SLS 12RS-197 ORIGINAL Page 1 of 4 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. 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 SLS 12RS-197 ORIGINAL Page 2 of 4 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. (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 SLS 12RS-197 ORIGINAL Page 3 of 4 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. 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 SLS 12RS-197 ORIGINAL Page 4 of 4 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. (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)