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Regular Session, 2012
SENATE BILL NO. 49
BY SENATOR GUILLORY
MUNICIPAL EMPLOYEE RET. Provides for a second tier of benefits for persons
employed on or after 1/1/13. (7/1/12)
AN ACT1
To amend and reenact R.S. 11:1763(A) and to enact R.S. 11:1789 through 1789.5 and R.S.2
11:1808 through 1808.5, relative to the Municipal Employees' Retirement System;3
to provide relative to membership, employee contributions, benefit calculation,4
survivor benefits, disability benefits, and retirement eligibility for future system5
members; to provide an effective date; and to provide for related matters.6
Notice of intention to introduce this Act has been published.7
Be it enacted by the Legislature of Louisiana:8
Section 1. R.S. 11:2763(A) is hereby amended and reenacted and R.S. 11:17899
through 1789.5 and R.S. 11:1808 through 1808.5 are hereby enacted to read as follows: 10
§1763. Deferred Retirement Option Plan11
A. In lieu of terminating employment and accepting a service retirement12
allowance pursuant to R.S. 11:1781 and 1782, or R.S. 11:1801 and 1802, or R.S.13
11:1789.3 and 1789.4, or 1808.3 and 1808.4, any member of Plan A who is eligible14
for a normal retirement pursuant to R.S. 11:1781 or 1789.3(A), (B), or (C), or any15
member of Plan B who is eligible for a normal retirement pursuant to R.S. 11:180116
or 1808.3(A), (B), or (C), may elect to participate in the Deferred Retirement Option17 SB NO. 49
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Plan and defer the receipt of benefits in accordance with the provisions of this1
Section.2
* * *3
§1789. Creation; application4
There is hereby created a subplan within Plan A of this system for5
persons who would otherwise be eligible for membership in the Municipal6
Employees' Retirement System of Louisiana Plan A but whose first employment7
making them eligible for membership in this system occurred on or after8
January 1, 2013. Such subplan shall be known as the "MERS Plan A Tier 2".9
Any 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 Plan A Tier 2; however, the provisions of this Chapter applicable12
to Plan A Tier 1 shall apply to members of Tier 2 for any matter on which this13
Subpart is silent.14
§1789.1. Application; definitions15
Terms not specifically defined in this Section shall have the meanings16
provided in R.S. 11:1732 unless a different meaning is clearly required by the17
context. For purposes of Plan A Tier 2:18
(1)"Final compensation" shall mean the average monthly earnings19
during the highest sixty consecutive months, or joined months if service was20
interrupted. The earnings to be considered for the thirteenth through the21
twenty-fourth months shall not exceed one hundred fifteen percent of the22
earnings for the first through the twelfth months. The earnings to be considered23
for the twenty-fifth through the thirty-sixth month shall not exceed one hundred24
fifteen percent of the earnings for the thirteenth through the twenty-fourth25
month. The earnings to be considered for the thirty-seventh through the26
forty-eighth month shall not exceed one hundred fifteen percent of the earnings27
for the twenty-fifth through the thirty-sixth month. The earnings to be28
considered for the final twelve months shall not exceed one hundred fifteen29 SB NO. 49
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percent of the earnings of the thirty-seventh through the forty-eighth month.1
(2) "Member" shall include persons who would be eligible for system2
membership pursuant to R.S. 11:1751 but whose first employment making them3
eligible for membership in one of the state systems occurred on or after January4
1, 2013.5
§1789.2. Eligibility for membership6
Each person who would be eligible for membership pursuant to R.S.7
11:1751 but whose first employment making him eligible for membership in this8
system occurred on or after January 1, 2013, shall become a member of the9
MERS Plan A Tier 2 of the system as a condition of employment.10
§1789.3. Eligibility for retirement11
A member of MERS Plan A Tier 2 shall be eligible for retirement if he12
has:13
A. Seven years or more of service, at age sixty-seven or thereafter.14
B. Ten years or more of service, at age sixty-two or thereafter.15
C. Thirty years or more of service, at age fifty-five or thereafter.16
D. Twenty-five years of service credit at any age, exclusive of military17
service and unused annual and sick leave. However, any member retiring18
under this Subsection shall have his benefit, inclusive of military service credit19
and allowable unused annual and sick leave, actuarially reduced from the20
earliest age at which he would be entitled to a vested deferred benefit under any21
provision of this Section, if he had continued in service to that age. A member22
who elects to retire under the provisions of this Subsection is not eligible to23
participate in the Deferred Retirement Option Plan.24
§1789.4. Computation of normal retirement allowances; return of accumulated25
contributions26
The monthly amount of the retirement allowance for any member of27
MERS Plan A Tier 2 shall consist of an amount equal to three percent of the28
member's final compensation multiplied by his years of creditable service. In29 SB NO. 49
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addition:1
(1) Any city marshal or deputy city marshal, excluding those members2
serving as city marshals and deputy city marshals of Bossier City or Ruston on3
June 30, 2003, shall receive an additional regular retirement benefit computed4
as follows: the monthly average of the seventy-two highest consecutive or joined5
months of supplemental marshals' earnings on which contributions were paid6
to the retirement system multiplied by the number of years contributions were7
paid to the retirement system on supplemental marshals' earnings multiplied8
by three percent for all service as a city marshal or deputy city marshal. Should9
the period for which contributions are paid to the retirement system for10
supplemental marshals' earnings be less than seventy-two months, then the11
actual period on which contributions were paid shall be used to determine12
average supplemental marshals' earnings used to compute this benefit.13
(2) Should a retired member die without having received in retirement14
benefits an amount equal to his accumulated contributions standing to his credit15
at the date of his retirement, and leave no eligible survivors, any balance16
remaining to his credit shall be paid to his designated beneficiary or, if none, his17
estate.18
§1789.5. Employee contributions19
Each member of Plan A Tier 2 shall contribute a percentage of his20
earnings from each and every payment of earnings, which contributions shall21
be credited to Annuity Savings Fund A, and which percentage shall be set by the22
board for each fiscal year within a range from eight percent to ten percent and23
shall become effective as of the next payroll period reportable on the employee's24
W-2 for that fiscal year.25
* * *26
§ 1808. Creation; application27
There is hereby created a subplan within the retirement Plan B of this28
system for persons who would otherwise be eligible for membership in the29 SB NO. 49
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Municipal Employees' Retirement System of Louisiana Plan B but whose first1
employment making him eligible for membership in this system occurred on or2
after January 1, 2013. Such subplan shall be known as the MERS Plan B Tier3
2. Any other provisions of this Chapter or any other laws to the contrary4
notwithstanding, the retirement of such persons shall be governed by the5
provisions of Plan B Tier 2; however, the provisions of this Chapter applicable6
to Plan A Tier 1 shall apply to members of Tier 2 for any matter on which the7
provisions of Plan B Tier 2 are silent.8
§1808.1. Application; definitions9
Terms not specifically defined in this Section shall have the meanings10
provided in R.S. 11:1732 unless a different meaning is clearly required by the11
context. For purposes of Plan B Tier 2:12
(1) "Final compensation" shall mean the average monthly earnings13
during the highest sixty consecutive months, or joined months if service was14
interrupted. The earnings to be considered for the thirteenth through the15
twenty-fourth months shall not exceed one hundred fifteen percent of the16
earnings for the first through the twelfth months. The earnings to be considered17
for the twenty-fifth through the thirty-sixth month shall not exceed one hundred18
fifteen percent of the earnings for the thirteenth through the twenty-fourth19
month. The earnings to be considered for the thirty-seventh through the20
forty-eighth month shall not exceed one hundred fifteen percent of the earnings21
for the twenty-fifth through the thirty-sixth month. The earnings to be22
considered for the final twelve months shall not exceed one hundred fifteen23
percent of the earnings of the thirty-seventh through the forty-eighth month.24
(2) "Member" shall include persons who would be eligible for system25
membership pursuant to R.S. 11:1751 but whose first employment making them26
eligible for membership in this system occurred on or after January 1, 2013.27
§1808.2. Eligibility for membership28
Each person who would be eligible for system membership pursuant to29 SB NO. 49
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R.S. 11:1751 but whose first employment making him eligible for membership1
in this system occurred on or after January 1, 2013, shall become a member of2
the MERS Plan B Tier 2 of the system as a condition of employment.3
§1808.3. Eligibility for retirement4
Any member of MERS Plan B Tier 2 shall be eligible for retirement if5
he has:6
A. Seven years or more of service, at age sixty-seven or thereafter.7
B. Ten years or more of service, at age sixty-two or thereafter.8
C. Thirty years or more of service, at age fifty-five or thereafter.9
D. Twenty-five years of service credit at any age, exclusive of military10
service and unused annual and sick leave. However, any member retiring11
under this Subsection shall have his benefit, inclusive of military service credit12
and allowable unused annual and sick leave, actuarially reduced from the13
earliest age at which he would be entitled to a vested deferred benefit under any14
provision of this Section, if he had continued in service to that age. Any member15
who retires under this Subsection is not eligible to participate in the Deferred16
Retirement Option Plan.17
§1808.4. Computation of normal retirement allowances; return of accumulated18
contributions19
The monthly amount of the retirement allowance for any member of20
MERS Plan B Tier 2 shall consist of an amount equal to two percent of the21
member's final compensation multiplied by his years of creditable service. In22
addition:23
(1) Should a retired member die without having received in retirement24
benefits an amount equal to his accumulated contributions standing to his credit25
at the date of his retirement, and leave no eligible survivors, any balance26
remaining to his credit shall be paid to his designated beneficiary or, if none, his27
estate.28
(2) Any city marshal or deputy city marshal, excluding those members29 SB NO. 49
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serving as city marshals and deputy city marshals of Bossier City or Ruston on1
June 30, 2003, shall receive an additional regular retirement benefit computed2
as follows: the monthly average of the seventy-two highest consecutive or joined3
months of supplemental marshals' earnings on which contributions were paid4
to the retirement system multiplied by the number of years contributions were5
paid to the retirement system on supplemental marshals' earnings multiplied6
by two percent for all service as a city marshal or deputy city marshal. Should7
the period for which contributions are paid to the retirement system for8
supplemental marshals' earnings be less than seventy-two months, then the9
actual period on which contributions were paid shall be used to determine10
average supplemental marshals' earnings used to compute this benefit.11
§1808.5. Employee contributions12
Each member of MERS Plan B Tier 2 shall contribute an amount equal13
to a percentage of his earnings from each and every payment of earnings, which14
contributions shall be credited to Annuity Savings Fund B, and which15
percentage shall be set by the board for each fiscal year in a range from four16
percent to six percent and shall become effective as of the next payroll period17
reportable on the employee's W-2 for that fiscal year.18
Section 1. This Act shall become effective on July 1, 2012; if vetoed by the governor19
and subsequently approved by the legislature, this Act shall become effective on July 1,20
2012, or on the day following such approval by the legislature, whichever is later.21
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 the Municipal Employees' Retirement System (MERS). Provides
for within MERS for Plan A and Plan B.
Proposed law provides for a second tier of benefits in each plan for persons who become
MERS members on or after Jan. 1, 2013.
Effective July 1, 2012.
(Amends R.S. 11:1763(A); adds R.S. 11:1789-1789.5 and R.S. 11:1808-1808.5)