SLS 12RS-192 ORIGINAL Page 1 of 7 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. 35 BY SENATOR GUILLORY SHERIFFS. Provides relative to benefits. (6/30/12) AN ACT1 To amend and reenact R.S. 11:207 and 2178(B) and (G) and to enact R.S. 11:2186, relative2 to the Sheriffs' Pension and Relief Fund; to provide for benefits; to provide for an3 effective date; 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. 11:207 and 2178(B) and (G) are hereby amended and reenacted and7 R.S. 11:2186 is hereby enacted to read as follows: 8 §207. Sheriffs' Pension and Relief Fund 9 A. A member who becomes disabled, and who files an application for10 disability benefits while in service, and who upon medical examination and11 certification as provided for elsewhere in this Subpart, is found to be totally disabled12 solely as the result of injuries sustained in the performance of his official duties, or13 for any cause, provided the member has at least ten years of creditable service, and14 provided that the disability was incurred while the member was an active15 contributing member in active service, shall be entitled to disability benefits under16 the provisions of R.S. 11:2178(B)(1). However, if the application for disability17 SB NO. 35 SLS 12RS-192 ORIGINAL Page 2 of 7 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. benefits is not filed while the member is in service, it shall be presumed that the1 disability was not incurred while the member was an active contributing member in2 active service. Such presumption may be overcome only by clear, competent, and3 convincing evidence that the disability was incurred while the member was an active4 contributing member in active service.5 B. A member who becomes disabled, and who files for disability benefits6 while in service, and who upon medical examination and certification as7 provided for elsewhere in this Subpart, is found to be totally disabled for any8 cause other than injuries sustained in the performance of his official duties,9 provided the member has at least ten years of creditable service, and provided10 that the disability was incurred while the member was an active contributing11 member in active service, shall be entitled to disability benefits under the12 provisions of R.S. 11:2178(B)(3).13 C. If the application for disability benefits is not filed while the member14 is in service, it shall be presumed that the disability was not incurred while the15 member was an active contributing member in active service. Such presumption16 may be overcome only by clear, competent, and convincing evidence that the17 disability was incurred while the member was an active contributing member18 in active service.19 * * *20 §2178. Disability benefits; retirement benefits; death benefits21 * * *22 B. The board of trustees shall award disability benefits to eligible members23 who have been officially certified as disabled by the State Medical Disability Board.24 The disability benefit shall be as follows:25 (1) (a) The disability benefit for total disability from gainful employment26 shall be the lesser of (i) or (ii) as set forth herein:27 (i) A sum equal to the greater of forty-five percent of final average28 compensation or the member's accrued retirement benefit at the time of termination29 SB NO. 35 SLS 12RS-192 ORIGINAL Page 3 of 7 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. of employment due to disability, or1 (ii) The retirement benefit which would be payable assuming accrued2 creditable service plus additional continued service, if any, to the earliest normal3 retirement age based on final average compensation at the time of termination of4 employment due to disability.5 (b)(i) For the purpose of this Subsection, for any member whose first6 employment making him eligible for membership in the system began prior to July7 1, 2006, final average compensation is defined as the member's average salary for8 the thirty-six highest successive months of employment, or the highest thirty-six9 successive joined months of employment where interruption of service occurred. If10 the member has been employed for a period of less than thirty-six months, final11 average compensation shall be based on the average monthly salary received for the12 time employed.13 (ii) For the purpose of this Subsection, for any member whose first14 employment making him eligible for membership in the system began on or after15 July 1, 2006, final average compensation is defined as the member's average salary16 for the sixty highest successive months of employment , or the highest sixty17 successive joined months of employment where interruption of service occurred. If18 the member has been employed for a period of less than sixty months, final average19 compensation shall be based on the average monthly salary received for the time20 employed.21 (iii) Upon approval for disability benefits, the member shall exercise a22 retirement option as provided for service retirement under the provisions of23 Subsection I of this Section and no change in the option selected shall be permitted24 after it has been filed with the board. The retirement option factors shall be the same25 as those utilized for regular retirement based on the age of the retiree and spouse had26 the retiree continued in active service until the normal retirement date.27 (c) A member who is classified as totally disabled for any employment shall28 be entitled to earn twenty-fi ve percent of his disability benefit in a calendar year29 SB NO. 35 SLS 12RS-192 ORIGINAL Page 4 of 7 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. before being reclassified as partially disabled.1 (2) The benefit for partial disability shall be seventy-five percent of the2 amount that the member would have received for total disability.3 (1) Service related disability benefit. (a) The disability benefit for total4 disability from gainful employment due to an injury sustained while in the5 performance of official duties shall be a sum equal to forty-five percent of final6 average compensation.7 (b)(i) For the purpose of this Subsection, for any member whose first8 employment making him eligible for membership in the system began prior to9 July 1, 2006, final average compensation is defined as the member's average10 salary for the thirty-six highest successive months of employment, or the highest11 thirty-six successive joined months of employment where interruption of service12 occurred. If the member has been employed for a period of less than thirty-six13 months, final average compensation shall be based on the average monthly14 salary received for the time employed.15 (ii) For the purpose of this Subsection, for any member whose first16 employment making him eligible for membership in the system began on or17 after July 1, 2006, final average compensation is defined as the member's18 average salary for the sixty highest successive months of employment, or the19 highest sixty successive joined months of employment where interruption of20 service occurred. If the member has been employed for a period of less than21 sixty months, final average compensation shall be based on the average monthly22 salary received for the time employed.23 (c) A member who is classified as totally disabled for any employment24 shall be entitled to earn twenty-five percent of his disability benefit in a25 calendar year before being reclassified as partially disabled.26 (2) Supplemental service related disability benefit. (a) A member who27 is eligible for a service related disability under R.S. 11:207(A) shall be entitled28 to a supplemental service related disability benefit if the benefit to which he is29 SB NO. 35 SLS 12RS-192 ORIGINAL Page 5 of 7 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. entitled under R.S. 11:207(A) is less than the benefit the member would have1 received had he retired under R.S. 11:207(B).2 (b) The amount of the member's supplemental service-related disability3 benefit shall be equal to the difference between the member's service-related4 disability benefit calculated under R.S. 11:2178(B)(1) and the maximum5 non-service related disability benefit the member would have received had he6 retired under R.S. 11:2178(B)(3).7 (3) Non-service related disability benefit. (a) The disability benefit for8 total disability caused by an injury other than an injury sustained in the9 performance of a member's official duties shall be the lesser of:10 (i) A sum equal to the greater of forty-five percent of final average11 compensation or the member's accrued retirement benefit at the time of12 termination of employment due to disability.13 (ii) The retirement benefit which would be payable assuming accrued14 creditable service plus additional continued service, if any, to the earliest15 possible retirement age based on final average compensation at the time of16 termination of employment due to disability.17 (b)(i) For the purpose of this Subsection, for any member whose first18 employment making him eligible for membership in the system began prior to19 July 1, 2006, final compensation is defined as the member's average salary for20 the thirty-six highest successive months of employment, or the highest thirty-six21 successive joined months of employment where interruption of service occurred.22 If the member has been employed for a period of less than thirty-six months,23 final average compensation shall be based on the average monthly salary24 received for the time employed.25 (ii) For the purpose of this Subsection, for any member whose first26 employment making him eligible for membership in the system began on or27 after July 1, 2006, final average compensation is defined as the member's28 average salary for the sixty highest successive months of employment, or the29 SB NO. 35 SLS 12RS-192 ORIGINAL Page 6 of 7 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. highest sixty successive joined months of employment where interruption of1 service occurred. If the member has been employed for a period of less than2 sixty months, final average compensation shall be based on the average monthly3 salary received for the time employed.4 (iii) Upon approval for disability benefits, the member shall exercise a5 retirement option as provided for service retirement under the provisions of6 Subsection I of this Section and no change in the option selected shall be7 permitted after it has been filed with the board. The retirement option factors8 shall be the same as those utilized for regular retirement based on the age of the9 retiree and spouse had the retiree continued in active service until the normal10 retirement date.11 (c) A member who is classified as totally disabled for any employment12 shall be entitled to earn twenty-five percent of his disability benefit in a13 calendar year before being reclassified as partially disabled.14 (d) Upon attaining the age of fifty-five, and upon application to the board15 of trustees, a member who has retired under the disability retirement provisions16 of this Subsection may convert his disability retirement to regular retirement17 described in R.S. 11:2178(C).18 (4) The benefit for partial disability shall be seventy-five percent of the19 amount that the member would have received for total disability.20 * * *21 G. If any sheriff or deputy dies while in the armed services of the United22 States and while the United States is actually engaged in war, his widow, child or23 children, or dependent parent or parents shall be entitled to the benefits herein24 provided for such persons when the sheriff or deputy dies while serving as sheriff or25 deputy. Effective January 1, 2007, in the case of a member who dies while on a26 leave of absence to perform qualified military service as described in IRC27 §414(u), the member's beneficiary shall be entitled to any benefits that would28 have been provided, other than benefit accruals relating to the period of29 SB NO. 35 SLS 12RS-192 ORIGINAL Page 7 of 7 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. qualified military service, under the plan had the member resumed and then1 terminated employment on account of death, in accordance with IRC2 §401(a)(37). However, the member's beneficiary shall be entitled to benefit3 accruals relating to the period of qualified military service provided the4 member's beneficiary timely remits to the fund any employee contributions5 which would have been required but for the member's leave of absence to6 perform qualified military service, in accordance with the terms of federal law7 and R.S. 11:2186.8 * * *9 §2186. Reemployment of a member under IRC §414(u)10 The qualified military service of a member who has been reemployed11 under the terms of IRC §414(u) shall be treated, for vesting and benefit accrual12 purposes, as service completed under R.S. 11:2178, provided the member timely13 remits to the fund any employee contributions which would have been required14 but for the member's leave of absence to perform qualified military service, in15 accordance with the terms of federal law.16 Section 2. This Act shall become effective on June 30, 2012; if vetoed by the17 governor and subsequently approved by the legislature, this Act shall become effective on18 June 30, 2012, or on the day following such approval by the legislature, whichever is later.19 The original instrument and the following digest, which constitutes no part of the legislative instrument, were prepared by Laura Gail Sullivan. DIGEST Present law provides for benefits for members of the Sheriffs' Pension and Relief Fund including members who become disabled or who are or have been on military leave. Provides for compliance with present federal law regarding treatment of such members. Proposed law provides for continued compliance with present federal law. Effective June 30, 2012. (Amends R.S. 11:207 and 2178(B) and (G); adds R.S. 11:2186)