ENROLLED Page 1 of 19 CODING: Words in struck through type are deletions from existing law; words underscored are additions. ACT No. 368 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. AN ACT1 To amend and reenact R.S. 11:62(4), 203(B)(1), 450(D)(3) and (4), 471.1(C), 613, 614, 616,2 620(A), (B), (C), and (D), 621(B) and (C)(1), 783(A)(3)(a), 786(A), 789(D)(3) and3 (4), 1002(6)(b) and (c), 1141(A) and (C)(1)(a), 1144(B)(4), 1147(C)(2)(a)(ii) and4 (iii) and (b), 1151(A), 1151.1(A) and (C), 1152(A), 1323(C), and 1345.9 and to enact5 R.S. 11:618(D), relative to the Louisiana State Employees' Retirement System, the6 Teachers' Retirement System of Louisiana, the Louisiana School Employees'7 Retirement System, and the State Police Pension and Retirement System; to make8 certain technical, remedial, and substantive changes to provisions of the law affected9 by Act No. 992 of the 2010 Regular Session of the Legislature and other provisions10 of law to conform with such Act; to provide with respect to benefits, survivors'11 benefits, disability benefits, membership, retirement eligibility, Deferred Retirement12 Option Plan participation, retirement options, transfers, and the Hazardous Duty13 Services Plan; to provide an 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 Be it enacted by the Legislature of Louisiana:18 Section 1. R.S. 11:62(4), 203(B)(1), 450(D)(3) and (4), 471.1(C), 613, 614, 616,19 620(A), (B), (C), and (D), 621(B) and (C)(1), 783(A)(3)(a), 786(A), 789(D)(3) and (4),20 1002(6)(b) and (c), 1141(A) and (C)(1)(a), 1144(B)(4), 1147(C)(2)(a)(ii) and (iii) and (b),21 ENROLLEDHB NO. 571 Page 2 of 19 CODING: Words in struck through type are deletions from existing law; words underscored are additions. 1151(A), 1151.1(A) and (C), 1152(A), 1323(C), and 1345.9 are hereby amended and1 reenacted and R.S. 11:618(D) is hereby enacted to read as follows: 2 §62. Employee contribution rates established3 Employee contributions to state and statewide public retirement systems shall4 be paid at the following rates, except as otherwise provided by law:5 * * *6 (4) Louisiana School Employees' Retirement System:7 (a) Employees whose first employment making them eligible for8 membership in one of the state systems occurred on or before December 31, 20109 June 30, 2010 - 7.5%.10 (b) Employees whose first employment making them eligible for11 membership in one of the state systems occurred on or after January 1, 2011 July 1,12 2010 - 8%.13 * * *14 §203. Teachers' Retirement System15 * * *16 B.(1) A person whose first employment making him eligible for membership17 in one of the state systems occurred on or before December 31, 2010, applying for18 a disability benefit shall have five years of actual credited service in order to qualify19 for a disability benefit. Such member shall not use credit earned while receiving20 workers' compensation in order to meet the minimum five-year eligibility21 requirement.22 * * *23 §450. Termination of participation24 * * *25 D. Monthly retirement benefits payable to a participant after termination of26 participation in the plan and employment shall be calculated as follows:27 * * *28 (3)(a) If Except as provided in Subparagraph (b) of this Paragraph, if the29 participant continues employment after termination of participation in the plan for30 ENROLLEDHB NO. 571 Page 3 of 19 CODING: Words in struck through type are deletions from existing law; words underscored are additions. a period of less than thirty-six months, his monthly retirement benefit shall equal his1 base benefit plus a supplemental benefit based upon the service credit for the2 additional employment, based upon the final average compensation used to calculate3 the monthly credit. If the employment is for less than three months, then the service4 credit shall be rounded to the nearest tenth.5 (b) For a participant whose final average compensation period is more than6 thirty-six months, if the participant continues employment after termination of7 participation in the plan for a period of less than his final average compensation8 period, his monthly retirement benefit shall equal his base benefit plus a9 supplemental benefit based upon the service credit for the additional employment,10 based upon the final average compensation used to calculate the monthly credit. If11 the employment is for less than three months, then the service credit shall be rounded12 to the nearest tenth.13 (4)(a) If Except as provided in Subparagraph (b) of this Paragraph, if the14 participant continues employment after termination of participation in the plan for15 a period of thirty-six months or more, his monthly retirement benefit shall equal his16 base benefit plus a supplemental benefit based upon the service credit for the17 additional employment, based upon the final average compensation for the period of18 employment after termination of participation in the plan.19 (b) For a participant whose final average compensation period is more than20 thirty-six months, if the participant continues employment after termination of21 participation in the plan for a period equal to or longer than his final average22 compensation period, his monthly retirement benefit shall equal his base benefit plus23 a supplemental benefit based upon the service credit for the additional employment,24 based upon the final average compensation for the period of employment after25 termination of participation in the plan.26 * * *27 §471.1. Survivors' benefits; members hired on or after January 1, 201128 * * *29 ENROLLEDHB NO. 571 Page 4 of 19 CODING: Words in struck through type are deletions from existing law; words underscored are additions. 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 B. Notwithstanding the provisions of Subsection A of this Section, no person29 who participated in the Deferred Retirement Option Plan as a member of any other30 ENROLLEDHB NO. 571 Page 5 of 19 CODING: Words in struck through type are deletions from existing law; words underscored are additions. retirement plan in this system or who retired under the provisions of any other1 retirement plan in this system who is reemployed under Option 1 or Option 3 as2 provided in R.S. 11:416 shall be eligible for membership in the Hazardous Duty3 Services Plan.4 §614. Eligibility for retirement5 A. Any member of this plan shall be eligible for retirement if he has:6 (1) Twenty-five years or more of service, at any age.7 (2) Twelve years or more of service, at age fifty-five or thereafter.8 (3) Twenty years of service credit at any age, exclusive of military service9 and unused annual and sick leave, but any person retiring under this Paragraph shall10 have his benefit, inclusive of military service credit and allowable unused annual and11 sick leave, actuarially reduced. Any member retiring under this Paragraph who is12 in state service at the time of his retirement shall have his benefit actuarially reduced13 from the earliest age that he would normally become eligible for a regular retirement14 benefit under Paragraph (1) or (2) of this Section Subsection if he had continued in15 service to that age. Any member retiring under this Paragraph who is out of state16 service at the time of his retirement shall have his benefit actuarially reduced from17 the earliest age that he would normally become eligible for a regular retirement18 benefit under Paragraph (1) or (2) of this Section Subsection based upon his years19 of service as of the date of retirement. Any employee who elects to retire under the20 provisions of this Paragraph shall not be eligible to participate in the Deferred21 Retirement Option Plan provided by R.S. 11:447 or the Initial Benefit Option22 provided by R.S. 11:446(A)(5).23 B.(1) Notwithstanding the provisions of R.S. 11:441(A)(2)(b) or any other24 provision of law to the contrary, any member of this plan who is not eligible for25 retirement under Subsection A of this Section may elect to retire under the provisions26 of R.S. 11:441(A)(2)(b)(i) with five years or more of service credit at age sixty or27 thereafter.28 ENROLLEDHB NO. 571 Page 6 of 19 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (2)(a) The retirement benefit and survivor benefit provisions of this Subpart,1 including but not limited to R.S. 11:615 and 621, shall not apply to any member of2 this plan who elects to retire under the provisions of R.S. 11:441(A)(2)(b)(i).3 (b) Any member of this plan who elects to retire under the provisions of R.S.4 11:441(A)(2)(b)(i) shall receive a retirement benefit equal to two and one-half5 percent of his average compensation for every year of creditable service.6 (c) Retirement benefits for any member of this plan who elects to retire7 under the provisions of R.S. 11:441(A)(2)(b)(i) shall be paid in accordance with R.S.8 11:446.9 * * *10 §616. Deferred Retirement Option Plan; Initial Benefit Option; Annual Cost-of-11 Living Adjustment Option12 A. A member who is eligible for regular retirement may elect to participate13 in the Deferred Retirement Option Plan in accordance with the provisions of R.S.14 11:447 through 454, or the Initial Benefit Option provided by R.S. 11:446(A)(5).15 B. Any member of this plan may elect to participate in the Annual16 Cost-of-Living Adjustment Option provided by R.S. 11:446(A)(6).17 * * *18 §618. Survivors' benefits for members killed in the line of duty19 * * *20 D. The provisions of this Section shall not apply to any member of this plan21 who:22 (1) Has participated in the Deferred Retirement Option Plan; or23 (2) Is a retiree of the system who is reemployed under Option 1 or Option24 3 as provided in R.S. 11:416.25 * * *26 §620. Transfer of other service credit27 A. Any member of this system or of another state or statewide system, who28 would otherwise be eligible for benefits under the plan except that his first29 employment making him eligible for membership in any state system occurred on30 ENROLLEDHB NO. 571 Page 7 of 19 CODING: Words in struck through type are deletions from existing law; words underscored are additions. or before December 31, 2010, and who has not participated in the Deferred1 Retirement Option Plan in the system of which he is a member and who is not a2 reemployed retiree of his system or a retiree of this system reemployed under Option3 1 or Option 3 as provided in R.S. 11:416, shall have the right to irrevocably elect to4 become a member of the plan by submitting an application to the board of trustees5 to be effective on or after January 1, 2011.6 B. Any member who elects to join the Hazardous Duty Services Plan from7 an existing system or plan shall have the option of:8 (1)(a) Maintaining prior service credit in the existing system or plan pursuant9 to the provisions of that system or plan and accruing service credit and benefits in10 the Hazardous Duty Services Plan after the date he joins the plan.11 (b) For any member who joins the Hazardous Duty Services Plan after the12 effective date of this Subparagraph, if such member elects to maintain prior service13 credit in his existing system or plan and that election results in an actuarial cost to14 this system, then the member shall pay the system the amount of such actuarial cost15 prior to his retirement.16 (2)(a) An internal actuarial transfer from plan to plan in accordance with the17 provisions of R.S. 11:143(C) and (D) in which this system is both the transferring18 and receiving system in which the member transfers all of his service credit from19 each other system or plan in this system and maintains prior service credit at the20 accrual rate at which it was earned in the existing system or plan prior to joining the21 Hazardous Duty Services Plan. In the event that the amount of funds transferred is22 less than the actuarial cost of the service transferred to the plan, the member23 transferring, except as otherwise provided in this Section, shall pay the deficit or24 difference including the interest thereon at the board-approved actuarial valuation25 rate of the system.26 (b) In lieu of paying the deficit or difference plus interest, the member may27 at his option, but only at the time of transfer, be granted an amount of credit in the28 plan which is based on the amount of funds actually transferred plus any additional29 funds less than the deficit paid by the member.30 ENROLLEDHB NO. 571 Page 8 of 19 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (c) Except as otherwise provided in Subparagraph (d) of this Subsection1 Paragraph, a member who completes a transfer under the provisions of this Section2 shall have his retirement benefit calculated using the accrual rate of the system or3 plan from which he transferred based on the number of years transferred.4 (d) A member choosing an internal actuarial transfer shall be eligible to5 upgrade any the service credit that was actuarially transferred pursuant to this6 Subsection to the accrual rate of the Hazardous Duty Services Plan by paying an7 amount that totally offsets the increase in actuarial liability resulting from the8 upgrade in accordance with R.S. 11:158.9 C.(1) An employee who is a contributing member of any other plan in this10 or another state or statewide system who would otherwise be required to become a11 member of this plan as a condition of employment in a position which would12 otherwise qualify him for such membership on or after January 1, 2011, may elect13 at the time of his employment in such position to remain a contributing member of14 the last plan in this system of which he was a member or of such other system for15 which he remains eligible for membership.16 (2) For an employee who elects to remain a member of a plan in this system,17 applicable to members employed in hazardous duty positions, which plan was in18 existence on or before December 31, 2010, service credit earned on or after January19 1, 2011, in one of the hazardous duty positions defined in R.S. 11:612(2) shall be20 deemed as service credit earned in a position covered by such plan.21 D. A member whose first employment making him eligible for membership22 in a state retirement system occurred on or before December 31, 2010, who elects to23 transfer to join this plan shall thereafter for purposes of all state retirement systems24 be treated as an employee whose first eligibility for membership occurred on or after25 January 1, 2011.26 * * *27 §621. Survivors' benefits for former or retired members28 * * *29 ENROLLEDHB NO. 571 Page 9 of 19 CODING: Words in struck through type are deletions from existing law; words underscored are additions. B. The surviving spouse of a deceased retired member or Deferred1 Retirement Option Plan participant shall receive a benefit in an amount equal to2 seventy-five percent of the monthly retirement benefit that was being paid to the3 decedent on the date of death.4 C.(1) If there is no surviving spouse eligible to receive benefits pursuant to5 Subsection A or B of this Section, the minor children of the decedent shall be entitled6 to benefits as provided in R.S. 11:471.1.7 * * *8 §783. Selection of option for method of payment after death of member9 A.10 * * *11 (3) Initial Lump-Sum Benefit. (a) If a member has not participated in the12 Deferred Retirement Option Plan provided by the provisions of this Chapter and, he13 shall be eligible to select an initial lump-sum benefit. The initial lump-sum benefit14 shall be available to any member of the system whose first employment making him15 eligible for membership in one of the state retirement systems occurred on or before16 December 31, 2010, and who has thirty years of creditable service, or is age fifty-17 five and has twenty-five years of creditable service, or is age sixty and has ten years18 of creditable service, and. Any member of the system whose first employment19 making him eligible for membership in one of the state retirement systems occurred20 on or after January 1, 2011, may select the initial lump-sum benefit if he is age sixty21 and has five years of service. if If the maximum benefit, Option 2, 2A, 3, 3A, 4, or22 4A above is chosen, then the member may further elect to receive a reduced23 retirement allowance plus an initial benefit. The creditable service referenced in this24 Paragraph shall not include unused accumulated sick leave and unused accumulated25 annual leave.26 * * *27 §786. Deferred Retirement Option Plan28 A.(1) In lieu of terminating employment and accepting a retirement29 allowance, any member of this system whose first employment making him eligible30 ENROLLEDHB NO. 571 Page 10 of 19 CODING: Words in struck through type are deletions from existing law; words underscored are additions. for membership in one of the state retirement systems occurred on or before1 December 31, 2010, and who is not covered by R.S. 11:801 and who has thirty years2 of service credit at any age, twenty-f ive years of service credit and is at least age3 fifty-five, or has twenty years of service credit exclusive of military service and is4 at least age sixty-five may elect to participate in the Deferred Retirement Option5 Plan. A member with ten years of service credit exclusive of military service and6 who is at least age sixty may elect to participate in the plan, but all benefits payable7 at any time shall only be calculated using a two percent benefit formula. Any8 member of this system who is covered by the provisions of R.S. 11:801 who has9 thirty years of service credit and is at least age fifty-five or has ten years of service10 credit and is at least age sixty may elect to participate in the Deferred Retirement11 Option Plan.12 (2) Any member of this system whose first employment making him eligible13 for membership in one of the state retirement systems occurred on or after January14 1, 2011, and who is not covered by R.S. 11:801 and who has five years of service15 credit and is at least age sixty may elect to participate in the Deferred Retirement16 Option Plan.17 (3) Any member of this system who is covered by the provisions of R.S.18 11:801 who has thirty years of service credit and is at least age fifty-five or has ten19 years of service credit and is at least age sixty may elect to participate in the20 Deferred Retirement Option Plan.21 * * *22 §789. Termination of participation23 * * *24 D. Monthly retirement benefits payable to a participant after termination of25 participation in the plan and employment shall be calculated as follows:26 * * *27 (3)(a) Except as provided in Subparagraph (b) of this Paragraph, if If the28 participant continues employment after termination of participation in the plan for29 a period of less than thirty-six months, his monthly retirement benefit shall equal his30 ENROLLEDHB NO. 571 Page 11 of 19 CODING: Words in struck through type are deletions from existing law; words underscored are additions. base benefit plus an amount based upon the service credit for the additional1 employment, together with conversion of the net amount of sick and annual leave2 accumulated during that period of employment, based upon the average3 compensation used to calculate the monthly credit.4 (b) For a participant whose average compensation period is more than thirty-5 six months, if the participant continues employment after termination of participation6 in the plan for a period of less than his average compensation period, his monthly7 retirement benefit shall equal his base benefit plus an amount based upon the service8 credit for the additional employment, together with conversion of the net amount of9 sick and annual leave accumulated during that period of employment, based upon the10 average compensation used to calculate the monthly credit.11 (4)(a) If Except as provided in Subparagraph (b) of this Paragraph, if the12 participant continues employment after termination of participation in the plan for13 a period of thirty-six months or more, his monthly retirement benefit shall equal his14 base benefit plus an amount based upon the service credit for the additional15 employment, together with conversion of the net amount of sick and annual leave16 accumulated during that period of employment, based upon the average17 compensation for the period of employment after termination of participation in the18 plan.19 (b) For a participant whose average compensation period is more than thirty-20 six months, if the participant continues employment after termination of participation21 in the plan for a period equal to or longer than his average compensation period, his22 monthly retirement benefit shall equal his base benefit plus an amount based upon23 the service credit for the additional employment, together with conversion of the net24 amount of sick and annual leave accumulated during that period of employment,25 based upon the average compensation for the period of employment after termination26 of participation in the plan.27 * * *28 ENROLLEDHB NO. 571 Page 12 of 19 CODING: Words in struck through type are deletions from existing law; words underscored are additions. §1002. Definitions1 As used in this Chapter, the following words and phrases shall have the2 meanings ascribed to them in this Section unless a different meaning is plainly3 required by the context:4 * * *5 (6)6 * * *7 (b) "Average compensation", for a member whose first employment making8 him eligible for membership in the system began on or after July 1, 2006, whose first9 employment making him eligible for membership in one of the state systems10 occurred on or before December 31, 2010 June 30, 2010, shall be based on the sixty11 highest successive months of employment, or on the highest sixty successive joined12 months of employment where interruption of service occurred; however, the average13 compensation amount for the thirteenth through the twenty-fourth month shall not14 exceed the actual compensation amount for the first through the twelfth month by15 more than ten percent. The amount for the twenty-fifth through the thirty-sixth16 month shall not exceed the lesser of the maximum allowable compensation amount17 or the actual compensation amount for the thirteenth through the twenty-fourth18 month by more than ten percent. The amount for the thirty-seventh through the19 forty-eighth month shall not exceed the lesser of the maximum allowable20 compensation amount or the actual compensation amount for the twenty-fifth21 through the thirty-sixth month by more than ten percent. The amount for the forty-22 ninth through the sixtieth month shall not exceed the lesser of the maximum23 allowable compensation amount or the actual compensation amount for the thirty-24 seventh through the forty-eighth month by more than ten percent. The limitations25 on the computation of average compensation contained in this Paragraph shall not26 apply to any twelve-month period during which compensation increased by more27 than one hundred ten percent over the previous twelve-month period solely because28 of an increase in compensation by legislative act or by a city/parish system-wide29 salary increase.30 ENROLLEDHB NO. 571 Page 13 of 19 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (c) "Average compensation", for a member whose first employment making1 him eligible for membership in one of the state systems occurred on or after January2 1, 2011 July 1, 2010, shall be based on the sixty highest successive months of3 employment, or on the highest sixty successive joined months of employment where4 interruption of service occurred; however, the average compensation amount for the5 thirteenth through the twenty-fourth month shall not exceed the actual compensation6 amount for the first through the twelfth month by more than fifteen percent. The7 amount for the twenty-fifth through the thirty-sixth month shall not exceed the lesser8 of the maximum allowable compensation amount or the actual compensation amount9 for the thirteenth through the twenty-fourth month by more than fifteen percent. The10 amount for the thirty-seventh through the forty-eighth month shall not exceed the11 lesser of the maximum allowable compensation amount or the actual compensation12 amount for the twenty-fifth through the thirty-sixth month by more than fifteen13 percent. The amount for the forty-ninth through the sixtieth month shall not exceed14 the lesser of the maximum allowable compensation amount or the actual15 compensation amount for the thirty-seventh through the forty-eighth month by more16 than fifteen percent. The limitations on the computation of average compensation17 contained in this Subparagraph shall not apply to any twelve-month period during18 which compensation increased by more than one hundred fifteen percent over the19 previous twelve-month period solely because of an increase in compensation by20 legislative act or by a city/parish system-wide salary increase.21 * * *22 §1141. Retirement benefits; application; eligibility requirements; effective date;23 cancellation24 A. Any member whose first employment making him eligible for25 membership in one of the state systems occurred on or before December 31, 201026 June 30, 2010, may retire upon written application to the board of trustees, if the27 member at the time of application has attained the age of sixty years and has credit28 for ten years of accredited service or has attained the age of fifty-five years and has29 credit for twenty-five or more years of accredited service or at any age with thirty or30 ENROLLEDHB NO. 571 Page 14 of 19 CODING: Words in struck through type are deletions from existing law; words underscored are additions. more years of accredited service. Any member whose first employment making him1 eligible for membership in one of the state systems occurred on or after January 1,2 2011 July 1, 2010, may retire upon written application to the board of trustees, if the3 member at the time of application has attained the age of sixty years and has credit4 for five years of accredited service. An application for retirement shall be officially5 filed with the board when received in the office of the director. Retirement benefits6 shall become effective as of the date an application for retirement is filed in the7 office of the director or the day after the member terminates from service, whichever8 is later. A member may only cancel his application for retirement only prior to9 negotiating, cashing, or depositing any benefit check including an estimated benefit10 check.11 * * *12 C.(1)(a) Notwithstanding the provisions of Subsection A of this Section, any13 member whose first employment making him eligible for system membership14 occurred on or before June 30, 2010, shall be eligible for retirement if he has twenty15 years of service credit at any age, exclusive of military service and unused annual16 and sick leave, but any person retiring under this Subsection shall have his benefit17 inclusive of military service credit and allowable unused annual and sick leave18 actuarially reduced from the earliest age that he would normally become eligible for19 a regular retirement benefit pursuant to Subsection A of this Section if he had20 continued in service to that age.21 * * *22 §1144. Retirement allowance; regular, minimum, and supplemental23 * * *24 B. Minimum allowance. 25 * * *26 (4) The provisions of this Paragraph shall apply to any member whose first27 employment making him eligible for membership in one of the state systems28 occurred on or after January 1, 2011 July 1, 2010. The minimum allowance for such29 members shall be no less than an amount which provides a total allowance equal to30 ENROLLEDHB NO. 571 Page 15 of 19 CODING: Words in struck through type are deletions from existing law; words underscored are additions. two and one-half percent multiplied by the total years of accredited service and1 multiplied by the average compensation for such person as provided in R.S.2 11:1002(6)(c).3 * * *4 §1147. Disability retirement5 * * *6 C.7 * * *8 (2)(a)9 * * *10 (ii) A disability retiree whose membership in the system began on or after11 July 1, 2006, but on or before June 30, 2010, who is not eligible to receive a regular12 service retirement allowance and who has at least ten years of creditable service,13 shall receive a disability retirement allowance equal to three percent of his average14 compensation multiplied by his years of creditable service.15 (iii) A disability retiree 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, shall receive a maximum disability retirement benefit which shall be18 equivalent to the regular retirement formula without reduction by reason of age.19 (b)(i) If a disability retiree whose eligibility for membership in one of the20 state systems occurred on or before December 31, 2010 June 30, 2010, dies and21 leaves a surviving spouse who had been married to the deceased disability retiree for22 at least two years prior to the death of the disability retiree, the surviving spouse23 shall receive a survivor's benefit equal to seventy-five percent of the benefit being24 received by the disability retiree at his death. Benefits shall cease upon remarriage.25 (ii) For disability retirees whose first employment making him eligible for26 membership in one of the state systems occurred on or after January 1, 2011 July 1,27 2010, selection of a retirement option shall be made when application for disability28 ENROLLEDHB NO. 571 Page 16 of 19 CODING: Words in struck through type are deletions from existing law; words underscored are additions. is filed. If the disability retiree dies, the option selected upon disability retirement1 shall be applied to his disability retirement benefit.2 * * *3 §1151. Survivor benefits; members hired on or before December 31, 2010 June 30,4 20105 A. This Section shall apply to members whose first employment making6 them eligible for membership in one of the state systems occurred on or before7 December 31, 2010 June 30, 2010. Survivor's benefits are payable upon application8 therefor and become effective as of the day following the death of the member.9 * * *10 §1151.1. Survivors' benefits; members hired on or after January 1, 2011 July 1,11 201012 A. Survivor benefits shall be due and payable by the system effective the13 first day of the next month following the death of a member whose first employment14 making him eligible for membership in one of the state systems occurred on or after15 January 1, 2011 July 1, 2010, but shall not be paid until a properly completed and16 acceptable application is received by the system and all proper certifications have17 been received by the system.18 * * *19 C.(1) In addition to the amount payable in accordance with Subsection B of20 this Section, for the benefit of the surviving minor or handicapped child, or mentally21 disabled child, or children, there shall be paid for each such child, subject to a22 maximum of two children, per month fifty percent of the benefit to which a spouse23 would be entitled under Subsection B of this Section. Benefits shall be payable to24 such children even if no spouse eligible for survivor benefits is present, provided the25 member had at least five years of service credit. Benefits for a child shall cease26 when the child is no longer a minor child as defined by this Chapter. No surviving27 minor child shall receive more than one survivor's benefit at any one time. If two28 benefits are applicable, only the larger shall be paid.29 ENROLLEDHB NO. 571 Page 17 of 19 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (2)(a) In addition to the amount payable in accordance with Subsection B of1 this Section, the surviving totally physically handicapped or mentally disabled child2 or children of a deceased member, whether under or over the age of eighteen years,3 shall be entitled to the same benefits, payable in the same manner, as are provided4 by this Section for minor children, if the child was totally physically handicapped or5 mentally disabled at the time of the death of the member and is dependent upon the6 surviving spouse or other legal guardian.7 (b) The surviving spouse or legal guardian shall provide adequate proof of8 handicap or mental disability of such surviving child or children and shall notify the9 board of any subsequent changes in the child's condition which cause the child to no10 longer be dependent upon the surviving spouse or legal guardian and any changes11 in the assistance being received from other state agencies. The board may require12 a certified statement of the child's eligibility status at the end of each calendar year.13 * * *14 §1152. Deferred Retirement Option Plan15 A. In lieu of terminating employment and accepting a service retirement16 allowance pursuant to this Part, any member who has ten or more years of creditable17 service at sixty years of age, twenty-five or more years of creditable service at fifty-18 five years of age, or thirty or more years of creditable service at any age is eligible19 for regular retirement may elect to participate in the Deferred Retirement Option20 Plan and defer the receipt of benefits in accordance with the provisions of this21 Section.22 * * *23 §1323. Death of employee not in performance of duty; employees hired on or after24 January 1, 201125 * * *26 C.(1) In addition to the amount payable in accordance with Subsection B of27 this Section, for the benefit of the surviving minor or handicapped child, or mentally28 disabled child, or children, there shall be paid for each such child, subject to a29 maximum of two children, per month fifty percent of the benefit to which a spouse30 ENROLLEDHB NO. 571 Page 18 of 19 CODING: Words in struck through type are deletions from existing law; words underscored are additions. would be entitled under Subsection B of this Section. Benefits shall be payable to1 such children even if no spouse eligible for survivor benefits is present, provided the2 member had at least five years of service credit. Benefits for a child shall cease3 when the child is no longer a minor child as defined by this Chapter. No surviving4 minor child shall receive more than one survivor's benefit at any one time. If two5 benefits are applicable, only the larger shall be paid.6 (2)(a) In addition to the amount payable in accordance with Subsection B of7 this Section, the surviving totally physically handicapped or mentally disabled child8 or children of a deceased member, whether under or over the age of eighteen years,9 shall be entitled to the same benefits, payable in the same manner, as are provided10 by this Section for minor children, if the child was totally physically handicapped or11 mentally disabled at the time of the death of the member and is dependent upon the12 surviving spouse or other legal guardian.13 (b) The applicant shall provide adequate proof of handicap or mental14 disability of such surviving child or children and shall notify the board of any15 subsequent changes in the child's condition to such an extent that the child is no16 longer dependent upon the surviving spouse or legal guardian and any changes in the17 assistance being received from other state agencies. The board may require a18 certified statement of the child's eligibility status at the end of each calendar year.19 * * *20 §1345.9. Survivors' benefits for death other than in the line of duty21 The surviving spouse or children of any active member whose death occurs22 other than in the performance of his duties shall have the same pension rights as23 provided in R.S. 11:1320 1323.24 Section 2. The cost of this Act, if any, shall be funded with additional employer25 contributions in compliance with Article X, Section 29(F) of the Constitution of Louisiana.26 ENROLLEDHB NO. 571 Page 19 of 19 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Section 3. This Act shall become effective on July 1, 2011; if vetoed by the governor1 and subsequently approved by the legislature, this Act shall become effective on July 1,2 2011, or on the day following such approval by the legislature, whichever is later.3 SPEAKER OF THE HOUSE OF REPRESENTATI VES PRESIDENT OF THE SENATE GOVERNOR OF THE STATE OF LOUISIANA APPROVED: