HLS 12RS-1973 ORIGINAL
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are additions.
Regular Session, 2012
HOUSE BILL NO. 1050
BY REPRESENTATIVE RITCHIE
RETIREMENT/MUNICIPAL POL: Provides for tax qualification status of the Municipal
Police Employees' Retirement System
AN ACT1
To enact R.S. 11:2220(I) and 2225(B) and to repeal R.S. 11:2220.1, 2220.2, 2220.3, and2
2234, relative to the Municipal Police Employees' Retirement System; to provide3
relative to compliance with applicable federal tax qualification requirements; to4
provide an effective date; and to provide for related matters.5
Notice of intention to introduce this Act has been published6
as provided by Article X, Section 29(C) of the Constitution7
of Louisiana.8
Be it enacted by the Legislature of Louisiana:9
Section 1. R.S. 11:2220(I) and 2225(B) are hereby enacted to read as follows: 10
§2220. Benefits; contribution limit11
* * *12
I. If a member dies on or after January 1, 2007, while performing qualified13
military service as defined in 26 U.S.C. 414(u), eligibility for survivor benefits under14
this Section shall be determined as if the member had resumed employment and then15
terminated employment on account of death. The retirement system shall credit the16
member's qualified military service as service credit for vesting purposes and for17
eligibility computation purposes as though the member had resumed employment18
under the Uniformed Services Employment and Reemployment Rights Act19
immediately prior to the member's death. The time spent by the member in qualified20 HLS 12RS-1973 ORIGINAL
HB NO. 1050
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military service shall not count for benefit accrual purposes but shall count for1
eligibility purposes under this Section.2
* * *3
§2225. Administration4
* * *5
B. The retirement system shall take all actions necessary to comply with the6
provisions of the Internal Revenue Code applicable to qualified governmental7
retirement plans. Amendments to the fund required for the purpose of maintaining8
continued compliance with the Internal Revenue Code and the regulations thereunder9
may be promulgated as rules in accordance with the Administrative Prodecure Act,10
and the plan provisions shall hereafter consist of this Chapter together with such11
properly promulgated rules.12
* * *13
Section 2. R.S. 11:2220.1, 2220.2, 2220.3, and 2234 are hereby repealed in their14
entirety.15
Section 3.(A) The provisions of Section 2 of this Act shall become effective when16
rules promulgated by the Municipal Police Employees' Retirement System to incorporate in17
the Administrative Code the substance of R.S. 11:2220.1, 2220.2, 2220.3, and 2234, as18
necessary to maintain tax qualification status become effective.19
(B) The provisions of this Section and Section 1 of this Act shall become effective20
upon signature of this Act by the governor or, if not signed by the governor, upon expiration21
of the time for bills to become law without signature by the governor, as provided by Article22
III, Section 18 of the Constitution of Louisiana. If this Act is vetoed by the governor and23
subsequently approved by the legislature, this Section and Section 1 of this Act shall become24
effective on the day following such approval.25 HLS 12RS-1973 ORIGINAL
HB NO. 1050
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DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Ritchie HB No. 1050
Abstract: Provides relative to the tax qualification status of the Municipal Police
Employees' Retirement System (MPERS) and allows the system to make changes in
their laws necessary for tax qualification through the administrative rules process.
Present federal law (Internal Revenue Code §401 et seq.) contains certain requirements
which must be met in order for governmental and nongovernmental retirement plans to attain
and maintain "tax-qualified" status.
Present federal law (the Uniformed Services Employment and Reemployment Rights Act
(USERRA)) provides relative to reemployment rights and retirement benefits of retirement
system members performing "qualified military service".
Present state law (R.S. 29:401 et seq.) adopts and supplements USERRA.
Present federal law (Internal Revenue Code §414(u)) requires a retirement plan to comply
with USERRA in order to maintain its tax-qualified status.
Present federal law (the Heroes Earnings Assistance and Relief Tax Act (HEART)) requires
a tax-qualified retirement plan to comply with several additional requirements with respect
to retirement system members performing "qualified military service":
(1)Death Benefits - for purposes of death benefits, if a member dies while performing
qualified military service, the plan shall treat such member as having died during
covered employment with the retirement plan.
(2)"Differential Wage Payment" – for any member performing qualified military
service, who received "differential wage payments" from his employer (the portion
of wages that the employee would be receiving if he were still employed), such
payments shall be treated as compensation for purposes of testing contribution limits
under federal law.
Proposed state law incorporates part of USERRA into the benefits statute for MPERS.
Provides that a member who dies while performing qualified military service shall be treated
as having been reemployed in his civilian position and died while an active employee. Such
member's qualified military service shall be applied to his years of creditable service for
purposes of vesting and retirement eligibility. Specifically prohibits such service from being
used in the calculation of benefit accruals.
Further authorizes MPERS to adopt provisions complying with present federal law through
the administrative rules process. HLS 12RS-1973 ORIGINAL
HB NO. 1050
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Proposed state law repeals certain provisions in the MPERS statutes relative to tax
qualification status in order that such provisions may be recodified through administrative
rule. Proposed law effecting the repeal of certain statutes shall become effective upon
completion by MPERS of amending and recodifying these statutes through administrative
rules.
Effective in part upon signature of governor or lapse of time for gubernatorial action.
(Adds R.S. 11:2220(I) and 2225(B); Repeals R.S. 11:2220.1, 2220.2, 2220.3, and 2234)