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Regular Session, 2011
SENATE BILL NO. 3
BY SENATOR GAUTREAUX
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
SHERIFFS PEN/RELIEF FUND. Provides for calculation of benefits and retirement
eligibility requirements. (7/1/11)
AN ACT1
To amend and reenact R.S. 11: 2174.2 and 2178(B)(1)(b), (C), and (I)(1), relative to the2
Sheriffs' Pension and Relief Fund; to provide for changes to the existing defined3
benefit plan; to provide for calculation of benefits and retirement eligibility4
requirements for persons whose system membership begins after a certain date; to5
provide for an effective date; and to provide for related matters.6
Notice of intention to introduce this Act has been published.7
Be it enacted by the Legislature of Louisiana:8
Section 1. R.S. 11:2174.2 and 2178 (B)(1)(b), (C), and (I)(1) are hereby amended9
and reenacted to read as follows: 10
§2174.2. Transfer of service credit; upgrade purchase of accrual rate11
Notwithstanding any other provision of law to the contrary, and specifically12
the provisions of R.S. 11:143, any Any member who has service credit in another13
Louisiana public retirement system can may elect to transfer all such service credit14
to this fund. The Notwithstanding any other provision of law to the contrary,15
including the provisions of R.S. 11:143(D)(4), the member can may elect to have16
purchase the accrual rate in effect for of this fund at the time of the transfer apply17 SB NO. 3
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applicable to the member on the date of such purchase for the purpose of1
applying the fund's accrual rate to such other service credit by paying the amount2
established in accordance with R.S. 11:158(C). If, after such purchase, the3
member attains eligibility for an accrual rate higher than the rate previously4
purchased, the member may elect to execute an additional purchase for the5
purpose of applying the higher rate to the transferred service credit by paying6
the amount established in accordance with R.S. 11:158(C).7
* * *8
§2178. Disability benefits; retirement benefits; death benefits9
* * *10
B. The board of trustees shall award disability benefits to eligible members11
who have been officially certified as disabled by the State Medical Disability Board.12
The disability benefit shall be as follows:13
(1) (a) * * *14
(b)(i) For the purpose of this Subsection, for any member whose first15
employment making him eligible for membership in the system began prior to16
July 1, 2006, final average compensation is defined as the member's average salary17
for the thirty-six highest successive months of employment, or the highest thirty-six18
successive joined months of employment where interruption of service occurred. If19
the member has been employed for a period of less than thirty-six months, final20
average compensation shall be based on the average monthly salary received for the21
time employed.22
(ii) For the purpose of this Subsection, for any member whose first23
employment making him eligible for membership in the system began on or24
after July 1, 2006, final average compensation is defined as the member's25
average salary for the sixty highest successive months of employment, or the26
highest sixty successive joined months of employment where interruption of27
service occurred. If the member has been employed for a period of less than28
sixty months, final average compensation shall be based on the average monthly29 SB NO. 3
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salary received for the time employed.1
(iii) Upon approval for disability benefits, the member shall exercise a2
retirement option as provided for service retirement under the provisions of3
Subsection I of this Section and no change in the option selected shall be permitted4
after it has been filed with the board. The retirement option factors shall be the same5
as those utilized for regular retirement based on the age of the retiree and spouse had6
the retiree continued in active service until the normal retirement date.7
* * *8
C.(1)(a) Any member whose first employment making him eligible for9
membership in the system began prior to January 1, 2012, shall be eligible to10
retire, upon receipt of the member's written application by the board of trustees, if11
the member:12
(i) Has twelve or more years of creditable service and has attained the age of13
fifty-five; or.14
(ii) Has thirty or more years of creditable service, without regard to age.15
(b) Any member whose first employment making him eligible for16
membership in the system began on or after January 1, 2012, shall be eligible17
to retire, upon receipt of the member's written application by the board of18
trustees, if the member:19
(i) Has twelve or more years of creditable service and has attained the20
age of sixty-two.21
(ii) Has twenty or more years of creditable service and has attained the22
age of sixty.23
(iii) Has thirty or more years of creditable service and has attained the24
age of fifty-five.25
(c)(i) A member whose first employment making him eligible for26
membership in the system began on or before June 30, 2006, shall be paid a monthly27
sum equal to three and one-third percent of the member's average monthly salary for28
the thirty-six highest successive months of employment, or the highest thirty-six29 SB NO. 3
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successive joined months of employment where interruption of service occurred,1
multiplied by the number of years of creditable service in the fund.2
(ii) A member whose first employment making him eligible for membership3
in the system began on or after July 1, 2006, but prior to January 1, 2012, shall be4
paid a monthly sum equal to three and one-third percent of the member's average5
monthly salary for the sixty highest successive months of employment, or the highest6
sixty successive joined months of employment where interruption of service7
occurred, multiplied by the number of years of creditable service in the fund.8
(iii) A member whose first employment making him eligible for9
membership in the system began on or after January 1, 2012, shall be paid a10
monthly sum equal to three percent of the member's average monthly salary for11
the sixty highest successive months of employment, or the highest sixty12
successive joined months of employment where interruption of service occurred,13
multiplied by the number of years of creditable service in the fund.14
(iv)(aa) Notwithstanding the provisions of Item (iii) of this15
Subparagraph, a member whose first employment making him eligible for16
membership in the system began on or after January 1, 2012, who retires with17
thirty or more years of creditable service, shall be paid a monthly sum equal to18
three and one-third percent of the member's average monthly salary for the19
sixty highest successive months of employment, or the highest sixty successive20
joined months of employment where interruption of service occurred,21
multiplied by the number of years of creditable service in the fund.22
(bb) Creditable service maintained pursuant to a reciprocal agreement23
in another system, fund, or plan shall not be used to meet the requirement of24
thirty or more years of creditable service.25
(cc) Transferred service with an accrual rate of less than three and one-26
third percent shall not be used to meet the requirement of thirty or more years27
of creditable service unless the member elects to purchase the accrual rate for28
application to his transferred credit pursuant to the provisions of R.S.29 SB NO. 3
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11:2174.2.1
(2) Any member who has twelve or more years of creditable service and who2
separates from service before attaining the minimum age of fifty-five years3
required for regular retirement eligibility shall be entitled to a deferred retirement4
beginning at age fifty-five when the member attains regular retirement age. The5
member shall be paid the same amount he would have received had he retired while6
in service. In order to be eligible for this deferred retirement, the member shall not7
have withdrawn any part of his contributions from the fund. The member's written8
application shall be received by the board before the retirement is effective.9
(3)(a) In the event a member whose first employment making him eligible10
for membership in the system began prior to January 1, 2012, is eligible for11
deferred retirement and is over fifty years of age with at least twenty years of12
creditable service the member may elect to take, in lieu of deferred retirement, the13
actuarial equivalent of the benefit due had the member attained age fifty-five. The14
retirement shall become effective upon receipt of the member's written application15
by the board of trustees.16
(b) In the event a member whose first employment making him eligible17
for membership in the system began on or after January 1, 2012, is eligible for18
deferred retirement and is over fifty years of age with at least twenty years of19
creditable service the member may elect to take, in lieu of deferred retirement,20
the actuarial equivalent of the benefit due had the member attained age sixty.21
The retirement shall become effective upon receipt of the member's written22
application by the board of trustees.23
(4)(a) For those members whose first employment making them eligible24
for membership in the system began prior to July 1, 2006, The the retirement25
pension under this Subsection shall in no case exceed the average monthly salary of26
the deputy or sheriff for the thirty-six highest successive months of employment, or27
the highest thirty-six successive joined months of employment where interruption28
of service occurred.29 SB NO. 3
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(b) For those members whose first employment making them eligible for1
membership in the system began on or after July 1, 2006, the retirement pension2
under this Subsection shall in no case exceed the average monthly salary for the3
sixty highest successive months of employment, or the highest sixty successive4
joined months of employment where interruption of service occurred.5
(5) Any active, contributing member whose first employment making him6
eligible for membership in the system began prior to January 1, 2012, who has7
completed ten years of service, has attained the age of sixty, and is not in a deferred8
retiree status, shall be eligible for a reduced retirement benefit equal to the member's9
accrued regular retirement benefit reduced actuarially for each month or fraction10
thereof that retirement begins prior to the member's earliest normal retirement date11
assuming continuous service.12
* * *13
I.(1) Maximum benefit. (a) Upon application for service retirement, any14
participant may elect to receive benefits in a retirement allowance payable15
throughout life, or16
(b) May elect at that time to receive the actuarial equivalent of the retirement17
allowance in a reduced retirement allowance payable throughout life with the18
following options, subject to the limitation that no member may elect an optional19
settlement in any amount in excess of the member's final average compensation, after20
the reduction produced by the option selected:21
Option 1. If the member dies before receiving in annuity payments the22
present value of the member's annuity as it was at the time of the member's23
retirement, the balance shall be paid to the member's legal representative or24
representatives or to such person as the member shall nominate by written25
designation duly acknowledged and filed with the board.26
Option 2. Upon the member's death, a reduced retirement allowance shall be27
continued throughout the life of and paid to the spouse to whom the member was28
married and living with at the time of retirement.29 SB NO. 3
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Option 2A. Upon the member's death, a reduced retirement allowance shall1
be continued throughout the life of and paid to the spouse to whom the member was2
married and living with at the time of retirement provided that if the designated3
beneficiary predeceases the retiree, the retiree's reduced benefit shall change to the4
maximum benefit effective on the first day of the next month following the death of5
the designated beneficiary. The retiree shall be responsible for notifying the pension6
fund of these circumstances, to present presenting satisfactory evidence of same,7
and to request requesting the change of the reduced benefit to the maximum benefit.8
Adjustment of benefits under this Option shall not be retroactive, and shall be9
effective on the first day of the next month following official approval of the10
application for change in benefits.11
Option 3. Upon the member's death, one-half of the reduced retirement12
allowance shall be continued throughout the life of and paid to the spouse to whom13
the member was married and living with at the time of retirement.14
Option 3A. Upon the member's death, one-half of the reduced retirement15
allowance shall be continued throughout the life of and paid to the spouse to whom16
the member was married and living with at the time of retirement provided that if the17
designated beneficiary predeceases the retiree, the retiree's reduced benefit shall18
change the maximum benefit effective on the first day of the next month following19
the death of the designated beneficiary. The retiree shall be responsible for notifying20
the pension fund of these circumstances, to present presenting satisfactory evidence21
of same, and to request requesting the change of the reduced benefit to the22
maximum benefit. Adjustment of benefits under this Option shall not be retroactive,23
and shall be effective on the first day of the next month following official approval24
of the application for change in benefits.25
Option 4. Some other benefit or benefits shall be paid either to the participant26
or to the spouse to whom the member was married and living with at the time of27
retirement, if living, or to the minor child or children, until the age of majority, or to28
the disabled child or children, as long as the disability exists, otherwise to such other29 SB NO. 3
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dependent as the member shall have nominated until the age of majority or for a1
period of ten years, whichever is greater, provided such other benefit or benefits,2
together with the reduced retirement allowance, shall be certified by the actuary to3
be of equivalent actuarial value to the member's retirement allowance and approved4
by the board.5
Option 5. Ninety percent of the member's maximum retirement and upon6
death, if survived by a surviving spouse to whom the member was married and living7
with at the time of retirement, fifty percent of the member's maximum benefit shall8
be paid to the surviving spouse during said spouse's lifetime.9
* * *10
Section 2. This Act shall become effective on July 1, 2011; if vetoed by the governor11
and subsequently approved by the legislature, this Act shall become effective on July 1,12
2011, or on the day following such approval by the legislature, whichever is later.13
The original instrument was prepared by Lauren Bailey. The following
digest, which does not constitute a part of the legislative instrument, was
prepared by Laura Gail Sullivan.
DIGEST
Gautreaux (SB 3)
Present law provides for the Sheriffs' Pension and Relief Fund. Proposed law generally
makes changes to the provisions applicable to transfers, disability benefits, retirement
eligibility, benefit calculation, and optional retirement allowances.
Transfers
Present law provides that any member who has service credit in another public retirement
system can elect to transfer all such service credit to the Sheriffs' Pension and Relief Fund
(the fund) and can elect to have the accrual rate in effect for the fund at the time of the
transfer apply to such other service credit by paying the amount established in accordance
with R.S. 11:158(C).
Proposed law retains present law and provides that in the event that the member becomes
eligible for a higher accrual rate than the rate he previously purchased, he may elect to have
his accrual rate increased to the rate allowable by law by paying the amount established in
accordance with R.S. 11:158(C).
Disability Benefits
Present law provides for a disability benefit based upon the member's final average
compensation using the highest thirty-six successive months of employment, or the highest
thirty-six successive joined months of employment where interruption of service occurred.
Proposed law retains present law for those members whose first employment making them
eligible for membership in the system began prior to July 1, 2006. However, proposed law SB NO. 3
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provides a final average compensation period of the highest sixty successive months or
employment, or the highest sixty successive joined months of employment where
interruption of service occurred for members whose first employment making them eligible
for membership in the system began on or after July 1, 2006.
Retirement Eligibility
Present law provides that any member shall be eligible to retire once he earns:
(a) 12 years or more of creditable service and has attained the age of 55; or
(b) 30 or more years of creditable service, regardless of age.
Proposed law retains present law eligibility requirements for members whose first
employment making them eligible for membership in the system began prior to January 1,
2012. However, proposed law provides any member whose first employment making him
eligible for membership in the system began on or after January 1, 2012, shall be eligible to
retire once he earns:
(a) 12 years or more of creditable service and has attained the age of 62; or
(b) 20 or more years of creditable service and has attained the age of 60; or
(c) 30 years or more of creditable service and has attained the age of 55.
Accrual Rate
Present law provides that a member whose first employment making him eligible for
membership in the system began on or before June 30, 2006, shall be paid a monthly sum
equal to three and one-third percent of the member's average monthly salary for the thirty-six
highest successive months of employment, or the highest thirty-six successive joined months
of employment where interruption of service occurred, multiplied by the number of years
of creditable service in the fund.
Present law provides that a member whose first employment making him eligible for
membership in the system began on or after July 1, 2006, shall be paid a monthly sum equal
to three and one-third percent of the member's average monthly salary for the sixty highest
successive months of employment, or the highest sixty successive joined months of
employment where interruption of service occurred, multiplied by the number of years of
creditable service in the fund.
Proposed law retains present law for persons hired on or before December 31, 2011.
Proposed law provides that member whose first employment making him eligible for
membership in the system began on or after January 1, 2012, shall be paid a monthly sum
equal to three percent of the member's average monthly salary for the sixty highest
successive months of employment, or the highest sixty successive joined months of
employment where interruption of service occurred, multiplied by the number of years of
creditable service in the fund.
Proposed law provides that any member whose first employment making him eligible for
membership in the system began on or after January 1, 2012, who retires with thirty or more
years of creditable service, shall be paid a monthly sum equal to three and one-third percent
of the member's average monthly salary for the sixty highest successive months of
employment, or the highest sixty successive joined months of employment where
interruption of service occurred, multiplied by the number of years of creditable service in
the fund. SB NO. 3
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Proposed law provides that reciprocal agreements shall not be used to meet the requirement
of thirty or more years of creditable service. Transferred service with an accrual rate of less
than three and one-third percent shall not be used to meet the requirement of thirty or more
years of creditable service, unless the member purchases the three and one third accrual rate
to apply to his transferred credit by paying the amount established in accordance with
present law.
Deferred Retirement
Present law provides for a deferred retirement option for any member who has twelve or
more years of creditable service and who separates from service before attaining the age of
fifty-five years. The member shall be paid the same amount he would have received had he
retired while in service.
Proposed law provides for deferred retirement for any member who has twelve or more years
of creditable service and who separates from service before attaining regular retirement age.
Present law provides that a member is eligible for deferred retirement when he attains the
age of fifty years with at least twenty years of creditable service the member may elect to
take, in lieu of deferred retirement, the actuarial equivalent of the benefit due had the
member attained age fifty-five.
Proposed law retains present law for members whose first employment making him eligible
for membership in the system began prior to January 1, 2012.
Proposed law provides that a member whose first employme nt making him eligible for
membership in the system began on or after January 1, 2012, who is eligible for deferred
retirement, and who has attained the age of fifty years with at least twenty years of creditable
service may elect to take, in lieu of deferred retirement, the actuarial equivalent of the
benefit due had the member attained age sixty. The retirement shall become effective upon
receipt of the member's written application by the board of trustees.
Maximum Benefit
Present law provides that the member's retirement pension shall in no case exceed the
average monthly salary for the thirty-six highest successive months of employment, or the
highest thirty-six successive joined months of employment where interruption of service
occurred.
Proposed law retains present law for those members whose first employment making them
eligible for membership in the system began prior to July 1, 2006.
Proposed law provides that for members whose first employment making them eligible for
membership in the system began on or after July 1, 2006, the retirement pension shall in no
case exceed the average monthly salary for the sixty highest successive months of
employment, or the highest sixty successive joined months of employment where
interruption of service occurred.
Present law provides any active, contributing member who has completed ten years of
service, has attained the age of sixty, and is not in a deferred retiree status, shall be eligible
for a reduced retirement benefit equal to the member's accrued regular retirement benefit
reduced actuarially for each month or fraction thereof that retirement begins prior to the
member's earliest normal retirement date assuming continuous service.
Proposed law retains present law for members whose first employment making them eligible
for membership in the system began prior to January 1, 2012.
Present law provides various retirement options for members. Proposed law retains present SB NO. 3
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law options.
Present law provides in Option 5 for 90% of the member's maximum retirement and upon
death, if survived by a surviving spouse to whom the member was married and living with
at the time of retirement, 50% of the member's maximum benefit shall be paid to the
surviving spouse during said spouse's lifetime.
Proposed law provides in that the surviving spouse in Option 5 receive 50% of the members
elected benefit during the spouse's lifetime.
Effective July 1, 2011.
(Amends R.S. 11:2174.2 and 2178(B)(1)(b), (C) and (I)(1))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Retirement to the
original bill.
1. Makes technical corrections.