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Regular Session, 2012
SENATE BILL NO. 749 (Substitute of Senate Bill No. 51 by Senator Guillory)
BY SENATOR GUILLORY
RETIREMENT BENEFITS. Provides for retirement eligibility for certain state employees.
(6/30/12)
AN ACT1
To amend and reenact R.S. 11:102(B)(1) and (3)(a) and (d)(i), (iv), (v), and (vii) and (C)(2),2
(3), and (4)(a), 441(A)(1)(introductory paragraph) and (2)(a)(introductory paragraph)3
and (b)(introductory paragraph), and 761(A)(1)(introductory paragraph),4
(2)(a)(introductory paragraph), (3)(introductory paragraph), and (4) and to enact R.S.5
11:102(D), 441(A)(4), 761(A)(5), and 786(A)(4), relative to retirement eligibility;6
to provide a schedule of retirement ages for certain members of the Louisiana State7
Employees' Retirement System and the Teachers' Retirement System of Louisiana;8
to provide for an effective date; 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. 11:102(B)(1) and (3)(a) and (d)(i), (iv), (v), and (vii) and12
(C)(2), (3), and (4)(a), 441(A)(1)(introductory paragraph) and (2)(a)(introductory13
paragraph) and (b)(introductory paragraph), and 761(A)(1)(introductory paragraph),14
(2)(a)(introductory paragraph), (3)(introductory paragraph), and (4) are hereby15
amended and reenacted and R.S. 11:102(D), 441(A)(4), 761(A)(5), and 786(A)(4),16
are hereby enacted to read as follows:17 SB NO. 749
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§102. Employer contributions; determination; state systems1
* * *2
B.(1) Except as provided in Subsections C and D of this Section for the3
Louisiana State Employees' Retirement System and except as provided in R.S.4
11:102.1 and 102.2 and in Paragraph (5) of this Subsection, for each fiscal year,5
commencing with Fiscal Year 1989-1990, for each of the public retirement systems6
referenced in Subsection A of this Section, the legislature shall set the required7
employer contribution rate equal to the actuarially required employer contribution,8
as determined under Paragraph (3) of this Subsection, divided by the total projected9
payroll of all active members of each particular system for the fiscal year. Each10
entity funding a portion of a member's salary shall also fund the employer's11
contribution on that portion of the member's salary at the employer contribution rate12
specified in this Subsection.13
* * *14
(3) With respect to each state public retirement system, the actuarially15
required employer contribution for each fiscal year, commencing with Fiscal Year16
1989-1990, shall be that dollar amount equal to the sum of:17
(a) The Except as provided in Subsection D of this Section, the employer's18
normal cost for that fiscal year, computed as of the first of the fiscal year using the19
system's actuarial funding method as specified in R.S. 11:22 and taking into account20
the value of future accumulated employee contributions and interest thereon, such21
employer's normal cost rate multiplied by the total projected payroll for all active22
members to the middle of that fiscal year. For the Louisiana State Employees'23
Retirement System, effective for the June 30, 2010, system valuation and beginning24
with Fiscal Year 2011-2012, the normal cost shall be determined in accordance with25
Subsection C of this Section.26
* * *27
(d) That fiscal year's payment, computed as of the first of that fiscal year and28
projected to the middle of that fiscal year at the actuarially assumed interest rate,29 SB NO. 749
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necessary to amortize changes in actuarial liability due to:1
(i) Except as provided in Items (v), (vi), (vii), and (viii) of this Subparagraph2
and in Subsection D of this Section, actuarial gains and losses, if appropriate for3
the funding method used by the system as specified in R.S. 11:22, for each fiscal4
year beginning after June 30, 1988, such payments to be computed as an amount5
forming an annuity increasing at four and one-half percent annually over the later of6
a period of fifteen years from the year of occurrence or by the year 2029, such gains7
and losses to include any increases in actuarial liability due to governing authority8
granted cost-of-living increases.9
* * *10
(iv) Except as provided in Items (v), (vi), (vii), and (viii) of this Subparagraph11
and in Subsection D of this Section, changes in actuarial accrued liability,12
computed using the actuarial funding method as specified in R.S. 11:22, due to13
legislation changing plan provisions, such payments to be computed in the manner14
and over the time period specified in the legislation creating the change or, if not15
specified in such legislation, as an amount forming an annuity increasing at four and16
one-half percent annually over the later of a period of fifteen years from the year of17
occurrence of the change or by the year 2029.18
(v) Effective Except as provided in Subsection D of this Section, effective19
July 1, 2004, and beginning with Fiscal Year 1998-1999, the amortization period for20
the changes, gains, or losses of the Louisiana State Employees' Retirement System21
provided in Items (i) through (iv) of this Subparagraph shall be thirty years, or in22
accordance with standards promulgated by the Governmental Accounting Standards23
Board, from the year in which the change, gain, or loss occurred. The outstanding24
balances of amortization bases established pursuant to Items (i) through (iv) of this25
Subparagraph before Fiscal Year 1998-1999, shall be amortized as a level dollar26
amount from July 1, 2004, through June 30, 2029. Beginning with Fiscal Year 2003-27
2004, and for each fiscal year thereafter, the outstanding balances of amortization28
bases established pursuant to Items (i) through (iv) of this Subparagraph shall be29 SB NO. 749
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amortized as a level dollar amount. For the Louisiana State Employees' Retirement1
System, effective for the June 30, 2010, system valuation and beginning with Fiscal2
Year 2011-2012, amortization payments for changes in actuarial liability shall be3
determined in accordance with Subsection C of this Section.4
* * *5
(vii) Effective Except as provided in Subsection D of this Section,6
effective July 1, 2004, and beginning with Fiscal Year 2000-2001, the amortization7
period for the changes, gains, or losses of the Teachers' Retirement System of8
Louisiana provided in Items (i) through (iv) of this Subparagraph shall be thirty9
years, or in accordance with standards promulgated by the Governmental Accounting10
Standards Board, from the year in which the change, gain, or loss occurred. The11
outstanding balances of amortization bases established pursuant to Items (i) through12
(iv) of this Subparagraph before Fiscal Year 2000-2001, shall be amortized as a level13
dollar amount from July 1, 2004, through June 30, 2029. Beginning with Fiscal Year14
2003-2004, and for each fiscal year thereafter, the outstanding balances of15
amortization bases established pursuant to Items (i) through (iv) of this Subparagraph16
shall be amortized as a level dollar amount.17
* * *18
C. * * *19
(2) For the Louisiana State Employees' Retirement System, effective for the20
June 30, 2010, system valuation and beginning with Fiscal Year 2011-2012, the21
normal cost calculated pursuant to Subparagraph (B)(3)(a) of this Section, shall be22
calculated separately for each particular plan within the system. An employer shall23
pay employer contributions for each employee at the rate applicable to the plan of24
which that employee is a member. Beginning with the June 30, 2012, system25
valuation, the normal cost for each plan shall be subject to the provisions of26
Subsection D of this Section.27
(3) For the Louisiana State Employees' Retirement System, effective for the28
June 30, 2010, system valuation and beginning with Fiscal Year 2011-2012, changes29 SB NO. 749
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in actuarial liability due to legislation, changes in governmental organization, or1
reclassification of employees or positions shall be calculated individually for each2
particular plan within the system based on each plan's actuarial experience as further3
provided in Subparagraph (4)(c) of this Subsection. Beginning with the June 30,4
2012, system valuation, this calculation for each plan shall be subject to the5
provisions of Subsection D of this Section.6
(4) For each plan referenced in Paragraph (1) of this Subsection, the7
legislature shall set the required employer contribution rate equal to the sum of the8
following:9
(a) The particularized normal cost rate. The normal cost rate for each fiscal10
year shall be the employer's normal cost for the plan computed by applying the11
method specified in R.S. 11:102(B)(1) and (3)(a) to the plan. Beginning with the12
June 30, 2012, system valuation, the normal cost for each plan shall be subject13
to the provisions of Subsection D of this Section.14
* * *15
D. (1) The employer contribution rate for the Louisiana State Employees'16
Retirement System and the Teachers' Retirement System of Louisiana, for any17
valuation prepared following enactment of the Act that originated as Senate Bill18
No. 749 of the 2012 Regular Session, shall be the rate determined pursuant to19
Subsections B and C of this Section without regard to any gains or changes in20
the normal cost rate produced by the Act that originated as Senate Bill No. 74921
of the 2012 Regular Session. Neither the employer normal cost rate nor the22
amortization payments shall be reduced as a result of the application of the23
provisions of the Act that originated as Senate Bill No. 749 of the 2012 Regular24
Session.25
(2) The amortization of any gain produced by the Act which originated26
as Senate Bill No. 749 of the 2012 Regular Session plus the dollar amount27
attributable to the difference between the employer normal cost rate required28
as calculated pursuant to Paragraph (1) of this Subsection minus the employer29 SB NO. 749
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normal cost rate calculated pursuant to the provisions of Subsections B and C1
of this Section without regard to Paragraph (1) of this Subsection shall be2
determined and applied as follows for each year beginning with Fiscal Year3
2013-14:4
(a) To the outstanding balance of the original amortization base without5
reamortization of such base and until such base is fully liquidated.6
(b) After the liquidation of the original amortization base, to the7
outstanding balance of the experience account amortization base without8
reamortization of such base and until such base is fully liquidated.9
(c) After the liquidation of the experience account amortization base, to10
the balance of the oldest outstanding amortization base without reamortization11
of such base and until all such bases are fully liquidated.12
* * *13
§441. Eligibility for retirement14
A.(1) Any Subject to the provisions of Paragraph (4) of this Subsection,15
any member hired on or before June 30, 2006, or any member who receives a benefit16
calculated pursuant to R.S. 11:444(A)(2)(b) and whose first employment making him17
eligible for membership in one of the state systems occurred on or before December18
31, 2010, shall be eligible for retirement if he has:19
* * *20
(2)(a) Any Subject to the provisions of Paragraph (4) of this Subsection,21
any member hired on or after July 1, 2006, shall be eligible for retirement if he has:22
* * *23
(b) Except for members of the Hazardous Duty Services Plan, as defined in24
R.S. 11:612 and subject to the provisions of Paragraph (4) of this Subsection,25
any member whose first employment making him eligible for membership in one of26
the state systems occurred on or after January 1, 2011, and on or before June 30,27
2013, including any judge, court officer, governor, lieutenant governor, clerk or28
sergeant-at-arms of the House of Representatives, secretary or sergeant-at-arms of29 SB NO. 749
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the Senate, or state treasurer, shall be eligible for retirement if he has:1
* * *2
(4)(a) Notwithstanding the provisions of R.S. 24:36 or any other law to3
the contrary, any member whose first employment making him eligible for state4
system membership occurred on or before June 30, 2013, including any elected5
official, the clerk or sergeant-at-arms of the House of Representatives, or the6
secretary or sergeant-at-arms of the Senate, who retires with fewer than thirty7
years of service may retire with an unreduced benefit no earlier than:8
(i) Age fifty-five if he has at least fifteen but fewer than twenty years of9
service on June 30, 2013.10
(ii) Age fifty-seven if he has at least ten but fewer than fifteen years of11
service on June 30, 2013.12
(iii) Age sixty if he has at least five but fewer than ten years of service13
on June 30, 2013.14
(iv) Age sixty-five if he has fewer than five years of service on June 30,15
2013.16
(b) Nothing in this Paragraph shall be construed to provide an earlier17
retirement eligibility for any member than prescribed by Paragraph (1), (2), or18
(3) of this Subsection.19
(c) Any member to whom Subparagraph (a) of this Paragraph applies20
shall be eligible to retire under any applicable provision of law; however, if he21
retires before attaining the age established in this Paragraph, he shall receive22
an actuarially-reduced benefit. Notwithstanding any provision of law to the23
contrary, such a member shall not be eligible to participate in the Deferred24
Retirement Option Plan provided by R.S. 11:447 or the Initial Benefit Option25
provided by R.S. 11:446(A)(5).26
(d)(i) A member whose first employment making him eligible for state27
system membership occurred on or after July 1, 2013, is eligible for retirement28
with an unreduced benefit if he has at least five years of service and has attained29 SB NO. 749
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the higher of age of sixty-seven or the retirement age provided for by the Social1
Security Act, 42 U.S.C. 416.2
(ii) A member to whom Item (i) of this Subparagraph applies may retire3
with twenty years of service credit at any age, exclusive of military service and4
unused annual and sick leave, but any person retiring under this Item shall have5
his benefit, inclusive of military service credit and allowable unused annual and6
sick leave, actuarially reduced. Any employee who elects to retire under the7
provisions of this Item shall not be eligible to participate in the Deferred8
Retirement Option Plan provided by R.S. 11:447 or the Initial Benefit Option9
provided by R.S. 11:446(A)(5).10
(e) The provisions of Subparagraphs (a), (b), (c), and (d) of this11
Paragraph shall not apply to the following persons, who may retire under any12
provision of this Chapter applicable to their service in the system:13
(i) A member who was born on or before June 30, 1958.14
(ii) A member who is or has been an elected judge or court officer, as15
provided in R.S. 11:553.16
(iii) A member of the Hazardous Duty Services Plan.17
(iv) Any person who would have been a member of the Hazardous Duty18
Services Plan had his first employment occurred after December 31, 2010.19
(v) Any member who is a public safety services employee referred to as20
"member" in R.S. 11:601(B); a peace officer employed by the Department of21
Public Safety and Corrections, office of state police, other than state troopers,22
as provided in R.S. 11:444(A)(2)(b); an employee of the Department of Revenue,23
office of alcohol and tobacco control, as provided in R.S. 11:444(A)(2)(c); a24
wildlife agent; or an employee of the bridge police.25
(vi) A member who has at least twenty years of service credit on June26
30, 2013.27
(vii) A member who separated from service on or before June 30, 2013,28
who does not return to service before beginning receipt of his benefit pursuant29 SB NO. 749
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to the provisions of this Chapter.1
* * *2
§761. Retirement benefits; application; eligibility requirements; effective date;3
cancellation; errors and omissions4
A.(1) Any Subject to the provisions of Paragraph (4) of this Subsection,5
any person who became a member prior to July 1, 1999, may retire upon written6
application to the board of trustees, if at the time of application the member:7
* * *8
(2)(a) Any Subject to the provisions of Paragraph (4) of this Subsection,9
any person who became a member on or after July 1, 1999, may retire upon written10
request to the board of trustees, if the member:11
* * *12
(3) Any Subject to the provisions of Paragraph (4) of this Subsection, any13
person whose first employment making him eligible for membership in one of the14
state systems occurred on or after January 1, 2011, may retire upon written15
application to the board of trustees, if at the time of application the member:16
* * *17
(4)(a) The provisions of this Paragraph shall apply to a member who is18
employed by an institution of postsecondary education, the Board of Regents,19
or a postsecondary education management board but who is not a member of20
the optional retirement plan. Nothing in this Paragraph shall be construed to21
provide an earlier retirement eligibility for any member than prescribed by22
Paragraph (1), (2), or (3) of this Subsection or in R.S. 11:768, whichever is23
applicable.24
(a) Any member to whom this Paragraph applies whose first25
employment making him eligible for state system membership occurred on or26
before June 30, 2013, who retires with fewer than thirty years of service may27
retire with an unreduced benefit no earlier than:28
(i) Age fifty-five if he has at least fifteen but fewer than twenty years of29 SB NO. 749
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service on June 30, 2013.1
(ii) Age fifty-seven if he has at least ten but fewer than fifteen years of2
service on June 30, 2013.3
(iii) Age sixty if he has at least five but fewer than ten years of service4
on June 30, 2013.5
(iv) Age sixty-five if he has fewer than five years of service on June 30,6
2013.7
(b) Any member to whom Subparagraph (a) of this Paragraph applies8
shall be eligible to retire under any applicable provision of law; however, if he9
retires before attaining the age established in this Paragraph, he shall receive10
an actuarially-reduced benefit. Notwithstanding any provision of law to the11
contrary, such a member shall not be eligible to participate in the Deferred12
Retirement Option Plan provided by R.S. 11:786 or the Initial Lump-Sum13
Benefit option provided by R.S. 11:783.14
(c)(i) Any member to whom this Paragraph applies whose first15
employment making him eligible for state system membership occurred on or16
after July 1, 2013, is eligible for retirement if he has at least five years of service17
and has attained the higher of age sixty-seven or the retirement age provided18
for by the Social Security Act, 42 U.S.C. 416.19
(ii) A member to whom Item (i) of this Subparagraph applies may retire20
with twenty years of service credit at any age, exclusive of military service and21
unused annual and sick leave, but any person retiring under this Item shall have22
his benefit, inclusive of military service credit and allowable unused annual and23
sick leave, actuarially reduced. Any member who elects to retire under the24
provisions of this Item shall not be eligible to participate in the Deferred25
Retirement Option Plan provided by R.S. 11:786 or the Initial Lump-Sum26
Benefit option provided by R.S. 11:783.27
(d) The provisions of Subparagraphs (a), (b), and (c) of this Paragraph28
shall not apply to the following persons, who may retire under any provision of29 SB NO. 749
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this Chapter applicable to their service in the system:1
(i) A member who was born on or before June 30, 1958.2
(ii) A member who has at least twenty years of service credit on June 30,3
2013.4
(iii) A member who is employed by an institution of postsecondary5
education or a postsecondary education management board for the sole purpose6
of providing instruction or administrative services at the primary or secondary7
level, including at any lab school and the Louisiana School for Math, Science,8
and the Arts.9
(iv) A member who separated from service on or before June 30, 2013,10
who does not return to service before beginning receipt of his benefit pursuant11
to the provisions of this Chapter.12
(5)(a)A properly executed application for retirement shall be considered as13
officially filed when received by the board of trustees of this system. Retirement14
benefits shall become effective as of the date a properly executed application for15
retirement is received by the board of trustees of this system or the day after the16
member terminates from teaching service, whichever is later.17
(b) A member may cancel his application for retirement only prior to18
negotiating, cashing, or depositing any benefit check including an estimated benefit19
check.20
* * *21
§786. Deferred Retirement Option Plan22
A.(1) * * *23
(4) Notwithstanding any other provision of law to the contrary, a system24
member to whom the Act which originated as Senate Bill No. 749 of the 201225
Regular Session applies may elect to participate in the Deferred Retirement26
Option Plan pursuant to the provisions of this Section after he attains eligibility27
for an unreduced benefit pursuant to R.S. 11:761(A)(4).28
* * *29 SB NO. 749
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Section 2.(A) Notwithstanding any other provision of law to the contrary, any1
member of the Teachers' Retirement System of Louisiana to whom the provisions of this Act2
apply who has credit in the system for at least one year of service shall be eligible to obtain3
credit for purposes of attaining eligibility for retirement and calculation of benefits for up4
to five years of service credit in one-year increments provided that he shall apply to the5
system for such credit after January 1, 2013, and on or before January 1, 2015, and pay to6
the system by June 30, 2015, the amount calculated in accordance with the actuarial cost7
provisions of R.S. 11:158, which totally offsets the increase in accrued liability of the system8
resulting from the receipt of the credit by the member. The amount to be paid shall be paid9
in one lump sum, and no service credit shall be given to the member until or unless the10
amount is paid in full.11
(B) Any service credit purchased on or before June 30, 2015, by a member of the12
Louisiana State Employe es' Retirement System or the Teachers' Retirement System of13
Louisiana for purposes of eligibility shall be applied to determine the member's earliest14
retirement age pursuant to R.S. 11:441(A)(4) or R.S. 11:761(A)(4).15
Section 3. The provisions of this Act and the provisions of the Acts which originated16
as Senate Bill No. 47 and Senate Bill No. 52 of the 2012 Regular Session shall not apply to17
any member of the Teachers' Retirement System of Louisiana whose membership in the18
system is based solely on employment as a teacher in a public elementary or secondary19
school.20
Section 4. In case of any conflict between the provisions of this Act and the21
provisions of any other Act of the 2012 Regular Session of the Legislature, the provisions22
of this Act shall control, regardless of the order of passage.23
Section 5. The Public Retirement Systems' Actuarial Committee may adopt an24
actuarial valuation to be utilized in the fiscal year which begins on July 1, 2013, calculated25
in accordance with R.S. 11:102, which has been prepared on behalf of the division of26
administration by a member of the American Academy of Actuaries who meets the27
qualification requirements of the academy to issue a particular statement of actuarial28
opinion.29 SB NO. 749
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Section 6. Because the legislature finds and declares that questions of law may be1
raised by some persons with respect to the constitutionality of some of the provisions of this2
Act, the public welfare requires that such questions of law be resolved with expedition prior3
to such time as its provisions take effect in order to avoid disruption of the orderly4
implementation of its provisions. Therefore, the legislature finds that an expedited hearing5
schedule for actions filed relative to the constitutionality of any provision of this Act should6
be immediately made available in order to avoid confusion by the public. Therefore, any7
domiciliary of this state may institute an action in the Nineteenth Judicial District Court8
seeking a declaratory judgment to determine the constitutionality of the provisions of this9
Act. In the interest of further expediting this procedure, the Nineteenth Judicial District10
Court, First Circuit Court of Appeal, and Louisiana Supreme Court are urged to minimize11
all unnecessary delays in order to resolve any questions of law no later than thirty days prior12
to the prefiling deadline for retirement legislation for the 2013 Regular Session, and the13
courts may suspend all applicable rules of court for this limited purpose.14
Section 7. If a final judgment declares any of the provisions of this Act15
unconstitutional or unconstitutional as applied to a particular class of employees, the other16
provisions of this Act shall remain in effect and also shall be applicable to all other classes17
of employees unrelated to the judgment.18
Section 8. This Act shall become effective on June 30, 2012; if vetoed by the19
governor and subsequently approved by the legislature, this Act shall become effective on20
June 30, 2012, or on the day following such approval by the legislature, whichever is later.21
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 Margaret M. Corley.
DIGEST
Guillory (SB 749)
Present law provides for retirement eligibility for members of the Louisiana State
Employees' Retirement System (LASERS) and the Teachers' Retirement System of
Louisiana (Teachers').
Present law generally provides for retirement eligibility in LASERS for rank-and-file
members first employed before July 1, 2006, as follows:
1. 10 years of service credit at age 60. SB NO. 749
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2. 25 years of service credit at age 55.
3.30 years of service credit at any age.
4. 20 years of service credit at any age, with an actuarially-reduced benefit.
Present law generally provides for retirement eligibility in LASERS for rank-and-file
members first employed on or after July 1, 2006, and for Teachers' members first employed
on or after Jan. 1, 2011 as follows:
1. 5 years of service credit at age 60.
2. 20 years of service credit at any age, with an actuarially-reduced benefit.
Present law provides for retirement eligibility for Teachers' members hired before July 1,
1999, with unreduced benefits as follows:
1. 20 years of service credit at age 65.
2.25 years of service credit at age 55.
3. 30 years of service credit at any age.
Further provides that Teachers' members employed on or after July 1, 1999, may retire with:
1. 5 years of service credit at age 60.
2. 25 years of service credit at age 55.
3. 30 years of service credit at any age.
4. 20 years of service credit at any age, with an actuarially-reduced benefit.
Proposed law provides for a schedule of retirement ages for nonhazardous duty members of
LASERS and higher education members of Teachers' based on the member's service credit
on June 30, 2013. Provides that a member may retire no earlier than:
1. Age 55 if he has at least 15 but fewer than 20 years of service.
2. Age 57 if he has at least 10 but fewer than 15 years of service.
3. Age 60 if he has at least 5 but fewer than 10 years of service.
4.Age 65 if he has fewer than 5 years of service.
Proposed law specifies that nothing in proposed law shall be construed to provide an earlier
retirement eligibility than the eligibility in present law.
Proposed law provides that a member shall be eligible to retire under any otherwise
applicable provision of present law with his retirement benefit actuarially reduced.
Proposed law retains eligibility with 30 years of service at any age for members to whom
this provision of present law applies. Further provides that certain other active employees
for whom present law provides eligibility at age 60 may still retire at age 60, rather than the
higher age provided by proposed law, with 30 years of service.
Proposed law does not apply to anyone who is at least 55 years old on June 30, 2013. SB NO. 749
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Proposed law does not apply to anyone who has at least 20 years of service credit on June
30, 2013.
Proposed law does not apply to anyone who has separated from service on or before June
30, 2013, who does not return to service before beginning receipt of his benefit.
Proposed law provides that anyone who elects to receive an actuarially reduced benefit may
not participate in the Deferred Retirement Option Program or the Initial Lump-Sum Benefit
(Teachers') or the Initial Benefit Option (LASERS).
Proposed law provides that members of Teachers' who are affected proposed law may
purchase service credit for purposes of attaining eligibility for retirement and calculation of
benefits for up to 5 years of service credit in 1 year increments. Proposed law allows those
affected members of Teachers' to apply for such service credit between January 1, 2013, and
January 1, 2015. If such credit is purchased prior to June 30, 2015, by a member of LASERS
or Teachers', the credit shall be applied to determine the member's earliest retirement age
under proposed law.
Present law provides that valuations shall be presented by the legislative auditor's office and
the retirement system to the Public Retirement Systems' Actuarial Committee for
consideration. Proposed law expands the agencies which may present actuarial valuations
to the committee for consideration to include the division of administration for the fiscal
year beginning July 1, 2013.
Proposed law provides for an expedited hearing process if proposed law is subjected to legal
challenges. Provides for severability if a court declares any provisions of proposed law to
be unconstitutional as applicable to certain members of LASERS and Teachers', retaining
application of proposed law to the remaining members of the system.
Effective June 30, 2012.
(Amends R.S. 11:102(B)(1) and (3)(a) and (d)(i), (iv), (v), and (vii) and C(2), (3), and (4)(a),
441(A)(1)(intro para) and (2)(a)(intro para) and (b)(intro para), and 761(A)(1)(intro para),
(2)(a)(intro para), (3)(intro para), and (4); adds R.S. 11:102(D), 441(A)(4), 761(A)(5) and
786(A)(4))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Finance to the
engrossed bill
1. Proposed law provides for a schedule of retirement ages for nonhazardous
duty members of LASERS and higher education members of Teachers' based
on the member's service credit on June 30, 2013. Provides that a member
may retire no earlier than:
a. Age 55 if he has at least 15 but fewer than 20 years of service.
b. Age 57 if he has at least 10 but fewer than 15 years of service.
c. Age 60 if he has at least 5 but fewer than 10 years of service.
d. Age 65 if he has fewer than 5 years of service.
2. Proposed law does not apply to anyone who has separated from service on
or before June 30, 2013, who does not return to service before beginning
receipt of his benefit. SB NO. 749
SLS 12RS-2590 REENGROSSED
Page 16 of 16
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
3. Proposed law provides that anyone who elects to receive an actuarially
reduced benefit may not participate in the Deferred Retirement Option
Program.
4. Proposed law provides that members of Teachers' who are effected by
proposed law purchase service credit for purposes of attaining eligibility for
retirement and calculation of benefits for up to 5 years of service credit in 1
year increments. Proposed law allows those affected members of Teachers'
to apply for such service credit between January 1, 2013, and January 1,
2015. If such credit is purchased prior to June 30, 2015, by a member of
LASERS or Teachers', the credit shall be applied to determine the member's
earliest retirement age under proposed law.