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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2011 ENROLLED
SENATE BILL NO. 9
BY SENATOR GAUTREAUX
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
AN ACT1
To amend and reenact R.S. 11:429(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 purpose 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
provisions of R.S. 11:158 or the employee and employer contributions plus interest18
based on the member's current salary, which totally offsets the increase in accrued19
liability of the system resulting from the receipt of the credit by the member,20
excluding R.S. 11:158(C)(1)(b), or the employee contributions for each21
additional year of service credit being obtained based upon the greater of the22
member's current salary or the member's current final average compensation.23
The amount to be paid shall be paid in one lump sum, and no service credit shall be24
given to the member until or unless the amount is paid in full. Any credit purchased25
pursuant to this Subsection Paragraph shall be used for calculation of benefits only26
and shall not be used for purposes of attaining eligibility for retirement except as27
ACT No. 322 SB NO. 9 ENROLLED
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otherwise authorized in this Subsection.1
(2) Notwithstanding any other provision of law to the contrary, any2
member of the system who has credit in the system for at least five years of3
service shall be eligible to obtain credit for purposes of attaining eligibility for4
retirement and calculation of benefits for up to five years of service credit in5
one-year increments provided that he shall apply to the system for such credit6
and pay the greater of the amount calculated in accordance with the actuarial7
cost provisions of R.S. 11:158, excluding R.S. 11:158(C)(1)(b), or the employee8
contributions for each additional year of service credit being obtained based9
upon the greater of the member's current salary or the member's current final10
average compensation. The amount to be paid shall be paid in one lump sum,11
and no service credit shall be given to the member until or unless the amount12
is paid in full.13
(3) Notwithstanding any other provision of law to the contrary, any14
member of the system who has purchased service credit under the provisions15
of Paragraph (1) of this Subsection shall be eligible to upgrade all or a portion16
of the service credit previously purchased for calculation of benefits to service17
credit for attaining eligibility and benefit calculation in one-year increments18
provided that he shall apply to the system for such credit and pay to the system19
the actuarial cost of such upgrade calculated in accordance with the actuarial20
cost provisions of R.S. 11:158, excluding 11:158(C)(1)(b). The amount to be21
paid shall be paid in one lump sum, and no service credit shall be given to the22
member until or unless the amount is paid in full.23
(4) Notwithstanding any other provision of law to the contrary, the24
premiums for health insurance coverage paid by any retiree participating in the25
office of group benefits program who has purchased service credit pursuant to26
Paragraph (2) or (3) of this Subsection, and who retires earlier than he would27
otherwise have been eligible for regular retirement without such purchased28
credit, shall be increased by an amount sufficient to pay for any increase in the29
employer's premiums that results from such retirement. Such increase in the30 SB NO. 9 ENROLLED
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retiree's premium shall be deducted from the retiree's monthly benefit and1
remitted to the office of group benefits to offset the employer's premium2
payments by such amount. The premium payments made pursuant to this3
Paragraph shall cease when the retiree attains the age at which his earned4
creditable service, not including service purchased pursuant to this Subsection,5
would have been sufficient to meet eligibility requirements for regular6
retirement. 7
Section 2. This Act shall become effective on July 1, 2011; if vetoed by the governor8
and subsequently approved by the legislature, this Act shall become effective on July 1,9
2011, or on the day following such approval by the legislature, whichever is later.10
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: