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Regular Session, 2012
SENATE BILL NO. 38
BY SENATOR GUILLORY
REGISTRAR OF VOTERS RET. Provides for Tier 2 of benefits for persons employed on
or after January 1, 2013. (6/30/12)
AN ACT1
To amend and reenact R.S. 11:2144(A) and to enact Part X of Chapter 6 of Subtitle III of2
Title 11 of the Louisiana Revised Statutes of 1950, to be comprised of R.S.3
11:2165.1 through 2165.7, relative to the Registrars of Voters Employees'4
Retirement System; to provide relative to membership, benefit calculation,5
retirement eligibility, and disability benefits for certain members; to provide an6
effective date; and to provide for related matters.7
Notice of intention to introduce this Act has been published.8
Be it enacted by the Legislature of Louisiana:9
Section 1. R.S. 11:2144(A) is hereby amended and reenacted and Part X of Chapter10
6 of Subtitle III of Title 11 of the Louisiana Revised Statutes of 1950, comprised of R.S.11
11:2165.1 through 2165.7, is hereby enacted to read as follows: 12
§2144. Deferred Retirement Option Plan13
A. In lieu of terminating employment and accepting a service retirement14
allowance pursuant to this Section, any member who is eligible to receive retirement15
benefits as provided for in R.S. 11:2071 or R.S. 11:2165.4 may elect to participate16
in the Deferred Retirement Option Plan and defer the receipt of benefits in17 SB NO. 38
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accordance with the provisions of this Section.1
* * *2
§2165.1. Creation; application3
A. There is hereby created a second tier of benefits within this system4
for persons whose first employment making them eligible for membership in5
this system occurred on or after January 1, 2013. The provisions of this Part6
shall be known as "Tier 2" of the system. The provisions of this Chapter7
applicable to persons whose first employment making them eligible for system8
membership occurred before January 1, 2013, shall be known as "Tier 1". Any9
other provisions of this Chapter or any other laws to the contrary10
notwithstanding, the retirement of such persons shall be governed by the11
provisions of this Part; however, if provisions of this Chapter applicable to the12
original plan cover matters not specifically addressed by the provisions of this13
Part or if any of the provisions of this Chapter are made applicable in this Part,14
then those provisions shall apply to members governed by this Part.15
§2165.2. Definitions16
A. As used in this Part, the following terms have the meanings ascribed17
below unless a different meaning is clearly required by the context:18
(1) "Average compensation," shall mean the average annual earned19
compensation of an employee for any period of sixty successive or joined20
months of service as an employee during which earned compensation was the21
highest. In case of interruption of employment, the sixty-month period shall be22
computed by joining employment periods immediately preceding and23
succeeding the interruption.24
(2) "Member" shall include persons who would be eligible for system25
membership pursuant to R.S. 11:2051 but whose first employment making them26
eligible for membership in this system occurred on or after January 1, 2013.27
B. Terms not specifically defined in this Section shall have the meanings28
provided in R.S. 11:2031 unless a different meaning is clearly required by the29 SB NO. 38
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context.1
§2165.3. Eligibility for membership2
Each person who would be eligible for Tier 1 membership but whose3
first employment making him eligible for membership in this system occurred4
on or after January 1, 2013, shall become a member of the Tier 2 of the system5
as a condition of employment.6
§2165.4. Eligibility for retirement7
A. A member upon withdrawal from service shall be entitled to receive8
a retirement allowance which shall begin as of the date specified by the member9
in his application for the said allowance but in no event before withdrawal from10
service if he has:11
(1) Attained of the age of sixty-two years and completed at least ten years12
of creditable service.13
(2) Attained the age of sixty years and completed at least twenty years14
of creditable service.15
(3) Attained the age of fifty-five years and completed at least thirty years16
of creditable service.17
B. Any member whose withdrawal from service occurs prior to his18
attaining the age of sixty-two years, who shall have completed more than ten19
years of creditable service and shall not have received a refund of his20
accumulated contributions shall be entitled to receive a retirement allowance21
beginning upon his attaining the age of sixty-two years of the amount earned22
and accrued at the date of withdrawal from service; provided that such benefits23
shall begin at age sixty if he has twenty or more years of creditable service;24
provided further that such benefits shall begin at age fifty-five if he has thirty25
or more years of creditable service.26
§2165.5. Annual amount of retirement allowance27
A. The annual amount of the retirement allowance for any member who28
upon retirement has less than thirty years of creditable service in this fund shall29 SB NO. 38
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be three percent of the average final compensation for each year of creditable1
service . The annual amount of the retirement allowance for any member who2
upon retirement shall have at least thirty years of total creditable service, with3
at least twenty years of creditable service in this system, shall be three and one-4
third percent of the average final compensation for each year of creditable5
service.6
B. The benefits provided in this Section shall not exceed one hundred7
percent of average compensation.8
§2165.6. Disability Retirement9
A. Eligibility for disability benefits, procedures for application for10
disability benefits, procedures for the certification of continuing eligibility for11
disability benefits, the authority of the board of trustees to modify disability12
benefits, and procedures governing the restoration to active service of a13
formerly disabled employee are specifically provided for in R.S. 11:201 through14
224.15
B. The board of trustees shall award disability benefits to eligible16
members who have been officially certified as disabled by the State Medical17
Disability Board. The disability benefit shall be determined as follows:18
(1) Upon retirement for disability, a member shall receive a retirement19
allowance if eligible therefor; otherwise, he shall receive a disability benefit20
which shall be the product of the retirement accrual rate as determined21
pursuant to R.S. 11:2072 multiplied by the member's average compensation22
further multiplied by service as determined to be the lesser of:23
(i) Creditable service earned by the date of the disability application, but24
totaling not less than fifteen years.25
(ii) Projected continued service to age sixty-two.26
(2) In no case shall the disability benefit provided herein exceed two-27
thirds of earnable compensation.28
(3) Any amount received as a compensable wage or a lump sum29 SB NO. 38
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settlement under the provisions of the workers' compensation laws shall be1
applied as an offset against benefits received under the provisions of this2
Subsection, pursuant to rules prescribed by the board. The board shall have3
complete discretion and the authority to determine the extent and application4
of the provisions of this Subsection.5
(4) A member who qualifies for disability retirement benefits may select6
an Option 2 or 3 as specified in R.S. 11:2076 with his spouse as beneficiary.7
Such option factors shall be the same as those utilized for regular retirement8
and shall be based on the age that the member and spouse would have attained9
had the member survived, continued in service, and then retired on the earliest10
normal retirement date.11
§2165.7. Application12
The provisions of the applicable Tier 1 plan shall apply to Tier 2 for any13
matter on which this Part is silent. In case of any conflict between the14
provisions of Tier 1 and Tier 2, Tier 2 shall prevail.15
Section 2. This Act shall become effective on June 30, 2012; if vetoed by the16
governor and subsequently approved by the legislature, this Act shall become effective on17
June 30, 2012, or on the day following such approval by the legislature, whichever is later.18
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Laura Gail Sullivan.
DIGEST
Proposed law generally makes changes to the benefit structure of the Registrars of Voters
Employees' Retirement System (ROVERS), designated "Tier 2", for members hired on or
after January 1, 2013, in the following respects:
(1)Retirement eligibility
(2) Annual amount of retirement allowance
(3) Disability retirement allowance calculation
Proposed law designates the benefit structure applicable to members hired on or before
December 31, 2002, as "Tier 1".
RETIREMENT ELIGIBILITY
Present law provides any member of the system shall be eligible to retire if he has: SB NO. 38
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(1)Ten years of creditable service, and is at least age sixty.
(2)Twenty years of creditable service, and is at least age fifty-five.
(3)Thirty years of creditable service, regardless of age.
Proposed law retains present law for persons whose first employment making them eligible
for ROVERS membership occurred on or before Dec. 31, 2012.
Proposed law provides any member of Tier 2 shall be eligible for retirement if he has:
(1)Ten years or more of service, at age sixty-two or thereafter.
(2)Twenty years or more of creditable service, at age sixty or thereafter.
(3)Thirty years of creditable service at age fifty.
ANNUAL AMOUNT OF RETIREMENT ALLOWANCE
Present law provides the annual amount of the retirement allowance for any person who is
an active contributing member of this system shall consist of a member's annuity which shall
be the actuarial equivalent of the accumulated contributions of the member at the time of
retirement, computed according to the actuarial table in use by ROVERS system, and
effectively provides a 3% accrual rate for those hired on or before June 30, 1999, and a 3
1/3% accrual rate for those hired thereafter.
Proposed law adopts a formula with the same effect to compute the benefit, and applies the
3% accrual rate to anyone who does not qualify for a full normal retirement based on at least
thirty years of service. It provides the current 3 1/3% accrual rate only to those whose full
normal retirement benefit is based on at least thirty years of service.
Effective June 30, 2012.
(Amends R.S. 11:2144(A); adds R.S. 11:2165.1 through 2165.7)