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Regular Session, 2011 ENROLLED
SENATE BILL NO. 3
BY SENATORS GAUTREAUX, ALARIO, BROOME, CHABERT, CHEEK, DONAHUE,
DORSEY, ERDEY, GUILLORY, KOSTELKA, LAFLEUR, LONG,
MARIONNEAUX, MICHOT, MILLS, MORRELL, MOUNT,
MURRAY, NEVERS, PERRY, QUINN, RISER, SHAW, SMITH,
THOMPSON, WALSWORTH AND WILLARD-LEWI S AND
REPRESENTATIVE S BOBBY BADON, BALDONE, BURFORD,
CARMODY, CHAMPAGNE, CHANDLER, CHANEY, CONNICK,
CORTEZ, DOERGE, DOWNS, EDWARDS, FANNIN, GISCLAIR,
GREENE, GUILLORY, HENDERSON, HILL, HOFFMANN,
HOWARD, GIROD JACKSON, LANDRY, LEBAS, LITTLE,
MONICA, MONTOUCET, MORRIS, NOWLIN, PEARSON, POPE,
RICHARDSON, ROBIDEAUX, GARY SMITH, JANE SMITH, ST.
GERMAIN, TALBOT, THIERRY, TUCKER, WILLMOTT AND
WOOTON
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: 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
applicable to the member on the date of such purchase for the purpose of18
applying the fund's accrual rate to such other service credit by paying the amount19
established in accordance with R.S. 11:158(C). If, after such purchase, the20
ACT No. 120 SB NO. 3 ENROLLED
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member attains eligibility for an accrual rate higher than the rate previously1
purchased, the member may elect to execute an additional purchase for the2
purpose of applying the higher rate to the transferred service credit by paying3
the amount established in accordance with R.S. 11:158(C).4
* * *5
§2178. Disability benefits; retirement benefits; death benefits6
* * *7
B. The board of trustees shall award disability benefits to eligible members8
who have been officially certified as disabled by the State Medical Disability Board.9
The disability benefit shall be as follows:10
(1) (a) * * *11
(b)(i) For the purpose of this Subsection, for any member whose first12
employment making him eligible for membership in the system began prior to13
July 1, 2006, final average compensation is defined as the member's average salary14
for the thirty-six highest successive months of employment, or the highest thirty-six15
successive joined months of employment where interruption of service occurred. If16
the member has been employed for a period of less than thirty-six months, final17
average compensation shall be based on the average monthly salary received for the18
time employed.19
(ii) For the purpose of this Subsection, for any member whose first20
employment making him eligible for membership in the system began on or21
after July 1, 2006, final average compensation is defined as the member's22
average salary for the sixty highest successive months of employment, or the23
highest sixty successive joined months of employment where interruption of24
service occurred. If the member has been employed for a period of less than25
sixty months, final average compensation shall be based on the average monthly26
salary received for the time employed.27
(iii) Upon approval for disability benefits, the member shall exercise a28
retirement option as provided for service retirement under the provisions of29
Subsection I of this Section and no change in the option selected shall be permitted30 SB NO. 3 ENROLLED
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after it has been filed with the board. The retirement option factors shall be the same1
as those utilized for regular retirement based on the age of the retiree and spouse had2
the retiree continued in active service until the normal retirement date.3
* * *4
C.(1)(a) Any member whose first employment making him eligible for5
membership in the system began prior to January 1, 2012, shall be eligible to6
retire, upon receipt of the member's written application by the board of trustees, if7
the member:8
(i) Has twelve or more years of creditable service and has attained the age of9
fifty-five; or.10
(ii) Has thirty or more years of creditable service, without regard to age.11
(b) Any member whose first employment making him eligible for12
membership in the system began on or after January 1, 2012, shall be eligible13
to retire, upon receipt of the member's written application by the board of14
trustees, if the member:15
(i) Has twelve or more years of creditable service and has attained the16
age of sixty-two.17
(ii) Has twenty or more years of creditable service and has attained the18
age of sixty.19
(iii) Has thirty or more years of creditable service and has attained the20
age of fifty-five.21
(c)(i) A member whose first employment making him eligible for22
membership in the system began on or before June 30, 2006, shall be paid a monthly23
sum equal to three and one-third percent of the member's average monthly salary for24
the thirty-six highest successive months of employment, or the highest thirty-six25
successive joined months of employment where interruption of service occurred,26
multiplied by the number of years of creditable service in the fund.27
(ii) A member whose first employment making him eligible for membership28
in the system began on or after July 1, 2006, but prior to January 1, 2012, shall be29
paid a monthly sum equal to three and one-third percent of the member's average30 SB NO. 3 ENROLLED
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monthly salary for the sixty highest successive months of employment, or the highest1
sixty successive joined months of employment where interruption of service2
occurred, multiplied by the number of years of creditable service in the fund.3
(iii) A member whose first employment making him eligible for4
membership in the system began on or after January 1, 2012, shall be paid a5
monthly sum equal to three percent of the member's average monthly salary for6
the sixty highest successive months of employment, or the highest sixty7
successive joined months of employment where interruption of service occurred,8
multiplied by the number of years of creditable service in the fund.9
(iv)(aa) Notwithstanding the provisions of Item (iii) of this10
Subparagraph, a member whose first employment making him eligible for11
membership in the system began on or after January 1, 2012, who retires with12
thirty or more years of creditable service or any member who in the13
performance of his official duties as a commissioned law enforcement officer14
suffers a violent act or accident during the pursuit, apprehension, or arrest of15
a criminal suspect and as a result becomes totally and permanently disabled or16
dies, shall be paid a monthly sum equal to three and one-third percent of the17
member's average monthly salary for the sixty highest successive months of18
employment, or the highest sixty successive joined months of employment where19
interruption of service occurred, multiplied by the number of years of20
creditable service in the fund.21
(bb) Creditable service maintained pursuant to a reciprocal agreement22
in another system, fund, or plan shall not be used to meet the requirement of23
thirty or more years of creditable service.24
(cc) Transferred service with an accrual rate of less than three and one-25
third percent shall not be used to meet the requirement of thirty or more years26
of creditable service unless the member elects to purchase the accrual rate for27
application to his transferred credit pursuant to the provisions of R.S.28
11:2174.2.29
(2) Any member who has twelve or more years of creditable service and who30 SB NO. 3 ENROLLED
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separates from service before attaining the minimum age of fifty-five years1
required for regular retirement eligibility shall be entitled to a deferred retirement2
beginning at age fifty-five when the member attains regular retirement age. The3
member shall be paid the same amount he would have received had he retired while4
in service. In order to be eligible for this deferred retirement, the member shall not5
have withdrawn any part of his contributions from the fund. The member's written6
application shall be received by the board before the retirement is effective.7
(3)(a) In the event a member whose first employment making him eligible8
for membership in the system began prior to January 1, 2012, is eligible for9
deferred retirement and is over fifty years of age with at least twenty years of10
creditable service the member may elect to take, in lieu of deferred retirement, the11
actuarial equivalent of the benefit due had the member attained age fifty-five. The12
retirement shall become effective upon receipt of the member's written application13
by the board of trustees.14
(b) In the event a member whose first employment making him eligible15
for membership in the system began on or after January 1, 2012, is eligible for16
deferred retirement and is over fifty years of age with at least twenty years of17
creditable service the member may elect to take, in lieu of deferred retirement,18
the actuarial equivalent of the benefit due had the member attained age sixty.19
The retirement shall become effective upon receipt of the member's written20
application by the board of trustees.21
(4)(a) For those members whose first employment making them eligible22
for membership in the system began prior to July 1, 2006, The the retirement23
pension under this Subsection shall in no case exceed the average monthly salary of24
the deputy or sheriff for the thirty-six highest successive months of employment, or25
the highest thirty-six successive joined months of employment where interruption26
of service occurred.27
(b) For those members whose first employment making them eligible for28
membership in the system began on or after July 1, 2006, the retirement pension29
under this Subsection shall in no case exceed the average monthly salary for the30 SB NO. 3 ENROLLED
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sixty highest successive months of employment, or the highest sixty successive1
joined months of employment where interruption of service occurred.2
(5) Any active, contributing member whose first employment making him3
eligible for membership in the system began prior to January 1, 2012, who has4
completed ten years of service, has attained the age of sixty, and is not in a deferred5
retiree status, shall be eligible for a reduced retirement benefit equal to the member's6
accrued regular retirement benefit reduced actuarially for each month or fraction7
thereof that retirement begins prior to the member's earliest normal retirement date8
assuming continuous service.9
* * *10
I.(1) Maximum benefit. (a) Upon application for service retirement, any11
participant may elect to receive benefits in a retirement allowance payable12
throughout life, or13
(b) May elect at that time to receive the actuarial equivalent of the retirement14
allowance in a reduced retirement allowance payable throughout life with the15
following options, subject to the limitation that no member may elect an optional16
settlement in any amount in excess of the member's final average compensation, after17
the reduction produced by the option selected:18
Option 1. If the member dies before receiving in annuity payments the19
present value of the member's annuity as it was at the time of the member's20
retirement, the balance shall be paid to the member's legal representative or21
representatives or to such person as the member shall nominate by written22
designation duly acknowledged and filed with the board.23
Option 2. Upon the member's death, a reduced retirement allowance shall be24
continued throughout the life of and paid to the spouse to whom the member was25
married and living with at the time of retirement.26
Option 2A. Upon the member's death, a reduced retirement allowance shall27
be continued throughout the life of and paid to the spouse to whom the member was28
married and living with at the time of retirement provided that if the designated29
beneficiary predeceases the retiree, the retiree's reduced benefit shall change to the30 SB NO. 3 ENROLLED
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maximum benefit effective on the first day of the next month following the death of1
the designated beneficiary. The retiree shall be responsible for notifying the pension2
fund of these circumstances, to present presenting satisfactory evidence of same,3
and to request requesting the change of the reduced benefit to the maximum benefit.4
Adjustment of benefits under this Option shall not be retroactive, and shall be5
effective on the first day of the next month following official approval of the6
application for change in benefits.7
Option 3. Upon the member's death, one-half of the reduced retirement8
allowance shall be continued throughout the life of and paid to the spouse to whom9
the member was married and living with at the time of retirement.10
Option 3A. Upon the member's death, one-half of the reduced retirement11
allowance shall be continued throughout the life of and paid to the spouse to whom12
the member was married and living with at the time of retirement provided that if the13
designated beneficiary predeceases the retiree, the retiree's reduced benefit shall14
change the maximum benefit effective on the first day of the next month following15
the death of the designated beneficiary. The retiree shall be responsible for notifying16
the pension fund of these circumstances, to present presenting satisfactory evidence17
of same, and to request requesting the change of the reduced benefit to the18
maximum benefit. Adjustment of benefits under this Option shall not be retroactive,19
and shall be effective on the first day of the next month following official approval20
of the application for change in benefits.21
Option 4. Some other benefit or benefits shall be paid either to the participant22
or to the spouse to whom the member was married and living with at the time of23
retirement, if living, or to the minor child or children, until the age of majority, or to24
the disabled child or children, as long as the disability exists, otherwise to such other25
dependent as the member shall have nominated until the age of majority or for a26
period of ten years, whichever is greater, provided such other benefit or benefits,27
together with the reduced retirement allowance, shall be certified by the actuary to28
be of equivalent actuarial value to the member's retirement allowance and approved29
by the board.30 SB NO. 3 ENROLLED
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Option 5. Ninety percent of the member's maximum retirement and upon1
death, if survived by a surviving spouse to whom the member was married and living2
with at the time of retirement, fifty percent of the member's maximum benefit shall3
be paid to the surviving spouse during said spouse's lifetime.4
* * *5
Section 2. This Act shall become effective on July 1, 2011; if vetoed by the governor6
and subsequently approved by the legislature, this Act shall become effective on July 1,7
2011, or on the day following such approval by the legislature, whichever is later.8
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: