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Regular Session, 2013 ENROLLED
SENATE BILL NO. 14
BY SENATOR MARTINY
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
AN ACT1
To amend and reenact R.S. 11:143, relative to transfers of service credit between public2
retirement systems; to provide for benefit calculation after transfer; to provide3
relative to reverse transfers; to allow reverse transfers to be made during active4
service in certain circumstances; to authorize purchase of the accrual rate of the5
receiving system; to allow the funding of certain accrual rate purchases by an6
employer; to provide limitations and requirements for an employer-funded purchase;7
to provide for an effective date; and to provide for related matters.8
Notice of intention to introduce this Act has been published.9
Be it enacted by the Legislature of Louisiana:10
Section 1. R.S. 11:143 is hereby amended and reenacted to read as follows:11
ยง143. Transfers between systems12
A.(1) As provided in Subsection FG of this Section, any person who is in13
active service and is a member of any public retirement or pension system, fund, or14
plan maintained primarily for officers and employees of the state of Louisiana or of15
any political subdivision thereof, or of any district, board, commission, or other16
agency of either, or of any other such public entity who has been a member of such17
system, fund, or plan for at least six months and who has membership credit in or18
who transferred service credit from any other such system, fund, or plan shall have19
the option of transferring all of his credit from every such system, fund, or plan to20
the system, fund, or plan he is currently contributing to or to the system to which he21
last contributed.22
ACT No. 365 SB NO. 14 ENROLLED
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(2)(a) Any member who transfers credit to the system, fund, or plan to which1
he last contributed shall be subject to the provisions of this Subsection.2
(b) A member shall only be allowed to execute a reverse transfer one time3
and the transfer must be executed immediately prior to retirement from the receiving4
system.5
(c) The request for a reverse transfer shall be accompanied by the member's6
application for retirement from the receiving system, and, on the day of the transfer,7
the member must terminate employment that made him eligible to be a member of8
the transferring system, and the member's date of retirement shall be made effective9
on the next business day following the transfer.10
(d) The member shall be allowed to apply such transferred credit toward11
attainment of the retirement eligibility requirements of the receiving system.12
(e) Any member who would not be eligible to retire from the receiving13
system after the transfer shall not be eligible to execute such a transfer under the14
provisions of this Paragraph.15
(f) Any member who executes a reverse transfer and is reemployed by an16
employer who is covered by the transferring system shall be ineligible for17
membership in the transferring system after the effective date of the transfer.18
(g) After the transfer is executed, the member who is transferring credit shall19
be ineligible for active contributing membership in the receiving system, unless the20
member is:21
(i) Employed in a capacity which would require membership in the receiving22
system as a condition of employment, and23
(ii) The member complies with all applicable provisions of law regarding the24
reemployment of a retiree.25
(h) A reverse transfer shall be subject to the provisions of Subsection D of26
this Section.27
B. All credit that the employee had in the system, fund, or plan from which28
he is transferring, whether regular service credit, prior service credit, military service29
credit, or other credit, shall be transferred, except as provided below:30 SB NO. 14 ENROLLED
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(1) In the event that the member has six months or more of concurrent1
service in the transferring and receiving systems, the concurrent service in the2
transferring system and the funds attributable to such service shall remain in the3
transferring system.4
(2) In the event that the member has less than six months of concurrent5
service in the transferring and receiving systems, the concurrent service in the6
transferring system shall be canceled and the funds attributable to such service shall7
be transferred to the receiving system.8
C. Except as provided in Paragraph (5) D(6) of this Subsection Section and9
notwithstanding the provisions any provision of law to the contrary, the system,10
fund, or plan from which the person transfers such credit shall transfer to the11
receiving system, fund, or plan an amount which is the lesser of the following:12
(1) The greater of, the actuarial cost to the receiving system for the service13
transferred, or all employee contributions from the transferring system.14
(2) All employee contributions, all employer contributions, provided that in15
any system, fund, or plan, where the employer contribution is not a fixed percentage16
of the employee's earnings, an employer contribution which is equal to the employee17
contribution, in addition to a sum, representing interest, equal to the board-approved18
actuarial valuation rate of the transferring system, fund, or plan compounded19
annually, of all contributions per annum for each year of contribution to the date of20
transfer.21
D.(1) In the event that the amount of funds transferred is less than the22
actuarial cost of the service transferred in the receiving system, the person23
transferring, except as provided for herein, shall pay the deficit or difference24
including the interest thereon at the board-approved actuarial valuation rate of the25
receiving system.26
(2) In lieu of paying the deficit or difference plus interest, the person may27
at his option, but only at the time of transfer, be granted an amount of credit in the28
receiving system, fund, or plan which is based on the amount of funds actually29
transferred by the transferring system, fund, or plan plus any additional funds less30 SB NO. 14 ENROLLED
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than the deficit paid by the member.1
(3) If the person transferring had any free service credit in the transferring2
system, he may transfer said service to the receiving system, but only upon payment3
of the employer and employee contributions that would have been paid if he had4
been a member of the receiving system at the time of service, plus interest thereon5
at the board approved actuarial valuation rate of the receiving system from date of6
such service until paid.7
(4) In Except as provided in Paragraph (5) of this Subsection, in the event8
that a person completes a transfer under the provisions of this Section, the retirement9
percentage factor of the transferring system shall be used to calculate his retirement10
benefit based on the number of years transferred.11
(5) If the accrual rate of the receiving system is greater than the accrual12
rate of the transferring system, a person executing a transfer pursuant to the13
provisions of this Section may elect to purchase the accrual rate of the receiving14
system applicable to the member on the date of such purchase for the purpose15
of applying that accrual rate to the transferred service credit by paying an16
amount calculated on an actuarial basis which totally offsets the increase in17
accrued liability of the receiving system resulting from the accrual rate18
adjustment.19
(5)(6) Any member of the Louisiana judiciary who took office prior to July20
1, 1986, and who transfers service credit from the District Attorneys' Retirement21
System to another retirement system shall not be required to pay the actuarial cost22
for such transfer between systems, and the actuarial cost of such transfer shall be23
paid from the interest earnings of the receiving system which exceed the actuarially24
projected interest earnings in the fiscal years following such transfer.25
E. After the date on which the transfer is completed, the system, fund, or26
plan from which the member transfers shall have no future liability with respect to27
the person who transferred.28
F. (1)(a) Except as provided in Paragraph (2) of this Subsection, any29
member who transfers credit to the system, fund, or plan to which he last30 SB NO. 14 ENROLLED
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contributed shall be subject to the provisions of this Paragraph.1
(b) A member shall be allowed to execute a reverse transfer only one2
time, and the transfer must be executed immediately prior to retirement from3
the receiving system.4
(c) The request for a reverse transfer shall be accompanied by the5
member's application for retirement from the receiving system. On the day of6
the transfer, the member must terminate employment that made him eligible7
to be a member of the transferring system, and the member's date of retirement8
shall be made effective on the next business day following the transfer.9
(d) The member shall be allowed to apply such transferred credit10
toward attainment of the retirement eligibility requirements of the receiving11
system.12
(e) Any member who would not be eligible to retire from the receiving13
system after the transfer shall not be eligible to execute such a transfer under14
the provisions of this Paragraph.15
(f) Any member who executes a reverse transfer and is reemployed by16
an employer who is covered by the transferring system shall be ineligible for17
membership in the transferring system after the effective date of the transfer.18
(g) After the transfer is executed, the member who is transferring credit19
shall be ineligible for active contributing membership in the receiving system,20
unless the member is both:21
(i) Employed in a capacity which would require membership in the22
receiving system as a condition of employment.23
(ii) Compliant with all applicable provisions of law regarding the24
reemployment of a retiree.25
(h) A reverse transfer shall be subject to the provisions of Subsection D26
of this Section.27
(2)(a) The provisions of this Paragraph shall apply only to persons who28
are not state employees and only to applications for transfer submitted to the29
receiving system on or before December 31, 2013.30 SB NO. 14 ENROLLED
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(b) Any person to whom this Section applies may execute a reverse1
transfer from the retirement system to which he is currently contributing to any2
other system to which he previously contributed if at the time he began3
contributing to the current system he was legally permitted to elect instead to4
remain a contributing member of the previous system.5
(c) The member shall be allowed to apply such transferred credit toward6
attainment of the retirement eligibility requirements of the receiving system.7
(d) After the transfer is complete, the member shall be an active,8
contributing member of the receiving system.9
F.G.(1) Each board of trustees or other such governing board shall adopt10
such rules and regulations, not in conflict herewith, as are necessary to carry out the11
provisions and intent of this Section and to prevent any duplication of credit.12
(2) Each governing authority shall determine at the first board meeting after13
January 1, 1986, if transfers into the system will be approved as provided in this14
Section, and such determination cannot be changed until the first board meeting of15
each successive year thereafter. The transfer of service credit and funds out of the16
system shall be at the sole option of the member.17
(3) No governing authority shall approve a transfer in which the transferred18
amount is less than one hundred percent of the increase in accrued liability to the19
receiving system created by such transfer; however, the person can pay the20
difference in the assets to be transferred and the actuarial cost to the receiving21
system.22
(3) The transfer of service credit and funds out of a system shall be at23
the sole option of the member.24
G.H.(1) A member of a receiving system, fund, or plan must make a written25
application to the receiving system, fund, or plan requesting a transfer under this26
Section.27
(2)(a) In the event that a member dies after a written application for a28
transfer under this Section is received in the office of a receiving system, fund, or29
plan which normally accepts such transfers, such system, fund , or plan shall30 SB NO. 14 ENROLLED
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complete the transfer, and it shall be considered as completed the day before the1
death of the member.2
(b) A survivor, heir, or the estate of a deceased person or member shall not3
be allowed to request a transfer under this Section.4
Section 2.(A) The provisions of this Section shall apply only to members of the5
Firefighters' Retirement System who are employees of the St. George Fire Department who6
applied to transfer service credit from the New Orleans Fire Firefighters' Pension and Relief7
Fund into the Firefighters' Retirement System on or after August 26, 1999, and on or before8
December 31, 2007, and only to that service credit transferred from the New Orleans Fund9
during the designated time frame.10
(B) The System members to whom this Section applies may have the benefit accrual11
rate of the receiving System, applicable to the service credit transferred from the Fund to the12
System, purchased by having their employer pay the amount required pursuant to the13
provisions of this Act allowing a purchase of accrual rate. The adjusted accrual rate shall14
be effective on the June thirtieth following the execution of the agreement required pursuant15
to Subparagraph (C)(2)(b) of this Section. However, this increase in benefit shall not be an16
accrued benefit subject to the protection of Article X, Section 29(E) of the Constitution until17
the System has received full payment.18
(C)(1) In order for the benefit accrual rate adjustment authorized by this Section to19
be effective, there shall be paid to the System an amount calculated on an actuarial basis20
which totally offsets the increase in accrued liability of the System resulting from the accrual21
rate adjustment.22
(2)(a) The governing authority of the St. George Fire Department is hereby23
authorized to pay the System the amount calculated pursuant to Paragraph (1) of this24
Subsection.25
(b) Except as provided in Subsection D of this Section, the transaction authorized26
by this Section, if funded by the Department, shall be treated as a merger of service credit.27
The governing authorities of the St. George Fire Department and the System shall execute28
a merger note to memorialize their respective obligations. The payments shall be amortized29
over the period of time applicable to mergers and the Department shall make annual level30 SB NO. 14 ENROLLED
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payments to the System. The annual interest rate applicable to the note shall be fixed at1
seven and one-half percent.2
(D) No funds derived from the assessments against insurers pursuant to R.S. 22:14763
shall be used to pay any increased costs or increase in liability of the System resulting from4
the provisions of this Section.5
(E) Nothing in this Section shall be construed to authorize an increase in payments6
to any person receiving benefits before the effective date of this Section.7
Section 3. This Act shall become effective on June 30, 2013; if vetoed by the8
governor and subsequently approved by the legislature, this Act shall become effective on9
June 30, 2013, 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: