Louisiana 2012 Regular Session

Louisiana House Bill HB1174 Latest Draft

Bill / Chaptered Version

                            ENROLLED
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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
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(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
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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
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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
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(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
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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
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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
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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
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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
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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
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(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
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(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
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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
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(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
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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
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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
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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: