HLS 12RS-381 ORIGINAL
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2012
HOUSE BILL NO. 39
BY REPRESENTATIVE MONTOUCET
RETIREMENT/FIREFIGHTERS: Provides relative to federal tax qualification
requirements for the Firefighters' Retirement System
AN ACT1
To enact R.S. 11:2254(E), 2256(B)(5), and 2271(7), relative to the Firefighters' Retirement2
System; to provide for compliance with federal tax qualification requirements; to3
provide relative to benefits accrued during military service; and to provide for related4
matters.5
Notice of intention to introduce this Act has been published6
as provided by Article X, Section 29(C) of the Constitution7
of Louisiana.8
Be it enacted by the Legislature of Louisiana:9
Section 1. R.S. 11:2254(E), 2256(B)(5), and 2271(7) are hereby enacted to read as10
follows: 11
§2254. Creditable service12
* * *13
E. The qualified military service of a member who has been reemployed in14
accordance with 26 U.S.C. 414(u) shall be treated for vesting and benefit accrual15
purposes as service completed under Subsection A of this Section if the member16
timely remits to the system any employee contributions which would have been17
required but for the member's leave of absence to perform qualified military service18
in accordance with the terms of federal law.19
* * *20 HLS 12RS-381 ORIGINAL
HB NO. 39
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§2256. Benefits; refund of contributions, application, and payment1
* * *2
B.3
* * *4
(5) Effective January 1, 2007, if a member dies while on a leave of absence5
to perform qualified military service as described in 26 U.S.C. 414(u), his6
beneficiary is entitled to any benefit, except benefits that accrued during the period7
of qualified military service, that would have been provided under the plan had the8
member resumed and then terminated employment due to death, in accordance with9
26 U.S.C. 401(a)(37); however, the member's beneficiary is entitled to benefits that10
accrued during the period of qualified military service if the beneficiary timely11
remits to the system any employee contributions which would have been required but12
for the member's leave of absence to perform qualified military service in accordance13
with the terms of federal law and R.S. 11:2254.14
* * *15
§2271. Tax qualification provisions16
The Firefighters' Retirement System shall be a tax-qualified governmental17
plan as provided in the Internal Revenue Code of 1986, as amended. In accordance18
with the requirements of the Internal Revenue Code, the following provisions shall19
apply to the retirement system:20
* * *21
(7) Amendments to the retirement system required for the purpose of22
maintaining continued compliance with the Internal Revenue Code and the23
regulations thereunder may be promulgated as rules in accordance with the24
Administrative Procedure Act.25
Section 2. This Act shall become effective on July 1, 2012; if vetoed by the governor26
and subsequently approved by the legislature, this Act shall become effective on July 1,27
2012, or on the day following such approval by the legislature, whichever is later.28 HLS 12RS-381 ORIGINAL
HB NO. 39
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
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)]
Montoucet HB No. 39
Abstract: Provides relative to federal tax qualification requirements for the Firefighters'
Retirement System (FRS); provides relative to accrual of benefits during military
service; authorizes certain changes to the retirement system by rule.
Present law provides that members of FRS may accrue service credit through actual service
and, under specified circumstances, by purchase. Proposed law provides that a member who
is reemployed after military service shall receive service credit for the period of his military
service if he remits employee contributions which would have been required but for military
service.
Present law provides for the payment of benefits to a designated beneficiary and provides
conditions and restrictions. Proposed law, effective Jan. 1, 2007, provides that if a member
dies during leave for military service, his beneficiary is entitled to any benefit, except
benefits that accrued during military service, that would have been provided had the member
resumed employment and then died; however, if the beneficiary pays the employee
contributions for the period of military service, the beneficiary is also entitled to benefits that
accrued during the period of qualified military service.
Present law provides that FRS is a tax-qualified governmental plan as provided in the
Internal Revenue Code and provides for certain matters as required in order for the system
to remain a tax-qualified governmental plan. Proposed law authorizes FRS to make changes
necessary to maintain compliance with the Internal Revenue Code by promulgation of rules
in accordance with the APA.
Effective July 1, 2012.
(Adds R.S. 11:2254(E), 2256(B)(5), and 2271(7))