HLS 11RS-449 RE-REENGROSSED
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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), 613, 614, 616, 620(A), (B), (C),2
and (D), 621(B) and (C)(1), 783(A)(3)(a), 786(A), 1002(6)(b) and (c), 1141(A) and3
(C)(1)(a), 1144(B)(4), 1147(C)(2)(a)(ii) and (iii) and (b), 1151(A), 1151.1(A) and4
(C), 1152(A), 1323(C), and 1345.9 and to enact R.S. 11:618(D), relative to the5
Louisiana State Employees' Retirement System, the Teachers' Retirement System of6
Louisiana, the Louisiana School Employees' Retirement System, and the State7
Police Pension and Retirement System; to make certain technical, remedial, and8
substantive changes to provisions of the law affected by Act No. 992 of the 20109
Regular Session of the Legislature and other provisions of law to conform with such10
Act; to provide with respect to benefits, survivors' benefits, disability benefits,11
membership, retirement eligibility, Deferred Retirement Option Plan participation,12
retirement options, transfers, and the Hazardous Duty Services Plan; to provide an13
effective date; and to provide for related matters.14
Notice of intention to introduce this Act has been published15
as provided by Article X, Section 29(C) of the Constitution16
of Louisiana.17 HLS 11RS-449 RE-REENGROSSED
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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), 613, 614, 616, 620(A), (B), (C), and2
(D), 621(B) and (C)(1), 783(A)(3)(a), 786(A), 1002(6)(b) and (c), 1141(A) and (C)(1)(a),3
1144(B)(4), 1147(C)(2)(a)(ii) and (iii) and (b), 1151(A), 1151.1(A) and (C), 1152(A),4
1323(C), and 1345.9 are hereby amended and reenacted and R.S. 11:618(D) is hereby5
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
§613. Eligibility for plan membership25
A. Each person who becomes an employee in state service in one of the26
positions defined in R.S. 11:612(2) shall become a member of the Hazardous Duty27
Services Plan of the system as a condition of employment.28 HLS 11RS-449 RE-REENGROSSED
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B. Notwithstanding the provisions of Subsection A of this Section, no person1
who participated in the Deferred Retirement Option Plan as a member of any other2
retirement plan in this system or who retired under the provisions of any other3
retirement plan in this system who is reemployed under Option 1 or Option 3 as4
provided in R.S. 11:416 shall be eligible for membership in the Hazardous Duty5
Services Plan.6
§614. Eligibility for retirement7
A. Any member of this plan shall be eligible for retirement if he has:8
(1) Twenty-five years or more of service, at any age.9
(2) Twelve years or more of service, at age fifty-five or thereafter.10
(3) Twenty years of service credit at any age, exclusive of military service11
and unused annual and sick leave, but any person retiring under this Paragraph shall12
have his benefit, inclusive of military service credit and allowable unused annual and13
sick leave, actuarially reduced. Any member retiring under this Paragraph who is14
in state service at the time of his retirement shall have his benefit actuarially reduced15
from the earliest age that he would normally become eligible for a regular retirement16
benefit under Paragraph (1) or (2) of this Section Subsection if he had continued in17
service to that age. Any member retiring under this Paragraph who is out of state18
service at the time of his retirement shall have his benefit actuarially reduced from19
the earliest age that he would normally become eligible for a regular retirement20
benefit under Paragraph (1) or (2) of this Section Subsection based upon his years21
of service as of the date of retirement. Any employee who elects to retire under the22
provisions of this Paragraph shall not be eligible to participate in the Deferred23
Retirement Option Plan provided by R.S. 11:447 or the Initial Benefit Option24
provided by R.S. 11:446(A)(5).25
B.(1) Notwithstanding the provisions of R.S. 11:441(A)(2)(b) or any other26
provision of law to the contrary, any member of this plan who is not eligible for27
retirement under Subsection A of this Section may elect to retire under the provisions28 HLS 11RS-449 RE-REENGROSSED
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of R.S. 11:441(A)(2)(b)(i) with five years or more of service credit at age sixty or1
thereafter.2
(2)(a) The retirement benefit and survivor benefit provisions of this Subpart,3
including but not limited to R.S. 11:615 and 621, shall not apply to any member of4
this plan who elects to retire under the provisions of R.S. 11:441(A)(2)(b)(i).5
(b) Any member of this plan who elects to retire under the provisions of R.S.6
11:441(A)(2)(b)(i) shall receive a retirement benefit equal to two and one-half7
percent of his average compensation for every year of creditable service.8
(c) Retirement benefits for any member of this plan who elects to retire9
under the provisions of R.S. 11:441(A)(2)(b)(i) shall be paid in accordance with R.S.10
11:446.11
* * *12
§616. Deferred Retirement Option Plan; Initial Benefit Option; Annual Cost-of-13
Living Adjustment Option14
A. A member who is eligible for regular retirement may elect to participate15
in the Deferred Retirement Option Plan in accordance with the provisions of R.S.16
11:447 through 454, or the Initial Benefit Option provided by R.S. 11:446(A)(5).17
B. Any member of this plan may elect to participate in the Annual18
Cost-of-Living Adjustment Option provided by R.S. 11:446(A)(6).19
* * *20
§618. Survivors' benefits for members killed in the line of duty21
* * *22
D. The provisions of this Section shall not apply to any member of this plan23
who:24
(1) Has participated in the Deferred Retirement Option Plan; or25
(2) Is a retiree of the system who is reemployed under Option 1 or Option26
3 as provided in R.S. 11:416.27
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§620. Transfer of other service credit1
A. Any member of this system or of another state or statewide system, who2
would otherwise be eligible for benefits under the plan except that his first3
employment making him eligible for membership in any state system occurred on4
or before December 31, 2010, and who has not participated in the Deferred5
Retirement Option Plan in the system of which he is a member and who is not a6
reemployed retiree of his system or a retiree of this system reemployed under Option7
1 or Option 3 as provided in R.S. 11:416, shall have the right to irrevocably elect to8
become a member of the plan by submitting an application to the board of trustees9
to be effective on or after January 1, 2011.10
B. Any member who elects to join the Hazardous Duty Services Plan from11
an existing system or plan shall have the option of:12
(1)(a) Maintaining prior service credit in the existing system or plan pursuant13
to the provisions of that system or plan and accruing service credit and benefits in14
the Hazardous Duty Services Plan after the date he joins the plan.15
(b) For any member who joins the Hazardous Duty Services Plan after the16
effective date of this Subparagraph, if such member elects to maintain prior service17
credit in his existing system or plan and that election results in an actuarial cost to18
this system, then the member shall pay the system the amount of such actuarial cost19
prior to his retirement.20
(2)(a) An internal actuarial transfer from plan to plan in accordance with the21
provisions of R.S. 11:143(C) and (D) in which this system is both the transferring22
and receiving system in which the member transfers all of his service credit from23
each other system or plan in this system and maintains prior service credit at the24
accrual rate at which it was earned in the existing system or plan prior to joining the25
Hazardous Duty Services Plan. In the event that the amount of funds transferred is26
less than the actuarial cost of the service transferred to the plan, the member27
transferring, except as otherwise provided in this Section, shall pay the deficit or28 HLS 11RS-449 RE-REENGROSSED
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difference including the interest thereon at the board-approved actuarial valuation1
rate of the system.2
(b) In lieu of paying the deficit or difference plus interest, the member may3
at his option, but only at the time of transfer, be granted an amount of credit in the4
plan which is based on the amount of funds actually transferred plus any additional5
funds less than the deficit paid by the member.6
(c) Except as otherwise provided in Subparagraph (d) of this Subsection7
Paragraph, a member who completes a transfer under the provisions of this Section8
shall have his retirement benefit calculated using the accrual rate of the system or9
plan from which he transferred based on the number of years transferred.10
(d) A member choosing an internal actuarial transfer shall be eligible to11
upgrade any the service credit that was actuarially transferred pursuant to this12
Subsection to the accrual rate of the Hazardous Duty Services Plan by paying an13
amount that totally offsets the increase in actuarial liability resulting from the14
upgrade in accordance with R.S. 11:158.15
C.(1) An employee who is a contributing member of any other plan in this16
or another state or statewide system who would otherwise be required to become a17
member of this plan as a condition of employment in a position which would18
otherwise qualify him for such membership on or after January 1, 2011, may elect19
at the time of his employment in such position to remain a contributing member of20
the last plan in this system of which he was a member or of such other system for21
which he remains eligible for membership.22
(2) For an employee who elects to remain a member of a plan in this system,23
applicable to members employed in hazardous duty positions, which plan was in24
existence on or before December 31, 2010, service credit earned on or after January25
1, 2011, in one of the hazardous duty positions defined in R.S. 11:612(2) shall be26
deemed as service credit earned in a position covered by such plan.27 HLS 11RS-449 RE-REENGROSSED
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D. A member whose first employment making him eligible for membership1
in a state retirement system occurred on or before December 31, 2010, who elects to2
transfer to join this plan shall thereafter for purposes of all state retirement systems3
be treated as an employee whose first eligibility for membership occurred on or after4
January 1, 2011.5
* * *6
§621. Survivors' benefits for former or retired members7
* * *8
B. The surviving spouse of a deceased retired member or Deferred9
Retirement Option Plan participant shall receive a benefit in an amount equal to10
seventy-five percent of the monthly retirement benefit that was being paid to the11
decedent on the date of death.12
C.(1) If there is no surviving spouse eligible to receive benefits pursuant to13
Subsection A or B of this Section, the minor children of the decedent shall be entitled14
to benefits as provided in R.S. 11:471.1.15
* * *16
§783. Selection of option for method of payment after death of member17
A.18
* * *19
(3) Initial Lump-Sum Benefit. (a) If a member has not participated in the20
Deferred Retirement Option Plan provided by the provisions of this Chapter and, he21
shall be eligible to select an initial lump-sum benefit. The initial lump-sum benefit22
shall be available to any member of the system whose first employment making him23
eligible for membership in one of the state retirement systems occurred on or before24
December 31, 2010, and who has thirty years of creditable service, or is age fifty-25
five and has twenty-five years of creditable service, or is age sixty and has ten years26
of creditable service, and. Any member of the system whose first employment27
making him eligible for membership in one of the state retirement systems occurred28 HLS 11RS-449 RE-REENGROSSED
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on or after January 1, 2011, may select the initial lump-sum benefit if he is age sixty1
and has five years of service. if If the maximum benefit, Option 2, 2A, 3, 3A, 4, or2
4A above is chosen, then the member may further elect to receive a reduced3
retirement allowance plus an initial benefit. The creditable service referenced in this4
Paragraph shall not include unused accumulated sick leave and unused accumulated5
annual leave.6
* * *7
§786. Deferred Retirement Option Plan8
A.(1) In lieu of terminating employment and accepting a retirement9
allowance, any member of this system whose first employment making him eligible10
for membership in one of the state retirement systems occurred on or before11
December 31, 2010, and who is not covered by R.S. 11:801 and who has thirty years12
of service credit at any age, twenty-five years of service credit and is at least age13
fifty-five, or has twenty years of service credit exclusive of military service and is14
at least age sixty-five may elect to participate in the Deferred Retirement Option15
Plan. A member with ten years of service credit exclusive of military service and16
who is at least age sixty may elect to participate in the plan, but all benefits payable17
at any time shall only be calculated using a two percent benefit formula. Any18
member of this system who is covered by the provisions of R.S. 11:801 who has19
thirty years of service credit and is at least age fifty-five or has ten years of service20
credit and is at least age sixty may elect to participate in the Deferred Retirement21
Option Plan.22
(2) Any member of this system whose first employment making him eligible23
for membership in one of the state retirement systems occurred on or after January24
1, 2011, and who is not covered by R.S. 11:801 and who has five years of service25
credit and is at least age sixty may elect to participate in the Deferred Retirement26
Option Plan.27
(3) Any member of this system who is covered by the provisions of R.S.28
11:801 who has thirty years of service credit and is at least age fifty-five or has ten29 HLS 11RS-449 RE-REENGROSSED
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years of service credit and is at least age sixty may elect to participate in the1
Deferred Retirement Option Plan.2
* * *3
§1002. Definitions4
As used in this Chapter, the following words and phrases shall have the5
meanings ascribed to them in this Section unless a different meaning is plainly6
required by the context:7
* * *8
(6)9
* * *10
(b) "Average compensation", for a member whose first employment making11
him eligible for membership in the system began on or after July 1, 2006, whose first12
employment making him eligible for membership in one of the state systems13
occurred on or before December 31, 2010 June 30, 2010, shall be based on the sixty14
highest successive months of employment, or on the highest sixty successive joined15
months of employment where interruption of service occurred; however, the average16
compensation amount for the thirteenth through the twenty-fourth month shall not17
exceed the actual compensation amount for the first through the twelfth month by18
more than ten percent. The amount for the twenty-fifth through the thirty-sixth19
month shall not exceed the lesser of the maximum allowable compensation amount20
or the actual compensation amount for the thirteenth through the twenty-fourth21
month by more than ten percent. The amount for the thirty-seventh through the22
forty-eighth month shall not exceed the lesser of the maximum allowable23
compensation amount or the actual compensation amount for the twenty-fifth24
through the thirty-sixth month by more than ten percent. The amount for the forty-25
ninth through the sixtieth month shall not exceed the lesser of the maximum26
allowable compensation amount or the actual compensation amount for the thirty-27 HLS 11RS-449 RE-REENGROSSED
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seventh through the forty-eighth month by more than ten percent. The limitations1
on the computation of average compensation contained in this Paragraph shall not2
apply to any twelve-month period during which compensation increased by more3
than one hundred ten percent over the previous twelve-month period solely because4
of an increase in compensation by legislative act or by a city/parish system-wide5
salary increase.6
(c) "Average compensation", for a member whose first employment making7
him eligible for membership in one of the state systems occurred on or after January8
1, 2011 July 1, 2010, shall be based on the sixty highest successive months of9
employment, or on the highest sixty successive joined months of employment where10
interruption of service occurred; however, the average compensation amount for the11
thirteenth through the twenty-fourth month shall not exceed the actual compensation12
amount for the first through the twelfth month by more than fifteen percent. The13
amount for the twenty-fifth through the thirty-sixth month shall not exceed the lesser14
of the maximum allowable compensation amount or the actual compensation amount15
for the thirteenth through the twenty-fourth month by more than fifteen percent. The16
amount for the thirty-seventh through the forty-eighth month shall not exceed the17
lesser of the maximum allowable compensation amount or the actual compensation18
amount for the twenty-fifth through the thirty-sixth month by more than fifteen19
percent. The amount for the forty-ninth through the sixtieth month shall not exceed20
the lesser of the maximum allowable compensation amount or the actual21
compensation amount for the thirty-seventh through the forty-eighth month by more22
than fifteen percent. The limitations on the computation of average compensation23
contained in this Subparagraph shall not apply to any twelve-month period during24
which compensation increased by more than one hundred fifteen percent over the25
previous twelve-month period solely because of an increase in compensation by26
legislative act or by a city/parish system-wide salary increase.27
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§1141. Retirement benefits; application; eligibility requirements; effective date;1
cancellation2
A. Any member whose first employment making him eligible for3
membership in one of the state systems occurred on or before December 31, 20104
June 30, 2010, may retire upon written application to the board of trustees, if the5
member at the time of application has attained the age of sixty years and has credit6
for ten years of accredited service or has attained the age of fifty-five years and has7
credit for twenty-five or more years of accredited service or at any age with thirty or8
more years of accredited service. Any member whose first employment making him9
eligible for membership in one of the state systems occurred on or after January 1,10
2011 July 1, 2010, may retire upon written application to the board of trustees, if the11
member at the time of application has attained the age of sixty years and has credit12
for five years of accredited service. An application for retirement shall be officially13
filed with the board when received in the office of the director. Retirement benefits14
shall become effective as of the date an application for retirement is filed in the15
office of the director or the day after the member terminates from service, whichever16
is later. A member may only cancel his application for retirement only prior to17
negotiating, cashing, or depositing any benefit check including an estimated benefit18
check.19
* * *20
C.(1)(a) Notwithstanding the provisions of Subsection A of this Section, any21
member whose first employment making him eligible for system membership22
occurred on or before June 30, 2010, shall be eligible for retirement if he has twenty23
years of service credit at any age, exclusive of military service and unused annual24
and sick leave, but any person retiring under this Subsection shall have his benefit25
inclusive of military service credit and allowable unused annual and sick leave26
actuarially reduced from the earliest age that he would normally become eligible for27 HLS 11RS-449 RE-REENGROSSED
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a regular retirement benefit pursuant to Subsection A of this Section if he had1
continued in service to that age.2
* * *3
§1144. Retirement allowance; regular, minimum, and supplemental4
* * *5
B. Minimum allowance. 6
* * *7
(4) The provisions of this Paragraph shall apply to any member whose first8
employment making him eligible for membership in one of the state systems9
occurred on or after January 1, 2011 July 1, 2010. The minimum allowance for such10
members shall be no less than an amount which provides a total allowance equal to11
two and one-half percent multiplied by the total years of accredited service and12
multiplied by the average compensation for such person as provided in R.S.13
11:1002(6)(c).14
* * *15
§1147. Disability retirement16
* * *17
C.18
* * *19
(2)(a)20
* * *21
(ii) A disability retiree whose membership in the system began on or after22
July 1, 2006, but on or before June 30, 2010, who is not eligible to receive a regular23
service retirement allowance and who has at least ten years of creditable service,24
shall receive a disability retirement allowance equal to three percent of his average25
compensation multiplied by his years of creditable service.26
(iii) A disability retiree whose first employment making him eligible for27
membership in one of the state systems occurred on or after January 1, 2011 July 1,28 HLS 11RS-449 RE-REENGROSSED
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2010, shall receive a maximum disability retirement benefit which shall be1
equivalent to the regular retirement formula without reduction by reason of age.2
(b)(i) If a disability retiree whose eligibility for membership in one of the3
state systems occurred on or before December 31, 2010 June 30, 2010, dies and4
leaves a surviving spouse who had been married to the deceased disability retiree for5
at least two years prior to the death of the disability retiree, the surviving spouse6
shall receive a survivor's benefit equal to seventy-five percent of the benefit being7
received by the disability retiree at his death. Benefits shall cease upon remarriage.8
(ii) For disability retirees whose first employment making him eligible for9
membership in one of the state systems occurred on or after January 1, 2011 July 1,10
2010, selection of a retirement option shall be made when application for disability11
is filed. If the disability retiree dies, the option selected upon disability retirement12
shall be applied to his disability retirement benefit.13
* * *14
§1151. Survivor benefits; members hired on or before December 31, 2010 June 30,15
201016
A. This Section shall apply to members whose first employment making17
them eligible for membership in one of the state systems occurred on or before18
December 31, 2010 June 30, 2010. Survivor's benefits are payable upon application19
therefor and become effective as of the day following the death of the member.20
* * *21
§1151.1. Survivors' benefits; members hired on or after January 1, 2011 July 1,22
201023
A. Survivor benefits shall be due and payable by the system effective the24
first day of the next month following the death of a member whose first employment25
making him eligible for membership in one of the state systems occurred on or after26
January 1, 2011 July 1, 2010, but shall not be paid until a properly completed and 27 HLS 11RS-449 RE-REENGROSSED
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acceptable application is received by the system and all proper certifications have1
been received by the system.2
* * *3
C.(1) In addition to the amount payable in accordance with Subsection B of4
this Section, for the benefit of the surviving minor or handicapped child, or mentally5
disabled child, or children, there shall be paid for each such child, subject to a6
maximum of two children, per month fifty percent of the benefit to which a spouse7
would be entitled under Subsection B of this Section. Benefits shall be payable to8
such children even if no spouse eligible for survivor benefits is present, provided the9
member had at least five years of service credit. Benefits for a child shall cease10
when the child is no longer a minor child as defined by this Chapter. No surviving11
minor child shall receive more than one survivor's benefit at any one time. If two12
benefits are applicable, only the larger shall be paid.13
(2)(a) In addition to the amount payable in accordance with Subsection B of14
this Section, the surviving totally physically handicapped or mentally disabled child15
or children of a deceased member, whether under or over the age of eighteen years,16
shall be entitled to the same benefits, payable in the same manner, as are provided17
by this Section for minor children, if the child was totally physically handicapped or18
mentally disabled at the time of the death of the member and is dependent upon the19
surviving spouse or other legal guardian.20
(b) The surviving spouse or legal guardian shall provide adequate proof of21
handicap or mental disability of such surviving child or children and shall notify the22
board of any subsequent changes in the child's condition which cause the child to no23
longer be dependent upon the surviving spouse or legal guardian and any changes24
in the assistance being received from other state agencies. The board may require25
a certified statement of the child's eligibility status at the end of each calendar year.26
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§1152. Deferred Retirement Option Plan1
A. In lieu of terminating employment and accepting a service retirement2
allowance pursuant to this Part, any member who has ten or more years of creditable3
service at sixty years of age, twenty-five or more years of creditable service at fifty-4
five years of age, or thirty or more years of creditable service at any age is eligible5
for regular retirement may elect to participate in the Deferred Retirement Option6
Plan and defer the receipt of benefits in accordance with the provisions of this7
Section.8
* * *9
§1323. Death of employee not in performance of duty; employees hired on or after10
January 1, 201111
* * *12
C.(1) In addition to the amount payable in accordance with Subsection B of13
this Section, for the benefit of the surviving minor or handicapped child, or mentally14
disabled child, or children, there shall be paid for each such child, subject to a15
maximum of two children, per month fifty percent of the benefit to which a spouse16
would be entitled under Subsection B of this Section. Benefits shall be payable to17
such children even if no spouse eligible for survivor benefits is present, provided the18
member had at least five years of service credit. Benefits for a child shall cease19
when the child is no longer a minor child as defined by this Chapter. No surviving20
minor child shall receive more than one survivor's benefit at any one time. If two21
benefits are applicable, only the larger shall be paid.22
(2)(a) In addition to the amount payable in accordance with Subsection B of23
this Section, the surviving totally physically handicapped or mentally disabled child24
or children of a deceased member, whether under or over the age of eighteen years,25
shall be entitled to the same benefits, payable in the same manner, as are provided26
by this Section for minor children, if the child was totally physically handicapped or27
mentally disabled at the time of the death of the member and is dependent upon the28
surviving spouse or other legal guardian.29 HLS 11RS-449 RE-REENGROSSED
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(b) The applicant shall provide adequate proof of handicap or mental1
disability of such surviving child or children and shall notify the board of any2
subsequent changes in the child's condition to such an extent that the child is no3
longer dependent upon the surviving spouse or legal guardian and any changes in the4
assistance being received from other state agencies. The board may require a5
certified statement of the child's eligibility status at the end of each calendar year.6
* * *7
§1345.9. Survivors' benefits for death other than in the line of duty8
The surviving spouse or children of any active member whose death occurs9
other than in the performance of his duties shall have the same pension rights as10
provided in R.S. 11:1320 1323.11
Section 2. The cost of this Act, if any, shall be funded with additional employer12
contributions in compliance with Article X, Section 29(F) of the Constitution of Louisiana.13
Section 3. This Act shall become effective on July 1, 2011; if vetoed by the governor14
and subsequently approved by the legislature, this Act shall become effective on July 1,15
2011, or on the day following such approval by the legislature, whichever is later.16
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
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. HLS 11RS-449 RE-REENGROSSED
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(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
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. HLS 11RS-449 RE-REENGROSSED
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(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.
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. HLS 11RS-449 RE-REENGROSSED
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(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.
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. HLS 11RS-449 RE-REENGROSSED
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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;
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 HLS 11RS-449 RE-REENGROSSED
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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), 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. 11:618(D))
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.
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.
Committee Amendments Proposed by House Committee on Appropriations to the
engrossed bill.
1. Deleted proposed law adding additional employees in the office of state fire
marshal who are required to be Firefighter I or First Responder to members of
the Hazardous Duty Service Plan (HDSP).
2. Deleted proposed law providing 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.