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Regular Session, 2012
HOUSE BILL NO. 1064
BY REPRESENTATIVE HOFFMANN
RETIREMENT/DISTRICT ATTY: Provides relative to the District Attorneys' Retirement
System
AN ACT1
To amend and reenact R.S. 11:62(12), 1581(5), and 1631(F)(1) and to enact R.S.2
11:1636(C), relative to the District Attorneys' Retirement System; to provide relative3
to benefits; to provide relative to the funding of benefits; to provide for definitions;4
to provide for implementation; 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. 11:62(12), 1581(5), and 1631(F)(1) are hereby amended and10
reenacted and R.S. 11:1636(C) is hereby enacted to read as follows: 11
§62. Employee contribution rates established12
Employee contributions to state and statewide public retirement systems shall13
be paid at the following rates, except as otherwise provided by law:14
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(12) District Attorneys' Retirement System - 7% 8%.16
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§1581. Definitions 18
The following words and phrases, as used in this Chapter, unless a different19
meaning is plainly required by the context, shall have the following meanings: 20
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(5) "Average final compensation" shall mean the average monthly1
compensation earned by an employee during any period of thirty-six sixty successive2
months of service as an employee during which the said earned compensation was3
the highest. The average monthly compensation shall include compensation not paid4
by the state, but only to the extent that non-state nonstate compensation for the5
thirteenth through the twenty-fourth month does not exceed one hundred ten percent6
of the total of non-state nonstate compensation for the first through twelfth month,7
and that non-state nonstate compensation for the final twelve months does not exceed8
one hundred ten percent of the total of non-state compensation for the thirteenth9
through the twenty-fourth month twenty-fifth through the thirty-sixth month does not10
exceed one hundred ten percent of the total of nonstate compensation for the11
thirteenth through the twenty-fourth month, and that nonstate compensation for the12
thirty-seventh through the forty-eighth month does not exceed one hundred ten13
percent of the total of nonstate compensation for the twenty-fifth through thirty-sixth14
month, and that nonstate compensation for the forty-ninth through the sixtieth month15
does not exceed one hundred ten percent of the total of nonstate compensation for16
the thirty-seventh through forty-eighth month. Fees earned in connection with17
official duties shall not be included in average final compensation. In the event of18
interruption of employment, the thirty-six-month sixty-month period shall be19
computed by joining employment periods immediately preceding and succeeding the20
interruption.21
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§1631. Retirement benefits; application; eligibility requirements23
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F.(1) Except as provided in Paragraph (2) of this Subsection, if any member25
who has retired from this system is reemployed as an employee by any district26
attorney in the state, his retirement benefit shall be suspended during said27
employment, and he shall not be paid any benefits for the period covered by such28
employment. He shall, upon such reemployment, again become an active29 HLS 12RS-2047 ENGROSSED
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contributing member of the system, with the option of establishing service credit for1
any period of full-time employment as district attorney or assistant district attorney2
since returning to such employment following retirement by payment into the system3
the employer and employee amount plus interest that would have been withheld and4
paid into the system for that period based upon his total salary for such period. He5
shall accrue a supplemental retirement benefit based on his service rendered after6
reemployment. If the member continues employment after retirement for a period7
of less than thirty-six sixty months, his supplemental monthly retirement benefit8
shall equal the benefit accrued calculated under R.S. 11:1632 or 1633, whichever is9
applicable, based on the lesser of his average final compensation at his original10
retirement date or his average final compensation during the period of his subsequent11
reemployment. If the member continues in employment after retirement for a period12
of thirty-six sixty months or more, his supplemental monthly retirement benefit shall13
equal the benefit accrued calculated under R.S. 11:1632 or 1633, whichever is14
applicable, based on his average final compensation during his period of15
reemployment. Upon retirement subsequent to reemployment, his benefit shall be16
equal to the benefits he was receiving immediately prior to reemployment plus the17
supplemental benefit earned during his reemployment.18
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§1636. Survivors' benefits 20
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C. Upon the death of an active contributing member who is eligible to retire,22
the spouse eligible for benefits payable under Paragraph (B)(1) of this Section may23
elect to receive such benefits in the same manner as described in R.S. 11:1644 as if24
the member had retired and elected Option Two Back-DROP benefits on the day25
following the member's death.26
Section 2. The amendments to R.S. 11:1581(5) contained in this Act shall be27
implemented as follows: for members retiring on or after January 1, 2013, and on or before28
December 31, 2014, the period used to calculate the average final compensation shall be29 HLS 12RS-2047 ENGROSSED
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thirty-six months plus the number of whole months since January 1, 2013, until the date of1
retirement. Notwithstanding any other provision of this Section to the contrary, for all2
members enrolled in the system on January 1, 2013, the monthly average final compensation3
expressed in dollars used to compute their benefit after the effective date of this Act shall4
not be less than the dollar amount of the average monthly earnings during the member's5
highest thirty-six consecutive months or joined months of service earned for employment6
before the effective date of this Act as determined under R.S. 11:1581(5) as it provided prior7
to amendment by this Act.8
Section 3. The provisions of this Act shall become effective January 1, 2013.9
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)]
Hoffmann HB No. 1064
Abstract: Increases the employee contribution rate for the District Attorneys' Retirement
System (DARS), changes the average final compensation calculation from a 36-
month (three year) average to a 60-month (five year) average, and allows the
surviving spouse of certain members to elect to receive benefits as though the
member had elected the Back-DROP option.
Present law (R.S. 11:62) establishes the employee contribution rates for members of the 13
state and statewide retirement systems.
Present law, for District Attorneys' Retirement System (DARS) establishes the employee
contribution rate at 7% of pay.
Proposed law increases this employee contribution rate from 7% to 8%.
Present law (R.S. 11:1581) establishes definitions for terms used in the DARS law.
Present law defines "average final compensation" as the average monthly compensation
earned during the three highest paid years of employment. Proposed law changes this from
three years to five years.
Present law authorizes nonstate compensation to be included in a members average monthly
compensation. Further provides that the nonstate compensation may not exceed 110% of
the state compensation received by the member for the first 12-month period, and for every
subsequent 12-month period that the nonstate compensation may not exceed 110% of the
total nonstate compensation received in the prior 12-month period. Proposed law retains
present law and extends the 110% nonstate contribution cap in present law through the full
60-month "average final compensation" period.
Present law (R.S. 11:1631) allows a retired member to be reemployed by certain district
attorneys. The member's retirement benefit is suspended during such reemployment. Upon HLS 12RS-2047 ENGROSSED
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reemployment, the member becomes an active contributing member of DARS once again,
and he shall accrue credit towards a supplemental benefit.
Present law provides that if a reemployed member continues in reemployment for less than
36 months, his supplemental benefit shall equal the benefit calculated under applicable
present law and the lesser of his average final compensation at his original retirement date
or his average compensation during the period of his subsequent employment. Present law
provides that if a reemployed member continues in reemployment for more than 36 months,
his supplemental benefit shall equal the benefit calculated under applicable present law and
his average final compensation during his period of reemployment. Proposed law changes
the reemployment period that distinguishes these calculations from 36 months to 60 months.
Present law provides for payment of survivor benefits in certain circumstances.
Proposed law adds to present law the ability for the spouse of an active contributing member
who dies to receive survivor benefits as if the deceased member had retired and elected
certain Back-DROP benefits.
Proposed law further provides for transitional application of the 36-month to 60-month
average final compensation for members enrolled in the system on the effective date of the
Act. For these members, if any elects to retire between Jan. 1, 2013, and Dec. 31, 2014, his
average final compensation shall be calculated based on 36 months + one month for each
month past Jan. 1, 2013, he worked. Further provides that no current member shall receive
less of a benefit under the 60-month average final compensation calculation than he would
have under the 36-month calculation.
Effective Jan. 1, 2013.
(Amends R.S. 11:62(12), 1581(5), and 1631(F)(1); Adds R.S. 11:1636(C))