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Regular Session, 2012
SENATE BILL NO. 51
BY SENATOR GUILLORY
RETIREMENT BENEFITS. Provides relative to retirement eligibility for certain members
of the La. State Employees' Retirement System and the Teachers' Retirement System of La.
(6/30/12)
AN ACT1
To amend and reenact R.S. 11:441(A)(1)(introductory paragraph), (2)(a)(introductory2
paragraph) and (b)(introductory paragraph), and 761(A)(4) and to enact Subpart P3
of Part II of Chapter 4 of Subtitle I of Title 11 of the Louisiana Revised Statutes of4
1950, to be comprised of R.S. 11:331, and R.S. 11:441(A)(4) and 761(A)(5), relative5
to certain members of the Louisiana State Employees' Retirement System and certain6
postsecondary education members of the Teachers' Retirement System of Louisiana;7
to provide relative to eligibility for retirement and to retirement benefits; to provide8
for applicability; and to provide for related matters.9
Notice of intention to introduce this Act has been published.10
Be it enacted by the Legislature of Louisiana:11
Section 1. R.S. 11:441(A)(1)(introductory paragraph), (2)(a)(introductory paragraph)12
and (b)(introductory paragraph), and 761(A)(4) are hereby amended and reenacted and13
Subpart P of Part II of Chapter 4 of Subtitle I of Title 11 of the Louisiana Revised Statutes14
of 1950, comprised of R.S. 11:331, and R.S. 11:441(A)(4) and 761(A)(5) are hereby enacted15
to read as follows:16
SUBPART P. LEGISLATIVE INTENT17 SB NO. 51
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§331. Legislative intent; certain acts1
The Legislature of Louisiana hereby declares that the intent of the2
provisions of this Title that were enacted by the Act that originated as Senate3
Bill No. ___ of the 2012 Regular Session is to attain and maintain the actuarial4
soundness of state and statewide systems as required by the Constitution of5
Louisiana, Article X, Section 29.6
* * *7
§441. Eligibility for retirement8
A.(1) Any Subject to the provisions of Paragraph (4) of this Subsection,9
a member hired on or before June 30, 2006, or any member who receives a benefit10
calculated pursuant to R.S. 11:444(A)(2)(b) and whose first employment making him11
eligible for membership in one of the state systems occurred on or before December12
31, 2010, shall be eligible for retirement if he has:13
* * *14
(2)(a) Any Subject to the provisions of Paragraph (4) of this Subsection,15
a member hired on or after July 1, 2006, and before July 1, 2013, shall be eligible16
for retirement if he has:17
* * *18
(b) Except for members of the Hazardous Duty Services Plan, as defined in19
R.S. 11:612, and subject to the provisions of Paragraph (4) of this Subsection,20
any member whose first employment making him eligible for membership in one of21
the state systems occurred on or after January 1, 2011 , and before July 1, 2013,22
including any judge, court officer, governor, lieutenant governor, clerk or sergeant-23
at-arms of the House of Representatives, secretary or sergeant-at-arms of the Senate,24
or state treasurer, shall be eligible for retirement if he has:25
* * *26
(4)(a)(i) A member hired prior to June 30, 2006, is eligible for27
retirement if he has attained at least ten years of service and reached the age of28
sixty-seven or the highest retirement age provided for by the Social Security29 SB NO. 51
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Act, 42 U.S.C. 416, whichever is higher. However, such member may retire1
under any otherwise applicable provision of this Subsection, but his retirement2
benefit shall be actuarially reduced from what it would have been at the3
retirement age established by this Subparagraph if he had continued service.4
Any other applicable actuarial reduction provided for in this Subsection shall5
also be made to his retirement benefit. In no event shall any member who has6
completed the Deferred Retirement Option Plan receive his supplemental7
benefit before he has attained the retirement age established by this8
Subparagraph.9
(ii) A member hired on or after to July 1, 2006, is eligible for retirement10
if he has attained at least five years of service and reached the age of sixty-seven11
or the highest retirement age provided for by the Social Security Act, 42 U.S.C.12
416, whichever is higher. However, a member whose first employment making13
him eligible for membership in one of the state systems occurred before July 1,14
2013, may retire under any otherwise applicable provision of this Subsection,15
but his retirement benefit shall be actuarially reduced from what it would have16
been at the retirement age established by this Subparagraph if he had continued17
service. Any other applicable actuarial reduction provided for in this18
Subsection shall also be made to his retirement benefit. In no event shall any19
member who has completed the Deferred Retirement Option Plan receive his20
supplemental benefit before he has attained the retirement age established by21
this Subparagraph.22
(b) The provisions of Subparagraph (a) of this Paragraph do not apply23
to the following members:24
(i) A member who was born before July 1, 1957; such a member may25
retire under any other applicable provision of this Subsection.26
(ii) A judge serving as an elected judge on July 1, 2012; such a member27
may retire under any other applicable provision of this Subsection.28
(iii) A member of the Hazardous Duty Services Plan; public safety29 SB NO. 51
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service employees referred to as "member" or "members" in R.S. 11:601(B);1
peace officers employed by the Department of Public Safety and Corrections,2
office of state police, other than state troopers, as provided in R.S.3
11:444(A)(2)(b); personnel employed by the Department of Revenue, office of4
alcohol and tobacco control, as provided in R.S. 11:444(A)(2)(c); wildlife agents;5
and bridge police. Such a member may retire under any other applicable6
provision of law.7
* * *8
§761. Retirement benefits; application; eligibility requirements; effective date;9
cancellation; errors and omissions10
A.11
* * *12
(4)(a) A member who is employed by an institution of postsecondary13
education, the Board of Regents, or a postsecondary education management14
board but who is not a member of the optional retirement plan is eligible for15
retirement if he has attained at least five years of service and reached the age16
of sixty-seven or the highest retirement age provided for by the Social Security17
Act, 42 U.S.C. 416, whichever is higher. However, such a member whose first18
employment making him eligible for membership in one of the state systems19
occurred before July 1, 2013, may retire under any otherwise applicable20
provision of this Subsection, but his retirement benefit shall be actuarially21
reduced from what it would have been at the retirement age established by this22
Subparagraph if he had continued service. Any other applicable actuarial23
reduction provided for in this Subsection shall also be made to his retirement24
benefit. In no event shall any member who has completed the Deferred25
Retirement Option Plan receive his supplemental benefit before he has attained26
the retirement age established by this Subparagraph.27
(b) The provisions of Subparagraph (a) of this Paragraph do not apply28
to a member who was born before July 1, 1957; such a member may retire29 SB NO. 51
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under any other applicable provision of this Subsection.1
(4)(a) (5)(a) A properly executed application for retirement shall be2
considered as officially filed when received by the board of trustees of this system.3
Retirement benefits shall become effective as of the date a properly executed4
application for retirement is received by the board of trustees of this system or the5
day after the member terminates from teaching service, whichever is later.6
(b) A member may cancel his application for retirement only prior to7
negotiating, cashing, or depositing any benefit check including an estimated benefit8
check.9
* * *10
Section 2. As soon as practicable after the effective date of this Act, the Public11
Retirement Systems' Actuarial Committee shall meet to adopt a revised valuation for the12
system prepared as provided in R.S. 11:102, applying the provisions of this Act. This13
valuation shall include a revised employer contribution rate for each plan within the system14
to be utilized in the fiscal year which begins on July 1, 2012.15
Section 3. If a final judgment declares the provisions of this Act unconstitutional as16
they relate to a particular group of employees, the provisions of this Act shall remain in17
effect and applicable to employees unrelated to the judgment.18
Section 4.(A) On June 30, 2012, this Act shall become applicable to all members of19
the Louisiana State Employees' Retirement System and the Teachers' Retirement System of20
Louisiana who shall not be eligible for retirement by October 1, 2012.21
(B) On October 1, 2012, the provisions of this Act shall become applicable to other22
members of the Louisiana State Employees' Retirement System and the Teachers' Retirement23
System of Louisiana as provided in the Act.24
Section 5. This Act shall become effective on June 30, 2012; if vetoed by the25
governor and subsequently approved by the legislature, this Act shall become effective on26
June 30, 2012, or on the day following such approval by the legislature, whichever is later.27 SB NO. 51
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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 eligibility for retirement for members of LASERS and TRSL.
Present law provides various eligibility requirements the applicability of which depends on
variables such as when the individual was hired and what position the individual has held.
Typically, a person is authorized to retire after some number of years of service at a
particular age (10 years at 60, for example), some greater number of years of service at a
lower age (25 years at 55, for example), or a still greater number of years of service at any
age (30 years at any age, for example). Many classes of employees also have the option to
take early retirement after some number of years, but their retirement benefit is actuarially
reduced.
Relative to LASERS, proposed law provides that certain members hired prior to 6/30/06 may
retire after 10 years of service and attaining age 67 or the highest Social Security retirement
age. Certain members hired on or after 7/1/06 may retire after 5 years of service and
attaining age 67 or the highest Social Security retirement age. Members hired prior to 1/1/13
may retire under present law provisions relative to retirement requirements, but their
retirement will be actuarially reduced from age 67.
Relative to TRSL, proposed law provides that certain members may retire after five years
at age 67 or the highest Social Security retirement age. Members hired prior to 1/1/13 may
retire under present law provisions relative to retirement requirements, but their retirement
will be actuarially reduced from age 67.
Relative to LASERS, proposed law applies to all members except: persons born before July
1, 1957, specified groups of law enforcement officers, and judges in office on the effective
date of proposed law.
Relative to TRSL, proposed law applies only to members employed by an institution of
postsecondary education, the Board of Regents, or a postsecondary education management
board, who were born on or after July 1, 1957, and who are not members of the optional
retirement plan.
A member of either retirement system who is covered by proposed law but who was hired
in a position making him a member of a state retirement system prior to July 1, 2013, may
retire under any applicable provision of present law, but his retirement benefit will be
actuarially reduced from what it would have been had he continued in service until the
retirement age established by proposed law; however proposed law prohibits a member
covered by proposed law from receiving a DROP supplemental benefit prior to reaching the
age of 67.
Proposed law provides that if proposed law is declared unconstitutional as it relates to a
particular group of employees, the provisions of proposed law remain in effect and
applicable to employees unrelated to the judgment and requires the Public Retirement
Systems' Actuarial Committee (PRSAC) to meet as soon as practicable to adopt a revised
actuarial valuation for LASERS and to adopt a revised employer contribution rate taking into
account the provisions of proposed law.
Effective June 30, 2012.
(Amends R.S. 11:441(A)(1)(intro para), (2)(a)(intro para) and (b)(intro para), and 761(A)(4);
adds R.S. 11:331, 441(A)(4), and 761(A)(5))