SLS 12RS-45 ENGROSSED Page 1 of 3 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Regular Session, 2012 SENATE BILL NO. 1 BY SENATOR LONG TEACHERS RETIREMENT. Provides for a one-time lump-sum supplement for certain retirees. (2/3 - CA 10s29)(F)) (6/30/12) AN ACT1 To enact R.S. 11:883.1.2, relative to application of excess interest earnings of the Teachers'2 Retirement System of Louisiana; to provide for a lump-sum benefit supplement3 funded from such earnings; and to provide for related matters.4 Notice of intention to introduce this Act has been published.5 Be it enacted by the Legislature of Louisiana:6 Section 1. R.S. 11:883.1.2 is hereby enacted to read as follows:7 ยง883.1.2. Lump-sum benefit supplement8 A. Notwithstanding any provision of law to the contrary, a nonrecurring9 lump-sum benefit supplement shall be paid from funds allocated to the10 experience account as further provided in this Section. The benefit supplement11 shall be paid before or concurrent with any permanent benefit increase paid12 from experience account funds pursuant to R.S. 11:883.1 or any other law.13 B. The supplement shall be granted to the following persons:14 (1) Retirees who, on June 30, 2012:15 (a) Are at least seventy-five years of age.16 (b) Have thirty or more years of service credit, exclusive of unused leave.17 SB NO. 1 SLS 12RS-45 ENGROSSED Page 2 of 3 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. (c) Have been retired for twenty years or more.1 (d) Have not participated in the Deferred Retirement Option Plan2 pursuant to R.S. 11:786 and did not select an Initial Lump Sum Benefit3 pursuant to R.S. 11:783(A)(3).4 (2) Any beneficiary who receives a benefit from the system based on the5 service of a deceased member who, if he had lived to the date the benefit is6 granted, would fulfill the requirements of Paragraph (1) of this Subsection.7 C. The supplement shall be the greater of three hundred dollars or two8 percent of the normal annual benefit, payable in a single lump sum following9 the adoption by the Public Retirement Systems' Actuarial Committee of the10 first valuation dated on or after June 30, 2012, in which the balance of the11 experience account is sufficient to fund the supplement on an actuarial basis.12 The enactment of this Section shall serve as legislative authorization to grant the13 supplement and no additional action by the legislature shall be necessary to14 authorize the payment.15 D. Authority to grant a supplement pursuant to this Section shall16 terminate after one supplement has been granted.17 Section 2. This Act shall become effective on June 30, 2012; if vetoed by the18 governor and subsequently approved by the legislature, this Act shall become effective on19 June 30, 2012, or on the day following such approval by the legislature, whichever is later.20 The original instrument was prepared by Lauren Bailey. The following digest, which does not constitute a part of the legislative instrument, was prepared by Laura Gail Sullivan. DIGEST Long (SB 1) Proposed law provides for a lump sum supplemental benefit to be paid from funds in the experience account in the first year in which the account balance will fully fund such supplement. Provides that the supplement shall be paid before or concurrent with any permanent benefit increase paid from experience account funds pursuant to present law. Proposed law provides that the supplement shall be the greater of $300 or 2% of the normal annual benefit, payable in a single lump sum. Specifies that enactment of proposed law shall serve as legislative authorization to grant the supplement and no additional action by the legislature shall be necessary to authorize the payment. SB NO. 1 SLS 12RS-45 ENGROSSED Page 3 of 3 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Proposed law provides that the supplement shall be granted to the following persons: 1. Retirees who, on June 30, 2012: (a)Are at least 75 years of age. (b)Have 30 or more years of service credit, exclusive of unused leave. (c)Have been retired for 20 years or more. (d)Have not participated in the Deferred Retirement Option Plan and did not select an Initial Lump Sum Benefit. 2. Any beneficiary who receives a benefit from the system based on the service of a deceased member who, if he had lived to the date the benefit is granted, would fulfill the requirements of (1) of above. Proposed law provides that the authority to grant a supplement pursuant to proposed law shall terminate after one supplement has been granted. Effective June 30, 2012. Summary of Amendments Adopted by Senate Committee Amendments Proposed by Senate Committee on Retirement to the original bill 1. Provides for a one-time lump-sum supplement.