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Regular Session, 2012
SENATE BILL NO. 45
BY SENATOR GUILLORY
SCHOOL EMPLOYEES RET. Transfers certain support personnel to the system. (7/1/12)
AN ACT1
To amend and reenact R.S. 11:62(11) and 1002(13), to enact R.S. 11:62(4)(c) and (d),2
701(33)(b)(vi) and Part IV-A of Chapter 3 of Subtitle II of Title 11 of the Louisiana3
Revised Statutes of 1950, to be comprised of R.S. 11:1160.1 - 1160.12, and to repeal4
Subpart IV of Chapter 2 of Title 11 of the Louisiana Revised Statutes of 1950,5
comprised of R.S. 11:801-813, relative to food service workers; to provide for the6
retirement of employees of school boards paid from school food service funds; to7
provide for an effective date; and to provide for related matters.8
Notice of intention to introduce this Act has been published.9
Be it enacted by the Legislature of Louisiana:10
Section 1. R.S. 11:62(11) and 1002(13) are hereby amended and reenacted and R.S.11
11:62(4)(c) and (d), 701(33)(b)(vi) and Part IV-A of Chapter 3 of Subtitle II of Title 11 of12
the Louisiana Revised Statutes of 1950, comprised of R.S. 11:1160.1 - 1160.12, is hereby13
enacted to read as follows:14
§62. Employee contribution rates established15
Employee contributions to state and statewide public retirement systems shall16
be paid at the following rates, except as otherwise provided by law:17 SB NO. 45
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* * *1
(4) Louisiana School Employees' Retirement System:2
* * *3
(c) School lunch Plan A - 9.1%.4
(d) School lunch Plan B - 5%.5
* * *6
(11) Teachers' Retirement System of Louisiana :7
(a) School lunch Plan A - 9.1%.8
(b) School lunch Plan B - 5%.9
(c) All others - 8%.10
* * *11
§701. Definitions12
As used in this Chapter, the following words and phrases have the meanings13
ascribed to them in this Section unless a different meaning is plainly required by the14
context:15
* * *16
(33) * * *17
(b) "Teacher" shall not include any of the following:18
* * *19
(vi) Any employee of a city or parish school board who is paid from20
school food service funds.21
* * *22
§1002. Definitions23
As used in this Chapter, the following words and phrases shall have the24
meanings ascribed to them in this Section unless a different meaning is plainly25
required by the context:26
* * *27
(13) "Employee" means any person legally occupying a position as a school28
bus driver who actually renders a service by driving a school bus during the full time29 SB NO. 45
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of his employment, a school janitor, a school custodian, a school maintenance1
employee, school bus aide, monitor or attendant, or other regular school employee2
who actually works on a school bus helping with the transportation of school3
children, and who is a legal employee of a parish or city school board of the state of4
Louisiana, and shall include the employees of this system. "Employee" also means5
any person employed by a parish or city school board who is paid from school6
food service funds.7
* * *8
PART IV-A. EMPLOYEES PAID FROM SCHOOL FOOD9
SERVICE FUNDS10
§1160.1. Eligibility11
Any member of the Louisiana School Employees' Retirement System12
who is paid from school food service funds and whose employer has not13
terminated its agreement with the Department of Health, Education and14
Welfare, or its successor, for such employees, shall be governed by the15
provisions of this Part, with respect to retirement eligibility, computation of16
regular, survivor, and disability retirement, and employee and employer17
contributions.18
§1160.2. Eligibility for regular retirement19
Any member covered by R.S. 11:1160.1 shall be eligible to retire if he has20
at least:21
(1) Thirty years of creditable service, and is at least age fifty-five.22
(2) Five years of creditable service, and is at least age sixty.23
§1160.3. Computation of regular retirement allowance24
A. The yearly amount of the retirement allowance for any member25
covered by R.S. 11:1160.1 shall be equal to two percent of the member's average26
compensation multiplied by his years of creditable service.27
B. The benefits provided by this Section shall not exceed one hundred28
percent of average compensation.29 SB NO. 45
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§1160.4. Eligibility for disability retirement1
An active contributing member covered by R.S. 11:1160.1, who becomes2
disabled, and who files for disability benefits while in service, and who upon3
medical examination and certification as provided for in R.S. 11:201 through4
224 is found to be totally disabled for any cause, shall be entitled to disability5
benefits under the provisions of R.S. 11:1160.5, provided the member has at6
least five years of creditable service.7
§1160.5. Computation of disability benefits8
A. Eligibility for disability retirement, procedures for application for9
disability benefits, procedures for the certification of continuing eligibility for10
disability benefits, the authority of the board of trustees to modify disability11
benefits, and procedures governing the restoration to active service of a12
formerly disabled employee are specifically described and provided for in R.S.13
11:201 through 224.14
B. The retirement system shall award disability benefits to eligible15
members who have been officially certified as disabled by the State Medical16
Disability Board. The disability benefit shall be determined as provided in17
Subsection C of this Section.18
C. Upon retirement for disability, a member covered by R.S. 11:1160.119
shall receive a normal retirement allowance under R.S. 11:1160.3 if he is eligible20
therefor; otherwise, he shall receive a disability benefit which shall consist of an21
amount equal to two percent of the member's average compensation multiplied22
by his years of creditable service; however, such amount shall not be less than23
thirty percent, nor more than seventy-five percent of average compensation, in24
the event no optional selection is made.25
§1160.6. Eligibility for survivor benefits26
A. Any member covered by R.S. 11:1160.1 with twenty or more years27
of creditable service and not eligible for normal retirement at the time of his28
death, who leaves a surviving spouse who is not eligible for Social Security29 SB NO. 45
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survivorship or retirement benefits on his account and who has been married1
to the member for not less than twelve months immediately preceding his death,2
shall be deemed to have exercised Option 2 benefits on behalf of his surviving3
spouse, who shall be paid such benefits until he becomes eligible for Social4
Security survivorship or retirement benefits on his account, or until he5
remarries; however, no such benefit shall be paid until the surviving spouse6
attains the age of fifty. Any surviving spouse who meets the above7
qualifications, except for survivorship benefits due to minor children, shall8
become eligible for benefits under this Section when he ceases to receive Social9
Security benefits due to ineligibility. The method of calculating such retirement10
benefits shall be on the same basis as provided in this Part.11
B. Any member who is eligible for normal retirement at the time of his12
death and who leaves a surviving spouse shall be deemed to have exercised13
Option 2 benefits on behalf of his surviving spouse, who shall be paid such14
benefits just as though the member had retired and elected Option 2 benefits15
prior to his death.16
§1160.7. Employee contributions17
Each member covered by R.S. 11:1160.1 shall contribute an amount18
equal to five percent of his earnable compensation to the retirement system as19
the employee contribution.20
§1160.8. Employer contributions21
The state of Louisiana shall annually appropriate an amount equal to six22
and one-tenth percent of each and every member's earnable compensation, such23
annual appropriation to be paid to the system through the state treasurer's24
office in twelve equal installments beginning on July first and ending on June25
first of each fiscal year. Should the amount appropriated be less than the26
amount required, the state shall pay the difference to the system. Should the27
amount appropriated be more than the amount required, the system shall28
return the excess to the office of the state treasurer.29 SB NO. 45
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§1160.9. Termination of Social Security coverage1
Any member who is covered by R.S. 11:1160.1, whose employer2
withdraws its employees from Social Security coverage, shall, upon the effective3
date of withdrawal be governed by the laws otherwise governing the Louisiana4
School Employees' Retirement System; however, the service credit earned while5
paying Social Security shall be governed by the provisions of R.S. 11:1160.3(A).6
§1160.10. Conflict with other law7
Any member of the Louisiana School Employees' Retirement System8
who is paid from school food service funds and whose employer has not9
terminated its agreement with the Department of Health, Education and10
Welfare, or its successor, for such employees, shall be governed by all of the11
laws, policies, rules and regulations which govern the Louisiana School12
Employees' Retirement System except where they are in conflict with the13
specific provisions of R.S. 11:1160.2 through 1160.8 and in which case said14
specific provisions shall govern.15
§1160.11. Transferees from Plan A of the School Lunch Employees' Retirement16
System; termination of Social Security coverage prior to July 1,17
198518
A. Any member of the Louisiana School Employees' Retirement System19
who is paid from school food service funds and who is transferred from Plan A20
of the School Lunch Employees' Retirement System on July 1, 1983, and any21
member who is governed by the provisions of R.S. 11:1160.1 whose employer22
has withdrawn and terminated its employees from Social Security coverage23
prior to July 1, 1985, shall be governed by the provisions of this Section.24
B. Each member of the system who is included in Subsection A of this25
Section shall contribute an amount equal to nine and one-tenth percent of his26
earnable compensation to the retirement system as the employee contribution27
and each employer of a member who is included in Subsection A of this Section28
shall contribute an amount equal to five and eighty-five one hundredths percent29 SB NO. 45
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of each and every member's earnable compensation, and the state of Louisiana1
shall annually appropriate an amount equal to four and six-tenths percent of2
each and every member's earnable compensation, such annual appropriation3
to be paid to the system through the state treasurer's office in twelve equal4
installments beginning on July first and ending on June first of each fiscal year.5
Should the amount appropriated be less than the amount required, the state6
shall pay the difference to the system. Should the amount appropriated be more7
than the amount required, the system shall return the excess to the office of the8
state treasurer.9
C. Each member of the system who is included in Subsection A of this10
Section shall be governed by all of the laws, policies, rules and regulations which11
govern the Louisiana School Employees' Retirement System except when they12
are in conflict with the specific provisions of this Section and in which case the13
specific provisions of this Section shall govern.14
D. In the computation of all benefits that may become payable to a15
member included in Subsection A of this Section or his beneficiaries or16
survivors, for the period of time that the member is covered by this Section, a17
percentage rate of three percent for each year of creditable service shall be used18
and no lump sum amount shall be used in any such benefit computation.19
E. No member included in Subsection A of this Section shall be eligible20
for a normal or regular service retirement unless he has at least thirty years of21
creditable service regardless of age, or twenty-five years of creditable service22
and is at least age fifty-five, or five years of creditable service and is at least age23
sixty; however, any member included in Subsection A of this Section who was24
covered by the provisions of R.S. 17:1260.1 shall continue to be covered by said25
provisions.26
§1160.12. Appropriations for members not otherwise covered27
For each member of the Louisiana School Employees' Retirement28
System who is paid from school food service funds and who is not covered by29 SB NO. 45
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the provisions of R.S. 11:1160.1 through 1160.11, the legislature shall annually1
appropriate an amount equal to three and forty-five one-hundredths percent of2
each and every such member's earnable compensation, such annual3
appropriation to be paid to the system through the state treasurer's office in4
twelve equal installments beginning on July first and ending on June first of5
each fiscal year. Should the amount appropriated be less than the amount6
required, the legislature shall appropriate the difference to the system. Should7
the amount appropriated be more than the amount required, the system shall8
return the excess to the office of the state treasurer.9
Section 2. Subpart IV of Chapter 2 of Title 11 of the Louisiana Revised Statutes of10
1950, comprised of R.S. 11:801-813 is hereby repealed.11
Section 3. Effective July 1, 2013, all members of the Teachers' Retirement System12
of Louisiana who are paid from school food service funds shall become members of the13
Louisiana School Employees' Retirement System. Persons becoming employed by a city or14
parish school board on or after July 1, 2013, who are paid from school food service funds15
shall, as a condition of employment, become members of the Louisiana School Employees'16
Retirement System.17
Section 4. All members of the Teachers' Retirement System of Louisiana who are18
paid from school food service funds who become members of the Louisiana School19
Employees' Retirement System on July 1, 2013, shall retain all accrued benefits existing as20
of that date.21
Section 5. All retirees of the Teachers' Retirement System of Louisiana who were22
paid from school food service funds while employed, and who are retired on or before July23
1, 2013, along with their survivors and beneficiaries shall continue to receive the benefits24
due and payable to them. The payment of such benefits shall be the obligation of the25
Louisiana School Employees' Retirement System.26
Section 6. On June 30, 2013, the actuarial liability existing within the Teachers'27
Retirement System of Louisiana which is attributable to employees of a city or parish school28
board who are paid from school food service funds shall be transferred to the Louisiana29 SB NO. 45
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School Employees' Retirement System. The Teachers' Retirement System of Louisiana shall1
determine the proportion of such liabilities to the total liabilities of the system and shall2
transfer an amount of assets to the Louisiana School Employees' Retirement System which3
is in the same proportion to the total assets of the Teachers' Retirement System of Louisiana.4
Section 7. This Act shall become effective on July 1, 2012; if vetoed by the governor5
and subsequently approved by the legislature, this Act shall become effective on July 1,6
2012, or on the day following such approval by the legislature, whichever is later.7
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 retirement of employees of the public education system. Provides
for the Teachers' Retirement System of Louisiana (TRSL), primarily for classroom teachers.
Provides for the Louisiana School Employe es' Retirement System (LSERS), primarily for
support workers.
Proposed law retains present law.
Present law provides for membership in TRSL of certain public school employees paid from
school food service funds. Provides specific benefit calculation and retirement eligibility
provisions for such members.
Proposed law transfers such employees to LSERS. Provides that the accrued benefits of
such persons transferred shall not be affected. Provides that the all such persons retired on
or before July 1, 2013, along with their survivors and beneficiaries shall continue to receive
the benefits due and payable to them. Such obligations shall be the obligations of LSERS.
Proposed law further provides that on June 30, 2013, the liabilities attributable to such
persons shall be transferred from the TRSL to the LSERS, along with the proportional assets.
Effective July 1, 2012.
(Amends R.S. 11:62(11) and 1002(13); adds R.S. 11:62(4)(c) and (d), 701(33)(b)(vi), and
R.S. 11:1160.1 through 1160.12; repeals R.S. 11:801 through 813))