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Regular Session, 2012
HOUSE BILL NO. 58
BY REPRESENTATIVE PEARSON
RETIREMENT/DISTRICT ATTY: Relative to the District Attorneys' Retirement System
AN ACT1
To amend and reenact R.S. 11:62(12), 1581(5), 1614, 1631(F)(1), 1635, and2
1651(B)(introductory paragraph) and (2)(a), to enact R.S. 11:1588, 1632(C), (D), and3
(E), 1633(C), 1636(B)(7), and (C), 1638(C), 1645, and 1676, and to repeal R.S.4
11:231(A)(3), relative to the District Attorneys' Retirement System of Louisiana; to5
provide relative to employee contribution rates; to provide for the system's federal6
tax qualification status; to provide relative to calculation of average final7
compensation; to provide relative to the composition of the board of trustees; and to8
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(12), 1581(5), 1614, 1631(F)(1), 1635, and14
1651(B)(introductory paragraph) and (2)(a) are hereby amended and reenacted and R.S.15
11:1588, 1632(C), (D), and (E), 1633(C), 1636(B)(7), and (C), 1638(C), 1645, and 1676 are16
hereby enacted to read as follows:17
§62. Employee contribution rates established18
Employee contributions to state and statewide public retirement systems shall19
be paid at the following rates, except as otherwise provided by law:20
* * *21
(12) District Attorneys' Retirement System - 7% 8%.22
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§1581. Definitions1
The following words and phrases, as used in this Chapter, unless a different2
meaning is plainly required by the context, shall have the following meanings:3
* * *4
(5)(a) "Average final compensation" shall mean the average monthly5
compensation earned by an employee during any period of thirty-six sixty successive6
months of service as an employee during which the said earned compensation was7
the highest. The average monthly compensation shall include compensation not paid8
by the state, but only to the extent that non-state compensation for the thirteenth9
through the twenty-fourth month does not exceed one hundred ten percent of the10
total of non-state compensation for the first through twelfth month, and that non-state11
compensation for the final twelve months does not exceed one hundred ten percent12
of the total of non-state compensation for the thirteenth through the twenty-fourth13
month twenty-fifth through the thirty-sixth month does not exceed one hundred ten14
percent of the total of non-state compensation for the thirteenth through the15
twenty-fourth month, and that non-state compensation for the thirty-seventh through16
the forty-eighth month does not exceed one hundred ten percent of the total of17
non-state compensation for the twenty-fifth through thirty-sixth month, and that18
non-state compensation for the forty-ninth through the sixtieth month does not19
exceed one hundred ten percent of the total of non-state compensation for the20
thirty-seventh through forty-eighth month. Fees earned in connection with official21
duties shall not be included in average final compensation. In the event of22
interruption of employment, the thirty-six-month sixty-month period shall be23
computed by joining employment periods immediately preceding and succeeding the24
interruption.25
(b) Compensation of a member in excess of two hundred thousand dollars,26
as adjusted for increases in the cost-of-living under 26 U.S.C. 401(a)(17)(B) for27
years beginning after January 1, 2002, shall not be taken into account. This28
limitation may be adjusted by rules promulgated by the board of trustees in29 HLS 12RS-324 ORIGINAL
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accordance with the provisions of the Administrative Procedure Act, R.S. 49:950 et.1
seq. For purposes of compliance with the requirements for qualification under 262
U.S.C. 401(a), the board of trustees may promulgate rules further defining3
"compensation" and "section 415 compensation" in accordance with the4
Administrative Procedure Act.5
* * *6
§1588 Amendment of provisions of retirement system 7
A. The provisions of this retirement system established by this Chapter may8
be amended by action of the legislature in the same manner as any other statute may9
be amended by the legislature. In addition, action by the board of trustees with10
respect to the payment of cost-of living adjustments, with respect to the payment of11
employee contributions, with respect to actuarial assumptions, and with respect to12
other actions authorized in this Section shall be considered amendments to the13
provisions of the retirement system.14
B. No amendment to this retirement system shall operate to deprive any15
member of a benefit to which he is already entitled. In the case of any merger or16
consolidation with, or transfer of assets or liabilities to, any other retirement system,17
each member in the retirement system would, if the retirement system is then18
terminated, receive a benefit immediately after the merger, consolidation, or transfer19
which is equal to or greater than the benefit he would have been entitled to receive20
immediately before the merger, consolidation, or transfer if the retirement system21
had then terminated.22
C. Upon the termination or partial termination of the retirement system, the23
board of trustees shall reevaluate and redetermine the benefit of each member, and24
the entire benefit of each member may be paid or commence to be paid and25
distributed to such member, or in the case of his death before such distribution, to the26
beneficiary or beneficiaries designated by such member. However, if the member27
is still employed and the system is partially terminated, payment shall not be made28
until retirement or termination and shall be held until payment is otherwise due under29 HLS 12RS-324 ORIGINAL
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the provisions of the retirement system. A member's right to his benefit is not1
conditioned upon a sufficiency of assets in the event of termination.2
D. Upon termination or partial termination of the retirement system, a3
member's interest in the system shall be nonforfeitable to the extent funded.4
* * *5
§1614. Service on which retirement allowances are based 6
A. Creditable service at retirement on which the retirement allowance of a7
member shall be based shall consist of the membership service rendered by him8
since he last became a member, and, also, if he has a prior service certificate which9
is in full force and effect, the amount of service certified on his prior service10
certificate.11
B. If a member takes a leave of absence governed by the Uniformed Services12
Employment and Reemployment Rights Act (USERRA) and returns to employment13
covered by the retirement system, the member shall share in employer contributions14
in the same manner as other members and shall not be considered to have terminated15
employment or to have incurred a break in service during such leave of absence. The16
employer shall be permitted to make an employer contribution in satisfaction of the17
affected member's rights under USERRA. This Subsection does not apply to a18
member who does not return to employment covered by the retirement system.19
C. The system shall accept as the member's payment of amounts payable by20
the member under this Section the direct transfer of any assets held for the benefit21
of the member in an individual retirement account or annuity, including a Roth22
account, or in a plan qualified under Section 401(a) or Section 403(a) of the Internal23
Revenue Code or in a governmental deferred compensation arrangement subject to24
Section 457(g) of the Internal Revenue Code or in a tax sheltered annuity or other25
arrangement under Section 403(b) of the Internal Revenue Code.26
* * *27
§1631. Retirement benefits; application; eligibility requirements28
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F.(1) Except as provided in Paragraph (2) of this Subsection, if any member1
who has retired from this system is reemployed as an employee by any district2
attorney in the state, his retirement benefit shall be suspended during said3
employment, and he shall not be paid any benefits for the period covered by such4
employment. He shall, upon such reemployment, again become an active5
contributing member of the system, with the option of establishing service credit for6
any period of full-time employment as district attorney or assistant district attorney7
since returning to such employment following retirement by payment into the system8
the employer and employee amount plus interest that would have been withheld and9
paid into the system for that period based upon his total salary for such period. He10
shall accrue a supplemental retirement benefit based on his service rendered after11
reemployment. If the member continues employment after retirement for a period12
of less than thirty-six sixty months, his supplemental monthly retirement benefit13
shall equal the benefit accrued under R.S. 11:1632 or 1633, whichever is applicable,14
based on the lesser of his average final compensation at his original retirement date15
or his average compensation during the period of his subsequent reemployment. If16
the member continues in employment after retirement for a period of thirty-six sixty17
months or more, his supplemental monthly retirement benefit shall equal the benefit18
accrued under R.S. 11:1632 or 1633, whichever is applicable, based on his average19
final compensation during his period of reemployment. Upon retirement subsequent20
to reemployment, his benefit shall be equal to the benefits he was receiving21
immediately prior to reemployment plus the supplemental benefit earned during his22
reemployment.23
* * *24
§1632. Retirement eligibility; benefits at three percent25
* * *26
C.(1) The retirement benefit of any member that is not attributable to27
employee contributions, when expressed as an annual benefit, may not exceed two28
hundred thousand dollars per year, as adjusted for increases in the cost of living29 HLS 12RS-324 ORIGINAL
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pursuant to 26 U.S.C. 415(d). For purposes of determining whether a member's1
benefit exceeds this limitation, if the normal form of benefit is other than a single life2
annuity, such form shall be adjusted actuarially to the equivalent of a single life3
annuity. This single life annuity shall not exceed the maximum dollar limitation4
outlined in this Paragraph. No adjustment is required for qualified joint and survivor5
annuity benefits, pre-retirement disability benefits, or pre-retirement death benefits.6
(2)(a) If benefit distribution begins before age sixty-two, the actual7
retirement benefit shall not exceed the adjusted dollar limitation. The adjusted dollar8
limitation shall be the equivalent, determined in a manner consistent with reduction9
of benefits for early retirement under the federal Social Security Act, of two hundred10
thousand dollars beginning at age sixty-two.11
(b) If benefit distribution begins after age sixty-five, the dollar limitation12
shall be increased to the equivalent of two hundred thousand dollars beginning age13
sixty-five, as adjusted for increases in the cost of living pursuant to 26 U.S.C. 415.14
(c) The interest rate used for adjusting the maximum limitations above shall15
be:16
(i) For benefits commencing before age sixty-two and for forms of benefit17
other than straight life annuity, the greater of five percent or the rate used to18
determine actuarial equivalence for other purposes of this retirement system.19
(ii) For benefits commencing after age sixty-five, the lesser of five percent20
or the rate used to determine actuarial equivalence for other purposes under this21
retirement system.22
(3) If retirement benefits are payable under this system to a member who has23
less than ten years of participation in the system, the dollar limitation referred to in24
Paragraph (1) of this Subsection shall be multiplied by a fraction, not in excess of25
one, the numerator of which is the member's number of years of participation in the26
system and the denominator of which is ten.27 HLS 12RS-324 ORIGINAL
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(4) The two hundred thousand dollar limitation provided in this Subsection1
shall be adjusted annually to the maximum dollar limits allowable as determined by2
the Commissioner of the Internal Revenue Service under 26 U.S.C. 415(d).3
(5) If a member is a also a member in another defined benefit pension plan4
maintained by the state or its political subdivisions, his benefit, considered in the5
aggregate after taking into account the benefits provided by all such retirement plans,6
shall not exceed the limits provided in this Subsection.7
(6) That portion of the benefit that is attributable to member contributions8
shall be determined in accordance with Treasury Regulations § 1.415-3(d)(1).9
(7) Notwithstanding the provisions of this Subsection, the benefits payable10
with respect to a participant under any defined benefit plan shall be deemed not to11
exceed the limitations of Subsection E of this Section.12
(a) The retirement benefits payable with respect to such participant under13
such plan and under all other defined benefit plans of the employer do not exceed ten14
thousand dollars for the plan year, or for any prior plan year, and 15
(b) The employer has not at any time maintained a defined contribution plan16
in which the participant participated.17
D.(1) For purposes of R.S. 11:1623, 1633, and 1634, average compensation18
shall include any amounts properly considered as regular rate of pay of the member,19
as defined in R.S. 11:231, and unreduced by amounts excluded from income for20
federal income tax purposes by reason of 26 U.S.C. 125, 132(f), 402(e)(3),21
402(h)(1)(B), 403(b), 414(h), or 457 or any other provision of federal law of similar22
effect.23
(2) For years beginning on or after January 1, 2002, the annual compensation24
limitation shall not exceed two hundred thousand dollars, as adjusted for25
cost-of-living increases under 26 U.S.C. 401(a)(17)(B). If compensation for an26
earlier period is taken into account in determining an employee's benefits accruing27
in the current plan year, the compensation for the earlier period shall be subject to28
the compensation limit for the current year29 HLS 12RS-324 ORIGINAL
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E.(1) The provisions of this Section shall apply if any member is covered or1
has ever been covered by another plan maintained by the employer, including a2
qualified plan, a welfare benefit fund as defined in 26 U.S.C. 419(e), an individual3
medical account as defined in 26 U.S.C. 415(l)(2) that provides an annual addition4
as described in Paragraph (4) of this Subsection.5
(2) If a member is or has ever been covered under more than one defined6
benefit plan maintained by the employer, the sum of the member's annual benefits7
from all such plans shall not exceed the maximum permissible amount set forth in8
Subsection C of this Section.9
(3) If the employer maintains or at any time maintained one or more10
qualified defined contribution plans covering any member in this system, a welfare11
benefit fund as defined in 26 U.S.C. 419(e) or an individual medical account as12
defined in 26 U.S.C. 415(l)(2), the member's annual additions for any year shall not13
exceed the maximum permissible amount, which is forty thousand dollars adjusted14
for increases in the cost-of-living pursuant to 26 U.S.C. 415(d).15
(4) "Annual additions" of a member for the year shall mean the sum of the16
following amounts credited to a member's account for the year:17
(a) Employer contributions.18
(b) Employee contributions.19
(c) Forfeitures.20
(d) Amounts allocated to an individual medical account as defined in 2621
U.S.C. 415(l)(2) that is a part of a pension or annuity plan maintained by the22
employer are treated as annual additions to a defined contribution plan.23
Additionally, amounts derived from contributions paid or accrued in taxable years24
ending after December 31, 1985, which are attributable to post-retirement medical25
benefits allocated to the separated account of a key employee as defined in 26 U.S.C.26
419A(d)(d) or under a welfare benefit fund as defined in 26 U.S.C. 419(e)27
maintained by the employer are treated as annual additions to a defined contribution28
plan.29 HLS 12RS-324 ORIGINAL
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(e) The employee contribution shall be deemed to be a defined contribution1
plan. If a member has made employee contributions pursuant to the provisions of2
this retirement system, the amount of such contributions shall be treated as an annual3
addition to a qualified defined contribution plan for purposes of this Section.4
(5) The amount of annual additions that may be credited to the member's5
account for any limitation year shall not exceed the maximum permissible amount.6
Contributions and benefits under any other plan of the employer, to the extent that7
an adjustment is required to satisfy the requirements of this Section in the aggregate,8
shall be limited or reduced to the extent necessary to satisfy such requirements9
without reducing accrued benefits; however, only after such other plans have been10
modified shall the benefits and contributions under this plan be reduced. As soon as11
it is administratively feasible after the end of the limitation year, the maximum12
permissible amount for the limitation year shall be determined on the basis of the13
member's actual compensation for the limitation year. If there is an excess amount,14
the excess shall be disposed of as follows:15
(a) Any non-deductible voluntary employee contribution to the extent it16
would reduce the excess amount shall be returned to the member.17
(b) If after the application of Subparagraph (a) of this Paragraph, an excess18
amount still exists, then any non-deductible mandatory contribution to the extent it19
would reduce the excess amount shall be returned to the member.20
(c) If after the application of Subparagraph (b) of this Paragraph, an excess21
amount still exists and the member is covered by the plan at the end of the limitation22
year, the excess amount in the member's account shall be used to reduce employer23
contributions, including any allocation of forfeitures, for such member in the next24
limitation year if necessary.25
(d) If after the application of Subparagraph (c) of this Paragraph, an excess26
amount still exists and the member is not covered by the plan at the end of the27
limitation year, the excess amount shall be held unallocated in a suspense account.28
The suspense account shall be applied to reduce the future employer contributions29 HLS 12RS-324 ORIGINAL
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for all remaining members in the next limitation year and each succeeding limitation1
year if necessary.2
(e) If a suspense account is in existence at any time during a limitation year3
pursuant to the provisions of this Section, it shall not participate in the allocation of4
the trust's investment gains and losses. If a suspense account is in existence at any5
time during a particular limitation year, all amounts in the suspense account shall be6
allocated and reallocated to members' accounts before any employer or any7
employee contributions may be made to the plan for that limitation year. Excess8
amounts shall not be distributed to members or former members.9
(6) "Excess Amounts" of a member for a limitation year shall mean the10
excess of the member's annual additions for the limitation year over the maximum11
permissible amount.12
(7) The "limitation year" shall be the calendar year, or the twelve13
consecutive month period elected by the employer hereunder.14
(8)(a) The "maximum permissible amount" for a member for a limitation15
year shall be the maximum annual addition that may be contributed or allocated to16
a member's account under the plan for any limitation year and shall not exceed the17
lesser of:18
(i) Forty thousand dollars, as adjusted after 2001 for changes in the cost of19
living in accordance with 26 U.S.C. 415(d).20
(ii) One hundred percent of the member's compensation for the limitation21
year.22
(b) The compensation limitation provided for in Item (a)(ii) of this Paragraph23
shall not apply to any contribution for medical benefits within the meaning of 2624
U.S.C. 401(h) or 419A(f)(2) that is otherwise treated as an annual addition pursuant25
to 26 U.S.C. 415(l) or Section 419A(d)(2).26
§1633. Retirement eligibility; benefits at three and one-half percent27
* * *28 HLS 12RS-324 ORIGINAL
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C. The limitations of R.S. 11:1632(C) and (E) shall apply to this Section.1
* * *2
§1635. Return of accumulated contributions 3
A. Should a member cease to be an employee except by death or retirement4
under the provisions of this Chapter, he shall be paid such part of the amount of the5
accumulated contributions standing to the credit of his individual account in the6
annuity savings fund as he shall demand. Should a member die before retirement the7
amount of his accumulated contributions standing to the credit of his individual8
account shall be paid to his estate or to such person as he shall have nominated by9
written designation, duly executed and filed with the board of trustees, unless10
benefits are payable under R.S. 11:1636.11
B. Notwithstanding any other provision of law of the contrary that would12
otherwise limit a member's election under this Section, a distributee may elect, at the13
time and in the manner prescribed by the plan administrator, to have any portion of14
an eligible rollover distribution paid directly to an eligible retirement plan specified15
by the distribute in a direct rollover.16
C. If a distribution is one to which 26 U.S.C. 401(a)(11) and 417 do not17
apply, the distribution may commence fewer than thirty days after the notice required18
under Section 1.411(a)-11(c) of the Income Tax Regulations is given, if both of the19
following apply:20
(1) The plan administrator clearly informs the participant that the participant21
has a right to a period of at least thirty days after receiving the notice to consider the22
decision of whether or not to elect a distribution and, if applicable, a particular23
distribution option.24
(2) The participant, after receiving the notice, affirmatively elects a25
distribution.26
D. As used in this Section, the following terms shall mean the following:27
(1) "Direct rollover" means a payment by the plan to the eligible retirement28
plan specified by the distributee.29 HLS 12RS-324 ORIGINAL
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(2) "Distributee" means a member or former member. In addition, the1
member's or former member's surviving spouse, or the member's spouse or former2
member's spouse with whom a benefit or return of employee contributions is to be3
divided pursuant to R.S. 11:291(B) are distributees with reference to an interest of4
the member or former spouse.5
(3) "Eligible retirement plan" means an individual retirement account6
described in 26 U.S.C. 408(a), an individual retirement annuity described in 267
U.S.C. 408(b), an annuity plan described in 26 U.S.C. 403(a), or a qualified trust8
described in 26 U.S.C. 401(a), that accepts the distributee's eligible rollover9
distribution. However, in the case of an eligible rollover distribution to the surviving10
spouse, an eligible retirement plan is an individual retirement account or individual11
retirement annuity. "Eligible retirement plan" shall also mean an annuity contract12
described in 26 U.S.C. 403(b) and an eligible plan under 26 U.S.C. 457(b) that is13
maintained by the state or any political subdivision or instrumentality thereof14
agreeing to account separately for amounts transferred into such plan from this fund.15
A distribution to a surviving spouse or to a spouse or former spouse who is the16
alternate payee under a qualified domestic relations order shall not make the17
retirement plan ineligible.18
(4) "Eligible rollover distribution" means any distribution of all or any19
portion of the balance to the credit of the distribution, except that an eligible rollover20
distribution does not include any distribution that is one of a series of substantially21
equal periodic payments, not less frequently than annually, made for the life or life22
expectancy of the distributee or the joint lives or joint life expectancies of the23
distributee and the distributee's designated beneficiary, or for a specified period of24
ten years or more; any distribution to the extent such distribution is required under25
26 U.S.C. 401(a)(9); and the portion of any distribution that is not includable in gross26
income, determined without regard to the exclusion for net unrealized appreciation27
with respect to employer securities. A portion of a distribution shall not fail to be an28
eligible rollover distribution merely because the portion consists of after-tax29 HLS 12RS-324 ORIGINAL
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employee contributions which are not includable in gross income; however, such1
portion may be paid only to an individual retirement account or annuity described2
in 26 U.S.C. 408(a) or (b), or to a qualified defined contribution plan described in 263
U.S.C. 401(a) or 403(a) that agrees to account separately for amounts so transferred,4
including accounting separately for the portion of such distribution which is5
includable in gross income and the portion of such distribution which is not6
includable. The fund shall accept participant rollover contributions, direct rollovers7
of distributions made after December 31, 2011, or both, from the following types of8
plans: individual retirement accounts or annuities or plans qualified under 26 U.S.C.9
401(a) or 403(a), or governmental deferred compensation arrangements subject to10
26 U.S.C. 457(b) or tax sheltered annuities or other arrangements under 26 U.S.C.11
403(b), beginning on the effective date specified; but only for the purposes of12
repaying prior distributions or purchasing service credits permitted under 26 U.S.C.13
415(k)(3) and 415(n).14
§1636. Survivors' benefits 15
* * *16
B. Upon the death of any active contributing member with five or more years17
of creditable service, or any member with twenty-three years of service who has not18
retired, the following benefits shall be paid: 19
* * *20
(7) Upon the death of an active contributing member who is eligible to retire,21
the spouse eligible for benefits payable under Paragraph (1) of this subsection may22
elect to receive such benefits in the same manner as described in R.S. 11:1644 as if23
the member had retired and elected Option Two Back-DROP benefits on the day24
following the member's death.25
C.(1) If a survivor benefit is payable to a specified person or persons or if a26
benefit is payable at death under an option elected pursuant to R.S. 11:1637, the27
member shall be considered to have designated such person as a designated28
beneficiary hereunder. If there is more than one such person, then the oldest such29 HLS 12RS-324 ORIGINAL
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person shall be considered to have been so designated, or, if none, the oldest person1
entitled to receive a survivor benefit shall be considered to have been so designated.2
The designation of a designated beneficiary hereunder shall not prevent payment to3
multiple beneficiaries but shall only establish the permitted period of payments.4
(2) Distributions from the retirement system shall be made in accordance5
with the requirements set forth in 26 U.S.C. 401(a)(9), including the minimum6
distribution incidental benefit rules applicable thereunder.7
(3) A member's benefits shall be made or shall commence to be paid on or8
before the required beginning date.9
(4) The required beginning date shall be April first of the calendar year10
following the later of the calendar year in which the member attains seventy and11
one-half years of age, or the calendar year in which the employee retires.12
* * *13
§1638. Cost-of-living increase of benefits14
* * *15
C. No increase in benefits pursuant to Subsection A shall apply if the result16
would be to exceed the limitations of R.S. 11:1632(C).17
* * *18
§1645. Excess benefit arrangement19
A. A separate, nonqualified, unfunded excess benefit arrangement is hereby20
created outside the trust fund of the retirement system. This excess benefit21
arrangement shall be administered as a governmental excess benefit arrangement22
under 26 U.S.C. 415(m). The purpose of the excess benefit arrangement is to pay23
to retirees of the retirement system benefits otherwise payable by the retirement24
system that exceed the limitations on benefits imposed by 26 U.S.C. 415(b)(1)(A).25
B. The board of trustees shall be responsible for the administration of the26
arrangement provided for in this Section. Except as otherwise provided by this27
Section, the board has the same rights, duties, and responsibilities concerning the28
excess benefit arrangement as it has to the trust fund and may adopt rules and29 HLS 12RS-324 ORIGINAL
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regulations necessary to administer this arrangement in accordance with the1
Administrative Procedure Act and in compliance with 26 U.S.C. 415(m).2
C. Benefits under this Section are exempt from execution to the same extent3
as provided by R.S. 11:1583, subject to the exceptions in R.S. 11:291 and 292, and4
the benefits are completely unassignable. Contributions to this arrangement are not5
held in trust and may not be commingled with other funds of the retirement system.6
D. A retiree is entitled to a monthly benefit under this Section in an amount7
equal to the amount by which the benefit otherwise payable by the retirement system8
has been reduced by the limitation on benefits imposed by 26 U.S.C. 415(b)(1)(A).9
The benefit payable by this arrangement is payable at the time and in the form that10
the benefit payable under the trust fund is paid.11
E. The benefit payable under this Section shall be paid from contributions12
that otherwise would be made to the trust fund under this Title. In lieu of deposit in13
the trust account, an amount determined by the retirement system to be necessary to14
pay benefits under this Section shall be paid monthly to the credit of a separately15
dedicated account maintained only for the excess benefit arrangement. The account16
may included amounts needed to pay reasonable and necessary expenses of17
administering this arrangement. The monthly amounts to be paid to the credit of the18
account shall be transferred to the account prior to the date of a monthly19
disbursement under this Section.20
F. The board reserves the right to amend, terminate or reestablish the21
arrangement at any time. Such amendment or termination may be retroactive to the22
extent that the board deems such action necessary to maintain the tax qualified status23
of the pension plan or the status of this arrangement as an excess benefit arrangement24
or to avoid jeopardizing the funded status of the pension plan. In addition, the25
arrangement may be amended or terminated to eliminate all benefits with respect to26
any member or other person who has not become eligible to participate in an excess27
benefit plan arrangement as of the date of such amendment or termination.28 HLS 12RS-324 ORIGINAL
HB NO. 58
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are additions.
§1651. Board of trustees; membership; vacancies; compensation1
* * *2
B. The board shall consist of eight nine trustees as follows:3
* * *4
(2)(a) Five Six active and contributing members of the system, who shall5
have at least ten years of creditable service, one of whom shall be an assistant district6
attorney, and who shall be elected by the members of the District Attorneys'7
Retirement System according to such rules and regulations as the board of trustees8
shall adopt to govern such elections, shall serve as members for terms of five years9
each.10
* * *11
§1676. Reversion of funds prohibited12
A. At no time shall it be possible for the plan assets to be used for, or13
diverted to, any person or purpose other than for the exclusive benefit of the14
members and their beneficiaries, except that contributions made by the employer15
may be returned to the employer if the contribution was made due to a mistake of16
fact and the contribution is returned within one year of the mistaken payment of the17
contribution.18
B. The amount of any contribution returned shall not exceed the difference19
between the amount actually contributed and the amount which would have been20
contributed had there been no mistake of fact and shall not include the earnings21
attributable to such contribution. The amount of the contribution returned shall be22
reduced by any losses attributable to the contribution, and no member shall have his23
benefit hereunder reduced by the return of the contribution to less than such benefit24
would have been had the returned contribution never been made.25
C. Notwithstanding the above, if the retirement system is terminated and all26
obligations under the retirement system are fully funded and provided for, then any27
excess funds held by the system shall be returned to the employer.28 HLS 12RS-324 ORIGINAL
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are additions.
Section 2. R.S. 11:231(A)(3) is hereby repealed in its entirety.1
Section 3. The amendments to R.S. 11:1581(5) contained in this Act shall be2
implemented as follows: For those members retiring before January 1, 2013, the provisions3
of R.S.11:1581(5) shall apply as they existed before the effective date of this Act. For those4
members retiring on or after January 1, 2013, and on or before December 31, 2014, the5
period used to calculate the average final compensation shall be thirty-six months plus the6
number of whole months since January 1, 2013, until the date of retirement.7
Notwithstanding any other provision of this Section to the contrary, the monthly average8
final compensation expressed in dollars used to compute a member's benefit after the9
effective date of this Act shall not be less than the dollar amount of the average monthly10
earnings during the member's highest thirty-six consecutive months or joined months of11
service earned for employment before the effective date of this Act as determined under R.S.12
11:1581(5) as it provided prior to amendment by this Act.13
Section 4. This Act shall become effective on July 1, 2012; if vetoed by the governor14
and subsequently approved by the legislature, this Act shall become effective on July 1,15
2012, or on the day following such approval by the legislature, whichever is later.16
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. 58
Abstract: Relative to the District Attorneys' Retirement System (DARS): provides relative
federal tax qualification status of the system; increases employee contributions; adds
a member to the board of trustees; changes basis of FAC calculation from 36 to 60
months.
Present law provides for an employee contribution rate of 7%. Proposed law increases the
rate to 8%
Present law provides that average final compensation is calculated using the highest paid 36
successive months of service. Proposed law increases the period to sixty months.
Present law provides for an eight member board of trustees to govern the system. Proposed
law adds a member, who shall be an assistant district attorney, to the board. HLS 12RS-324 ORIGINAL
HB NO. 58
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are additions.
Proposed law provides for compliance by the system with applicable federal tax qualification
requirements of the Internal Revenue Code and federal regulations.
Effective July 1, 2012.
(Amends R.S. 11:62(12), 1581(5), 1614, 1631(F)(1), 1635, and 1651(B)(intro. para.) and
(2)(a); Adds R.S. 11:1588, 1632(C), (D), and (E), 1633(C), 1636(B)(7), and (C), 1638(C),
1645, and 1676; Repeals R.S. 11:231(A)(3))