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Regular Session, 2012
SENATE BILL NO. 41
BY SENATOR GUILLORY
STATE EMPLOYEES. Provides for a minimum benefit. (6/30/12)
AN ACT1
To enact R.S. 11:542.1.2 and 542.1.3, relative to the Louisiana State Employees' Retirement2
System; to provide for a minimum benefit for certain retirees, beneficiaries, and3
survivors; to provide for a one-time benefit supplement; to provide for funding; to4
provide an effective date; and to provide for related matters.5
Notice of intention to introduce this Act has been published.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 11:542.1.2 and 542.1.3 are hereby enacted to read as follows: 8
2§542.1.2. Minimum benefit increase; payment from experience account9
A. A monthly minimum benefit increase shall be payable to:10
(1) Each retiree of the system who, on June 30, 2012, meets all of the11
following criteria: 12
(a) He has thirty or more years of service credit, exclusive of unused13
leave. 14
(b) He has been retired for fifteen years or more.15
(c) He receives a monthly retirement benefit of less than one thousand16
two hundred dollars.17 SB NO. 41
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(d) He is at least sixty years of age.1
(e) He has neither participated in the Deferred Retirement Option Plan2
pursuant to R.S. 11:447 nor chosen an Initial Benefit Option pursuant to R.S.3
11:446(A)(5).4
(2) Each nonretiree beneficiary receiving a benefit on June 30, 2012,5
who, as of June 30, 2012, meets all of the following criteria:6
(a) The deceased member had thirty or more years of service credit,7
exclusive of unused leave.8
(b) The retiree and nonretiree beneficiary, or both combined, have9
received a benefit for at least fifteen years.10
(c) The nonretiree beneficiary receives a monthly retirement benefit of11
less than one thousand two hundred dollars.12
(d) The deceased member would be at least sixty years of age had he13
lived.14
(e) The deceased member neither participated in the Deferred15
Retirement Option Plan pursuant to R.S. 11:447 nor chose an Initial Benefit16
Option pursuant to R.S. 11:446(A)(5).17
(3) Any unmarried surviving spouse, any surviving minor child, or any18
surviving totally physically handicapped or mentally disabled child of a19
deceased member which survivor is receiving a monthly retirement benefit20
pursuant to R.S. 11:471 of less than one thousand two hundred dollars if, on21
June 30, 2012, all of the following apply to the deceased member:22
(a) He had at least thirty years of service credit, exclusive of unused23
leave.24
(b) He has been deceased for fifteen years or more.25
(c) He would have been at least sixty years of age.26
(d) He had not participated in the Deferred Retirement Option Plan27
pursuant to R.S. 11:447 and had not chosen an Initial Benefit Option pursuant28
to R.S. 11:446(A)(5).29 SB NO. 41
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B. Each person to whom this Section applies, except as provided in1
Subsection C of this Section, shall have his current monthly retirement benefit2
amount increased by the lesser of:3
(1) Three hundred dollars.4
(2) The difference between one thousand two hundred dollars and his5
current monthly benefit amount.6
C.(1) Notwithstanding Subsection B of this Section, if any nonretiree7
beneficiary to whom this Section applies is receiving a monthly benefit amount8
based upon an optional allowance pursuant to R.S. 11:446(A)(1) through (4),9
which amount is less than that received by the retiree while alive, the amount10
of the increase that would otherwise be payable pursuant to Subsection B of this11
Section shall be prorated based upon the option selected.12
(2) Notwithstanding Subsection B of this Section, if a survivor to whom13
Paragraph (A)(3) of this Section applies is the sole survivor receiving a benefit14
pursuant to R.S. 11:471, he shall have his current monthly retirement benefit15
increased by the lesser of three hundred dollars or the difference between one16
thousand two hundred dollars and his current monthly benefit amount. If there17
are multiple survivors to whom Paragraph (A)(3) of this Section applies, such18
survivors shall share equally a monthly benefit increase of three hundred19
dollars.20
D. The provisions of this Section shall not apply to any retiree,21
nonretiree beneficiary, or survivor receiving a benefit pursuant to a reciprocal22
agreement recognized by the system.23
E. The actuarial cost of implementing the provisions of this Section shall24
be paid from the experience account.25
F.(1) The increase provided pursuant to this Section shall begin on July26
first following the adoption of an actuarial valuation for the system pursuant to27
R.S. 11:102 in which the experience account balance is sufficient to fund the28
actuarial cost of this benefit.29 SB NO. 41
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(2) Nothwithstanding the provisions of R.S. 11:542, funds in the1
experience account shall not be used for any permanent benefit increase until2
the minimum benefit provided by the Section has been paid.3
§542.1.3. Lump sum benefit supplement4
In the event that a permanent benefit increase is not payable based on5
the valuation for the year ending June 30, 2012, or any year thereafter, a6
nonrecurring lump-sum benefit supplement may be paid. The benefit7
supplement shall be two percent of the normal annual benefit; however, in no8
case shall the benefit supplement be less than three hundred dollars. The9
benefit supplement shall be paid in a single lump-sum payment. The10
supplement shall be granted only to beneficiaries who would be eligible for the11
permanent benefit increase provided for in R.S. 11:542. The procedure for12
approval of this lump-sum benefit supplement shall be the same as the13
procedure in R.S. 11:542(C).14
Section 2. This Act shall become effective on June 30, 2012; if vetoed by the15
governor and subsequently approved by the legislature, this Act shall become effective on16
June 30, 2102, or on the day following such approval by the legislature, whichever is later.17
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Laura Gail Sullivan.
DIGEST
Proposed law provides for a minimum benefit for retirees of the Louisiana State Employees'
Retirement System (LASERS) payable as soon as the experience account balance is
sufficient to fund such increase.
Proposed law further authorizes payment of a nonrecurring lump sum benefit in any year in
which no permanent benefit increase is payable from the experience account.
Effective June 30, 2012.
(Adds R.S. 11:542.1.2 and 542.1.3)