HLS 12RS-338 ORIGINAL
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Regular Session, 2012
HOUSE BILL NO. 53
BY REPRESENTATIVE PEARSON
RETIREMENT/STATE SYSTEMS: Provides relative to retirement eligibility for certain
members of the La. State Employees Retirement System and the Teachers
Retirement System of La.
AN ACT1
To amend and reenact R.S. 11:441(A)(1)(introductory paragraph), (2)(a)(introductory2
paragraph) and (b)(introductory paragraph), and 761(A)(4) and to enact Subpart P3
of Part II of Chapter 4 of Subtitle I of Title 11 of the Louisiana Revised Statutes of4
1950, to be comprised of R.S. 11:331, and R.S. 11:441(A)(4) and 761(A)(5), relative5
to certain members of the Louisiana State Employees Retirement System and certain6
postsecondary education members of the Teachers Retirement System of Louisiana;7
to provide relative to eligibility for retirement and to retirement benefits; to provide8
for applicability; 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. 11:441(A)(1)(introductory paragraph), (2)(a)(introductory paragraph)14
and (b)(introductory paragraph), and 761(A)(4) are hereby amended and reenacted and15
Subpart P of Part II of Chapter 4 of Subtitle I of Title 11 of the Louisiana Revised Statutes16
of 1950, comprised of R.S. 11:331, and R.S. 11:441(A)(4) and 761(A)(5) are hereby enacted17
to read as follows:18 HLS 12RS-338 ORIGINAL
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SUBPART P. LEGISLATIVE INTENT1
§331. Legislative intent; certain acts2
The Legislature of Louisiana hereby declares that the intent of the provisions3
of this Title that were enacted by the Act that originated as House Bill No. ___ of the4
2012 Regular Session is to attain and maintain the actuarial soundness of state and5
statewide systems as required by the Constitution of Louisiana, Article X, Section6
29.7
* * *8
§441. Eligibility for retirement9
A.(1) Any Subject to the provisions of Paragraph (4) of this Subsection, a10
member hired on or before June 30, 2006, or any member who receives a benefit11
calculated pursuant to R.S. 11:444(A)(2)(b) and whose first employment making him12
eligible for membership in one of the state systems occurred on or before December13
31, 2010, shall be eligible for retirement if he has:14
* * *15
(2)(a) Any Subject to the provisions of Paragraph (4) of this Subsection, a16
member hired on or after July 1, 2006, and before July 1, 2013, shall be eligible for17
retirement if he has:18
* * *19
(b) Except for members of the Hazardous Duty Services Plan, as defined in20
R.S. 11:612, and subject to the provisions of Paragraph (4) of this Subsection, any21
member whose first employment making him eligible for membership in one of the22
state systems occurred on or after January 1, 2011, and before July 1, 2013, including23
any judge, court officer, governor, lieutenant governor, clerk or sergeant-at-arms of24
the House of Representatives, secretary or sergeant-at-arms of the Senate, or state25
treasurer, shall be eligible for retirement if he has:26
* * *27
(4)(a)(i) A member hired prior to June 30, 2006, is eligible for retirement if28
he has attained at least ten years of service and reached the age of sixty-seven or the29 HLS 12RS-338 ORIGINAL
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highest retirement age provided for by the Social Security Act, 42 U.S.C. 416,1
whichever is higher. However, such member may retire under any otherwise2
applicable provision of this Subsection, but his retirement benefit shall be actuarially3
reduced from what it would have been at the retirement age established by this4
Subparagraph if he had continued service. Any other applicable actuarial reduction5
provided for in this Subsection shall also be made to his retirement benefit. In no6
event shall any member who has completed the Deferred Retirement Option Plan7
receive his supplemental benefit before he has attained the retirement age established8
by this Subparagraph.9
(ii) A member hired on or after to July 1, 2006, is eligible for retirement if10
he has attained at least five years of service and reached the age of sixty-seven or the11
highest retirement age provided for by the Social Security Act, 42 U.S.C. 416,12
whichever is higher. However, a member whose first employment making him13
eligible for membership in one of the state systems occurred before July 1, 2013,14
may retire under any otherwise applicable provision of this Subsection, but his15
retirement benefit shall be actuarially reduced from what it would have been at the16
retirement age established by this Subparagraph if he had continued service. Any17
other applicable actuarial reduction provided for in this Subsection shall also be18
made to his retirement benefit. In no event shall any member who has completed the19
Deferred Retirement Option Plan receive his supplemental benefit before he has20
attained the retirement age established by this Subparagraph.21
(b) The provisions of Subparagraph (a) of this Paragraph do not apply to the22
following members:23
(i) A member who was born before July 1, 1957; such a member may retire24
under any other applicable provision of this Subsection.25
(ii) A judge serving as an elected judge on July 1, 2012; such a member may26
retire under any other applicable provision of this Subsection.27
(iii) A member of the Hazardous Duty Services Plan; public safety service28
employees referred to as "member" or "members" in R.S. 11:601(B); peace officers29 HLS 12RS-338 ORIGINAL
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employed by the Department of Public Safety and Corrections, office of state police,1
other than state troopers, as provided in R.S. 11:444(A)(2)(b); personnel employed2
by the Department of Revenue, office of alcohol and tobacco control, as provided in3
R.S. 11:444(A)(2)(c); wildlife agents; and bridge police. Such a member may retire4
under any other applicable provision of law.5
* * *6
§761. Retirement benefits; application; eligibility requirements; effective date;7
cancellation; errors and omissions8
A.9
* * *10
(4)(a) A member who is employed by an institution of postsecondary11
education, the Board of Regents, or a postsecondary education management board12
but who is not a member of the optional retirement plan is eligible for retirement if13
he has attained at least five years of service and reached the age of sixty-seven or the14
highest retirement age provided for by the Social Security Act, 42 U.S.C. 416,15
whichever is higher. However, such a member whose first employment making him16
eligible for membership in one of the state systems occurred before July 1, 2013,17
may retire under any otherwise applicable provision of this Subsection, but his18
retirement benefit shall be actuarially reduced from what it would have been at the19
retirement age established by this Subparagraph if he had continued service. Any20
other applicable actuarial reduction provided for in this Subsection shall also be21
made to his retirement benefit. In no event shall any member who has completed the22
Deferred Retirement Option Plan receive his supplemental benefit before he has23
attained the retirement age established by this Subparagraph.24
(b) The provisions of Subparagraph (a) of this Paragraph do not apply to a25
member who was born before July 1, 1957; such a member may retire under any26
other applicable provision of this Subsection.27
(4)(a) (5)(a) A properly executed application for retirement shall be28
considered as officially filed when received by the board of trustees of this system.29 HLS 12RS-338 ORIGINAL
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Retirement benefits shall become effective as of the date a properly executed1
application for retirement is received by the board of trustees of this system or the2
day after the member terminates from teaching service, whichever is later.3
(b) A member may cancel his application for retirement only prior to4
negotiating, cashing, or depositing any benefit check including an estimated benefit5
check.6
* * *7
Section 2. As soon as practicable after the effective date of this Act, the Public8
Retirement Systems' Actuarial Committee shall meet to adopt a revised valuation for the9
system prepared as provided in R.S. 11:102, applying the provisions of this Act. This10
valuation shall include a revised employer contribution rate for each plan within the system11
to be utilized in the fiscal year which begins on July 1, 2012.12
Section 3. If a final judgment declares the provisions of this Act unconstitutional as13
they relate to a particular group of employees, the provisions of this Act shall remain in14
effect and applicable to employees unrelated to the judgment.15
Section 4.(A) On June 30, 2012, this Act shall become applicable to all members of16
the Louisiana State Employees' Retirement System and the Teachers' Retirement System of17
Louisiana who shall not be eligible for retirement by October 1, 2012.18
(B) On October 1, 2012, the provisions of this Act shall become applicable to other19
members of the Louisiana State Employees' Retirement System and the Teachers' Retirement20
System of Louisiana as provided in the Act.21
Section 5. This Act shall become effective on June 30, 2012; if vetoed by the22
governor and subsequently approved by the legislature, this Act shall become effective on23
June 30, 2012, or on the day following such approval by the legislature, whichever is later.24 HLS 12RS-338 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)]
Pearson HB No. 53
Abstract: Increases the retirement age for certain members of the La. State Employees'
Retirement System (LASERS) and postsecondary education members of the
Teachers' Retirement System of La. (TRSL) to 67 years old or the highest Social
Security retirement age (now 67).
Present law provides for eligibility for retirement for members of LASERS and TRSL.
Present law provides various eligibility requirements the applicability of which depends on
variables such as when the individual was hired and what position the individual has held.
Typically, a person is authorized to retire after some number of years of service at a
particular age (10 years at 60, for example), some greater number of years of service at a
lower age (25 years at 55, for example), or a still greater number of years of service at any
age (30 years at any age, for example). Many classes of employees also have the option to
take early retirement after some number of years, but their retirement benefit is actuarially
reduced.
Relative to LASERS, proposed law provides that certain members hired prior to 6/30/06 may
retire after 10 years of service and attaining age 67 or the highest Social Security retirement
age. Certain members hired on or after 7/1/06 may retire after 5 years of service and
attaining age 67 or the highest Social Security retirement age. Members hired prior to 1/1/13
may retire under present law provisions relative to retirement requirements, but their
retirement will be actuarially reduced from age 67.
Relative to TRSL, proposed law provides that certain members may retire after five years
at age 67 or the highest Social Security retirement age. Members hired prior to 1/1/13 may
retire under present law provisions relative to retirement requirements, but their retirement
will be actuarially reduced from age 67.
Relative to LASERS, proposed law applies to all members except: persons born before July
1, 1957, specified groups of law enforcement officers, and judges in office on the effective
date of proposed law.
Relative to TRSL, proposed law applies only to members employed by an institution of
postsecondary education, the Board of Regents, or a postsecondary education management
board, who were born on or after July 1, 1957, and who are not members of the optional
retirement plan.
A member of either retirement system who is covered by proposed law but who was hired
in a position making him a member of a state retirement system prior to July 1, 2013, may
retire under any applicable provision of present law, but his retirement benefit will be
actuarially reduced from what it would have been had he continued in service until the
retirement age established by proposed law; however proposed law prohibits a member
covered by proposed law from receiving a DROP supplemental benefit prior to reaching the
age of 67.
Proposed law provides that if proposed law is declared unconstitutional as it relates to a
particular group of employees, the provisions of proposed law remain in effect and
applicable to employees unrelated to the judgment and requires the Public Retirement
Systems' Actuarial Committee (PRSAC) to meet as soon as practicable to adopt a revised HLS 12RS-338 ORIGINAL
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actuarial valuation for LASERS and to adopt a revised employer contribution rate taking into
account the provisions of proposed law.
Effective June 30, 2012.
(Amends R.S. 11:441(A)(1)(intro. para.), (2)(a)(intro. para.) and (b)(intro. para.), and
761(A)(4); Adds R.S. 11:331, 441(A)(4), and 761(A)(5))