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Regular Session, 2012
SENATE BILL NO. 34
BY SENATOR CORTEZ
MUNICIPAL EMPLOYEE RET. Provides relative to membership, contributions, eligibility
for and calculation of benefits for employees of certain municipalities. (6/30/12)
AN ACT1
To amend and reenact R.S.11:1751(A)(introductory paragraph) and (1)(a) and (b), (C),2
(E)(1) and (2)(e), 1755(A)(introductory paragraph), 2214(A)(1) and (2)(a),3
2220(A)(1)(a), 2220.2(A)(1)(introductory paragraph) and (B), 2253(A)(1)(a)(i), and4
2256(A)(1), (2), (3), and (4) relative to retirement for municipal employees; to5
provide relative to Municipal Employees' Retirement System of Louisiana,6
Municipal Police Employees' Retirement System, and Firefighters' Retirement7
System; to provide relative to membership, contributions, eligibility for and8
calculation of benefits; to provide an effective date; and to provide for related9
matters.10
Notice of intention to introduce this Act has been published.11
Be it enacted by the Legislature of Louisiana:12
Section 1. R.S.11:1751(A)(introductory paragraph) and (1)(a) and (b), (C), (E)(1)13
and (2)(e), 1755(A)(introductory paragraph), 2214(A)(1) and (2)(a), 2220(A)(1)(a),14
2220.2(A)(i)(introductory paragraph) and (B), 2253(A)(1)(a)(i), and 2256(A)(1), (2), (3),15
and (4) are hereby amended and reenacted to read as follows:16
§1751. Membership17 SB NO. 34
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A. The membership of this system shall be composed of all employees who1
are not specifically excluded by the provisions of this Part, as follows:2
(1) Effective upon the revision date, all employees shall become members of3
this system and shall be placed in the applicable plan as outlined below:4
(a) Those employees participating in both the regular plan and the5
supplemental plan or only in the supplemental plan shall become members of Plan6
A.7
(b) Those employees participating only in the regular plan shall become8
members of Plan B.9
* * *10
C. Those employees who were participating members of this system on11
September 7, 1978, shall be continued as members subsequent to that date, provided12
they are employees as defined herein, even though in the event they do not work the13
number of hours per week required by the definition of employee as set forth herein.14
This Subsection shall not apply to those employee s who on September 7, 1978,15
worked at least the number of hours required by the definition of employee as set16
forth herein.17
* * *18
E. (1) Persons who have retired from any Louisiana state public retirement19
system, plan, or fund and who are over the age of sixty-five shall not be required to20
participate in the system.21
(2) * * *22
(e) Notwithstanding any provision of this Paragraph, anyone, regardless of23
age, who is receiving a retirement benefit from this system who again becomes24
employed in a position which would otherwise make him a mandatory participant,25
shall be subject to the provisions in this Chapter relating to the reemployment of26
retirees.27
* * *28
§1755. Creditable service; service certificate; adjusted service date; repaymen t of29 SB NO. 34
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withdrawn contributions1
A. Benefits and allowances as provided by this Chapter shall be calculated2
based on total creditable service as prescribed below:3
* * *4
§2214. Membership5
A. The membership of the retirement system shall be composed as follows:6
(1) All persons who are members on September 7, 1977, shall remain7
members as a condition of their employment.8
(2)(a) Except as provided further in this Paragraph, any person who becomes9
an employee as defined in R.S. 11:2213 on and after September 9, 1977, shall10
become a member as a condition of his employment, provided he or she is under11
fifty years of age at the date of employment.12
* * *13
§2220. Benefits; contribution limit14
A. Eligibility for normal retirement, early retirement, and limitations.15
(1)(a) Any member of this system who has completed at least twenty-five or16
more years of creditable service regardless of age, or any member who has17
completed at least twenty or more years of creditable service and has attained the18
age of fifty years, or any member who has completed at least twelve or more years19
of creditable service and has attained age fifty-five, shall be entitled to retire from20
service and upon such retirement shall be paid a retirement allowance equal to three21
and one-third percent of his average final compensation multiplied by his years of22
creditable service not to exceed one hundred percent of his average final23
compensation.24
* * *25
§2220.2. Computation of retirement benefits26
A.(1) The normal retirement benefit of any member of the retirement system27
who is a qualified participant cannot shall not exceed the greater of:28
* * *29 SB NO. 34
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B. The annual retirement benefit of any member of the retirement system1
who is not a qualified participant, as defined by Paragraph (2) of Subsection A of this2
Section, and which is not attributable to the member's after-tax employee3
contribution, cannot shall not exceed the lesser of ninety thousand dollars or one4
hundred percent of such member's average compensation. For purposes of5
determining whether a member's benefit exceeds those limitations, the following6
shall apply:7
* * *8
§2253. Membership9
A. The membership of the retirement system shall be composed as follows:10
(1)(a)(i) Except as provided in R.S. 11:2252(12), and except as provided11
further in this Paragraph, any person who becomes an employee as defined in R.S.12
11:2252 on and or after January 1, 1980, shall become a member as a condition of13
his employment.14
* * *15
§2256. Benefits; refund of contributions, application, and payment16
A.(1) Any member of this system who has completed earned at least17
twenty-five years of creditable service, who has been a member of this system for18
at least one year, regardless of age, or any member who has completed earned at19
least twenty years of creditable service, who has been a member of this system for20
at least one year, and who has attained the age of fifty years, or any member who has21
completed earned at least twelve years of service, who has been a member of this22
system for at least one year, and who has attained the age of fifty-five shall be23
entitled to retire from service.24
(2) Any member who has completed earned twenty or more years of25
creditable service, and at least one year of which shall be as a member of this system,26
and who leaves employment covered by this system before attaining age fifty shall27
be entitled to a retirement benefit beginning at age fifty. Any member who has28
completed earned twelve years of creditable service, and at least one year of which29 SB NO. 34
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shall be as a member of this system, and who leaves employment covered by this1
system before attaining age fifty-five shall be entitled to a retirement benefit2
beginning at age fifty-five.3
(3) Any member who has completed earned twenty or more years of4
creditable service and who leaves employment covered by this system before5
attaining age fifty or any member who has completed earned twelve or more years6
of creditable service and who leaves employment covered by this system before7
attaining age fifty-five may select, at any time prior to thirty days before the date that8
benefits are scheduled to commence to the member, any optional retirement9
allowance as provided for in R.S. 11:2259; within the same time period allowed10
above, the member may change the option selected or the beneficiary of the option11
selected. However, in the event of the death of the member after the selection of the12
option but prior to the commencement of benefits, the optional benefit will become13
payable to the option beneficiary, at the time the member would have otherwise14
begun to receive benefits. In the event that the member selects neither the maximum15
regular retirement benefit nor an optional retirement allowance within the time16
period allowed above, Option 2 will be automatically assumed to have been selected17
and the member's designated beneficiary shall be the beneficiary of the option.18
However, in the event that a member has no designated beneficiary, the accumulated19
contributions of the member shall be refunded to his estate immediately upon receipt20
of proof of death.21
(4) Upon such retirement, the member shall be paid an annual retirement22
allowance equal to three and one-third percent of his average final compensation23
multiplied by his total years of creditable service. However, the annual retirement24
allowance shall not exceed one hundred percent of his average final compensation.25
The member shall not be paid any amount in excess of the maximum amount26
permitted under Section 415 of the Internal Revenue Code of 1986, as amended. The27
foregoing sentence shall not prohibit payments to a member from an excess benefit28
plan established pursuant to Section 415(m) of the Internal Revenue Code of 1986,29 SB NO. 34
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as amended, as provided in Section 2272 of this Chapter.1
* * *2
Section 2. This Act shall become effective on June 30, 2012; if vetoed by the3
governor and subsequently approved by the legislature, this Act shall become effective on4
June 30, 2012, or on the day following such approval by the legislature, whichever is later.5
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Lauren Bailey.
DIGEST
Proposed law relative to the Municipal Employees' Retirement System of Louisiana
(MERS), the Municipal Police Employees' Retirement System (MPERS), and the
Firefighters' Retirement System (FRS) provides for changes in present law regarding
membership, contributions, and eligibility for and calculation of benefits.
Effective June 30, 2012.
(Amends R.S. 11:1751(A)(intro. para.) and (1)(a) and (b), (C), and (E)(1) and (2)(e),
1755(A)(intro. para.), 2214(A)(1) and (2)(a), 2220(A)(1)(a), 2220.2 (A)(1)(intro. para.) and
(B), 2253 (A)(1)(a)(i), and 2256(A)(1), (2), (3), and (4))