Louisiana 2012 Regular Session

Louisiana House Bill HB988 Latest Draft

Bill / Enrolled Version

                            ENROLLED
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Regular Session, 2012
HOUSE BILL NO. 988
BY REPRESENTATIVE JONES AND SENATORS NEVERS AND WARD
AN ACT1
To amend and reenact R.S. 11:546(C) and 2257(C) and to enact R.S. 11:444(A)(2)(d),2
546(D), (E), and (F), and 605(D), relative to retirement benefits for persons3
employed in public safety positions; to provide for benefit calculation and options4
for payment of such benefits; to provide for funding of such benefits; to provide5
relative to the deferred retirement option plan participation; to provide for6
qualifications; to authorize an extension of the period for members currently in the7
plan; and to provide for related matters.8
Notice of intention to introduce this Act has been published9
as provided by Article X, Section 29(C) of the Constitution10
of Louisiana.11
Be it enacted by the Legislature of Louisiana:12
Section 1. R.S. 11:546(C) and 2257(C) are hereby amended and reenacted and R.S.13
11:444(A)(2)(d), 546(D), (E), and (F), and 605(D) are hereby enacted to read as follows: 14
§444.  Computation of retirement benefit15
A.16
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(2)18
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(d)(i) Probation and parole officers in the office of adult services of the20
Department of Public Safety and Corrections who were employed on or before21
December 31, 2001, who did not opt to join the secondary component of this system22
pursuant to R.S. 11:605(A), and who retire or begin participation in the Deferred23 ENROLLEDHB NO. 988
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Retirement Option Plan on or after July 1, 2012, shall receive a maximum retirement1
allowance equal to three percent of average compensation, as determined pursuant2
to R.S. 11:231, for every year of creditable service in the retirement system before3
July 1, 2012, and three and one-third percent of average compensation, as4
determined by R.S. 11:231, for every year of creditable service in the retirement5
system on or after July 1, 2012.6
(ii) A probation and parole officer to whom this Subparagraph applies, who7
entered the Deferred Retirement Option Plan before July 1, 2012, and who continues8
in employment after participation in the plan shall receive a supplemental benefit9
pursuant to R.S. 11:450(D) for such continued employment.  If he remains employed10
after July 1, 2012, such supplemental benefit shall be calculated using the accrual11
rate of three percent for post-participation employment before July 1, 2012, and three12
and one-third percent for such employment on or after July 1, 2012.13
(iii) Nothing in this Subparagraph shall be construed to allow recalculation14
of benefits for any retiree, or of base benefits as defined in R.S. 11:450(D) for any15
Deferred Retirement Option Plan participant or for any person who continued in16
employment after completing participation in such plan.17
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§546.  Adult Probation and Parole Officer Retirement Fund19
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C.  Monies in the fund shall be invested in the same manner as the state21
general fund monies. Interest earned on the investment of monies in the fund, after22
being credited to the Bond Security and Redemption Fund pursuant to Article VII,23
Section 9(B) of the Constitution of Louisiana, shall be credited to the fund. All24
unexpended and unencumbered monies and earnings remaining in the fund at the end25
of the fiscal year shall remain in the fund, until the legislature provides for enhanced26
benefits for probation and parole officers in the office of adult services of the27
Department of Public Safety and Corrections who have service credit in the primary28
component of the system.29 ENROLLEDHB NO. 988
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D.(1) Until any actuarially accrued liability for retirement benefits for1
probation and parole officers in the office of adult services of the Department of2
Public Safety and Corrections created pursuant to the Act of the 2012 Regular3
Session of the Legislature that enacted this Subsection has been fully funded, the4
monies in the fund shall be used exclusively for the purpose of providing funding for5
such actuarially accrued liability, for payment of any normal cost increase caused by6
the Act of the 2012 Regular Session of the Legislature that amended this Subsection,7
and for reimbursement as provided in R.S. 11:605(D)(2).8
(2)  If the legislature does not provide for such benefit enhancements by June9
30, 2015 After such actuarially accrued liability has been fully funded, all monies in10
the fund shall be available to the Department of Public Safety and Corrections to11
help defray the costs of supervision of persons on probation or parole distributed by12
the treasurer on an annual basis to the retirement system for exclusive use in13
payment of the unfunded accrued liability of the system.14
E.(1) As soon as practicable after the effective date of the Act of the 201215
Regular Session of the Legislature which enacted this Subsection, but no later than16
September 30, 2012, the treasurer shall allocate and distribute to the system from the17
fund an initial payment of two and one-half million dollars.  This payment shall be18
used first to fully fund the first year's normal cost increase. The balance shall be19
applied to the amortization of the unfunded accrued liability, if any, created by20
enactment of R.S. 11:444(A)(2)(d).  The June 30, 2012, system valuation shall21
account for this initial payment.22
(2) On October 1, 2013, and on or before October first of each fiscal year23
thereafter, the treasurer shall allocate and distribute to the system from the fund the24
amount of any amortization and normal cost payments calculated by the system25
actuary and contained in the system's valuation for the previous fiscal year and26
approved by the Public Retirement Systems' Actuarial Committee to be paid from27
the fund; however, in no case shall the allocation and distribution to the system28
provided for in this Paragraph exceed the balance in the fund.29 ENROLLEDHB NO. 988
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(3) In addition to the payment required by Paragraph (2) of this Subsection,1
on or before October first of each fiscal year, the treasurer shall allocate and2
distribute to the system from the fund any amount over four hundred thousand3
dollars of the balance remaining in the fund after the payment required by Paragraph4
(2) of this Subsection has been made.  Thereafter, not less than quarterly, the5
treasurer shall allocate and distribute to the system any balance remaining in the fund6
exceeding four hundred thousand dollars.  The system shall hold these allocations7
and distributions in a separate account to be used only for the following purposes:8
(a) Funding the next fiscal year's payment for actuarially accrued liability9
and normal cost payable pursuant to Paragraph (2) of this Subsection, if the balance10
in the fund is insufficient to fully finance that fiscal year's payment.11
(b) To make an additional payment toward the actuarially accrued liability12
created by the Act of the 2012 Regular Session of the Legislature that enacted this13
Subsection.14
(4) Any unpaid portion of an amortization or normal cost payment for a15
particular fiscal year shall be included in the next year's system valuation as part of16
an individualized calculation pursuant to R.S. 11:102(C)(3) and (4).17
F. After allocation and distribution to the system for a fiscal year pursuant18
to Paragraph (E)(2) of this Section, the treasurer shall allocate and distribute to the19
department from the fund the amount of any reimbursement to be paid pursuant to20
R.S. 11:605(D)(2).21
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§605.  Transfer of other service credit23
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D.(1) Notwithstanding the provisions of Subparagraph (B)(2)(a) of this25
Section, any member who is a probation and parole officer in the office of adult26
services of the Department of Public Safety and Corrections, who was employed on27
or before December 31, 2001, who elected to transfer from the primary component28
to the secondary component but who opted not to transfer his primary component29
service credit on an actuarial basis, who has not upgraded his service credit as30 ENROLLEDHB NO. 988
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permitted pursuant to Subparagraph (B)(2)(b) of this Section, and who retires or1
begins participation in the Deferred Retirement Option Plan on or after July 1, 2012,2
shall receive a benefit calculated using a three percent accrual rate for all creditable3
service in the system earned before the date the member transferred to the secondary4
component.5
(2)(a) Any member who is a probation and parole officer in the office of6
adult services of the Department of Public Safety and Corrections, who was7
employed on or before December 31, 2001, who retires or begins participation in the8
Deferred Retirement Option Plan on or after July 1, 2012, who elected to transfer9
from the primary component to the secondary component, and who upgraded his10
service credit as permitted pursuant to Subparagraph (B)(2)(b) of this Section, may11
elect to be reimbursed without interest for the cost of such upgrade and to have his12
benefit calculated using a three percent accrual rate for all creditable service in the13
system earned before the date the member transferred to the secondary component.14
(b) Such reimbursement shall be made exclusively from the monies in the15
fund created pursuant to R.S. 11:546. The department shall promulgate rules for16
application for, calculation of, and recommendation to the Joint Legislative17
Committee on the Budget regarding such reimbursement.  No application for such18
reimbursement shall be accepted before October 3, 2012.19
(c) The department shall inform the system of the amount of each20
reimbursement and to whom it was made. The system shall apply an amount equal21
to each reimbursement to the credit of the department in the next year's valuation22
and shall add the liability for each reimbursed member's benefit increase to the23
balance owed to the system.24
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§2257.  Deferred Retirement Option Plan26
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C. The duration of participation in the plan shall be specified and shall not28
exceed three years. the following:29 ENROLLEDHB NO. 988
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(1) Three years for any member who has at least twenty but less than twenty-1
seven years of creditable service.2
(2) Five years for any member who has at least twenty-seven years of3
creditable service.4
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Section 2. Any person who has at least twenty-seven years of creditable service and6
who is participating in the deferred retirement option plan of the Firefighters' Retirement7
System on the effective date of this Act shall be allowed to extend his participation in the8
plan up to the five-year period provided for in this Act.9
Section 3.(A) The amount of the unfunded actuarially accrued liability, if any,10
resulting from the implementation of the provisions of this Act applicable to the Louisiana11
State Employees' Retirement System and a required amortization payment therefor shall be12
determined by the Public Retirement Systems' Actuarial Committee as part of the annual13
adoption of the systems' official actuarial valuation pursuant to R.S. 11:127, beginning with14
the June 30, 2012, valuation. This determination shall include the initial payment required15
for October 1, 2012. Such unfunded actuarially accrued liability shall be amortized as a16
separate unfunded accrued liability forming level dollar payments over a period of ten years.17
(B)  The additional actuarial cost, if any, of the benefit provisions contained in this18
Act not funded by payments pursuant to Section 3(A) of this Act shall be funded with19
increased employer contributions in compliance with Article X, Section 29(F) of the20
Constitution of Louisiana.21
Section 4. Benefits provided for pursuant to this Act shall not be suspended,22
reduced, or denied unless a final, nonappealable judgment declaring this Act unconstitutional23
has been rendered by a court of competent jurisdiction.24
Section 5.  The provisions of this Act shall be nonseverable.25
Section 6. This Act shall become effective upon signature by the governor or, if not26
signed by the governor, upon expiration of the time for bills to become law without signature27
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana.  If28 ENROLLEDHB NO. 988
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vetoed by the governor and subsequently approved by the legislature, this Act shall become1
effective on the day following such approval.2
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: