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Regular Session, 2012
HOUSE BILL NO. 1174
BY REPRESENTATIVE DANAHAY
RETIREMENT/STATE-STWIDE: Establishes "Hazardous Duty" and "Non-Hazardous
Duty" subplans in the Municipal Police Employees' Retirement System and the
Firefighters' Retirement System
AN ACT1
To amend and reenact R.S. 11:62(3) and (6), 2213(introductory paragraph), (4), and (20),2
and 2252(4) and (19) and to enact Part II of Chapter 8 of Subtitle III of Title 11 of3
the Louisiana Revised Statutes of 1950, comprised of R.S. 11:2241.1 through 2241.7,4
Part III of Chapter 8 of Subtitle III of Title 11 of the Louisiana Revised Statutes of5
1950, comprised of R.S. 11:2242.1 through 2242.7, Part II of Chapter 9 of Subtitle6
III of Title 11 of the Louisiana Revised Statutes of 1950, comprised of R.S. 11:22817
through 2287, Part III of Chapter 9 of Subtitle III of Title 11 of the Louisiana8
Revised Statutes of 1950, comprised of R.S. 11:2291 through 2297, relative to the9
establishment of subplans for new hires within certain statewide retirement systems;10
to provide relative to eligibility, benefits, accrual and contribution rates; to provide11
for definitions; to provide restrictions; and to provide for related matters.12
Notice of intention to introduce this Act has been published13
as provided by Article X, Section 29(C) of the Constitution14
of Louisiana.15
Be it enacted by the Legislature of Louisiana:16
Section 1. R.S. 11:62(3) and (6), 2213(introductory paragraph), (4), and (20), and17
2252(4) and (19) are hereby amended and reenacted and Part II of Chapter 8 of Subtitle III18
of Chapter 8 of Subtitle III of Title 11 of the Louisiana Revised Statutes of 1950, comprised19 HLS 12RS-1820 ORIGINAL
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of R.S. 11:2241.1 through 2241.7, Part III of Subtitle III of Title 11 of the Louisiana Revised1
Statutes of 1950, comprised of R.S. 11:2242 through 2242.6; Part II of Chapter 9 of Subtitle2
III of Title 11 of the Louisiana Revised Statutes of 1950, comprised of R.S. 11:2281 through3
2287, and Part III of Chapter 9 of Subtitle III of Title 11 of the Louisiana Revised Statutes4
of 1950, comprised of R.S. 11:2291 through 2297, are hereby enacted to read as follows: 5
§62. Employee contribution rates established6
Employee contributions to state and statewide public retirement systems shall7
be paid at the following rates, except as otherwise provided by law:8
* * *9
(3) Firefighters' Retirement System :10
(a) For members hired prior to January 1, 2013, and for members of the11
Hazardous Duty Subplan:12
(i) Any member whose earnable compensation is less than or equal to the13
most recently issued poverty guidelines issued by the United States Department of14
Health and Human Services according to the size of the member's family unit - 8%.15
(b) (ii) For employee contributions due and payable July 1, 2011, or16
thereafter, any member whose earnable compensation is more than the most recently17
issued poverty guidelines issued by the United States Department of Health and18
Human Services according to the size of the member's family unit:19
If the total contribution20
for the fiscal year expressed21
as a percentage of payroll after22
applying all required tax The employee contribution23
contributions is: shall be:24
25.0% or below 8.0%25
25.01% to 25.75% 8.25%26
25.76% to 26.5% 8.5%27
26.51% to 27.25% 8.75%28
27.26% to 28.0% 9.0%29 HLS 12RS-1820 ORIGINAL
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28.01% to 28.75% 9.25%1
28.76% to 29.5% 9.5%2
29.51% to 30.25% 9.75%3
30.26% or above 10.0%4
(b) For employees in the Non-Hazardous Duty Subplan – 8%.5
* * *6
(6) Municipal Police Employees' Retirement System:7
(a) For members hired prior to January 1, 2013, and for members of the8
Hazardous Duty Subplan:9
(i) Any member whose earnable compensation is less than or equal to the10
most recently issued poverty guidelines issued by the United States Department of11
Health and Human Services according to the size of the member's family unit - 7.5%.12
(b) (ii) For employee contributions due and payable July 1, 2011, or13
thereafter, any member whose earnable compensation is more than the most recently14
issued poverty guidelines issued by the United States Department of Health and15
Human Services according to the size of the member's family unit:16
If the total contribution17
for the fiscal year expressed18
as a percentage of payroll after19
applying all required tax The employee contribution20
contributions is: shall be:21
25.0% or below 7.5%22
25.01% to 25.75% 7.75%23
25.76% to 26.5% 8.0%24
26.51% to 27.25% 8.25%25
27.26% to 28.0% 8.5%26
28.01% to 28.75% 8.75%27
28.76% to 29.5% 9.25%28
29.51% to 30.25% 9.5%29 HLS 12RS-1820 ORIGINAL
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30.26% to 31.0% 9.75%1
31.0% or above 10.0%2
(b) For members of the Non-Hazardous Duty Subplan – 8%.3
* * *4
CHAPTER 8. MUNICIPAL POLICE EMPLOYEES'5
RETIREMENT SYSTEM6
PART I. GENERAL PROVISIONS AND PROVISIONS FOR MEMBERS NOT7
ENROLLED IN A SUBPLAN8
* * *9
§2213. Definitions10
The following words and phrases, as used in this Subpart Chapter, unless a11
different meaning is plainly required by context, shall have the following meaning:12
* * *13
(4)(a) For members first employed on or before December 31, 2012,14
"Average final compensation" shall mean the average annual earned compensation15
of an employee for any period of thirty-six successive or joined months of service16
as an employee during which the said earned compensation was the highest. In case17
of interruption of employment, the thirty-six month period shall be computed by18
joining employment periods immediately preceding and succeeding the interruption.19
The earnings to be considered for the thirteenth through the twenty-fourth months20
shall not exceed one hundred fifteen percent of the earnings for the first through the21
twelfth months. The earnings to be considered for the final twelve months shall not22
exceed one hundred fifteen percent of the earnings of the thirteenth through the23
twenty-fourth months.24
(b) For members first employed on or after January 1, 2013, "Average final25
compensation" means the average annual earned compensation of a member for the26
sixty highest months of successive employment, or for the highest sixty successive27
joined months of employment where interruption of service occurred. The earnings28
to be considered for the thirteenth through the twenty-fourth month shall not exceed29 HLS 12RS-1820 ORIGINAL
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one hundred fifteen percent of the earnings of the first through the twelfth month.1
The earnings to be considered for the twenty-fi fth through the thirty-sixth month2
shall not exceed one hundred fifteen percent of the earnings of the thirteenth through3
the twenty-fourth month. The earnings to be considered for the thirty-seventh4
through the forty-eighth month shall not exceed one hundred fifteen percent of the5
earnings of the twenty-fifth through the thirty-sixth month. The earnings for the6
final twelve months shall not exceed one hundred fifteen percent of the earnings of7
the thirty-seventh through the forty-eighth month. The limitations on the8
computation of average final compensation contained in this Subparagraph shall not9
apply to any twelve-month period during which compensation increased by more10
than fifteen percent over the previous twelve-month period solely because of an11
increase in compensation by a uniform systemwide increase adopted by a local12
governing authority.13
* * *14
(20) "Retirement system" or "system" shall mean the Municipal Police15
Employees' Retirement System as established in R.S. 11:2211.16
* * *17
PART II. HAZARDOUS DUTY SUBPLAN18
§2241.1. Creation of Hazardous Duty Subplan19
A. The Hazardous Duty Subplan is created within the Municipal Police20
Employees' Retirement System for members whose first employment making them21
eligible for membership in the system occurred on or after January 1, 2013, in22
hazardous duty positions as defined in this Part.23
B. Any other provisions of this Chapter or any other laws to the contrary24
notwithstanding, the retirement of Hazardous Duty Subplan members shall be25
governed by the provisions of this Part; however, if provisions of this Chapter cover26
matters not specifically addressed by the provisions of this Part or if any of the27
provisions of this Chapter are made applicable in this Part, then those provisions28
shall apply to members governed by this Part.29 HLS 12RS-1820 ORIGINAL
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§2241.2. Application; definitions1
Terms not specifically defined in this Section shall have the meanings2
provided in R.S. 11:2213 unless a different meaning is clearly required by the3
context. For purposes of this Part:4
(1) "Member" or "members" shall mean all persons otherwise qualifying as5
a member under R.S. 11:2213 whose first employment making them eligible for6
membership in this systems occurred on or after January 1, 2013 and who by virtue7
of their employment are eligible to receive state supplemental pay, notwithstanding8
any temporal restrictions relative to qualifying for such pay.9
(2) "Subplan" means the Hazardous Duty Subplan created by this Part for10
certain hazardous duty services employees within the system.11
(3) "System" means the Municipal Police Employees' Retirement System.12
§2241.3. Eligibility for plan membership13
A. Membership in this subplan is limited to employees who, notwithstanding14
any temporal restrictions relative to qualifying for such pay, would be eligible to15
receive state supplemental pay by virtue of their employment.16
B. Notwithstanding the provisions of Subsection A of this Section, no person17
who participated in the Deferred Retirement Option Plan as a member of any other18
retirement plan in this system shall be eligible for membership in the Hazardous19
Duty Subplan.20
§2241.4. Eligibility for retirement21
A. Any member of this subplan shall be eligible for retirement if he has:22
(1) Twenty-five years or more of service, at any age.23
(2) Twelve years or more of service, at age fifty-five or thereafter.24
(3) Twenty years of service credit at any age, exclusive of unused annual and25
sick leave and military service other than qualified military service as provided in 2626
U.S.C. 414(u) earned on or after December 12, 1994. Any person retiring under this27
Paragraph shall have his benefit, inclusive of military service credit and allowable28
unused annual and sick leave, actuarially reduced. Any member retiring under this29 HLS 12RS-1820 ORIGINAL
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Paragraph shall have his benefit actuarially reduced from the earliest age that he1
would normally become eligible for a regular retirement benefit under Paragraph (1)2
or (2) of this Subsection based upon his years of service as of the date of retirement.3
Any employee who elects to retire under the provisions of this Paragraph shall not4
be eligible to participate in the Deferred Retirement Option Plan provided by R.S.5
11:2221 or the Initial Benefit Option provided by R.S. 11:2224(F).6
§2241.5. Retirement benefit calculation7
A. Except as provided in Subsection B of this Section, a member shall8
receive a retirement benefit equal to three and one-third percent of average final9
compensation for every year of creditable service in this subplan, not to exceed one10
hundred percent of the member's average final compensation.11
B. Retirement benefits for members who had service in nonhazardous duty12
or service under existing plans prior to entering this subplan shall upon retirement13
eligibility receive a retirement benefit for that prior service based on the applicable14
accrual rate when earned.15
C. Average final compensation as defined in R.S. 11:2213 shall be based on16
all creditable service in the system.17
§2241.6. Deferred Retirement Option Plan; Initial Benefit Option18
A member who is eligible for regular retirement may elect to participate in19
the Deferred Retirement Option Plan in accordance with the provisions of R.S.20
11:2221 or the Initial Benefit Option provided by R.S. 11:2224(F).21
§2241.7. Disability retirement; Survivor Benefits22
A. A member of this subplan shall be eligible for disability benefits upon23
meeting the criteria and procedures set forth in R.S. 11:2223.24
B. Survivors' benefits shall be paid as otherwise provided in this Chapter.25
PART III. NON-HAZARDOUS DUTY SUBPLAN26
§2242.1. Creation of Non-Hazardous Duty Subplan27
A. The Non-Hazardous Duty Subplan is created within the Municipal Police28
Employees' Retirement System for members whose first employment making them29 HLS 12RS-1820 ORIGINAL
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eligible for membership in the system occurred on or after January 1, 2013, in non-1
hazardous duty positions as defined in this Part.2
B. Any other provisions of this Chapter or any other laws to the contrary3
notwithstanding, the retirement of Non-Hazardous Duty Subplan members shall be4
governed by the provisions of this Part; however, if provisions of this Chapter cover5
matters not specifically addressed by the provisions of this Part or if any of the6
provisions of this Chapter are made applicable in this Part, then those provisions7
shall apply to members governed by this Part.8
§2242.2. Application; definitions9
Terms not specifically defined in this Section shall have the meanings10
provided in R.S. 11:2213 unless a different meaning is clearly required by the11
context. For purposes of this Part:12
(1) "Member" or "members" shall mean all persons otherwise qualifying as13
a member under R.S. 11:2213 whose first employment making them eligible for14
membership in this system occurred on or after January 1, 2013, who are not eligible15
by virtue of their position to receive state supplemental pay.16
(2)"Subplan" means the Non-Hazardous Duty Subplan created by this Part17
for certain non-hazardous duty services employees within the system.18
(3) "System" means the Municipal Police Employees' Retirement System.19
§2242.3. Eligibility for plan membership20
Membership in this subplan is limited to employees whose employment does21
not qualify them to receive state supplemental pay.22
§2242.4. Eligibility for retirement23
A. Any member of this subplan shall be eligible for retirement if he has:24
(1) Thirty years or more of service, at any age.25
(2) Twenty-five years or more of service, at age fifty-five or thereafter.26
(3) Twenty years of service credit at any age, exclusive of unused annual and27
sick leave and military service other than qualified military service as provided in 2628
U.S.C. 414(u) earned on or after December 12, 1994. Any person retiring under this29 HLS 12RS-1820 ORIGINAL
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Paragraph shall have his benefit, inclusive of military service credit and allowable1
unused annual and sick leave, actuarially reduced. Any member retiring under this2
Paragraph shall have his benefit actuarially reduced from the earliest age that he3
would normally become eligible for a regular retirement benefit under Paragraph (1)4
or (2) of this Subsection based upon his years of service as of the date of retirement.5
Any employee who elects to retire under the provisions of this Paragraph shall not6
be eligible to participate in the Deferred Retirement Option Plan provided by R.S.7
11:2221 or the Initial Benefit Option provided by R.S. 11:2224(F).8
(4) Ten years or more of service, at age sixty.9
§2242.5. Retirement benefit calculation10
A. Except as provided in Subsection B of this Section, a member shall11
receive a retirement benefit equal to three percent of average final compensation for12
every year of creditable service in this subplan, not to exceed one hundred percent13
of the member's average final compensation.14
B. Retirement benefits for members who had service in hazardous duty or15
service under existing plans prior to entering this subplan shall upon retirement16
eligibility receive a retirement benefit for that prior service based on the applicable17
accrual rate when earned.18
C. Average final compensation as defined in R.S. 11:2213 shall be based on19
all creditable service in the system.20
§2242.6. Deferred Retirement Option Plan; Initial Benefit Option21
A member who is eligible for regular retirement may elect to participate in22
the Deferred Retirement Option Plan in accordance with the provisions of R.S.23
11:2221 or the Initial Benefit Option provided by R.S. 11:2224(F).24
§2242.7. Disability retirement; Survivor Benefits25
A. A member of this subplan shall be eligible for disability benefits upon26
meeting the criteria and procedures set forth in R.S. 11:2223.27
B. Survivors' benefits shall be paid as otherwise provided in this Chapter.28
* * *29 HLS 12RS-1820 ORIGINAL
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CHAPTER 9. FIREFIGHTERS' RETIREMENT SYSTEM1
PART I. GENERAL PROVISIONS AND PROVISIONS FOR MEMBERS NOT2
ENROLLED IN A SUBPLAN3
* * *4
§2252. Definitions5
The following words and phrases, as used in this Chapter, unless a different6
meaning is plainly required by context, shall have the following meaning:7
* * *8
(4)(a) For members employed on or before December 31, 2012, "Average9
final compensation" shall mean the average annual earned compensation of an10
employee for any period of thirty-six successive or joined months of service as an11
employee during which the said earned compensation was the highest. In case of12
interruption of employment, the thirty-six month period shall be computed by joining13
employment periods immediately preceding and succeeding the interruption. The14
earnings to be considered for the thirteenth through the twenty-fourth months shall15
not exceed one hundred fifteen percent of the earnings for the first through the16
twelfth months. The earnings to be considered for the final twelve months shall not17
exceed one hundred fifteen percent of the earnings of the thirteenth through the18
twenty-fourth months.19
(b) For members employed on or after January 1, 2013, "Average final20
compensation" means the average annual earned compensation of a member for the21
sixty highest months of successive employment, or for the highest sixty successive22
joined months of employment where interruption of service occurred. The earnings23
to be considered for the thirteenth through the twenty-fourth month shall not exceed24
one hundred fifteen percent of the earnings of the first through the twelfth month.25
The earnings to be considered for the twenty-fifth through the thirty-sixth month26
shall not exceed one hundred fifteen percent of the earnings of the thirteenth through27
the twenty-fourth month. The earnings to be considered for the thirty-seventh28
through the forty-eighth month shall not exceed one hundred fifteen percent of the29 HLS 12RS-1820 ORIGINAL
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earnings of the twenty-fifth through the thirty-sixth month. The earnings for the1
final twelve months shall not exceed one hundred fifteen percent of the earnings of2
the thirty-seventh through the forty-eighth month. The limitations on the3
computation of average final compensation contained in this Subparagraph shall not4
apply to any twelve-month period during which compensation increased by more5
than fifteen percent over the previous twelve-month period solely because of an6
increase in compensation by a uniform systemwide increase adopted by a local7
governing authority.8
* * *9
(19) "Retirement system" or "system" shall mean the Firefighters' Retirement10
System as established in R.S. 11:2251.11
* * *12
PART II. HAZARDOUS DUTY SUBPLAN13
§2281. Creation of Hazardous Duty Subplan14
A. The Hazardous Duty Subplan is created within the Firefighters'15
Retirement System for members whose first employment making them eligible for16
membership in the system occurred on or after January 1, 2013, in hazardous duty17
positions as defined in this Part.18
B. Any other provisions of this Chapter or any other laws to the contrary19
notwithstanding, the retirement of subplan members shall be governed by the20
provisions of this Part; however, if provisions of this Chapter cover matters not21
specifically addressed by the provisions of this Part or if any of the provisions of this22
Chapter are made applicable in this Part, then those provisions shall apply to23
members governed by this Part.24
§2282. Application; definitions25
Terms not specifically defined in this Section shall have the meanings26
provided in R.S. 11:2252 unless a different meaning is clearly required by the27
context. For purposes of this Part:28 HLS 12RS-1820 ORIGINAL
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(2) "Member" or "members" shall mean all persons otherwise qualifying as1
a member of the system under R.S. 11:2252 whose first employment making them2
eligible for membership in this systems occurred on or after January 1, 2013 and who3
by virtue of their employment are eligible to receive state supplemental pay,4
regardless of any temporal restrictions relative to qualifying for such pay.5
(2) "Subplan" means the Hazardous Duty Subplan created by this Part for6
certain hazardous duty services employees within the system.7
(3) "System" means the Firefighters' Retirement System.8
§2283. Eligibility for plan membership9
A. Membership in this subplan is limited to employees who, notwithstanding10
any temporal restrictions relative to qualifying for such pay, would be eligible to11
receive state supplemental pay by virtue of their employment.12
B. Notwithstanding the provisions of Subsection A of this Section, no person13
who participated in the Deferred Retirement Option Plan as a member of any other14
retirement plan in this system shall be eligible for membership in the Hazardous15
Duty Subplan.16
§2284. Eligibility for retirement17
A. Any member of this subplan shall be eligible for retirement if he has:18
(1) Twenty-five years or more of service, at any age.19
(2) Twelve years or more of service, at age fifty-five or thereafter.20
(3) Twenty years of service credit at any age, exclusive of unused annual and21
sick leave and military service other than qualified military service as provided in 2622
U.S.C. 414(u) earned on or after December 12, 1994. Any person retiring under this23
Paragraph shall have his benefit, inclusive of military service credit and allowable24
unused annual and sick leave, actuarially reduced. Any member retiring under this25
Paragraph shall have his benefit actuarially reduced from the earliest age that he26
would normally become eligible for a regular retirement benefit under Paragraph (1)27
or (2) of this Subsection based upon his years of service as of the date of retirement.28
Any employee who elects to retire under the provisions of this Paragraph shall not29 HLS 12RS-1820 ORIGINAL
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be eligible to participate in the Deferred Retirement Option Plan provided by R.S.1
11:2257 or the Initial Benefit Option provided by R.S. 11:2259(C).2
§2285. Retirement benefit calculation3
A. Except as provided in Subsection B of this Section, a member shall4
receive a retirement benefit equal to three and one-third percent of average final5
compensation for every year of creditable service in this subplan, not to exceed one6
hundred percent of the member's average final compensation.7
B. Retirement benefits for members who had service in nonhazardous duty8
or service under existing plans prior to entering this subplan shall upon retirement9
eligibility receive a retirement benefit for that prior service based on the applicable10
accrual rate when earned.11
C. Average final compensation as defined in R.S. 11:2252 for the total12
benefit payable shall be based on all creditable service in the system.13
§2286. Deferred Retirement Option Plan; Initial Benefit Option14
A member who is eligible for regular retirement may elect to participate in15
the Deferred Retirement Option Plan in accordance with the provisions of R.S.16
11:2257 or the Initial Benefit Option provided by R.S. 11:2259(C).17
§2287. Disability retirement; Survivor Benefits18
A. A member of this subplan shall be eligible for disability benefits upon19
meeting the criteria and procedures set forth in R.S. 11:2258.20
B. Survivors' benefits shall be paid as otherwise provided in this Chapter.21
PART III. NON-HAZARDOUS DUTY SUBPLAN22
§2291. Creation of Non-Hazardous Duty Subplan23
A. The Non-Hazardous Duty Subplan is created within the Firefighters'24
Retirement System for members whose first employment making them eligible for25
membership in the system occurred on or after January 1, 2013, in non-hazardous26
duty positions as defined in this Part.27
B. Any other provisions of this Chapter or any other laws to the contrary28
notwithstanding, the retirement of Non-Hazardous Duty Subplan members shall be29 HLS 12RS-1820 ORIGINAL
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governed by the provisions of this Part; however, if provisions of this Chapter cover1
matters not specifically addressed by the provisions of this Part or if any of the2
provisions of this Chapter are made applicable in this Part, then those provisions3
shall apply to members governed by this Part.4
§2292. Application; definitions5
Terms not specifically defined in this Section shall have the meanings6
provided in R.S. 11:2252 unless a different meaning is clearly required by the7
context. For purposes of this Part:8
(1) "Member" or "members" shall mean all persons otherwise qualifying as9
a member under R.S. 11:2252 whose first employment making them eligible for10
membership in this system occurred on or after January 1, 2013, who are not eligible11
by virtue of their position to receive state supplemental pay.12
(2) "Subplan" means the Non-Hazardous Duty Subplan created by this Part13
for certain non-hazardous duty services employees within the system.14
(3) "System" means the Firefighters' Retirement System.15
§2293. Eligibility for plan membership16
Membership in this subplan is limited to employees whose employment does17
not qualify them to receive state supplemental pay.18
§2294. Eligibility for retirement19
A. Any member of this subplan shall be eligible for retirement if he has:20
(1) Thirty years or more of service, at any age.21
(2) Twenty-five years or more of service, at age fifty-five or thereafter.22
(3) Twenty years of service credit at any age, exclusive of unused annual and23
sick leave and military service other than qualified military service as provided in 2624
U.S.C. 414(u) earned on or after December 12, 1994. Any person retiring under this25
Paragraph shall have his benefit, inclusive of military service credit and allowable26
unused annual and sick leave, actuarially reduced. Any member retiring under this27
Paragraph shall have his benefit actuarially reduced from the earliest age that he28
would normally become eligible for a regular retirement benefit under Paragraph (1)29 HLS 12RS-1820 ORIGINAL
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or (2) of this Subsection based upon his years of service as of the date of retirement.1
Any employee who elects to retire under the provisions of this Paragraph shall not2
be eligible to participate in the Deferred Retirement Option Plan provided by R.S.3
11:2257 or the Initial Benefit Option provided by R.S. 11:2259(C).4
(4) Ten years or more of service, at age sixty.5
§2295. Retirement benefit calculation6
A. Except as provided in Subsection B of this Section, a member shall7
receive a retirement benefit equal to three percent of average final compensation for8
every year of creditable service in this subplan, not to exceed one hundred percent9
of the member's average final compensation.10
B. Retirement benefits for members who had service in hazardous duty or11
service under existing plans prior to entering this subplan shall upon retirement12
eligibility receive a retirement benefit for that prior service based on the applicable13
accrual rate when earned.14
C. Average final compensation as defined in R.S. 11:2252 for the total15
benefit payable shall be based on all creditable service in the system.16
§2296. Deferred Retirement Option Plan; Initial Benefit Option17
A member who is eligible for regular retirement may elect to participate in18
the Deferred Retirement Option Plan in accordance with the provisions of R.S.19
11:2257 or the Initial Benefit Option provided by R.S. 11:2259(C).20
§2297. Disability retirement; Survivor Benefits21
A. A member of this subplan shall be eligible for disability benefits upon22
meeting the criteria and procedures set forth in R.S. 11:2258.23
B. Survivors' benefits shall be paid as otherwise provided in this Chapter.24 HLS 12RS-1820 ORIGINAL
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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)]
Danahay HB No. 1174
Abstract: Creates "Hazardous Duty" and "Non-Hazardous Duty" subplans within the
Municipal Police Employees' Retirement System (MPERS) and the Firefighters'
Retirement System (FRS) for new hires after December 31, 2012
Present law establishes the MPERS and FRS systems. Proposed law retains present law.
Proposed law establishes two new subplans each within MPERS and FRS. Each new
subplan is for new hires on and after January 1, 2013. One subplan in each system is for
"hazardous duty" members and the other is for "non-hazardous duty" members. Proposed
law defined "hazardous duty" employees as persons eligible to receive state supplemental
pay by virtue of their employment. Proposed law defines "non-hazardous duty" employees
as persons not eligible to receive state supplemental pay by virtue of their employment.
Proposed law retains present law for current members of each system and for persons hired
prior to January 1, 2013.
EMPLOYEE CONTRIBUTION RATES
Present law establishes the employee contribution rates for MPERS and FRS. Rates are
based on the members salary being above or below the most recently issued federal poverty
guideline. Proposed law retains present law for current employees and adds members of the
hazardous duty services subplan to these amounts. Proposed law further establishes an
employee contribution rate for the non-hazardous duty subplans in MPERS and FRS. For
both systems, the rate is 8%.
"AVERAGE COMPENSATI ON"
Present law defines "average compensation" for members as the average of their 3 highest
paid years of employment. Proposed law retains present law for current employees and for
employees hired prior to January 1, 2013.
Proposed law changes the definition of "average compensation" for persons hired on or after
January 1, 2013. Proposed law defines "average compensation" for these new employees
as the average of their highest paid 5 yeas of employment.
Present law and proposed law both contain restrictions on "spiking" salaries of employees
so that, year over year, a member's salary cannot increase over a certain percentage over the
prior year's salary.
RETIREMENT ELIGIBILITY
Present law establishes retirement eligibility for MPERS:
(1)25 years of service or more, at any age.
(2)20 years of service or more, at 50 years of age.
(3)20 years of service or more, at any age, actuarially reduced.
(4)12 years of service or more, at 55 years of age.
Present law establishes retirement eligibility for FRS:
(1)25 years of service or more, at any age. HLS 12RS-1820 ORIGINAL
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are additions.
(2)20 years of service or more, at age 55.
(3)12 years of service or more, at age 55.
Proposed law retains present law for current employees and employees hired prior to January
1, 2013.
Proposed law establishes retirement eligibility for the Hazardous Duty subplan in MPERS
and FRS as:
(1)25 years of service or more, at any age.
(2)12 years or service or more, at age 55 or after.
(3)20 years or service or more, at any age, actuarially recuded.
Proposed law establishes retirement eligibility for the Non-Hazardous Duty subplan in
MPERS and FRS as:
(1)30 years of service or more, at any age.
(2)25 years of service or more, at age 55.
(3)20 years of service or more, at any age, actuarially reduced.
ACCRUAL RATE
Present law establishes the accrual rate of members in MPERS at 3.33%.
Present law establishes the accrual rate for members in FRS at 3.33%.
Proposed law retains present law for current employees and employees hired prior to January
1, 2013.
Proposed law establishes the accrual rate for the Hazardous Duty subplan in MPERS and
FRS at 3.33%.
Proposed law establishes the accrual rate for the Non-Hazardous Duty subplan in MPERS
and FRS at 3%.
Proposed law authorizes any member eligible for regular retirement (not disability or an
actuarially reduced retirement benefit) in either subplan to participate in the Deferred
Retirement Option Program (DROP).
DISABILITY AND SURVIVOR BENEFITS
Present law for MPERS generally provides the following for disability benefits:
Any member certified as disabled due to injury sustained in the course of his duties, and any
active member certified as disabled for any reason so long as the member has at least 10
years of creditable service is entitled to disability. The disability benefit equals 3.33% of
final average compensation multiplied by years of service, subject to a minimum of 40% of
final compensation and a maximum of 60% of final compensation. Members with severe
injuries (including total loss of an eye or limb) sustained in the line of duty receive 100% of
their final average compensation.
Present law for FRS generally provides the following for disability benefits:
Any member certified as disabled due to injury sustained in the course of his duties, and any
active member certified as disabled for any reason so long as the member has at least 5 years
of creditable service is entitled to disability. Percentages of the accrued benefit the injured
member is entitled to vary with age.
Present law for MPERS generally provides the following for survivor benefits:
If an active member is killed in the line of duty, the surviving spouse is entitled to a benefit
equal to 100% of the deceased's final average compensation. If an active member is killed
not in the line of duty and leaves a surviving spouse, the spouse is entitled to an annual
benefit equal to 3.33% of the deceased's average final compensation multiplied by this total
years of creditable service, subject to a minimum of 40% and a maximum of 60% of the HLS 12RS-1820 ORIGINAL
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are additions.
deceased's average final compensation. Minor children are entitled to a benefit until they
reach age 18 or age 23 (if enrolled full-time in an institution of higher learning, high school,
or vo-tech school). Different provisions apply to handicapped children of a deceased
member.
Present law for FRS generally provides the following for survivor benefits:
If a member is killed in the line of duty and leaves a surviving spouse, the spouse is entitled
to an annual benefit equal to 2/3 the deceased's final compensation. If a member is killed
not in the line of duty, the surviving spouse is entitled to an annual benefit equal to 3% of
the deceased members' average final compensation multiplied by his years of creditable
service, subject to a minimum of 40% and a maximum of 60% of the member's final average
compensation. Minor children of a deceased member are eligible for a benefit until they
attain the age of majority or the age of 22 (if enrolled full-time in an institution of higher
learning). Different provisions apply to handicapped children of a deceased member.
Proposed law retains present law for subplan members.
(Amends R.S. 11:62(3) and (6), 2213 (intro. para.), (4), and (20), 2252(4) and (19); Adds
R.S. 11:2241.1-2241.7, 2242.1- 2242.7, 2181-2187, and 2291-2297)