ENROLLED
Page 1 of 5
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
ACT No. 510
Regular Session, 2012
HOUSE BILL NO. 1048
BY REPRESENTATIVE POPE
AN ACT1
To amend and reenact R.S. 11:701(10), 761(A)(3)(b), 768(A)(2) and (B)(2)(introductory2
paragraph), and 786(A)(1) and to enact R.S. 11:785 and 927(E), relative to the3
Teachers' Retirement System of Louisiana; to provide with respect to tax-4
qualification of such system; to make certain changes to such system's provisions in5
conformity with federal tax-qualification provisions; to provide effective dates; and6
to provide for related matters.7
Notice of intention to introduce this Act has been published8
as provided by Article X, Section 29(C) of the Constitution9
of Louisiana.10
Be it enacted by the Legislature of Louisiana:11
Section 1. R.S. 11:701(10), 761(A)(3)(b), 768(A)(2) and (B)(2)(introductory12
paragraph), and 786(A)(1) are hereby amended and reenacted and R.S. 11:785 and 927(E)13
are hereby enacted to read as follows: 14
§701. Definitions15
As used in this Chapter, the following words and phrases have the meanings16
ascribed to them in this Section unless a different meaning is plainly required by the17
context:18
* * *19
(10) "Earnable compensation" means the compensation earned by a member20
during the full normal working time as a teacher. Earnable compensation shall21
include any differential wage payment, as defined by 26 U.S.C. 3401(h)(2), which22 ENROLLEDHB NO. 1048
Page 2 of 5
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
is made by an employer to any individual performing qualified military service.1
Earnable compensation shall not include per diem, post allowances, payment in kind,2
hazardous duty pay, or any other allowance for expense authorized and incurred as3
an incident to employment, nor payments in lieu of unused sick or annual leave, nor4
retroactive salary increases unless such increase was granted by legislative act or by5
a city/parish systemwide salary increase, nor payment for discontinuation of6
contractual services, unless the payment is made on a monthly basis. If a member7
is granted an official leave and he makes contributions for the period of leave,8
"earnable compensation" earnable compensation shall not include compensation paid9
for other employment which would not have been possible without the leave. The10
board of trustees shall determine whether or not any other payments are to be11
classified as earnable compensation.12
* * *13
§761. Retirement benefits; application; eligibility requirements; effective date;14
cancellation; errors and omissions15
A.16
* * *17
(3) Any person whose first employment making him eligible for membership18
in one of the state systems occurred on or after January 1, 2011, may retire upon19
written application to the board of trustees, if at the time of application the member:20
* * *21
(b) Has twenty years of service credit at any age, exclusive of military22
service and unused annual and sick leave and military service other than qualified23
military service as provided in 26 U.S.C. 414(u) earned on or after December 12,24
1994, but any person retiring under this Subparagraph shall have his benefit,25
inclusive of military service credit and allowable unused annual and sick leave,26
actuarially reduced from the earliest age that he would normally become eligible for27
a regular retirement benefit under Subparagraph (a) of this Paragraph if he had28
continued in service to that age. Any member who elects to retire under the29
provisions of this Subparagraph shall not be eligible to participate in the Deferred30 ENROLLEDHB NO. 1048
Page 3 of 5
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Retirement Option Plan provided by R.S. 11:786 or the Initial Lump-Sum Benefit1
option provided by R.S. 11:783.2
* * *3
§768. Retirement allowances4
A.5
* * *6
(2) Notwithstanding the provisions of Paragraph (1) of this Subsection, any7
member who retires on or after July 1, 1997, who became a member prior to July 1,8
1999, and who has attained the age of sixty-five years and has credit for at least9
twenty years of creditable service, exclusive of military service, unused accumulated10
sick leave, and unused accumulated annual leave, and military service other than11
qualified military service as provided in 26 U.S.C. 414(u) earned on or after12
December 12, 1994, or any of these, or who has attained the age of fifty-five years13
and has credit for at least twenty-five years of creditable service, exclusive of unused14
accumulated sick leave and unused accumulated annual leave, or who has credit for15
at least thirty years of creditable service at any age, exclusive of unused accumulated16
sick leave and unused accumulated annual leave, shall receive an annual benefit17
which provides an allowance equal to two and one-half percent of his average18
earnable compensation, multiplied by the number of years of creditable service, plus19
a sum of three hundred dollars. The referenced additional sum of three hundred20
dollars shall only be applicable be applicable only with respect to persons becoming21
members prior to July 1, 1986.22
* * *23
B.24
* * *25
(2) Notwithstanding the provisions of Paragraph (1) of this Subsection, any26
person who became a member on or after July 1, 1999, whose first employment27
making him eligible for membership in one of the state systems occurred on or28
before December 31, 2010, having twenty years of service credit, exclusive of29
military service and unused annual and sick leave and military service other than30 ENROLLEDHB NO. 1048
Page 4 of 5
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
qualified military service as provided in 26 U.S.C. 414(u) earned on or after1
December 12, 1994, but who is less than sixty years of age, may retire but he shall2
have his maximum benefit inclusive of military service credit and allowable unused3
annual and sick leave actuarially reduced from the earlier of the following:4
* * *5
§785. Compliance with certain federal and state provisions relating to qualified6
military service 7
A. Notwithstanding any other provision of law to the contrary, effective8
December 12, 1994, contributions, benefits, and service credit in this system with9
respect to qualified military service shall be governed by the Uniformed Services10
Employment and Reemployment Rights Act of 1994, 26 U.S.C. 414(u), and Part VI11
of Chapter 2 of Title 29 of the Louisiana Revised Statutes of 1950.12
B. Effective January 1, 2007, 26 U.S.C. 401(a)(37), as enacted by the Heroes13
Earnings Assistance and Relief Tax Act of 2008, is hereby adopted as part of the14
retirement system law.15
C. Effective January 1, 2009, 26 U.S.C. 3401(h)(2), as enacted by the Heroes16
Earnings Assistance and Relief Tax Act of 2008, is hereby adopted as part of the17
retirement system law.18
* * *19
§786. Deferred Retirement Option Plan20
A.(1) In lieu of terminating employment and accepting a retirement21
allowance, any member of this system whose first employment making him eligible22
for membership in one of the state retirement systems occurred on or before23
December 31, 2010, and who is not covered by R.S. 11:801 and who has thirty years24
of service credit at any age, twenty-five years of service credit and is at least age25
fifty-five, or has twenty years of service credit exclusive of military service other26
than qualified military service as provided in 26 U.S.C. 414(u) earned on or after27
December 12, 1994, and is at least age sixty-five may elect to participate in the28
Deferred Retirement Option Plan. A member with ten years of service credit29
exclusive of military service other than qualified military service as provided in 2630 ENROLLEDHB NO. 1048
Page 5 of 5
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
U.S.C. 414(u) earned on or after December 12, 1994, and who is at least age sixty1
may elect to participate in the plan, but all benefits payable at any time shall only be2
calculated using only a two percent benefit formula.3
* * *4
§927. Contributions5
* * *6
E. Effective January 1, 2009, to the extent required by 26 U.S.C. 414(u)(12),7
any differential wage payment, as defined by 26 U.S.C. 3401(h)(2), of which is made8
by any employer to any individual performing qualified military service shall be9
treated as earnable compensation for purposes of applying the limits on annual10
additions under 26 U.S.C. 415(c), and any participant of the optional retirement plan11
shall be treated as an employee of the employer making such payment.12
Section 2. This Act shall become effective on July 1, 2012; if vetoed by the governor13
and subsequently approved by the legislature, this Act shall become effective on July 1,14
2012, or on the day following such approval by the legislature, whichever is later.15
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: