ENROLLED Page 1 of 17 CODING: Words in struck through type are deletions from existing law; words underscored are additions. ACT No. 522 Regular Session, 2012 HOUSE BILL NO. 1174 BY REPRESENTATIVE DANAHAY AN ACT1 To amend and reenact R.S. 11:62(6) and 2213(introductory paragraph), (4), and (20) and to2 enact Part II of Chapter 8 of Subtitle III of Title 11 of the Louisiana Revised Statutes3 of 1950, to be comprised of R.S. 11:2241.1 through 2241.8, and Part III of Chapter4 8 of Subtitle III of Title 11 of the Louisiana Revised Statutes of 1950, to be5 comprised of R.S. 11:2242.1 through 2242.8, relative to the establishment of6 subplans for new hires within the Municipal Police Employees' Retirement System;7 to provide relative to eligibility, benefits, accrual, and contribution rates; to provide8 for definitions; to provide restrictions; and to provide for related matters.9 Notice of intention to introduce this Act has been published10 as provided by Article X, Section 29(C) of the Constitution11 of Louisiana.12 Be it enacted by the Legislature of Louisiana:13 Section 1. R.S. 11:62(6) and 2213(introductory paragraph), (4), and (20) are hereby14 amended and reenacted and Part II of Chapter 8 of Subtitle III of Title 11 of the Louisiana15 Revised Statutes of 1950, comprised of R.S. 11:2241.1 through 2241.8, and Part III of16 Chapter 8 of Subtitle III of Title 11 of the Louisiana Revised Statutes of 1950, comprised17 of R.S. 11:2242.1 through 2242.8, are hereby enacted to read as follows:18 §62. Employee contribution rates established19 Employee contributions to state and statewide public retirement systems shall20 be paid at the following rates, except as otherwise provided by law:21 * * *22 ENROLLEDHB NO. 1174 Page 2 of 17 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (6) Municipal Police Employees' Retirement System:1 (a) For members hired prior to January 1, 2013, and for members of the2 Hazardous Duty Subplan:3 (i) Any member whose earnable compensation is less than or equal to the4 most recently issued poverty guidelines issued by the United States Department of5 Health and Human Services according to the size of the member's family unit - 7.5%.6 (b) (ii) For employee contributions due and payable July 1, 2011, or7 thereafter, any member whose earnable compensation is more than the most recently8 issued poverty guidelines issued by the United States Department of Health and9 Human Services according to the size of the member's family unit:10 If the total contribution11 for the fiscal year expressed12 as a percentage of payroll after13 applying all required tax The employee contribution14 contributions is: shall be:15 25.0% or below 7.5%16 25.01% to 25.75% 7.75%17 25.76% to 26.5% 8.0%18 26.51% to 27.25% 8.25%19 27.26% to 28.0% 8.5%20 28.01% to 28.75% 8.75%21 28.76% to 29.5% 9.25%22 29.51% to 30.25% 9.5%23 30.26% to 31.0% 9.75%24 31.0% or above 10.0%25 (b) For members of the Non-Hazardous Duty Subplan – 8%, or equal to the26 rate established in Item (a)(ii) of this Paragraph if less than 8%.27 * * *28 ENROLLEDHB NO. 1174 Page 3 of 17 CODING: Words in struck through type are deletions from existing law; words underscored are additions. CHAPTER 8. MUNICIPAL POLICE EMPLOYEES'1 RETIREMENT SYSTEM2 PART I. GENERAL PROVISIONS AND PROVISIONS FOR MEMBERS NOT3 ENROLLED IN A SUBPLAN4 * * *5 §2213. Definitions6 The following words and phrases, as used in this Subpart Chapter, unless a7 different meaning is plainly required by context, shall have the following meaning8 meanings:9 * * *10 (4)(a) For members first employed on or before December 31, 2012,11 "average final compensation" shall mean the average annual earned compensation12 of an employee for any period of thirty-six successive or joined months of service13 as an employee during which the said earned compensation was the highest. In case14 of interruption of employment, the thirty-six month period shall be computed by15 joining employment periods immediately preceding and succeeding the interruption.16 The earnings to be considered for the thirteenth through the twenty-fourth months17 shall not exceed one hundred fifteen percent of the earnings for the first through the18 twelfth months. The earnings to be considered for the final twelve months shall not19 exceed one hundred fifteen percent of the earnings of the thirteenth through the20 twenty-fourth months.21 (b) For members first employed on or after January 1, 2013, "average final22 compensation" means the average annual earned compensation of a member for the23 sixty highest months of successive employment, or for the highest sixty successive24 joined months of employment where interruption of service occurred. The earnings25 to be considered for the thirteenth through the twenty-fourth month shall not exceed26 one hundred fifteen percent of the earnings of the first through the twelfth month.27 The earnings to be considered for the twenty-fifth through the thirty-sixth month28 shall not exceed one hundred fifteen percent of the earnings of the thirteenth through29 the twenty-fourth month. The earnings to be considered for the thirty-seventh30 ENROLLEDHB NO. 1174 Page 4 of 17 CODING: Words in struck through type are deletions from existing law; words underscored are additions. through the forty-eighth month shall not exceed one hundred fifteen percent of the1 earnings of the twenty-fifth through the thirty-sixth month. The earnings for the2 final twelve months shall not exceed one hundred fifteen percent of the earnings of3 the thirty-seventh through the forty-eighth month. The limitations on the4 computation of average final compensation contained in this Subparagraph shall not5 apply to any twelve-month period during which compensation increased by more6 than fifteen percent over the previous twelve-month period solely because of an7 increase in compensation by a uniform systemwide increase adopted by a local8 governing authority.9 * * *10 (20) "Retirement system" or "system" shall mean the Municipal Police11 Employees' Retirement System as established in R.S. 11:2211.12 * * *13 PART II. HAZARDOUS DUTY SUBPLAN14 §2241.1. Creation of Hazardous Duty Subplan15 A. The Hazardous Duty Subplan is created within the Municipal Police16 Employees' Retirement System for members whose first employment making them17 eligible for membership in the system occurred on or after January 1, 2013, in18 hazardous duty positions as defined in this Part.19 B. Any other provisions of this Chapter or any other laws to the contrary20 notwithstanding, the retirement of Hazardous Duty Subplan members shall be21 governed by the provisions of this Part; however, if provisions of this Chapter cover22 matters not specifically addressed by the provisions of this Part or if any of the23 provisions of this Chapter are made applicable in this Part, then those provisions24 shall apply to members governed by this Part.25 §2241.2. Application; definitions26 Terms not specifically defined in this Section shall have the meanings27 provided in R.S. 11:2213 unless a different meaning is clearly required by the28 context. For purposes of this Part:29 ENROLLEDHB NO. 1174 Page 5 of 17 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (1) "Member" or "members" shall mean all persons otherwise qualifying as1 a member under R.S. 11:2213 whose first employment making them eligible for2 membership in this system occurred on or after January 1, 2013, and who by virtue3 of their employment are eligible to receive state supplemental pay, notwithstanding4 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 service employees within the system.7 (3) "System" means the Municipal Police Employees' Retirement System.8 §2241.3. 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 §2241.4. Eligibility for retirement17 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 ENROLLEDHB NO. 1174 Page 6 of 17 CODING: Words in struck through type are deletions from existing law; words underscored are additions. be eligible to participate in the Deferred Retirement Option Plan provided by R.S.1 11:2221 or the Initial Benefit Option provided by R.S. 11:2224(F).2 §2241.5. Retirement benefit calculation3 A. Except as provided in Subsection B of this Section, a member shall4 receive a retirement benefit equal to three percent of average final compensation for5 every year of creditable service in this subplan, not to exceed one hundred percent6 of the member's average final compensation. Notwithstanding this provision, a7 member who retires with thirty or more years of creditable service shall receive a8 retirement benefit equal to three and one-third percent of the member's 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.(1) Creditable service maintained pursuant to a reciprocal agreement in16 another system, fund, or plan shall not be used to meet the requirement of thirty or17 more years of creditable service.18 (2) Transferred service with an accrual rate of less than three and one-third19 percent shall not be used to meet the requirement of thirty or more years of creditable20 service unless the member elects to purchase the accrual rate for application to his21 transferred credit.22 §2241.6. Deferred Retirement Option Plan; Initial Benefit Option23 A member who is eligible for regular retirement may elect to participate in24 the Deferred Retirement Option Plan in accordance with the provisions of R.S.25 11:2221 or the Initial Benefit Option provided by R.S. 11:2224(F).26 §2241.7. Disability retirement27 A.(1) Eligibility for disability benefits, procedures for application for28 disability benefits, procedures for the certification of continuing eligibility for29 disability benefits, the authority of the board of trustees to modify disability benefits,30 ENROLLEDHB NO. 1174 Page 7 of 17 CODING: Words in struck through type are deletions from existing law; words underscored are additions. and procedures governing the restoration to active service of a formerly disabled1 employee shall be as provided in R.S. 11:202 through 225.2 (2) The burden of proving that a disability is not based on a preexisting3 condition, prohibiting receipt of benefits, shall lie with the employee if the physical4 examination and waiver forms required by R.S. 11:2214(A)(2) have not been5 submitted to the system.6 B.(1) The board of trustees shall award disability benefits to eligible7 members who have been officially certified as disabled to perform the position held8 by the member at the time that the disability was incurred or as disabled to perform9 any other position paying the same salary currently available in the department if the10 disability is not the result of a preexisting condition. Upon receipt of any application11 for disability retirement, the system shall request from the chief of police the job12 descriptions of all positions currently available in the department paying the same13 salary. Such job descriptions shall be submitted to the system within thirty days, or14 it shall be presumed that no position is available that pays the same salary. The15 disability benefit shall be determined as provided in this Section.16 (2) Upon application for retirement due to a total and permanent disability17 caused solely as the result of injuries sustained in the performance of his official18 duties, a member shall receive a disability benefit equal to two and three-quarters19 percent of his average final compensation multiplied by his years of creditable20 service, but not less than thirty-three percent nor more than fifty-five percent of his21 average final compensation.22 (3) Upon application for retirement due to a total and permanent disability,23 any member with at least ten years creditable service shall receive a disability benefit24 equal to two and three-quarters percent of his average final compensation multiplied25 by his years of creditable service, but not less than thirty-three percent nor more than26 fifty-five percent of his average final compensation.27 (4) In no case shall any disability benefit approved by the board of trustees28 be paid until all employee and employer contributions are received by the retirement29 system, covering through the date of termination of employment. Furthermore, no30 ENROLLEDHB NO. 1174 Page 8 of 17 CODING: Words in struck through type are deletions from existing law; words underscored are additions. application for disability benefit shall be approved until all previously refunded1 contributions from the system have been repaid, including compounded interest at2 the board-approved actuarial valuation rate thereon from the date of refund until3 repaid in full.4 C.(1) At the time of attainment of normal retirement age, a service-connected5 disability benefit recipient shall have the option to continue to receive his disability6 retirement benefit or his vested retirement benefit for the remainder of his life; if he7 elects to receive his vested retirement benefit, such benefit shall be equal to the8 greater of his disability benefit or his vested retirement benefit. Such election filed9 with the retirement system shall become irrevocable thirty days after receipt.10 (2) Upon attainment of normal retirement age, a disability recipient not11 covered by Paragraph (1) of this Subsection shall receive the greater of his disability12 retirement benefit or his vested benefit.13 D. Any person who is receiving or has received a disability retirement14 benefit from any law enforcement or police retirement plan or pension and relief15 fund for policemen, except disability retirees of this system, shall not be eligible for16 membership in the Municipal Police Employees' Retirement System if he becomes17 no longer disabled and returns to service in the same municipality or becomes18 employed as a policeman or law enforcement officer while receiving a disability19 benefit.20 E.(1) Any disability retiree who is in a coma or who is paraplegic, when such21 condition is solely the result of injuries sustained in the performance of his official22 duties and such condition is certified by the State Medical Disability Board shall23 receive a benefit equal to his average final compensation.24 (2) Any disability retiree who is blinded or who loses the total use of a limb25 solely as a result of injuries sustained in the performance of his official duties and26 whose condition is certified by the State Medical Disability Board shall receive a27 benefit equal to his average final compensation. No funds derived from the28 assessments against insurers pursuant to R.S. 22:1476 shall be used to pay any29 ENROLLEDHB NO. 1174 Page 9 of 17 CODING: Words in struck through type are deletions from existing law; words underscored are additions. increased costs or increase in liability of the system resulting from the provisions of1 this Paragraph.2 F. Notwithstanding the provisions of R.S. 11:221(D), any disability benefits3 granted under the provisions of this Section shall not be reduced because the4 disability retiree is also receiving social security disability benefits.5 §2241.8. Survivor benefits6 Benefits shall be payable to any survivor of an active contributing member7 who dies before retirement or a disability retiree who dies after retirement as8 specified in the following:9 (1)(a) If an active contributing member or a disability retiree either of whom10 has at least ten years of creditable service in the system dies and leaves a surviving11 spouse, the surviving spouse shall receive a benefit calculated according to the12 regular retirement formula, disregarding age, but not less than thirty-three percent13 nor more than fifty-five percent of the member's average final compensation. If the14 surviving spouse remarries, such benefit shall cease unless remarriage occurs after15 age sixty years; the benefit shall resume after a subsequent termination of the new16 marriage and upon approval of the board of trustees.17 (b) If the board of trustees determines that an active contributing member is18 killed as a result of injuries sustained in the line of duty, the cessation of benefits19 upon remarriage set forth in this Paragraph shall not apply. The surviving spouse20 shall receive a benefit equal to one hundred percent of the member's average final21 compensation less any survivor benefits payable to a child or children as provided22 in this Section. The sum of survivor benefits paid to children and a surviving spouse23 shall not exceed one hundred percent of the member's final average compensation.24 No funds derived from the assessments against insurers pursuant to R.S. 22:147625 shall be used to pay any increased costs or increase in liability of the system resulting26 from the payment of benefits to a surviving spouse pursuant to this Item.27 (2)(a) If an active contributing member or a disability retiree either of whom28 has at least ten years of creditable service in the system dies and leaves, in addition29 to a surviving spouse, one or more children under eighteen years of age, each child30 ENROLLEDHB NO. 1174 Page 10 of 17 CODING: Words in struck through type are deletions from existing law; words underscored are additions. under age eighteen shall be paid monthly benefits equal to ten percent of the1 deceased member's average final compensation, or two hundred dollars per month,2 whichever is greater. However, benefits payable on account of each child, when3 added to the benefits payable to the surviving spouse, shall not exceed an aggregate4 of one hundred percent of the deceased member's average final compensation.5 Benefits for a surviving child shall cease upon the child's attainment of age eighteen6 years or upon marriage, whichever occurs first, except that benefits shall continue:7 (i) For a surviving child to age twenty-three if the child is a full-time,8 unmarried student at a recognized institution of higher education, high school, or9 vocational-technical school, and10 (ii) For a surviving totally physically handicapped or mentally handicapped11 child if such child was totally physically handicapped or mentally handicapped at the12 time of death of the member or became so prior to the attainment of age eighteen and13 is dependent upon the surviving spouse or other legal guardian for subsistence.14 (b) If an active contributing member or a disability retiree either of whom15 has at least ten years of creditable service in the system dies and does not leave a16 surviving spouse but leaves one or more children under the age of eighteen, each17 child under age eighteen shall be paid monthly benefits equal to twenty-five percent18 of the deceased member's average final compensation. Benefits paid on account of19 each child shall not exceed an aggregate of fifty percent of the average final20 compensation. If the deceased member is survived by only one minor child, the21 child shall be paid not less than thirty percent of the deceased member's average final22 compensation. Benefits shall continue after the minor child attains age eighteen as23 provided in Subparagraph (a) of this Paragraph.24 (c) If at the time of a member's death the member is not married to the25 natural parent of any child or children who are entitled to receive a payment pursuant26 to this Section and if a trust has been created by the deceased member for the benefit27 of such child or children, the payment shall be made to any person designated as a28 trustee by the member on a certified copy of a trust document submitted to the29 system by the member.30 ENROLLEDHB NO. 1174 Page 11 of 17 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (3) If a member who is eligible for retirement dies before retiring, the1 surviving spouse shall automatically be paid benefits as though the member had2 retired on the date of his death and elected Option 2, naming the surviving spouse as3 beneficiary, or shall be paid benefits as provided in this Section whichever is greater.4 (4) Any member who has twelve or more years of service credit established5 in the retirement system and who terminates covered employment and leaves his6 accumulated contributions in the retirement system in order to receive a retirement7 benefit upon reaching the applicable age shall be covered by the survivor benefit8 provisions found in this Section.9 PART III. NONHAZARDOUS DUTY SUBPLAN10 §2242.1. Creation of Nonhazardous Duty Subplan11 A. The Nonhazardous Duty Subplan is created within the Municipal Police12 Employees' Retirement System for members whose first employment making them13 eligible for membership in the system occurred on or after January 1, 2013, in14 nonhazardous duty positions as defined in this Part.15 B. Any other provisions of this Chapter or any other laws to the contrary16 notwithstanding, the retirement of Nonhazardous Duty Subplan members shall be17 governed by the provisions of this Part; however, if provisions of this Chapter cover18 matters not specifically addressed by the provisions of this Part or if any of the19 provisions of this Chapter are made applicable in this Part, then those provisions20 shall apply to members governed by this Part.21 §2242.2. Application; definitions22 Terms not specifically defined in this Section shall have the meanings23 provided in R.S. 11:2213 unless a different meaning is clearly required by the24 context. For purposes of this Part:25 (1) "Member" or "members" shall mean all persons otherwise qualifying as26 a member under R.S. 11:2213 whose first employment making them eligible for27 membership in this system occurred on or after January 1, 2013, who are not eligible28 by virtue of their position to receive state supplemental pay.29 ENROLLEDHB NO. 1174 Page 12 of 17 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (2) "Subplan" means the Nonhazardous Duty Subplan created by this Part1 for certain nonhazardous duty service employees within the system.2 (3) "System" means the Municipal Police Employees' Retirement System.3 §2242.3. Eligibility for plan membership4 Membership in this subplan is limited to employees whose employment does5 not qualify them to receive state supplemental pay.6 §2242.4. Eligibility for retirement7 Any member of this subplan shall be eligible for retirement if he has:8 (1) Thirty years or more of service, at any age.9 (2) Twenty-five years or more of service, at age fifty-five or thereafter.10 (3) Twenty years of service credit at any age, exclusive of unused annual and11 sick leave and military service other than qualified military service as provided in 2612 U.S.C. 414(u) earned on or after December 12, 1994. Any person retiring under this13 Paragraph shall have his benefit, inclusive of military service credit and allowable14 unused annual and sick leave, actuarially reduced. Any member retiring under this15 Paragraph shall have his benefit actuarially reduced from the earliest age that he16 would normally become eligible for a regular retirement benefit under Paragraph (1)17 or (2) of this Subsection based upon his years of service as of the date of retirement.18 Any employee who elects to retire under the provisions of this Paragraph shall not19 be eligible to participate in the Deferred Retirement Option Plan provided by R.S.20 11:2221 or the Initial Benefit Option provided by R.S. 11:2224(F).21 (4) Ten years or more of service, at age sixty.22 §2242.5. Retirement benefit calculation23 A. Except as provided in Subsection B of this Section, a member shall24 receive a retirement benefit equal to two and one-half percent of average final25 compensation for every year of creditable service in this subplan, not to exceed one26 hundred percent of the member's average final compensation.27 B. Retirement benefits for members who had service in hazardous duty or28 service under existing plans prior to entering this subplan shall upon retirement29 ENROLLEDHB NO. 1174 Page 13 of 17 CODING: Words in struck through type are deletions from existing law; words underscored are additions. eligibility receive a retirement benefit for that prior service based on the applicable1 accrual rate when earned.2 C. Average final compensation as defined in R.S. 11:2213 shall be based on3 all creditable service in the system regardless of the subplan in which such service4 has been earned.5 §2242.6. Deferred Retirement Option Plan; Initial Benefit Option6 A member who is eligible for regular retirement may elect to participate in7 the Deferred Retirement Option Plan in accordance with the provisions of R.S.8 11:2221 or the Initial Benefit Option provided by R.S. 11:2224(F).9 §2242.7. Disability retirement10 A.(1) Eligibility for disability benefits, procedures for application for11 disability benefits, procedures for the certification of continuing eligibility for12 disability benefits, the authority of the board of trustees to modify disability benefits,13 and procedures governing the restoration to active service of a formerly disabled14 employee shall be as provided in R.S. 11:202 through 225.15 (2) The burden of proving that a disability is not based on a preexisting16 condition, prohibiting receipt of benefits, shall lie with the employee if the physical17 examination and waiver forms required by R.S. 11:2214(A)(2) have not been18 submitted to the system.19 B.(1) The board of trustees shall award disability benefits to eligible20 members who have been officially certified as disabled to perform the position held21 by the member at the time that the disability was incurred or as disabled to perform22 any other position paying the same salary currently available in the department if the23 disability is not the result of a preexisting condition. Upon receipt of any application24 for disability retirement, the system shall request from the chief of police the job25 descriptions of all positions currently available in the department paying the same26 salary. Such job descriptions shall be submitted to the system within thirty days, or27 it shall be presumed that no position is available that pays the same salary. The28 disability benefit shall be determined as provided in this Section.29 ENROLLEDHB NO. 1174 Page 14 of 17 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (2) Upon application for retirement due to a total and permanent disability,1 any member with at least ten years creditable service shall receive a disability benefit2 equal to two and one-quarter percent of his average final compensation multiplied3 by his years of creditable service, but not less than twenty-five percent nor more than4 fifty percent of his average final compensation.5 (3) In no case shall any disability benefit approved by the board of trustees6 be paid until all employee and employer contributions are received by the retirement7 system, covering through the date of termination of employment. Furthermore, no8 application for disability benefit shall be approved until all previously refunded9 contributions from the system have been repaid, including compounded interest at10 the board-approved actuarial valuation rate thereon from the date of refund until11 repaid in full.12 C. Upon attainment of normal retirement age, a disability recipient shall13 receive the greater of his disability retirement benefit or his vested benefit.14 D. Any person who is receiving or has received a disability retirement15 benefit from any other retirement plan or pension and relief fund for public16 employees, except disability retirees of this system, shall not be eligible for17 membership in the Municipal Police Employees' Retirement System if he becomes18 no longer disabled and returns to service in the same municipality or becomes19 employed as a policeman or law enforcement officer while receiving a disability20 benefit.21 E.(1) Any disability retiree who is in a coma or who is paraplegic, when such22 condition is solely the result of injuries sustained in the performance of his official23 duties and such condition is certified as total and permanent, shall receive a benefit24 equal to his average final compensation.25 (2) Any disability retiree who is blinded or who loses the total use of a limb26 solely as a result of injuries sustained in the performance of his official duties and27 whose condition is certified as total and permanent shall receive a benefit equal to28 his average final compensation. No funds derived from the assessments against29 ENROLLEDHB NO. 1174 Page 15 of 17 CODING: Words in struck through type are deletions from existing law; words underscored are additions. insurers pursuant to R.S. 22:1476 shall be used to pay any increased costs or increase1 in liability of the system resulting from the provisions of this Paragraph.2 F. Notwithstanding the provisions of R.S. 11:221(D), any disability benefits3 granted under the provisions of this Section shall not be reduced because the4 disability retiree is also receiving social security disability benefits.5 §2242.8. Survivor benefits6 Benefits shall be payable to any survivor of an active contributing member7 who dies before retirement or a disability retiree who dies after retirement as8 specified in the following:9 (1)(a) If an active contributing member or a disability retiree either of whom10 has at least ten years of creditable service in the system dies and leaves a surviving11 spouse, the surviving spouse shall receive a benefit calculated according to the12 regular retirement formula, disregarding age, but not less than twenty-five percent13 nor more than fifty percent of the member's average final compensation. If the14 surviving spouse remarries, such benefit shall cease unless remarriage occurs after15 age sixty years; the benefit shall resume after a subsequent termination of the new16 marriage and upon approval of the board of trustees.17 (b) If the board of trustees determines that an active contributing member is18 killed as a result of injuries sustained in the line of duty, the cessation of benefits19 upon remarriage set forth in this Paragraph shall not apply. The surviving spouse20 shall receive a benefit equal to one hundred percent of the member's final average21 compensation less any survivor benefits payable to a child or children as provided22 in this Section. The sum of survivor benefits paid to children and a surviving spouse23 shall not exceed one hundred percent of the member's average final compensation.24 No funds derived from the assessments against insurers pursuant to R.S. 22:147625 shall be used to pay any increased costs or increase in liability of the system resulting26 from the payment of benefits to a surviving spouse pursuant to this Item.27 (2)(a) If an active contributing member or a disability retiree either of whom28 has at least ten years of creditable service in the system dies and leaves, in addition29 to a surviving spouse, one or more children under eighteen years of age, each child30 ENROLLEDHB NO. 1174 Page 16 of 17 CODING: Words in struck through type are deletions from existing law; words underscored are additions. under age eighteen shall be paid monthly benefits equal to ten percent of the1 deceased member's average final compensation, or two hundred dollars per month,2 whichever is greater. However, benefits payable on account of each child, when3 added to the benefits payable to the surviving spouse, shall not exceed an aggregate4 of one hundred percent of the deceased member's average final compensation.5 Benefits for a surviving child shall cease upon the child's attainment of age eighteen6 years or upon marriage, whichever occurs first, except that benefits shall continue:7 (i) For a surviving child to age twenty-three if the child is a full-time,8 unmarried student at a recognized institution of higher education, high school, or9 vocational-technical school, and10 (ii) For a surviving totally physically handicapped or mentally handicapped11 child if such child was totally physically handicapped or mentally handicapped at the12 time of death of the member or became so prior to the attainment of age eighteen and13 is dependent upon the surviving spouse or other legal guardian for subsistence.14 (b) If an active contributing member or a disability retiree either of whom15 has at least ten years of creditable service in the system dies and does not leave a16 surviving spouse but leaves one or more children under the age of eighteen, each17 child under age eighteen shall be paid monthly benefits equal to twenty percent of18 the deceased member's average final compensation. Benefits paid on account of19 each child shall not exceed an aggregate of fifty percent of the average final20 compensation. If the deceased member is survived by only one minor child, the21 child shall be paid not less than twenty-five percent of the deceased member's22 average final compensation. Benefits shall continue after the minor child attains age23 eighteen as provided in Subparagraph (a) of this Paragraph.24 (c) If at the time of a member's death the member is not married to the25 natural parent of any child or children who are entitled to receive a payment pursuant26 to this Section and if a trust has been created by the deceased member for the benefit27 of such child or children, the payment shall be made to any person designated as a28 trustee by the member on a certified copy of a trust document submitted to the29 system by the member.30 ENROLLEDHB NO. 1174 Page 17 of 17 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (3) If a member who is eligible for retirement dies before retiring, the1 surviving spouse shall automatically be paid benefits as though the member had2 retired on the date of his death and elected Option 2, naming the surviving spouse as3 beneficiary, or shall be paid benefits as provided in this Section, whichever is4 greater.5 (4) Any member who has twelve or more years of service credit established6 in the retirement system and who terminates covered employment and leaves his7 accumulated contributions in the retirement system in order to receive a retirement8 benefit upon reaching the applicable age shall be covered by the survivor benefit9 provisions found in this Section.10 SPEAKER OF THE HOUSE OF REPRESENTATI VES PRESIDENT OF THE SENATE GOVERNOR OF THE STATE OF LOUISIANA APPROVED: