SLS 11RS-44 ORIGINAL
Page 1 of 4
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2011
SENATE BILL NO. 9
BY SENATOR GAUTREAUX
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
RETIREMENT CREDIT. Allows members of the Louisiana State Employees' Retirement
System to purchase service credit for purposes of retirement eligibility. (7/1/11)
AN ACT1
To amend and reenact R.S. 11:429(B), relative to the purchase of service credit in the2
Louisiana State Employees' Retirement System; to provide for the purchase of3
service credit and the use of such credit for the purposes of attaining eligibility for4
retirement; to provide relative to the payment of insurance premiums for individuals5
purchasing such service credit; to provide for an effective date; and to provide for6
related matters.7
Notice of intention to introduce this Act has been published.8
Be it enacted by the Legislature of Louisiana:9
Section 1. R.S. 11:429(B) is hereby amended and reenacted to read as follows: 10
ยง429. Purchase of service credit11
* * *12
B.(1) Notwithstanding any other provision of law to the contrary, any13
member of the system who has credit in the system for at least five years of service14
shall be eligible to obtain credit for up to five years of service credit in one-year15
increments provided that he shall apply to the system for such credit and pay to the16
system the greater of the amount calculated in accordance with the actuarial cost17 SB NO. 9
SLS 11RS-44 ORIGINAL
Page 2 of 4
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
provisions of R.S. 11:158 or the employee and employer contributions plus interest1
based on the member's current salary, which totally offsets the increase in accrued2
liability of the system resulting from the receipt of the credit by the member. The3
amount to be paid shall be paid in one lump sum, and no service credit shall be given4
to the member until or unless the amount is paid in full. Any credit purchased5
pursuant to this Subsection Paragraph shall be used for calculation of benefits only6
and shall not be used for purposes of attaining eligibility for retirement except as7
otherwise authorized in this Subsection.8
(2) Notwithstanding any other provision of law to the contrary, any9
member of the system who has credit in the system for at least five years of10
service shall be eligible to obtain credit for purposes of attaining eligibility for11
retirement and calculation of benefits for up to five years of service credit in12
one-year increments provided that he shall apply to the system for such credit13
and pay the greater of the amount calculated in accordance with the actuarial14
cost provisions of R.S. 11:158 or the employee and employer contributions plus15
interest based on the member's current salary, which totally offsets the increase16
in accrued liability of the system resulting from the receipt of the credit by the17
member. The amount to be paid shall be paid in one lump sum, and no service18
credit shall be given to the member until or unless the amount is paid in full.19
(3) Notwithstanding any other provision of law to the contrary, any20
member of the system who has purchased service credit under the provisions21
of Paragraph (1) of this Subsection shall be eligible to upgrade all or a portion22
of the service credit previously purchased for calculation of benefits to service23
credit for attaining eligibility and benefit calculation in one-year increments24
provided that he shall apply to the system for such credit and pay to the system25
the greater of the amount calculated in accordance with the actuarial cost26
provisions of R.S. 11:158 or the employee and employer contributions plus27
interest based on the member's current salary, which totally offsets the increase28
in accrued liability of the system resulting from the receipt of the credit by the29 SB NO. 9
SLS 11RS-44 ORIGINAL
Page 3 of 4
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
member. The amount to be paid shall be paid in one lump sum, and no service1
credit shall be given to the member until or unless the amount is paid in full.2
(4) Notwithstanding any other provision of law to the contrary, the3
premiums for health insurance coverage paid by any retiree participating in the4
office of group benefits program who has purchased service credit pursuant to5
Paragraph (2) or (3) of this Subsection shall be increased by an amount6
sufficient to pay for any increase that would otherwise occur in the employer's7
premiums as a result of his retirement. Such increase in the retiree's premium8
shall be deducted from the retiree's monthly benefit and remitted to the office9
of group benefits to offset the employer's premium payments by such amount.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 and the following digest, which constitutes no part
of the legislative instrument, were prepared by Lauren Bailey.
DIGEST
Present law (R.S. 11:429(B)) permits any member of the Louisiana State Employees'
Retirement System (LASERS) who has credit in the system for at least five years of service
to purchase up to five years of service credit in one-year increments to be used for
calculation of benefits only and not for purposes of attaining retirement eligibility. Provides
that the member shall apply to the system for such credit and pay to the system the greater
of the amount calculated in accordance with the actuarial cost provisions of present law or
the employee and employer contributions plus interest based on the member's current salary,
which totally offsets the increase in accrued liability of the system resulting from such
purchase of service credit. Provides the amount to be paid shall be paid in one lump sum,
and no service credit shall be given to the member until or unless the amount is paid in full.
Proposed law retains present law.
New purchase of service credit:
Proposed law provides that any member of LASERS who has credit in the system for at least
five years of service shall be eligible to purchase up to five years of service credit in one-
year increments for purposes of attaining eligibility for retirement and calculation of
benefits.
Upgrade of previously purchased service credit:
Proposed law provides for an upgrade of service credit previously purchased for benefit
calculation only pursuant to present law (R.S. 11:429(B)) to service credit applicable to both
calculation of benefits and retirement eligibility. SB NO. 9
SLS 11RS-44 ORIGINAL
Page 4 of 4
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Proposed law provides for application, calculation of purchase price, and lump-sum payment
for a new purchase or an upgrade as provided in present law,
Proposed law requires any retiree who purchased service credit under proposed law to pay
any increase in his office of group benefits health insurance premium to cover any increase
in premium that would otherwise be paid by his employer as a result of the retirement.
Effective July 1, 2011.
(Amends R.S. 11:429(B))