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Regular Session, 2012 ENROLLED
SENATE BILL NO. 7
BY SENATOR GUILLORY
AN ACT1
To amend and reenact R.S. 11:1732(15) and 1763(J)(1), (2), and (3), relative to the2
Municipal Employees' Retirement System; to provide for final average3
compensation; to provide for calculation of additional benefits following4
participation in the Deferred Retirement Option Plan; to provide for transitional5
provisions; 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. 11:1732(15) and 1763(J)(1), (2), and (3) are hereby amended and9
reenacted to read as follows: 10
§1732. Definitions11
The following words and phrases, as used in this Chapter, unless a different12
meaning is plainly required by the context, shall have the following meaning:13
* * *14
(15)(a) "Final compensation", for a member whose first employment making15
him eligible for membership in the system began on or before June 30, 2006, means16
the average monthly earnings during the highest thirty-six consecutive months or17
joined months if service was interrupted. The earnings to be considered for the18
thirteenth through the twenty-fourth months shall not exceed one hundred fifteen19
percent of the earnings for the first through the twelfth months. The earnings to be20
considered for the final twelve months shall not exceed one hundred fifteen percent21
of the earnings of the thirteenth through the twenty-fourth months.22
(b) "Final compensation", for a member whose first employment making him23
eligible for membership in the system began on or after July 1, 2006, means the24
average monthly earnings during the highest sixty consecutive months or joined25
months if service was interrupted. The earnings to be considered for the thirteenth26
through the twenty-fourth months shall not exceed one hundred fifteen percent of the27 SB NO. 7 ENROLLED
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earnings for the first through the twelfth months. The earnings to be considered for1
the twenty-fifth through the thirty-sixth months shall not exceed one hundred fifteen2
percent of the earnings for the thirteenth through the twenty-fourth months. The3
earnings to be considered for the thirty-seventh through the forty-eighth months shall4
not exceed one hundred fifteen percent of the earnings for the twenty-fifth through5
the thirty-sixth months. The earnings to be considered for the final twelve months6
shall not exceed one hundred fifteen percent of the earnings of the thirty-seventh7
through the forty-eighth month s.8
* * *9
§1763. Deferred Retirement Option Plan10
* * *11
J. If employment is not terminated at the end of the period specified for12
participation in the plan, payments into the plan fund shall cease and the person shall13
resume active contributing membership in the system. Payments from the plan fund14
shall not be made until employment is terminated, nor shall the monthly benefits15
which were being paid into the plan fund during the period of participation be16
payable to the person until he terminates employment. Upon termination of17
employment, the person shall receive a lump sum payment from the plan fund equal18
to his account in that fund, a true annuity based upon his account in that fund, or any19
other method of payment approved by the board of trustees. If a person elects to20
receive a true annuity or other method of payment approved by the board of trustees,21
funds shall be transferred from the plan fund to the annuity reserve fund to provide22
for the annuity payments. Also upon termination of employment, the monthly23
benefits which were being paid into the plan fund shall begin to be paid to the retiree24
and he shall receive an additional benefit based on his additional service rendered25
since termination of participation in the fund, using the normal method of26
computation of benefit, subject to the following:27
(1)(a) If his first employment making him eligible for membership in the28
system began on or before June 30, 2006, and his period of additional service is less29
than thirty-six the number of months used in the computation of his original30 SB NO. 7 ENROLLED
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benefit months, the average compensation figure used to calculate the additional1
benefit shall be that used to calculate his original benefit.2
(b) If his first employment making him eligible for membership in the system3
began on or after July 1, 2006, and his period of additional service is less than sixty4
months, the average compensation figure used to calculate the additional benefit5
shall be that used to calculate his original benefit.6
(2)(a) If his first employment making him eligible for membership in the7
system began on or before June 30, 2006, and his period of additional service is8
thirty-six months or more, the average compensation figure used to calculate the9
additional benefit shall be based on his compensation during the period of additional10
service.11
(b) If his first employment making him eligible for membership in the system12
began on or after July 1, 2006, and his period of additional service is sixty or equal13
to or more than the number of months used in the computation of his original14
benefit, the average compensation figure used to calculate the additional benefit15
shall be based on his compensation during the period of additional service.16
(3) In no event shall the additional benefit exceed an amount which, when17
combined with the original benefit, equals one hundred percent of the monthly18
average final compensation figure used to compute the additional benefit.19
* * *20
Section 2. This Act shall be implemented according to the provisions of this Section.21
(A) For transitional purposes, the provisions of R.S. 11:1732(15) shall be phased in22
as follows:23
(1) For members retiring or entering the Deferred Retirement Option Plan before24
January 1, 2013, and whose first employment making them eligible for membership in the25
system began on or before June 30, 2006, the provisions of R.S. 11:1732(15) shall apply as26
they existed before the effective date of this Act.27
(2) For those members retiring or entering the Deferred Retirement Option Plan on28
or after January 1, 2013, and on or before December 31, 2014, and whose first employment29
making them eligible for membership in the system began on or before June 30, 2006, the30 SB NO. 7 ENROLLED
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period used to calculate monthly average final compensation shall be thirty-six months plus1
the number of whole months since January 1, 2013.2
(B) Notwithstanding any other provision of this Section to the contrary, the monthly3
final compensation expressed in dollars used to compute a member's benefit after the4
effective date of this Act shall not be less than the dollar amount of the average monthly5
earnings during the member's highest thirty-six consecutive months or joined months of6
service earned for employment before January 1, 2013.7
Section 3. This Act shall become effective 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
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: