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ACT No. 427
Regular Session, 2012
HOUSE BILL NO. 986
BY REPRESENTATIVE HAZEL AND SENATOR THOMPSON
AN ACT1
To amend and reenact R.S. 11:2256(B)(2) and (3) and 2259(A) and to enact R.S.2
11:2256(G) and 2256.2, relative to the Firefighters' Retirement System; to provide3
for distribution of benefits of a member to a trust established for the benefit of a4
child; to provide definitions; to provide requirements; to provide restrictions; and to5
provide for related matters.6
Notice of intention to introduce this Act has been published7
as provided by Article X, Section 29(C) of the Constitution8
of Louisiana.9
Be it enacted by the Legislature of Louisiana:10
Section 1. R.S. 11:2256(B)(2) and (3) and 2259(A) are hereby amended and11
reenacted and R.S. 11:2256(G) and 2256.2 are hereby enacted to read as follows: 12
§2256. Benefits; refund of contributions, application, and payment13
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B.15
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(2) Benefits shall be payable to the surviving child or children of a deceased17
member or retiree as specified in the following:18
(a) If any active contributing member or a disability retiree dies and leaves19
in addition to a surviving spouse, one or more children under eighteen years of age,20
each child under age eighteen shall be paid, on a monthly basis, an annual benefit21
equal to ten percent of the deceased member's or retiree's average final22
compensation, or two hundred dollars per month, whichever is greater. However,23
benefits payable on account of each child, when added to the benefits payable to the24 ENROLLEDHB NO. 986
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surviving eligible spouse, shall not exceed an aggregate of one hundred percent of1
the average final compensation. Benefits for a surviving child shall cease upon the2
child's attaining age eighteen years or upon marriage, whichever occurs first, except3
that benefits shall continue for an unmarried surviving child who is handicapped or4
mentally retarded as provided in Paragraph (B)(3) of this Subsection. Additionally,5
any unmarried surviving child, who graduates from high school and enrolls, on a6
full-time basis, in an institute of higher education, shall have his benefit continued7
as long as he remains enrolled on a full-time basis and remains unmarried; however,8
the benefit payments shall not extend past four additional years nor past the9
surviving child's twenty-second birthday. Benefits payable under the provisions of10
this Subparagraph may be paid in trust as provided in R.S. 11:2256.2.11
(b) If a member or a disability retiree dies and does not leave a surviving12
spouse but leaves two or more children under the age of eighteen, each child under13
age eighteen shall be paid, on a monthly basis, an annual benefit equal to thirty14
percent of the deceased member's or retiree's average final compensation. Benefits15
paid on account of all children shall not exceed, on a monthly basis, an annual16
benefit in the aggregate of sixty percent of the average final compensation. In the17
event the deceased member or disability retiree is survived by only one minor child,18
the child shall be paid, on a monthly basis, an annual benefit of not less than forty19
percent of the deceased member's or retiree's average final compensation. Benefits20
shall continue after the minor child attains age eighteen as provided in Paragraph21
(B)(3) of this Subsection. Benefits payable under the provisions of this22
Subparagraph may be paid in trust as provided in R.S. 11:2256.2.23
(3) Benefits shall be payable to the surviving totally physically handicapped24
or mentally retarded child or children of a deceased member or retiree as specified25
in the following. The surviving totally physically handicapped or mentally retarded26
child or children of a deceased active contributing member, a deceased disability27
retiree, or a deceased regular retiree, whether under or over the age of eighteen years,28
shall be entitled to the same benefits, payable in the same manner as are provided in29
this Section for minor children, if the child was totally physically handicapped or30 ENROLLEDHB NO. 986
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mentally retarded at the time of death of the member or retiree and the child is1
dependent upon the surviving spouse or other legal guardian for subsistence.2
Benefits payable under the provisions of this Subparagraph may be paid in trust as3
provided in R.S. 11:2256.2.4
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G. Notwithstanding any other provision of law to the contrary, the board of6
trustees may implement a court order directing payment of any portion of a benefit7
to a trust pursuant to the provisions of R.S. 11:2256.2.8
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§2256.2. Designation of benefits to be paid in trust10
A. A member may designate all or a portion of any benefit paid in11
accordance with R.S. 11:2256 or 2259 to be paid in trust to his surviving minor child12
or his physically or mentally handicapped child regardless of such child's age, if the13
terms of the trust so provide and if the system is provided with a certified copy of the14
trust document. Such benefit or designated portion of a benefit shall be paid to the15
trust for addition to the trust property.16
B. If the trust is contested by any party or the distribution is challenged by17
a former spouse of the member, the system shall withhold all benefit payments or if18
a concursus proceeding is filed deposit them in the registry of the court until there19
is a final binding legal agreement or judgment regarding the proper payment of20
benefits.21
C. If the trust terminates under the terms of the trust prior to the death of a22
designated beneficiary, then any benefit or portion thereof payable after the date of23
termination of the trust shall be paid directly to the legal guardian of each trust24
beneficiary.25
D. The trustee of the trust shall immediately notify the system in writing of26
the death of a beneficiary. Upon the death of a beneficiary, benefit payments from27
the system to the trust on behalf of the deceased beneficiary shall cease.28
E. For purposes of this Section only, the term "child" means the issue of a29
marriage of a member of this system, the legally adopted child of a member of this30 ENROLLEDHB NO. 986
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system, a child born outside of marriage of a female member of this system, or the1
child of a male member of this system if acknowledged or filiated pursuant to the2
provisions of the Civil Code.3
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§2259. Optional allowances5
A.(1) With the provision that no optional selection shall be effective in case6
a beneficiary dies within thirty days after retirement and that such a beneficiary shall7
be considered as an active member at the time of death, until the first payment on8
account of any benefit becomes due, any member may elect to receive his benefit in9
a retirement allowance payable throughout life, or he may elect to receive the10
actuarial equivalent at the time of his retirement allowance in a reduced allowance11
payable throughout life, with the provision that:12
Option 1. If he dies before he has received in member's annuity payments the13
present value of his member's annuity as it was at the time of his retirement, the14
balance shall be paid to such person as he shall nominate by written designation duly15
acknowledged and filed with the board of trustees; or16
Option 2. Upon his death, his reduced retirement allowance shall be17
continued throughout the life and paid to such person as he shall nominate by written18
designation duly acknowledged and filed with the board of trustees at the time of his19
retirement; or20
Option 3. Upon his death, one-half of his reduced retirement allowance shall21
be continued throughout the life of and paid to such person as he shall nominate by22
written designation duly acknowledged and filed with the board of trustees at the23
time of his retirement; or24
Option 4. Some other benefit or benefits shall be payable to any or all of the25
following persons: the member, the member's spouse, the member's permanently26
mentally or physically disabled child or children, or the member's dependent minor27
child or children as he shall nominate, provided such other benefit or benefits,28
together with the reduced retirement allowance, shall be certified by the actuary to29 ENROLLEDHB NO. 986
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be of equivalent value to his retirement allowance and approved by the board of1
trustees.2
(2) For the purposes of this Subsection, the term "person" includes a trust as3
provided in R.S. 11:2256.2.4
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SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: