making them eligible for membership in one of the state systems2
occurred on or after January 1, 2011:3
* * *4
(f) Arson investigators employed by the office of state fire marshal who are5
P.O.S.T.-certified, who have the power to arrest, and who hold a commission from6
such office, and any person in the office of state fire marshal who is required to be,7
at a minimum, a certified Firefighter I or a certified First Responder.8
* * *9
(l) All campus chiefs of police employed by any institution of higher10
education who are P.O.S.T.-certified, who have the power to arrest, and who hold a11
commission as required for employment as such officers.12
(m) All personnel employed in positions required to be P.O.S.T.-certified,13
who have the power to arrest, who hold a commission as required for employmen t14
in such positions, who are otherwise members of the Louisiana State Employees'15
Retirement System, and who are not members of any other retirement system.16
* * *17
§613. Eligibility for plan membership18
A. Each person who becomes an employee in state service in one of the19
positions defined in R.S. 11:612(2) shall become a member of the Hazardous Duty20
Services Plan of the system as a condition of employment.21
B. Notwithstanding the provisions of Subsection A of this Section, no person22
who participated in the Deferred Retirement Option Plan as a member of any other23
retirement plan in this system or who retired under the provisions of any other24
retirement plan in this system who is reemployed under Option 1 or Option 3 as25
provided in R.S. 11:416 shall be eligible for membership in the Hazardous Duty26
Services Plan.27
§614. Eligibility for retirement28
A. Any member of this plan shall be eligible for retirement if he has:29 HLS 11RS-449 ENGROSSED
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(1) Twenty-five years or more of service, at any age.1
(2) Twelve years or more of service, at age fifty-five or thereafter.2
(3) Twenty years of service credit at any age, exclusive of military service3
and unused annual and sick leave, but any person retiring under this Paragraph shall4
have his benefit, inclusive of military service credit and allowable unused annual and5
sick leave, actuarially reduced. Any member retiring under this Paragraph who is6
in state service at the time of his retirement shall have his benefit actuarially reduced7
from the earliest age that he would normally become eligible for a regular retirement8
benefit under Paragraph (1) or (2) of this Section Subsection if he had continued in9
service to that age. Any member retiring under this Paragraph who is out of state10
service at the time of his retirement shall have his benefit actuarially reduced from11
the earliest age that he would normally become eligible for a regular retirement12
benefit under Paragraph (1) or (2) of this Section Subsection based upon his years13
of service as of the date of retirement. Any employee who elects to retire under the14
provisions of this Paragraph shall not be eligible to participate in the Deferred15
Retirement Option Plan provided by R.S. 11:447 or the Initial Benefit Option16
provided by R.S. 11:446(A)(5).17
B.(1) Notwithstanding the provisions of R.S. 11:441(A)(2)(b) or any other18
provision of law to the contrary, any member of this plan who is not eligible for19
retirement under Subsection A of this Section may elect to retire under the provisions20
of R.S. 11:441(A)(2)(b)(i) with five years or more of service credit at age sixty or21
thereafter.22
(2)(a) The retirement benefit and survivor benefit provisions of this Subpart,23
including but not limited to R.S. 11:615 and 621, shall not apply to any member of24
this plan who elects to retire under the provisions of R.S. 11:441(A)(2)(b)(i).25
(b) Any member of this plan who elects to retire under the provisions of R.S.26
11:441(A)(2)(b)(i) shall receive a retirement benefit equal to two and one-half27
percent of his average compensation for every year of creditable service.28 HLS 11RS-449 ENGROSSED
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(c) Retirement benefits for any member of this plan who elects to retire1
under the provisions of R.S. 11:441(A)(2)(b)(i) shall be paid in accordance with R.S.2
11:446.3
* * *4
§616. Deferred Retirement Option Plan; Initial Benefit Option; Annual Cost-of-5
Living Adjustment Option6
A. A member who is eligible for regular retirement may elect to participate7
in the Deferred Retirement Option Plan in accordance with the provisions of R.S.8
11:447 through 454, or the Initial Benefit Option provided by R.S. 11:446(A)(5).9
B. Any member of this plan may elect to participate in the Annual10
Cost-of-Living Adjustment Option provided by R.S. 11:446(A)(6).11
* * *12
§618. Survivors' benefits for members killed in the line of duty13
* * *14
D. The provisions of this Section shall not apply to any member of this plan15
who:16
(1) Has participated in the Deferred Retirement Option Plan; or17
(2) Is a retiree of the system who is reemployed under Option 1 or Option18
3 as provided in R.S. 11:416.19
* * *20
§620. Transfer of other service credit21
A. Any member of this system or of another state or statewide system, who22
would otherwise be eligible for benefits under the plan except that his first23
employment making him eligible for membership in any state system occurred on24
or before December 31, 2010, and who has not participated in the Deferred25
Retirement Option Plan in the system of which he is a member and who is not a26
reemployed retiree of his system or a retiree of this system reemployed under Option27
1 or Option 3 as provided in R.S. 11:416, shall have the right to irrevocably elect to28 HLS 11RS-449 ENGROSSED
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become a member of the plan by submitting an application to the board of trustees1
to be effective on or after January 1, 2011.2
B. Any member who elects to join the Hazardous Duty Services Plan from3
an existing system or plan shall have the option of:4
(1)(a) Maintaining prior service credit in the existing system or plan pursuant5
to the provisions of that system or plan and accruing service credit and benefits in6
the Hazardous Duty Services Plan after the date he joins the plan.7
(b) For any member who joins the Hazardous Duty Services Plan after the8
effective date of this Subparagraph, if such member elects to maintain prior service9
credit in his existing system or plan and that election results in an actuarial cost to10
this system, then the member shall pay the system the amount of such actuarial cost11
prior to his retirement.12
(2)(a) An internal actuarial transfer from plan to plan in accordance with the13
provisions of R.S. 11:143(C) and (D) in which this system is both the transferring14
and receiving system in which the member transfers all of his service credit from15
each other system or plan in this system and maintains prior service credit at the16
accrual rate at which it was earned in the existing system or plan prior to joining the17
Hazardous Duty Services Plan. In the event that the amount of funds transferred is18
less than the actuarial cost of the service transferred to the plan, the member19
transferring, except as otherwise provided in this Section, shall pay the deficit or20
difference including the interest thereon at the board-approved actuarial valuation21
rate of the system.22
(b) In lieu of paying the deficit or difference plus interest, the member may23
at his option, but only at the time of transfer, be granted an amount of credit in the24
plan which is based on the amount of funds actually transferred plus any additional25
funds less than the deficit paid by the member.26
(c) Except as otherwise provided in Subparagraph (d) of this Subsection, a27
member who completes a transfer under the provisions of this Section shall have his28 HLS 11RS-449 ENGROSSED
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retirement benefit calculated using the accrual rate of the system or plan from which1
he transferred based on the number of years transferred.2
(d) A member choosing an internal actuarial transfer shall be eligible to3
upgrade any the service credit that was actuarially transferred pursuant to this4
Subsection to the accrual rate of the Hazardous Duty Services Plan by paying an5
amount that totally offsets the increase in actuarial liability resulting from the6
upgrade in accordance with R.S. 11:158.7
C.(1) An employee who is a contributing member of any other plan in this8
or another state or statewide system who would otherwise be required to become a9
member of this plan as a condition of employment in a position which would10
otherwise qualify him for such membership on or after January 1, 2011, may elect11
at the time of his employment in such position to remain a contributing member of12
the last plan in this system of which he was a member or of such other system for13
which he remains eligible for membership.14
(2) For an employee who elects to remain a member of a plan in this system,15
applicable to members employed in hazardous duty positions, which plan was in16
existence on or before December 31, 2010, service credit earned on or after January17
1, 2011, in one of the hazardous duty positions defined in R.S. 11:612(2) shall be18
deemed as service credit earned in a position covered by such plan.19
D. A member whose first employment making him eligible for membership20
in a state retirement system occurred on or before December 31, 2010, who elects to21
transfer to join this plan shall thereafter for purposes of all state retirement systems22
be treated as an employee whose first eligibility for membership occurred on or after23
January 1, 2011.24
* * *25
§621. Survivors' benefits for former or retired members26
* * *27
B. The surviving spouse of a deceased retired member or Deferred28
Retirement Option Plan participant shall receive a benefit in an amount equal to29 HLS 11RS-449 ENGROSSED
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seventy-five percent of the monthly retirement benefit that was being paid to the1
decedent on the date of death.2
C.(1) If there is no surviving spouse eligible to receive benefits pursuant to3
Subsection A or B of this Section, the minor children of the decedent shall be entitled4
to benefits as provided in R.S. 11:471.1.5
* * *6
§701. Definitions7
As used in this Chapter, the following words and phrases have the meanings8
ascribed to them in this Section unless a different meaning is plainly required by the9
context:10
* * *11
(33)(a)12
* * *13
(b) "Teacher" shall not include any of the following:14
* * *15
(ii)16
* * *17
(cc) Any unclassified campus chief of police employed by any institution of18
higher education whose first employment making him eligible for membership in19
one of the state systems occurred on or after January 1, 2011, who is20
P.O.S.T.-certified, who has the power to arrest, and who holds a commission as21
required for employment in such position.22
(dd) Any unclassified campus chief of police employed by any institution of23
higher education whose first employme nt making him eligible for membership in24
one of the state systems occurred on or before December 31, 2010, and who is25
P.O.S.T.-certified, has the power to arrest, who holds a commission as required for26
employment in such position, and has joined the Hazardous Duty Services Plan in27
the Louisiana State Employees' Retirement Plan pursuant to R.S. 11:620.28
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§783. Selection of option for method of payment after death of member1
A.2
* * *3
(3) Initial Lump-Sum Benefit. (a) If a member has not participated in the4
Deferred Retirement Option Plan provided by the provisions of this Chapter and, he5
shall be eligible to select an initial lump-sum benefit. The initial lump-sum benefit6
shall be available to any member of the system whose first employment making him7
eligible for membership in one of the state retirement systems occurred on or before8
December 31, 2010, and who has thirty years of creditable service, or is age fifty-9
five and has twenty-five years of creditable service, or is age sixty and has ten years10
of creditable service, and. Any member of the system whose first employment11
making him eligible for membership in one of the state retirement systems occurred12
on or after January 1, 2011, may select the initial lump-sum benefit if he is age sixty13
and has five years of service. if If the maximum benefit, Option 2, 2A, 3, 3A, 4, or14
4A above is chosen, then the member may further elect to receive a reduced15
retirement allowance plus an initial benefit. The creditable service referenced in this16
Paragraph shall not include unused accumulated sick leave and unused accumulated17
annual leave.18
* * *19
§786. Deferred Retirement Option Plan20
A.(1) In lieu of terminating employment and accepting a retirement21
allowance, any member of this system whose first employment making him eligible22
for membership in one of the state retirement systems occurred on or before23
December 31, 2010, and who is not covered by R.S. 11:801 and who has thirty years24
of service credit at any age, twenty-five years of service credit and is at least age25
fifty-five, or has twenty years of service credit exclusive of military service and is26
at least age sixty-five may elect to participate in the Deferred Retirement Option27
Plan. A member with ten years of service credit exclusive of military service and28
who is at least age sixty may elect to participate in the plan, but all benefits payable29 HLS 11RS-449 ENGROSSED
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at any time shall only be calculated using a two percent benefit formula. Any1
member of this system who is covered by the provisions of R.S. 11:801 who has2
thirty years of service credit and is at least age fifty-five or has ten years of service3
credit and is at least age sixty may elect to participate in the Deferred Retirement4
Option Plan.5
(2) Any member of this system whose first employment making him eligible6
for membership in one of the state retirement systems occurred on or after January7
1, 2011, and who is not covered by R.S. 11:801 and who has five years of service8
credit and is at least age sixty may elect to participate in the Deferred Retirement9
Option Plan.10
(3) Any member of this system who is covered by the provisions of R.S.11
11:801 who has thirty years of service credit and is at least age fifty-five or has ten12
years of service credit and is at least age sixty may elect to participate in the13
Deferred Retirement Option Plan.14
* * *15
§1002. Definitions16
As used in this Chapter, the following words and phrases shall have the17
meanings ascribed to them in this Section unless a different meaning is plainly18
required by the context:19
* * *20
(6)21
* * *22
(b) "Average compensation", for a member whose first employment making23
him eligible for membership in the system began on or after July 1, 2006, whose first24
employment making him eligible for membership in one of the state systems25
occurred on or before December 31, 2010 June 30, 2010, shall be based on the sixty26
highest successive months of employment, or on the highest sixty successive joined27
months of employment where interruption of service occurred; however, the average28
compensation amount for the thirteenth through the twenty-fourth month shall not29 HLS 11RS-449 ENGROSSED
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exceed the actual compensation amount for the first through the twelfth month by1
more than ten percent. The amount for the twenty-fifth through the thirty-sixth2
month shall not exceed the lesser of the maximum allowable compensation amount3
or the actual compensation amount for the thirteenth through the twenty-fourth4
month by more than ten percent. The amount for the thirty-seventh through the5
forty-eighth month shall not exceed the lesser of the maximum allowable6
compensation amount or the actual compensation amount for the twenty-fifth7
through the thirty-sixth month by more than ten percent. The amount for the forty-8
ninth through the sixtieth month shall not exceed the lesser of the maximum9
allowable compensation amount or the actual compensation amount for the thirty-10
seventh through the forty-eighth month by more than ten percent. The limitations11
on the computation of average compensation contained in this Paragraph shall not12
apply to any twelve-month period during which compensation increased by more13
than one hundred ten percent over the previous twelve-month period solely because14
of an increase in compensation by legislative act or by a city/parish system-wide15
salary increase.16
(c) "Average compensation", for a member whose first employment making17
him eligible for membership in one of the state systems occurred on or after January18
1, 2011 July 1, 2010, shall be based on the sixty highest successive months of19
employment, or on the highest sixty successive joined months of employment where20
interruption of service occurred; however, the average compensation amount for the21
thirteenth through the twenty-fourth month shall not exceed the actual compensation22
amount for the first through the twelfth month by more than fifteen percent. The23
amount for the twenty-fifth through the thirty-sixth month shall not exceed the lesser24
of the maximum allowable compensation amount or the actual compensation amount25
for the thirteenth through the twenty-fourth month by more than fifteen percent. The26
amount for the thirty-seventh through the forty-eighth month shall not exceed the27
lesser of the maximum allowable compensation amount or the actual compensation28
amount for the twenty-fifth through the thirty-sixth month by more than fifteen29 HLS 11RS-449 ENGROSSED
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percent. The amount for the forty-ninth through the sixtieth month shall not exceed1
the lesser of the maximum allowable compensation amount or the actual2
compensation amount for the thirty-seventh through the forty-eighth month by more3
than fifteen percent. The limitations on the computation of average compensation4
contained in this Subparagraph shall not apply to any twelve-month period during5
which compensation increased by more than one hundred fifteen percent over the6
previous twelve-month period solely because of an increase in compensation by7
legislative act or by a city/parish system-wide salary increase.8
* * *9
§1141. Retirement benefits; application; eligibility requirements; effective date;10
cancellation11
A. Any member whose first employment making him eligible for12
membership in one of the state systems occurred on or before December 31, 201013
June 30, 2010, may retire upon written application to the board of trustees, if the14
member at the time of application has attained the age of sixty years and has credit15
for ten years of accredited service or has attained the age of fifty-five years and has16
credit for twenty-five or more years of accredited service or at any age with thirty or17
more years of accredited service. Any member whose first employment making him18
eligible for membership in one of the state systems occurred on or after January 1,19
2011 July 1, 2010, may retire upon written application to the board of trustees, if the20
member at the time of application has attained the age of sixty years and has credit21
for five years of accredited service. An application for retirement shall be officially22
filed with the board when received in the office of the director. Retirement benefits23
shall become effective as of the date an application for retirement is filed in the24
office of the director or the day after the member terminates from service, whichever25
is later. A member may only cancel his application for retirement prior to26
negotiating, cashing, or depositing any benefit check including an estimated benefit27
check.28
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C.(1)(a) Notwithstanding the provisions of Subsection A of this Section, any1
member whose first employment making him eligible for system membership2
occurred on or before June 30, 2010, shall be eligible for retirement if he has twenty3
years of service credit at any age, exclusive of military service and unused annual4
and sick leave, but any person retiring under this Subsection shall have his benefit5
inclusive of military service credit and allowable unused annual and sick leave6
actuarially reduced from the earliest age that he would normally become eligible for7
a regular retirement benefit pursuant to Subsection A of this Section if he had8
continued in service to that age.9
* * *10
§1144. Retirement allowance; regular, minimum, and supplemental11
* * *12
B. Minimum allowance. 13
* * *14
(4) The provisions of this Paragraph shall apply to any member whose first15
employment making him eligible for membership in one of the state systems16
occurred on or after January 1, 2011 July 1, 2010. The minimum allowance for such17
members shall be no less than an amount which provides a total allowance equal to18
two and one-half percent multiplied by the total years of accredited service and19
multiplied by the average compensation for such person as provided in R.S.20
11:1002(6)(c).21
* * *22
§1147. Disability retirement23
* * *24
C.25
* * *26
(2)(a)27
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(ii) A disability retiree whose membership in the system began on or after1
July 1, 2006, but on or before June 30, 2010, who is not eligible to receive a regular2
service retirement allowance and who has at least ten years of creditable service,3
shall receive a disability retirement allowance equal to three percent of his average4
compensation multiplied by his years of creditable service.5
(iii) A disability retiree whose first employment making him eligible for6
membership in one of the state systems occurred on or after January 1, 2011 July 1,7
2010, shall receive a maximum disability retirement benefit which shall be8
equivalent to the regular retirement formula without reduction by reason of age.9
(b)(i) If a disability retiree whose eligibility for membership in one of the10
state systems occurred on or before December 31, 2010 June 30, 2010, dies and11
leaves a surviving spouse who had been married to the deceased disability retiree for12
at least two years prior to the death of the disability retiree, the surviving spouse13
shall receive a survivor's benefit equal to seventy-five percent of the benefit being14
received by the disability retiree at his death. Benefits shall cease upon remarriage.15
(ii) For disability retirees whose first employment making him eligible for16
membership in one of the state systems occurred on or after January 1, 2011 July 1,17
2010, selection of a retirement option shall be made when application for disability18
is filed. If the disability retiree dies, the option selected upon disability retirement19
shall be applied to his disability retirement benefit.20
* * *21
§1151. Survivor benefits; members hired on or before December 31, 2010 June 30,22
201023
A. This Section shall apply to members whose first employment making24
them eligible for membership in one of the state systems occurred on or before25
December 31, 2010 June 30, 2010. Survivor's benefits are payable upon application26
therefor and become effective as of the day following the death of the member.27
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§1151.1. Survivors' benefits; members hired on or after January 1, 2011 July 1,1
20102
A. Survivor benefits shall be due and payable by the system effective the3
first day of the next month following the death of a member whose first employment4
making him eligible for membership in one of the state systems occurred on or after5
January 1, 2011 July 1, 2010, but shall not be paid until a properly completed and6
acceptable application is received by the system and all proper certifications have7
been received by the system.8
* * *9
C.(1) In addition to the amount payable in accordance with Subsection B of10
this Section, for the benefit of the surviving minor or handicapped child, or mentally11
disabled child, or children, there shall be paid for each such child, subject to a12
maximum of two children, per month fifty percent of the benefit to which a spouse13
would be entitled under Subsection B of this Section. Benefits shall be payable to14
such children even if no spouse eligible for survivor benefits is present, provided the15
member had at least five years of service credit. Benefits for a child shall cease16
when the child is no longer a minor child as defined by this Chapter. No surviving17
minor child shall receive more than one survivor's benefit at any one time. If two18
benefits are applicable, only the larger shall be paid.19
(2)(a) In addition to the amount payable in accordance with Subsection B of20
this Section, the surviving totally physically handicapped or mentally disabled child21
or children of a deceased member, whether under or over the age of eighteen years,22
shall be entitled to the same benefits, payable in the same manner, as are provided23
by this Section for minor children, if the child was totally physically handicapped or24
mentally disabled at the time of the death of the member and is dependent upon the25
surviving spouse or other legal guardian.26
(b) The surviving spouse or legal guardian shall provide adequate proof of27
handicap or mental disability of such surviving child or children and shall notify the28
board of any subsequent changes in the child's condition which cause the child to no29 HLS 11RS-449 ENGROSSED
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longer be dependent upon the surviving spouse or legal guardian and any changes1
in the assistance being received from other state agencies. The board may require2
a certified statement of the child's eligibility status at the end of each calendar year.3
* * *4
§1152. Deferred Retirement Option Plan5
A. In lieu of terminating employment and accepting a service retirement6
allowance pursuant to this Part, any member who has ten or more years of creditable7
service at sixty years of age, twenty-five or more years of creditable service at fifty-8
five years of age, or thirty or more years of creditable service at any age is eligible9
for regular retirement may elect to participate in the Deferred Retirement Option10
Plan and defer the receipt of benefits in accordance with the provisions of this11
Section.12
* * *13
§1323. Death of employee not in performance of duty; employees hired on or after14
January 1, 201115
* * *16
C.(1) In addition to the amount payable in accordance with Subsection B of17
this Section, for the benefit of the surviving minor or handicapped child, or mentally18
disabled child, or children, there shall be paid for each such child, subject to a19
maximum of two children, per month fifty percent of the benefit to which a spouse20
would be entitled under Subsection B of this Section. Benefits shall be payable to21
such children even if no spouse eligible for survivor benefits is present, provided the22
member had at least five years of service credit. Benefits for a child shall cease23
when the child is no longer a minor child as defined by this Chapter. No surviving24
minor child shall receive more than one survivor's benefit at any one time. If two25
benefits are applicable, only the larger shall be paid.26
(2)(a) In addition to the amount payable in accordance with Subsection B of27
this Section, the surviving totally physically handicapped or mentally disabled child28
or children of a deceased member, whether under or over the age of eighteen years,29 HLS 11RS-449 ENGROSSED
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shall be entitled to the same benefits, payable in the same manner, as are provided1
by this Section for minor children, if the child was totally physically handicapped or2
mentally disabled at the time of the death of the member and is dependent upon the3
surviving spouse or other legal guardian.4
(b) The applicant shall provide adequate proof of handicap or mental5
disability of such surviving child or children and shall notify the board of any6
subsequent changes in the child's condition to such an extent that the child is no7
longer dependent upon the surviving spouse or legal guardian and any changes in the8
assistance being received from other state agencies. The board may require a9
certified statement of the child's eligibility status at the end of each calendar year.10
* * *11
§1345.9. Survivors' benefits for death other than in the line of duty12
The surviving spouse or children of any active member whose death occurs13
other than in the performance of his duties shall have the same pension rights as14
provided in R.S. 11:1320 1323.15
Section 2. The cost of this Act, if any, shall be funded with additional employer16
contributions in compliance with Article X, Section 29(F) of the Constitution of Louisiana.17
Section 3. This Act shall become effective on July 1, 2011; if vetoed by the governor18
and subsequently approved by the legislature, this Act shall become effective on July 1,19
2011, or on the day following such approval by the legislature, whichever is later.20
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 four 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 No. 992 of the 2010 R.S.
Present law, pursuant to Act No. 992 of the 2010 R.S., generally made sweeping changes to
the benefit structure of the four state retirement systems for persons whose first employment HLS 11RS-449 ENGROSSED
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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.
(6)Survivor benefits.
Proposed law makes certain technical, remedial, and substantive changes to provisions of
the law affected by Act No. 992 of the 2010 R.S.
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
Dec. 31, 2010, applying for disability benefits to have five 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 five 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 five 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 Dec. 31,
2010. With regard to members hired on or after Jan. 1, 2011, allows for DROP participation HLS 11RS-449 ENGROSSED
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if the member has five years of service credit at age 60 to conform with the retirement
eligibility provisions provided by Act No. 992 of the 2010 R.S. 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.
Proposed law provides that a 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 Dec. 31,
2010. With regard to members hired on or after Jan. 1, 2011, allows for ILSB participation
if the member has five years of service credit at age 60 to conform with the retirement
eligibility provisions provided by Act No. 992 of the 2010 R.S. 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 DPS&C, 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 Jan. 1, 2011, shall no longer be members of TRSL and
shall be members of the HDSP. HLS 11RS-449 ENGROSSED
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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:
(1)12 years of service at age 55.
(2)25 years of service at any age.
(3)20 years of service at any age, but subject to an actuarial reduction of benefits.
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:
(1)Five years of service at age 60.
(2)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 does not meet retirement eligibility
under the HDSP, to retire under rank-and-file provisions with five 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. HLS 11RS-449 ENGROSSED
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Transfer Provisions
Present law (R.S. 11:620) generally requires hazardous duty personnel in LASERS hired on
or after Jan. 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 Dec. 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.
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 Dec.
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 Jan. 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.
LSERS BENEFIT PROVISIONS
Present law (R.S. 11:62(4)) establishes the employee contribution rate for members of
LSERS. Provides that members hired on or before Dec. 31, 2010, shall pay 7.5%, and that
members hired on or after Jan. 1, 2011, shall pay 8%.
Proposed law provides instead that members hired on or before June 30, 2010, shall pay
7.5%, and members hired on or after July 1, 2010, shall pay 8%.
Present law (R.S. 11:1002(6)) provides that average compensation for a member hired on
or after July 1, 2006, but on or before Dec. 31, 2010, shall be calculated over five years.
Furthermore, anti-spiking provisions prohibit a year-over-year increase in earnings of more
than 10% each year of such period. Present law further provides that for members hired on
or after Jan. 1, 2011, the anti-spiking provisions relative to such persons prohibit a year-
over-year increase in earnings of more than 15% each year of such period.
Proposed law provides instead that members hired on or after July 1, 2006, but on or before
June 30, 2010, shall have a five-year average compensation period and a 10% anti-spiking
provision and that members hired on or after July 1, 2010, shall have a five-year average
compensation period and a 15% anti-spiking provision.
Present law provides for retirement eligibility for members of LSERS. Members hired on
or before Dec. 31, 2010, may retire: (1) at the age of 60 with 10 years of service credit; (2)
at the age of 55 with 25 years of service credit; (3) at any age with 30 years of service credit; HLS 11RS-449 ENGROSSED
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and (4) at any age with 20 years of service credit, but subject to an actuarial reduction in
benefits. Proposed law provides instead that these eligibility provisions shall apply to
members hired on or before June 30, 2010.
Present law provides that members hired on or after Jan. 1, 2011, may retire: (1) at age 60
with five years of service credit; and (2) at any age with 20 years of service credit, but
subject to an actuarial reduction of benefits. Proposed law provides instead that these
eligibility provisions shall apply to members hired on or before July 1, 2010.
Present law (R.S. 11:1144(B)), provides for accrual rates of 2.5%, 3%, or 3-1/3%, depending
on the member's retirement date, for members hired on or before Dec. 31, 2010. Proposed
law provides instead that these accrual rates shall apply to members hired on or before June
30, 2010.
Present law (R.S. 11:1144(B)(4)) provides that members whose first employment making
them eligible for membership in any state retirement system occurs on or after Jan. 1, 2011,
shall receive an accrual rate of 2.5%. Proposed law provides instead that the 2.5% accrual
rate shall apply to members hired on or after July 1, 2010.
Present law (R.S. 11:1147(C)(2)(a)) provides for a disability benefit accrual rate of 3% for
members hired on or before Dec. 31, 2010, and a 2.5% accrual rate for members hired on
or after Jan. 1, 2011. Proposed law provides instead for a 3% disability accrual rate for
members hired on or before June 30, 2010, and a 2.5% accrual rate for members hired on or
after July 1, 2011.
Present law provides that, for members hired on or before Dec. 31, 2010, upon the death of
a member not yet retired, a surviving spouse with children shall receive 75% of FAC, 1/3
of which shall be allocated to the spouse and 2/3 to be allocated to the children. Children
with no surviving spouse shall receive 75% of FAC. A spouse with no child shall receive
50% of FAC. Proposed law provides that such provisions shall apply to members hired on
or before June 30, 2010.
Present law, for members hired 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 children shall each receive 50% of what the spouse would be
entitled to under present law. A spouse with no children shall receive an actuarially reduced
benefit. Proposed law provides instead that such provisions shall apply to members hired
on or after July 1, 2010.
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. 11:62(4), 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), 1002(6)(b) and (c), 1141(A) and
(C)(1)(a), 1144(B)(4), 1147(C)(2)(a)(ii) and (iii) and (b), 1151(A), 1151.1(A) and (C),
1152(A), 1323(C), and 1345.9; Adds R.S. 11:612(2)(m), 618(D), 701(33)(b)(ii)(cc) and
(dd))
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Retirement to the original
bill.
1. Relative to LSERS, changes various benefit provisions which are applicable to
members hired on or before Dec. 31, 2010, to make them applicable to members
hired on or before June 30, 2010. HLS 11RS-449 ENGROSSED
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2. Relative to LSERS, changes various benefit provisions which are applicable to
members hired on or after Jan. 1, 2011, to make them applicable to members
hired on or after July 1, 2010.