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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. 11:1732(22) and (23) and 1763(A) and to enact R.S. 11:17892
through 1789.5 and R.S. 11:1808 through 1808.5, relative to the Municipal3
Employees' Retirement System; to provide relative to membership, employee4
contributions, benefit calculation, survivor benefits, disability benefits, and5
retirement eligibility for future system members; to provide an effective date; and6
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. 11:1732(22) and (23) and 1763(A) are hereby amended and10
reenacted and R.S. 11:1789 through 1789.5 and R.S. 11:1808 through 1808.5 are hereby11
enacted to read as follows:12
§1732. Definitions13
The following words and phrases, as used in this Chapter, unless a different14
meaning is plainly required by the context, shall have the following meaning:15
* * *16
(22) "Plan A" means the revised plan to replace a combination of the regular17 SB NO. 49
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and supplemental plans, to be effective October 1, 1978, as outlined in Part III of this1
Chapter. "Plan A" shall be comprised of two subplans, Tier 1 for members2
hired on or before December 31, 2012 and Tier 2, for members hired on or after3
January 1, 2013.4
(23) "Plan B" means the revised plan to replace the regular plan, to be5
effective October 1, 1978, as outlined in Part IV of this Chapter. "Plan B" shall6
be comprised of two subplans, Tier 1 for members hired on or before December7
31, 2012 and Tier 2, for members hired on or after January 1, 2013.8
* * *9
§1763. Deferred Retirement Option Plan10
A. In lieu of terminating employment and accepting a service retirement11
allowance pursuant to R.S. 11:1781 and 1782, or R.S. 11:1801 and 1802, or R.S.12
11:1789.3 and 1789.4, or 1808.3 and 1808.4, any member of Plan A who is eligible13
for a normal retirement pursuant to R.S. 11:1781 or 1789.3(A), (B), or (C), or any14
member of Plan B who is eligible for a normal retirement pursuant to R.S. 11:180115
or 1808.3(A), (B), or (C), may elect to participate in the Deferred Retirement Option16
Plan and defer the receipt of benefits in accordance with the provisions of this17
Section.18
* * *19
§1789. Creation; application20
There is hereby created a subplan within Plan A of this system for21
persons who would otherwise be eligible for membership in the Municipal22
Employees' Retirement System of Louisiana Plan A but whose first employment23
making them eligible for membership in this system occurred on or after24
January 1, 2013. Such subplan shall be known as the "MERS Plan A Tier 2".25
Any other provisions of this Chapter or any other laws to the contrary26
notwithstanding, the retirement of such persons shall be governed by the27
provisions of Plan A Tier 2; however, the provisions of this Chapter applicable28
to Plan A Tier 1 shall apply to members of Tier 2 for any matter on which this29 SB NO. 49
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Subpart is silent.1
§1789.1. Application; definitions2
Terms not specifically defined in this Section shall have the meanings3
provided in R.S. 11:1732 unless a different meaning is clearly required by the4
context. For purposes of Plan A Tier 2:5
(1)"Final compensation" shall mean the average monthly earnings6
during the highest sixty consecutive months, or joined months if service was7
interrupted. The earnings to be considered for the thirteenth through the8
twenty-fourth months shall not exceed one hundred fifteen percent of the9
earnings for the first through the twelfth months. The earnings to be considered10
for the twenty-fifth through the thirty-sixth months shall not exceed one11
hundred fifteen percent of the earnings for the thirteenth through the12
twenty-fourth months. The earnings to be considered for the thirty-seventh13
through the forty-eighth months shall not exceed one hundred fifteen percent14
of the earnings for the twenty-fifth through the thirty-sixth months. The15
earnings to be considered for the final twelve months shall not exceed one16
hundred fifteen percent of the earnings of the thirty-seventh through the17
forty-eighth months.18
(2) "Member" shall include persons who would be eligible for system19
membership pursuant to R.S. 11:1751 but whose first employment making them20
eligible for membership in one of the state systems occurred on or after January21
1, 2013.22
§1789.2. Eligibility for membership23
Each person who would be eligible for membership pursuant to R.S.24
11:1751 but whose first employment making him eligible for membership in this25
system occurred on or after January 1, 2013, shall become a member of the26
MERS Plan A Tier 2 of the system as a condition of employment.27
§1789.3. Eligibility for retirement28
A member of MERS Plan A Tier 2 shall be eligible for retirement if he29 SB NO. 49
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has:1
A. Seven years or more of service, at age sixty-seven or thereafter.2
B. Ten years or more of service, at age sixty-two or thereafter.3
C. Thirty years or more of service, at age fifty-five or thereafter.4
D. Twenty-five years of service credit at any age, exclusive of military5
service and unused annual and sick leave. However, any member retiring6
under this Subsection shall have his benefit, inclusive of military service credit7
and allowable unused annual and sick leave, actuarially reduced from the8
earliest age at which he would be entitled to a vested deferred benefit under any9
provision of this Section, if he had continued in service to that age. A member10
who elects to retire under the provisions of this Subsection is not eligible to11
participate in the Deferred Retirement Option Plan.12
§1789.4. Computation of normal retirement allowances; return of accumulated13
contributions14
The monthly amount of the retirement allowance for any member of15
MERS Plan A Tier 2 shall consist of an amount equal to three percent of the16
member's final compensation multiplied by his years of creditable service. In17
addition:18
(1) Any city marshal or deputy city marshal, excluding those members19
serving as city marshals and deputy city marshals of Bossier City or Ruston on20
June 30, 2003, shall receive an additional regular retirement benefit computed21
as follows: the monthly average of the seventy-two highest consecutive or joined22
months of supplemental marshals' earnings on which contributions were paid23
to the retirement system multiplied by the number of years contributions were24
paid to the retirement system on supplemental marshals' earnings multiplied25
by three percent for all service as a city marshal or deputy city marshal. Should26
the period for which contributions are paid to the retirement system for27
supplemental marshals' earnings be less than seventy-two months, then the28
actual period on which contributions were paid shall be used to determine29 SB NO. 49
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average supplemental marshals' earnings used to compute this benefit.1
(2) Should a retired member die without having received in retirement2
benefits an amount equal to his accumulated contributions standing to his credit3
at the date of his retirement, and leave no eligible survivors, any balance4
remaining to his credit shall be paid to his designated beneficiary or, if none, his5
estate.6
§1789.5. Employee contributions7
Each member of Plan A Tier 2 shall contribute a percentage of his8
earnings from each and every payment of earnings, which contributions shall9
be credited to Annuity Savings Fund A, and which percentage shall be set by the10
board for each fiscal year within a range from eight percent to ten percent and11
shall become effective as of the next payroll period reportable on the employee's12
W-2 for that fiscal year.13
* * *14
§1808. Creation; application15
There is hereby created a subplan within the retirement Plan B of this16
system for persons who would otherwise be eligible for membership in the17
Municipal Employees' Retirement System of Louisiana Plan B but whose first18
employment making him eligible for membership in this system occurred on or19
after January 1, 2013. Such subplan shall be known as the MERS Plan B Tier20
2. Any other provisions of this Chapter or any other laws to the contrary21
notwithstanding, the retirement of such persons shall be governed by the22
provisions of Plan B Tier 2; however, the provisions of this Chapter applicable23
to Plan B Tier 1 shall apply to members of Tier 2 for any matter on which the24
provisions of Plan B Tier 2 are silent.25
§1808.1. Application; definitions26
Terms not specifically defined in this Section shall have the meanings27
provided in R.S. 11:1732 unless a different meaning is clearly required by the28
context. For purposes of Plan B Tier 2:29 SB NO. 49
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(1) "Final compensation" shall mean the average monthly earnings1
during the highest sixty consecutive months, or joined months if service was2
interrupted. The earnings to be considered for the thirteenth through the3
twenty-fourth months shall not exceed one hundred fifteen percent of the4
earnings for the first through the twelfth months. The earnings to be considered5
for the twenty-fifth through the thirty-sixth months shall not exceed one6
hundred fifteen percent of the earnings for the thirteenth through the7
twenty-fourth months. The earnings to be considered for the thirty-seventh8
through the forty-eighth months shall not exceed one hundred fifteen percent9
of the earnings for the twenty-fifth through the thirty-sixth months. The10
earnings to be considered for the final twelve months shall not exceed one11
hundred fifteen percent of the earnings of the thirty-seventh through the12
forty-eighth months.13
(2) "Member" shall include persons who would be eligible for system14
membership pursuant to R.S. 11:1751 but whose first employment making them15
eligible for membership in this system occurred on or after January 1, 2013.16
§1808.2. Eligibility for membership17
Each person who would be eligible for system membership pursuant to18
R.S. 11:1751 but whose first employment making him eligible for membership19
in this system occurred on or after January 1, 2013, shall become a member of20
the MERS Plan B Tier 2 of the system as a condition of employment.21
§1808.3. Eligibility for retirement22
Any member of MERS Plan B Tier 2 shall be eligible for retirement if23
he has:24
A. Seven years or more of service, at age sixty-seven or thereafter.25
B. Ten years or more of service, at age sixty-two or thereafter.26
C. Thirty years or more of service, at age fifty-five or thereafter.27
D. Twenty-five years of service credit at any age, exclusive of military28
service and unused annual and sick leave. However, any member retiring29 SB NO. 49
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under this Subsection shall have his benefit, inclusive of military service credit1
and allowable unused annual and sick leave, actuarially reduced from the2
earliest age at which he would be entitled to a vested deferred benefit under any3
provision of this Section, if he had continued in service to that age. Any member4
who retires under this Subsection is not eligible to participate in the Deferred5
Retirement Option Plan.6
§1808.4. Computation of normal retirement allowances; return of accumulated7
contributions8
The monthly amount of the retirement allowance for any member of9
MERS Plan B Tier 2 shall consist of an amount equal to two percent of the10
member's final compensation multiplied by his years of creditable service. In11
addition:12
(1) Should a retired member die without having received in retirement13
benefits an amount equal to his accumulated contributions standing to his credit14
at the date of his retirement, and leave no eligible survivors, any balance15
remaining to his credit shall be paid to his designated beneficiary or, if none, his16
estate.17
(2) Any city marshal or deputy city marshal, excluding those members18
serving as city marshals and deputy city marshals of Bossier City or Ruston on19
June 30, 2003, shall receive an additional regular retirement benefit computed20
as follows: the monthly average of the seventy-two highest consecutive or joined21
months of supplemental marshals' earnings on which contributions were paid22
to the retirement system multiplied by the number of years contributions were23
paid to the retirement system on supplemental marshals' earnings multiplied24
by two percent for all service as a city marshal or deputy city marshal. Should25
the period for which contributions are paid to the retirement system for26
supplemental marshals' earnings be less than seventy-two months, then the27
actual period on which contributions were paid shall be used to determine28
average supplemental marshals' earnings used to compute this benefit.29 SB NO. 49
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§1808.5. Employee contributions1
Each member of MERS Plan B Tier 2 shall contribute an amount equal2
to a percentage of his earnings from each and every payment of earnings, which3
contributions shall be credited to Annuity Savings Fund B, and which4
percentage shall be set by the board for each fiscal year in a range from four5
percent to six percent and shall become effective as of the next payroll period6
reportable on the employee's W-2 for that fiscal year.7
Section 1. This Act shall become effective on July 1, 2012; if vetoed by the governor8
and subsequently approved by the legislature, this Act shall become effective on July 1,9
2012, or on the day following such approval by the legislature, whichever is later.10
The original instrument was prepared by Laura Gail Sullivan. The following
digest, which does not constitute a part of the legislative instrument, was
prepared by Michelle Broussard-Johnson.
DIGEST
Guillory (SB 49)
Present law provides for the Municipal Employees' Retirement System (MERS). Provides
for Plan A and Plan B within MERS.
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)
Summary of Amendments Adopted by Senate
Senate Floor Amendments to engrossed bill
1. Technical amendments made.