ENROLLED Page 1 of 7 CODING: Words in struck through type are deletions from existing law; words underscored are additions. 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 * * *17 (2)18 * * *19 (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 Page 2 of 7 CODING: Words in struck through type are deletions from existing law; words underscored are additions. 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 * * *18 §546. Adult Probation and Parole Officer Retirement Fund19 * * *20 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 Page 3 of 7 CODING: Words in struck through type are deletions from existing law; words underscored are additions. 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 Page 4 of 7 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (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 * * *22 §605. Transfer of other service credit23 * * *24 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 Page 5 of 7 CODING: Words in struck through type are deletions from existing law; words underscored are additions. 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 * * *25 §2257. Deferred Retirement Option Plan26 * * *27 C. The duration of participation in the plan shall be specified and shall not28 exceed three years. the following:29 ENROLLEDHB NO. 988 Page 6 of 7 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (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 * * *5 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 Page 7 of 7 CODING: Words in struck through type are deletions from existing law; words underscored are additions. 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: