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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
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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
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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.