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Regular Session, 2012 ENROLLED
SENATE BILL NO. 49
BY SENATOR GUILLORY
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
and supplemental plans, to be effective October 1, 1978, as outlined in Part III of this18
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Chapter. "Plan A" shall be comprised of two subplans, Tier 1 for members1
hired on or before December 31, 2012 and Tier 2, for members hired on or after2
January 1, 2013.3
(23) "Plan B" means the revised plan to replace the regular plan, to be4
effective October 1, 1978, as outlined in Part IV of this Chapter. "Plan B" shall5
be comprised of two subplans, Tier 1 for members hired on or before December6
31, 2012 and Tier 2, for members hired on or after January 1, 2013.7
* * *8
§1763. Deferred Retirement Option Plan9
A. In lieu of terminating employment and accepting a service retirement10
allowance pursuant to R.S. 11:1781 and 1782, or R.S. 11:1801 and 1802, or R.S.11
11:1789.3 and 1789.4, or 1808.3 and 1808.4, any member of Plan A who is eligible12
for a normal retirement pursuant to R.S. 11:1781 or 1789.3(A), (B), or (C), or any13
member of Plan B who is eligible for a normal retirement pursuant to R.S. 11:180114
or 1808.3(A), (B), or (C), may elect to participate in the Deferred Retirement Option15
Plan and defer the receipt of benefits in accordance with the provisions of this16
Section.17
* * *18
§1789. Creation; application19
There is hereby created a subplan within Plan A of this system for20
persons who would otherwise be eligible for membership in the Municipal21
Employees' Retirement System of Louisiana Plan A but whose first employment22
making them eligible for membership in this system occurred on or after23
January 1, 2013. Such subplan shall be known as the "MERS Plan A Tier 2".24
Any other provisions of this Chapter or any other laws to the contrary25
notwithstanding, the retirement of such persons shall be governed by the26
provisions of Plan A Tier 2; however, the provisions of this Chapter applicable27
to Plan A Tier 1 shall apply to members of Tier 2 for any matter on which this28
Subpart is silent.29
§1789.1. Application; definitions30 SB NO. 49 ENROLLED
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Terms not specifically defined in this Section shall have the meanings1
provided in R.S. 11:1732 unless a different meaning is clearly required by the2
context. For purposes of Plan A Tier 2:3
(1)"Final compensation" shall mean the average monthly earnings4
during the highest sixty consecutive months, or joined months if service was5
interrupted. The earnings to be considered for the thirteenth through the6
twenty-fourth months shall not exceed one hundred fifteen percent of the7
earnings for the first through the twelfth months. The earnings to be considered8
for the twenty-fifth through the thirty-sixth months shall not exceed one9
hundred fifteen percent of the earnings for the thirteenth through the10
twenty-fourth months. The earnings to be considered for the thirty-seventh11
through the forty-eighth months shall not exceed one hundred fifteen percent12
of the earnings for the twenty-fifth through the thirty-sixth months. The13
earnings to be considered for the final twelve months shall not exceed one14
hundred fifteen percent of the earnings of the thirty-seventh through the15
forty-eighth months.16
(2) "Member" shall include persons who would be eligible for system17
membership pursuant to R.S. 11:1751 but whose first employment making them18
eligible for membership in one of the state systems occurred on or after January19
1, 2013.20
§1789.2. Eligibility for membership21
Each person who would be eligible for membership pursuant to R.S.22
11:1751 but whose first employment making him eligible for membership in this23
system occurred on or after January 1, 2013, shall become a member of the24
MERS Plan A Tier 2 of the system as a condition of employment.25
§1789.3. Eligibility for retirement26
A member of MERS Plan A Tier 2 shall be eligible for retirement if he27
has:28
A. Seven years or more of service, at age sixty-seven or thereafter.29
B. Ten years or more of service, at age sixty-two or thereafter.30 SB NO. 49 ENROLLED
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C. Thirty years or more of service, at age fifty-five or thereafter.1
D. Twenty-five years of service credit at any age, exclusive of military2
service and unused annual and sick leave. However, any member retiring3
under this Subsection shall have his benefit, inclusive of military service credit4
and allowable unused annual and sick leave, actuarially reduced from the5
earliest age at which he would be entitled to a vested deferred benefit under any6
provision of this Section, if he had continued in service to that age. A member7
who elects to retire under the provisions of this Subsection is not eligible to8
participate in the Deferred Retirement Option Plan.9
§1789.4. Computation of normal retirement allowances; return of accumulated10
contributions11
The monthly amount of the retirement allowance for any member of12
MERS Plan A Tier 2 shall consist of an amount equal to three percent of the13
member's final compensation multiplied by his years of creditable service. In14
addition:15
(1) Any city marshal or deputy city marshal, excluding those members16
serving as city marshals and deputy city marshals of Bossier City or Ruston on17
June 30, 2003, shall receive an additional regular retirement benefit computed18
as follows: the monthly average of the seventy-two highest consecutive or joined19
months of supplemental marshals' earnings on which contributions were paid20
to the retirement system multiplied by the number of years contributions were21
paid to the retirement system on supplemental marshals' earnings multiplied22
by three percent for all service as a city marshal or deputy city marshal. Should23
the period for which contributions are paid to the retirement system for24
supplemental marshals' earnings be less than seventy-two months, then the25
actual period on which contributions were paid shall be used to determine26
average supplemental marshals' earnings used to compute this benefit.27
(2) Should a retired member die without having received in retirement28
benefits an amount equal to his accumulated contributions standing to his credit29
at the date of his retirement, and leave no eligible survivors, any balance30 SB NO. 49 ENROLLED
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remaining to his credit shall be paid to his designated beneficiary or, if none, his1
estate.2
§1789.5. Employee contributions3
Each member of Plan A Tier 2 shall contribute a percentage of his4
earnings from each and every payment of earnings, which contributions shall5
be credited to Annuity Savings Fund A, and which percentage shall be set by the6
board for each fiscal year within a range from eight percent to ten percent and7
shall become effective as of the next payroll period reportable on the employee's8
W-2 for that fiscal year.9
* * *10
§1808. Creation; application11
There is hereby created a subplan within the retirement Plan B of this12
system for persons who would otherwise be eligible for membership in the13
Municipal Employees' Retirement System of Louisiana Plan B but whose first14
employment making him eligible for membership in this system occurred on or15
after January 1, 2013. Such subplan shall be known as the MERS Plan B Tier16
2. Any other provisions of this Chapter or any other laws to the contrary17
notwithstanding, the retirement of such persons shall be governed by the18
provisions of Plan B Tier 2; however, the provisions of this Chapter applicable19
to Plan B Tier 1 shall apply to members of Tier 2 for any matter on which the20
provisions of Plan B Tier 2 are silent.21
§1808.1. Application; definitions22
Terms not specifically defined in this Section shall have the meanings23
provided in R.S. 11:1732 unless a different meaning is clearly required by the24
context. For purposes of Plan B Tier 2:25
(1) "Final compensation" shall mean the average monthly earnings26
during the highest sixty consecutive months, or joined months if service was27
interrupted. The earnings to be considered for the thirteenth through the28
twenty-fourth months shall not exceed one hundred fifteen percent of the29
earnings for the first through the twelfth months. The earnings to be considered30 SB NO. 49 ENROLLED
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for the twenty-fifth through the thirty-sixth months shall not exceed one1
hundred fifteen percent of the earnings for the thirteenth through the2
twenty-fourth months. The earnings to be considered for the thirty-seventh3
through the forty-eighth months shall not exceed one hundred fifteen percent4
of the earnings for the twenty-fifth through the thirty-sixth months. The5
earnings to be considered for the final twelve months shall not exceed one6
hundred fifteen percent of the earnings of the thirty-seventh through the7
forty-eighth months.8
(2) "Member" shall include persons who would be eligible for system9
membership pursuant to R.S. 11:1751 but whose first employment making them10
eligible for membership in this system occurred on or after January 1, 2013.11
§1808.2. Eligibility for membership12
Each person who would be eligible for system membership pursuant to13
R.S. 11:1751 but whose first employment making him eligible for membership14
in this system occurred on or after January 1, 2013, shall become a member of15
the MERS Plan B Tier 2 of the system as a condition of employment.16
§1808.3. Eligibility for retirement17
Any member of MERS Plan B Tier 2 shall be eligible for retirement if18
he has:19
A. Seven years or more of service, at age sixty-seven or thereafter.20
B. Ten years or more of service, at age sixty-two or thereafter.21
C. Thirty years or more of service, at age fifty-five or thereafter.22
D. Twenty-five years of service credit at any age, exclusive of military23
service and unused annual and sick leave. However, any member retiring24
under this Subsection shall have his benefit, inclusive of military service credit25
and allowable unused annual and sick leave, actuarially reduced from the26
earliest age at which he would be entitled to a vested deferred benefit under any27
provision of this Section, if he had continued in service to that age. Any member28
who retires under this Subsection is not eligible to participate in the Deferred29
Retirement Option Plan.30 SB NO. 49 ENROLLED
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§1808.4. Computation of normal retirement allowances; return of accumulated1
contributions2
The monthly amount of the retirement allowance for any member of3
MERS Plan B Tier 2 shall consist of an amount equal to two percent of the4
member's final compensation multiplied by his years of creditable service. In5
addition:6
(1) Should a retired member die without having received in retirement7
benefits an amount equal to his accumulated contributions standing to his credit8
at the date of his retirement, and leave no eligible survivors, any balance9
remaining to his credit shall be paid to his designated beneficiary or, if none, his10
estate.11
(2) Any city marshal or deputy city marshal, excluding those members12
serving as city marshals and deputy city marshals of Bossier City or Ruston on13
June 30, 2003, shall receive an additional regular retirement benefit computed14
as follows: the monthly average of the seventy-two highest consecutive or joined15
months of supplemental marshals' earnings on which contributions were paid16
to the retirement system multiplied by the number of years contributions were17
paid to the retirement system on supplemental marshals' earnings multiplied18
by two percent for all service as a city marshal or deputy city marshal. Should19
the period for which contributions are paid to the retirement system for20
supplemental marshals' earnings be less than seventy-two months, then the21
actual period on which contributions were paid shall be used to determine22
average supplemental marshals' earnings used to compute this benefit.23
§1808.5. Employee contributions24
Each member of MERS Plan B Tier 2 shall contribute an amount equal25
to a percentage of his earnings from each and every payment of earnings, which26
contributions shall be credited to Annuity Savings Fund B, and which27
percentage shall be set by the board for each fiscal year in a range from four28
percent to six percent and shall become effective as of the next payroll period29
reportable on the employee's W-2 for that fiscal year.30 SB NO. 49 ENROLLED
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Section 2. This Act shall become effective on July 1, 2012; if vetoed by the governor1
and subsequently approved by the legislature, this Act shall become effective on July 1,2
2012, or on the day following such approval by the legislature, whichever is later.3
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: