ENROLLED
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ACT No. 648
Regular Session, 2014
HOUSE BILL NO. 1278 (Substitute for House Bill No. 79 by Representative Pearson)
BY REPRESENTATIVES PEARSON, HOFFMANN, HOLLIS, IVEY, MILLER, AND
TALBOT
AN ACT1
To amend and reenact R.S. 11:102(C)(1)(l) and (4)(b), 612(introductory paragraph), 613(A),2
615(B), the heading of Subpart G of Part II of Chapter 3 of Subtitle IV of Title 113
of the Louisiana Revised Statutes of 1950, 3681, 3682(1), (2), (4)(a), (7), (16), (18)4
through (20), and (26), 3683(introductory paragraph), (1), and (3)(b), 3684(A), (D),5
and (F), 3685(A)(1)(a) and (2)(introductory paragraph) and (d), (B)(1), (3) through6
(6), and (8), (C)(1), (2), and (13), and (E), 3685.2(B)(introductory paragraph), (6)7
and (7), 3686(B)(1), (D)(3), and (E), 3688(D), 3688.1, 3690(A) and (B), 3690.2,8
3692(A), and 3695(C)(introductory paragraph), to enact R.S. 11:102(C)(1)(m),9
416(A)(3)(d), 612(2.1), 620.1, Subpart E of Part VII of Chapter 1 of Subtitle II of10
Title 11 of the Louisiana Revised Statutes of 1950, comprised of R.S. 11:631, and11
3682(20.1), and to repeal R.S. 11:3682(29), 3685(D), 3688(A) through (C) and (E),12
3689(B) through (E), 3690 (C) and (D), 3690.1, 3691, 3693, and 3698, relative to13
retirement for employee s of the Harbor Police Department of the Port of New14
Orleans; to provide relative to the merger of the Harbor Police Retirement System15
into the Louisiana State Employees' Retirement System; to provide for enrollment16
of new hires of the Harbor Police Department in the Hazardous Duty Services Plan17
in the Louisiana State Employees' Retirement System; to provide relative to a18
cooperative endeavor agreement with respect to the merger of the systems; to19
provide relative to the assets of the Harbor Police Retirement System; to provide20
relative to benefits for members of the Harbor Police Retirement System; to provide21
relative to retirement benefits for new hires of the Harbor Police Department of the22
Port of New Orleans; to provide relative to the boards of trustees of the Louisiana23
State Employees' Retirement System and the Harbor Police Retirement System; to24
provide an effective date; and to provide for related matters.25 ENROLLEDHB NO. 1278
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Notice of intention to introduce this Act has been published1
as provided by Article X, Section 29(C) of the Constitution2
of Louisiana.3
Be it enacted by the Legislature of Louisiana:4
Section 1. R.S. 11:612(introductory paragraph), 613(A), 615(B), 3682(16) and5
3683(1) are hereby amended and reenacted and R.S. 11:612(2.1) is hereby enacted to read6
as follows:7
§612. Application; definitions8
Terms not specifically defined in this Section but defined in R.S. 11:403 shall9
have the meanings provided in R.S. 11:403 unless a different meaning is clearly10
required by the context. For purposes of this Subpart:11
* * *12
(2.1) In addition to the definition provided in Paragraph (2) of this Section,13
the term "member" shall include any commissioned employee of the Harbor Police14
Department of the Port of New Orleans first hired on or after July 1, 2014.15
* * *16
§613. Eligibility for plan membership17
A. Each person who becomes an employee in state service in one of the18
positions defined in R.S. 11:612(2) or (2.1) shall become a member of the Hazardous19
Duty Services Plan of the system as a condition of employment.20
* * *21
§615. Retirement benefit calculation22
* * *23
B. If the member's last ten years of creditable service were not accrued24
exclusively in one of the hazardous duty positions defined in R.S. 11:612(2) or (2.1),25
he shall receive a retirement benefit equal to two and one-half percent of his average26
compensation for the actual number of years of creditable service earned in a27
hazardous duty position.28
* * *29 ENROLLEDHB NO. 1278
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§3682. Definitions1
The following words and phrases, as used in this Subpart, unless expressly2
indicated to the contrary or unless a different meaning is plainly required by context,3
shall have the following meanings:4
* * *5
(16) "Employee" means any commissioned member or employee of the6
Harbor Police Department of the Port of New Orleans prior to July 1, 2004, or any7
commissioned member of the Harbor Police Department of the Port of New Orleans8
on or after July 1, 2004 and hired on or before June 30, 2014.9
* * *10
§3683. Membership11
The membership of the retirement system shall be composed as follows:12
(1) All persons who shall become employees as defined in R.S. 11:3682(16)13
after August 1, 1971, and on or before June 30, 2014, except those specifically14
excluded under Paragraph (3) of this Section, shall become members as a condition15
of their employment, provided they are under fifty years of age at the date of16
employment.17
* * *18
Section 2. R.S. 11:102(C)(1)(l) and (4)(b), the heading of Subpart G of Part II of19
Chapter 3 of Subtitle IV of Title 11 of the Louisiana Revised Statutes of 1950, 3681,20
3682(1), (2), (4)(a), (7), (18) through (20), and (26), 3683(introductory paragraph) and21
(3)(b), 3684(A), (D), and (F), 3685(A)(1)(a) and (2)(introductory paragraph) and (d),(B)(1),22
(3) through (6), and (8), (C)(1), (2), and (13), and (E), 3685.2(B)(introductory paragraph),23
(6) and (7), 3686(B)(1), (D)(3), and (E), 3688(D), 3688.1, 3690(A) and (B), 3690.2,24
3692(A), and 3695(C)(introductory paragraph) are hereby amended and reenacted and R.S.25
11:102(C)(1)(m), 416(A)(3)(d), 620.1, Subpart E of Part VII of Chapter 1 of Subtitle II of26
Title 11 of the Louisiana Revised Statutes of 1950, comprised of R.S. 11:631, and27
3682(20.1) are hereby enacted to read as follows:28 ENROLLEDHB NO. 1278
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§102. Employer contributions; determination; state systems1
* * *2
C.(1) This Subsection shall be applicable to the Louisiana State Employees'3
Retirement System effective for the June 30, 2010, system valuation and beginning4
Fiscal Year 2011-2012. For purposes of this Subsection, "plan" or "plans" shall5
mean a subgroup within the system characterized by the following employee6
classifications:7
* * *8
(l) Harbor Police Retirement Plan members as provided pursuant to R.S.9
11:631.10
(m) Any other specialty retirement plan provided for a subgroup of system11
members. If the legislation enacting such a plan is silent as to the application of this12
Subsection, the Public Retirement Systems' Actuarial Committee shall provide for13
the application to such plan.14
* * *15
(4) For each plan referenced in Paragraph (1) of this Subsection, the16
legislature shall set the required employer contribution rate equal to the sum of the17
following:18
* * *19
(b) The shared unfunded accrued liability rate. (i) Except as provided in20
Item (ii) of this Subparagraph, a A single rate shall be computed for each fiscal year,21
applicable to all plans for actuarial changes, gains, and losses existing on June 30,22
2010, or occurring thereafter, including experience and investment gains and losses,23
which are independent of the existence of the plans listed in Paragraph (1) of this24
Subsection, the payment and rate therefor shall be calculated as provided in25
Paragraphs (B)(1) and (3) of this Section.26
(ii) The shared unfunded accrued liability rate applicable to the Harbor27
Police Retirement System shall not include any unfunded accrued liability incurred28
on or before July 1, 2015, until the earlier of:29
(aa) July 1, 2022.30 ENROLLEDHB NO. 1278
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(bb) The date that all sums payable by the Port of New Orleans to the board1
of trustees of the Louisiana State Employees' Retirement System pursuant to the2
terms and conditions of a cooperative endeavor agreement between the board of3
trustees of the Louisiana State Employees' Retirement System, the board of4
commissioners of the Port of New Orleans, and the board of trustees of the Harbor5
Police Retirement System regarding the merger of the Harbor Police Retirement6
System into the Louisiana State Employees' Retirement System have been paid in7
full.8
* * *9
§416. Employment of retirees10
A. Regardless of age, if a retiree of the system is engaged or hereafter11
engages in employment which otherwise would render him eligible for membership12
in the system, he shall choose one of the following irrevocable options:13
* * *14
(3)(a)15
* * *16
(d) Notwithstanding the provisions of this Section or any other provision of17
law to the contrary, any retiree of the Harbor Police Retirement System who has18
been retired for at least one year as of July 1, 2014, and is employed in a position19
making him eligible for membership in this system on July 1, 2015, shall be exempt20
from any increase, suspension, or reduction of benefits received from this system21
until the employee's subsequent retirement.22
* * *23
§620.1. Transfer of other service credit; Harbor Police Retirement Plan employees24
A. Any member of the Harbor Police Retirement Plan who would otherwise25
be eligible for benefits under this plan except that his first employment making him26
eligible for membership in the Harbor Police Retirement Plan occurred on or before27
June 30, 2014, and who has not participated in the Deferred Retirement Option Plan28
in the Harbor Police Retirement Plan shall have the right to irrevocably elect to29 ENROLLEDHB NO. 1278
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become a member of this plan by submitting an application to the board of trustees1
to become effective on or after July 1, 2015.2
B. Any eligible member who elects to transfer to the Hazardous Duty3
Services Plan from the Harbor Police Retirement Plan shall have the option of:4
(1) Maintaining prior service credit in the Harbor Police Retirement Plan5
pursuant to the provisions of that plan and accruing service credit and benefits in the6
Hazardous Duty Services Plan after the date he joins the plan. If such election7
results in an actuarial cost to this system, the member shall pay the system the8
amount of such actuarial cost prior to his retirement.9
(2)(a) An internal actuarial transfer from the Harbor Police Retirement Plan10
to this plan in accordance with the provisions of R.S. 11:143(C) and (D) in which the11
member transfers all of his service credit from the Harbor Police Retirement Plan12
and maintains prior service credit at the accrual rate at which it was earned in such13
plan prior to joining the Hazardous Duty Services Plan. If the amount of funds14
transferred is less than the actuarial cost of the service transferred, the member15
transferring, except as otherwise provided in this Section, shall pay the deficit or16
difference, including the interest thereon at the board-approved actuarial valuation17
rate of the system.18
(b) In lieu of paying the deficit or difference plus interest, the member may,19
at his option but only at the time of transfer, be granted an amount of credit in this20
plan which is based on the amount of funds actually transferred plus any additional21
funds less than the deficit paid by the member.22
(c) A member who completes a transfer under the provisions of this23
Paragraph shall have his retirement benefit calculated using the accrual rate of the24
plan from which he transferred based on the number of years transferred.25
C. A member whose first employment making him eligible for membership26
in the Harbor Police Retirement Plan occurred on or before June 30, 2015, who27
elects to join this plan shall thereafter for purposes of all state retirement systems be28 ENROLLEDHB NO. 1278
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treated as an employee whose membership is governed by the provisions of Act No.1
992 of the 2010 Regular Session of the Legislature.2
* * *3
SUBPART E. HARBOR POLICE RETIREMENT PLAN4
§631. Administration of the Harbor Police Retirement Plan5
A. With the exception of payment of permanent benefit increases,6
membership and benefits for the Harbor Police Retirement Plan shall be in7
accordance with the provisions of Subpart G of Part II of Chapter 3 of Subtitle IV of8
Title 11 of the Louisiana Revised Statutes of 1950; however, if provisions of this9
Chapter cover matters not specifically addressed by the provisions of Subpart G of10
Part II of Chapter 3 of Subtitle IV of Title 11 of the Louisiana Revised Statutes of11
1950, the provisions of this Chapter shall apply to that plan. The provisions of12
Subpart G of Part II of Chapter 3 of Subtitle IV of Title 11 of the Louisiana Revised13
Statutes of 1950 are hereby made a part of this system. Eligibility for and payment14
of permanent benefit increases for members of the plan shall be governed by the laws15
and rules of this system.16
B. Notwithstanding any provision of law to the contrary, upon the merger17
of the Harbor Police Retirement System with this system, the assets of the Harbor18
Police Retirement System shall become part of the Louisiana State Employees'19
Retirement System trust and shall be managed in accordance with the laws governing20
this system.21
* * *22
SUBPART G. HARBOR POLICE RETIREMENT SYSTEM PLAN 23
(PORT OF NEW ORLEANS) IN THE LOUISIANA STATE EMPLOYEES'24
RETIREMENT SYSTEM25
§3681. Name and date of establishment 26
A. A retirement system plan is hereby established and placed under the27
management of the Board of Trustees for the purpose of providing retirement28
allowances and other benefits under the provisions of this Subpart for Commissioned29
Members of the Harbor Police Department of the Port of New Orleans hired on or30 ENROLLEDHB NO. 1278
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before June 30, 2014. The retirement system so created shall be established as of the1
first day of August nineteen hundred and seventy-one.2
B. It shall have the power and the privileges of a corporation and shall be3
known as the "Harbor Police Retirement System" and by such name all of its4
business shall be transacted, all of its funds invested and all of its cash and securities5
and other property held.6
§3682. Definitions7
The following words and phrases, as used in this Subpart, unless expressly8
indicated to the contrary or unless a different meaning is plainly required by context,9
shall have the following meanings:10
(1) "Accumulated contribution" means the sum of all the amounts deducted11
from the compensation of a member and credited to his individual account in the12
Annuity Savings Fund Employee Savings Account established in R.S. 11:532,13
together with regular interest thereon as provided in R.S. 11:3688.14
(2) "Actuarial equivalent" means a benefit of equivalent value to the15
accumulated contributions, annuity, or benefits, as the case may be, computed upon16
the basis of such interest and mortality assumptions as are adopted in accordance17
with the provisions of R.S. 11:3688(D) by the board or provided in law.18
* * *19
(4)(a) "Average compensation" for the limited purpose of applying Section20
415(b) of the Internal Revenue Code, means the average compensation earned by a21
member for the period of three consecutive years during which the member was an22
active member of the retirement system plan and had the greatest aggregate23
compensation from the employer.24
* * *25
(7) "Board of trustees" or "board" means the board provided for in R.S.26
11:3688 to administer the retirement system R.S. 11:511.27
* * *28
(18) "Medical board" means the board of physicians provided for in R.S.29
11:3688 R.S. 11:403.30 ENROLLEDHB NO. 1278
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(19) "Member" includes any employees, as defined in Paragraph (16) of this1
Section, included in the membership of this system plan as provided in R.S. 11:3683.2
(20) "Membership service" means service as an employee while a member3
of the Harbor Police Retirement System or this system plan.4
(20.1) "Plan" means the Harbor Police Retirement Plan established in this5
Subpart and administered as a plan within the Louisiana State Employees'6
Retirement System pursuant to R.S. 11:631.7
* * *8
(26) "Retirement system" or "system" means the Harbor Police Retirement9
System as established in R.S. 11:3681 Louisiana State Employees' Retirement10
System.11
* * *12
§3683. Membership13
The membership of the retirement system plan shall be composed as follows:14
* * *15
(3)16
* * *17
(b) Any employee who is employed on July 7, 2003, who has retired from18
service under any retirement system of this state partly or wholly financed by public19
funds, who is receiving retirement benefits therefrom, and who was prohibited from20
becoming a member of this system upon his initial employment solely on this basis21
shall become a member of this system plan from the date of his initial employment22
provided he meets all other eligibility requirements; however, any such employee23
may purchase credit for previous service only in compliance with the provisions of24
R.S. 11:158 relating to actuarial calculation of purchase price.25
* * *26
§3684. Creditable service27
A. Immediately after the establishment of the system August 1, 1971, the28
board of trustees shall request all information regarding members from the retirement29
system in which they have previously held membership. Upon verification of the30 ENROLLEDHB NO. 1278
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statements of service the board shall issue a prior service certificate certifying to1
each member the length of prior service for which credit shall have been allowed on2
the basis of these certified statements of service. So long as membership continues3
a prior service certificate shall be final and conclusive for retirement purposes as to4
such service, provided that any member may, within one year from the date of5
issuance or modification of such certificate, request the board of trustees to modify6
or correct his prior service certificate.7
* * *8
D. Anything in this Subpart to the contrary notwithstanding, any person who9
shall have been an employee as defined in R.S. 11:3682(16) any time subsequent to10
September 16, 1940, who shall have entered the armed forces of the United States11
during time of war or have been inducted into said forces in time of peace12
subsequent to said date, shall be entitled to prior service credit for the period that he13
served in the armed forces of the United States, not to exceed four years, provided14
he is not granted credit for such service in any other retirement system, and provided15
he becomes a member of this system on the date of its establishment August 1, 1971.16
* * *17
F. Any member who has terminated membership in the system plan for any18
reason and has withdrawn his contributions and who later is reemployed and19
becomes a member of the system, shall after eighteen months of additional service20
and membership, be eligible to obtain credit for his prior service in the system,21
provided that he pay back into the system the amount of the contributions which had22
been refunded to him plus compound interest from the date of the refund until the23
date of repurchase. The compound interest rate to be used in the computation of the24
amount the member must pay back into the system shall be the actuarially assumed25
interest rate in the most recent actuarial valuation.26
§3685. Benefits27
A.(1)(a) Any member of this system plan who has completed at least twenty28
years of creditable service and attained the age of forty-five years, or any member29
who has completed at least twenty-five years of creditable service regardless of age,30 ENROLLEDHB NO. 1278
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or any member who has completed at least ten years of service and attained the age1
of sixty years, or any member who has completed at least twelve years of creditable2
service and has attained the age of fifty-five years, shall be entitled to retire from3
service and upon such retirement shall be paid a retirement allowance equal to three4
and one-third percent of his average final compensation multiplied by his years of5
creditable service, not to exceed one hundred percent of his final salary.6
* * *7
(2) Benefits shall be payable to survivors of a deceased member, with who8
had at least five years of creditable service, and who dies before retirement as9
specified in the following:10
* * *11
(d)(i) If a member dies leaving no surviving spouse or children, his mother12
and/or his father who were dependent upon him as their sole means of support shall13
be paid monthly benefits equal to forty percent of the average final compensation of14
the member prior to his death.15
(ii) If a deceased member leaves a surviving child who has a total physical16
disability or mental disability, the child, regardless of age, shall be entitled to the17
benefits for children under eighteen years of age pursuant to Subparagraph (c) or (e)18
of this Paragraph if the child had a total physical disability or mental disability at the19
time of the death of the member, and the child is dependent upon his legal guardian20
for subsistence. The legal guardian shall provide adequate proof of physical or21
mental disability of such a surviving child and shall notify the board of any22
subsequent changes in the child's condition that cause the child to no longer be23
dependent upon the legal guardian and of any changes in the assistance being24
received from other state agencies. The board may require a certified statement of25
the child's eligibility status at the end of each calendar year.26
* * *27
B. The provisions of this Subsection shall apply to those persons enrolled in28
the deferred retirement option plan prior to July 1, 1995.29 ENROLLEDHB NO. 1278
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(1) In lieu of terminating employment and accepting a service retirement1
under this Subpart, any member of this system plan who has not less than twenty2
years of creditable service and who is eligible to receive a service retirement3
allowance may elect to participate in a deferred retirement option plan as provided4
for below and defer the receipt of benefits in accordance with the provisions of this5
Section.6
* * *7
(3) The duration of participation in the deferred retirement option plan shall8
be specified and shall not exceed five years.9
(4) A member may participate in the deferred retirement option plan only10
once.11
(5) Upon the effective date of the commencement of participation in the12
deferred retirement option plan, active membership in the system shall terminate.13
Employer contributions shall continue to be payable by the employer during the14
member's participation in the such plan, but payment of employee contributions shall15
cease upon the effective date of the member's commencement of participation in the16
such plan. For purposes of this Section, compensation and creditable service shall17
remain as they existed on the effective date of commencement of participation in the18
deferred retirement option plan. The monthly retirement benefits that would have19
been payable, had the member elected to cease employment and receive a service20
retirement allowance, shall be paid into the deferred retirement option plan account.21
Upon termination of employment, deferred benefits shall be payable as provided by22
Paragraph (B)(8) (8) of this Subsection.23
(6) The deferred retirement option plan account shall earn interest not to24
exceed two percent less than the realized rate of investment return earned by the fund25
for that year. A Prior to July 1, 2015, a person who participates in this program shall26 ENROLLEDHB NO. 1278
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have credited to his DROP account the same annual cost of living increase that he1
would have received had the member been a retiree in the system as provided in2
Subsection C of this Section.3
* * *4
(8) Upon termination of employment at the end of the specified period of5
participation, a participant in the program shall receive, at his option, a lump sum6
payment from the account equal to the payment to the account; or a true annuity7
based upon his account; or he may elect any other method of payment if approved8
by the board of trustees. In the event a member elects to receive a true annuity, or9
any other method of payment approved by the board of trustees, funds will be10
transferred from the DROP account into the Annuity Reserve Account Retiree's11
Annuity Reserve account to provide for the annuity payments.12
* * *13
C. The provisions of this Subsection shall apply to those persons enrolled in14
the Deferred Retirement Option Plan on or after July 1, 1995.15
(1) As governed by the provisions of this Subsection, there exists as a part16
of this retirement system plan, an optional account known as the Deferred17
Retirement Option Plan, which may be cited as the "DROP".18
(2) The provisions of this Subsection are applicable with respect to those19
otherwise eligible members of the retirement system plan whose election to20
participate in the this DROP occurs on or after July 1, 1995.21
* * *22
(13) The Deferred Retirement Option Plan Account shall not earn interest23
during the period of participation. However, the board of trustees shall annually set24
a percentage rate, and its manner of compounding, to represent the interest rate that25
would be earned thereby if same did earn interest. If the member ceases employment26
at the end of the specified period of participation as contractually agreed, or dies27
during or at the end of the specified period of participation as contractually agreed,28
a sum equal to the amount the individual account would have earned, if the29
representative interest rate, as compounded, had been applicable to such account,30 ENROLLEDHB NO. 1278
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shall be added to this account. Thereafter, the account, if maintained as otherwise1
authorized by this Subsection, shall earn interest at a rate compounded, as set2
annually by the board of trustees. Such actual rate of interest and manner of3
compounding shall be equal to the representative rate and compounding in effect for4
the same period of time. If the member does not abide by the terms of the contract5
and cease employment at the end of the period of participation as contractually6
agreed, payments into the Deferred Retirement Option Plan Account shall7
immediately cease and the member shall immediately be paid a lump sum payment8
from the member's individual account balance in the Deferred Retirement Option9
Plan Account equal to its balance, without the addition of any sum representing10
interest, and such member's account shall be terminated. Such member shall not be11
considered as retired, but shall remain as a member of the retirement system, in an12
inactive status. Only upon actual cessation of employment shall the member be13
considered as a retiree and entitled to the receipt of retirement benefits. This account14
shall not be subject to any fees or charges of any kind for any purpose, except as15
otherwise provided herein.16
* * *17
E. The benefits provided in this Section shall not be retroactive to any18
period. Further adjustments in benefits may be made each January July first after at19
least a full year has elapsed after benefits began, subject to the limitations contained20
herein.21
* * *22
§3685.2. Computation of retirement benefits23
* * *24
B. The annual retirement benefit of any member of the retirement system25
plan who is not a qualified participant, as defined by Paragraph (2) of Subsection A26
(A)(2) of this Section, and which is not attributable to the member's after-tax27
employee contribution, cannot exceed the lesser of ninety thousand dollars or one28
hundred percent of such member's average compensation. For purposes of29 ENROLLEDHB NO. 1278
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determining whether a member's benefit exceeds those limitations, the following1
shall apply:2
* * *3
(6) Adjustment for less than ten years of participation or service.4
(a) If retirement system benefits are payable under this retirement system5
plan to a member who has less than ten years of participation in the retirement6
system plan, the dollar limitation referred to in the Introductory Paragraph of this7
Subsection shall be multiplied by a fraction, the numerator of which is the member's8
number of years of participation in the system plan, not greater than ten, and the9
denominator of which is ten.10
(b) If retirement benefits are payable under this retirement system plan to a11
member who has less than ten years of service with the employer, the percentage12
limitation referred to in the Introductory Paragraph of this Subsection and the dollar13
limitation referred to in Paragraph (9) of this Subsection shall be multiplied by a14
fraction, the numerator of which is the member's number of years of service with the15
employer, not greater than ten, and the denominator of which is ten.16
(7) Annual adjustment. The ninety thousand dollar limitation provided in17
this Subsection shall be adjusted annually to the maximum dollar limits allowable18
by the secretary of the Treasury of the United States under Section 415(d) of the19
Internal Revenue Code, such adjustments to take effect on the first day of each fiscal20
year following December 31, 1987. The adjustment shall not exceed the adjustment21
in effect for the calendar year in which the fiscal year of the system begins. The22
adjusted earlier limitation is applicable to employees who are members of the system23
plan and to members who have retired or otherwise terminated their service under24
the system plan with a nonforfeitable right to accrued benefits, regardless of whether25
they have actually begun to receive benefits. This system shall be considered26
specifically to provide for such post-retirement adjustments. For any limitation year27
beginning after separation from service occurs, the annual adjustment factor is a28
fraction, the numerator of which is the adjusted dollar limitation for the limitation29
year in which the compensation limitation is being adjusted and the denominator of30 ENROLLEDHB NO. 1278
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which is the adjusted dollar limitation for the limitation year in which the member1
separated from service. No adjustment shall be permitted with respect to post2
October 14, 1987, limitations.3
* * *4
§3686. Disability retirement5
* * *6
B.(1) Upon retirement for disability, a member shall receive a retirement7
allowance if he has attained the age of fifty-five years; otherwise, he shall receive a8
disability benefit which shall be computed as follows: 9
(a) In case of total disability of any harbor member resulting from injury10
received in line of duty, a monthly pension of sixty percent of his average salary11
shall be paid to the disabled employee.12
(b) Any member of the system plan who has become disabled or13
incapacitated because of continued illness or as a result of any injury received, even14
though not in the line of duty, and who has been a member of the system plan for at15
least five years but is not eligible for retirement under the provisions of R.S. 11:368516
may apply for retirement under the provisions of this Section.17
(c) Any disability beneficiary of the Harbor Police Retirement System Plan18
who is receiving disability benefits as a result of an injury sustained in the line of19
duty, and who, as a result of the disability, is permanently and completely confined20
to a wheelchair for movement of person, is permanently and legally blind as a result21
of an injury suffered in the line of duty, or as a result of his injury is an amputee to22
such a degree as would prevent him from serving as a law enforcement officer, shall23
be exempt from any provision of this Subpart or any other provision of law which24
provides for reduction of benefits if the recipient, subsequent to his disability,25
becomes gainfully employed.26
* * *27
D.28
* * *29 ENROLLEDHB NO. 1278
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(3) Should a disability beneficiary under the age of fifty-five be restored to1
active service at a compensation not less than his average final compensation, his2
retirement allowance shall cease, he shall again become a member of the retirement3
system plan, and he shall contribute thereafter at the same rate he paid prior to4
disability. Any such prior service certificate on the basis of which his service was5
computed at the time of his retirement shall be restored to full force and effect, and6
in addition, upon his subsequent retirement he shall be credited with all his service7
as a member but should he be restored to active service on or after the attainment of8
the age of fifty years his pension upon subsequent retirement shall not exceed the9
sum of the pension which he was receiving immediately prior to his last restoration10
and the pension that he would have received on account of his service since his last11
restoration had he entered service at the time as a new entrant.12
E. Should a member cease to be an employee except by death or retirement13
under the provisions of this Subpart, he shall be paid such part of the amount of the14
accumulated contributions standing to the his credit of his individual account in the15
Annuity Savings Fund Employees' Savings Account established in R.S. 11:532 as16
he shall demand. Should a member die before retirement and not be entitled to17
survivors' benefits, the amount of his accumulated contributions standing to the his18
credit of his individual in such account shall be paid to his estate or to such person19
as he shall have nominated by written designation, duly executed and filed with the20
Board of Trustees.21
* * *22
§3688. Administration Actuary; duties and actuarial assumptions23
D. Actuary; duties and actuarial assumptions. (1) The Board of Trustees24
and the Board of Commissioners of the Port of New Orleans shall jointly designate25
an actuary who shall be the technical advisor of the Board of Trustees on actuarial26
matters regarding the operation of the fund plan created by the provisions of this27
Subpart, and shall perform such other duties as are required in connection therewith.28 ENROLLEDHB NO. 1278
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(2) The Board of Trustees shall adopt all actuarial tables, assumptions, and1
rates. The actuary shall make valuations and determinations based on such tables,2
assumptions, and rates.3
(3) At least once in each five-year period, and upon approval of the Board4
of Trustees, the actuary shall make an actuarial investigation into the mortality,5
service and compensation experience of the members and beneficiaries of the6
retirement system. The Board of Trustees shall adopt for the retirement system such7
mortality, service, and other tables and actuarial assumptions as shall be deemed8
necessary.9
(4) On the basis of such tables and actuarial assumptions as the Board of10
Trustees shall adopt, the actuary shall make an annual valuation of the assets and11
liabilities of the funds of the system created by this Subpart.12
(5)(a) Unless different actuarial assumptions are formally adopted and13
disclosed, the following assumptions shall be used in determining actuarial14
equivalents:15
(i) Interest shall be compounded annually at the rate of seven percent per16
annum.17
(ii) Annuity rates shall be determined on the basis of the most current18
mortality table recommended by the Society of Actuaries for retirement systems.19
(iii) Effective July 1, 2011, interest for calculating transfers into the Harbor20
Police Retirement System and for buying back refunded service shall be eight and21
one-quarter percent per annum.22
(b) The Board of Trustees may authorize the use of interest and mortality23
rates in determining the actuarial equivalents which are different from the actuarial24
assumptions used for other purposes in this Subpart. Any change in such actuarial25
assumptions shall be considered a part of this retirement system plan and shall be26
considered an amendment to the provisions of this Section. In order to be effective,27
such change must be formally adopted by the Board of Trustees and disclosed to28
members of the retirement system plan.29 ENROLLEDHB NO. 1278
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are additions.
§3688.1. Amendments1
A. An action of the board of trustees with respect to cost-of-living2
adjustments as provided in R.S. 11:3685(D), employee contributions as provided in3
R.S. 11:154, and actuarial assumptions as provided in R.S. 11:3688(D), shall be4
considered amendments to the provisions of this retirement system plan.5
B. No amendment to this the retirement system or plan shall operate to6
deprive any member of a benefit to which he is already entitled. In the case of any7
merger or consolidation with, or transfer of assets or liabilities to, any other8
retirement system, each member in the retirement system will, if the retirement9
system is then terminated, receive a benefit immediately after the merger,10
consolidation, or transfer equal to or greater than the benefit he would have been11
entitled to receive immediately before the merger, consolidation, or transfer, if the12
retirement system had then terminated.13
C. Upon the termination or partial termination of the retirement system or14
upon the discontinuance of contributions by the employer without formal termination15
of the retirement system, the board of trustees shall reevaluate and redetermine the16
benefit of each member in accordance with law, and the entire benefit of each17
member may be paid or commence to be paid and distributed to such member, or in18
the case of his death before such distribution, to the beneficiary or beneficiaries19
designated by such member, or may be held until payment otherwise due under the20
provisions of the retirement system. A member's right to his benefit is not21
conditioned upon a sufficiency of plan assets in the event of termination.22
* * *23
§3690. Method of financing24
A. Employee contributions. (1) The port commission shall make deductions25
from any salary or wages paid by them to any member of this fund plan equal to nine26
percent of the compensation paid him in each and every payroll.27
(2) The deductions provided for herein shall be made notwithstanding that28
the minimum compensation provided for by law for any member shall be reduced29
thereby. Every member shall be deemed to consent and agree to the deductions30 ENROLLEDHB NO. 1278
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made and provided for herein and shall receipt for his full salary or compensation,1
and payment of salary or compensation less said deductions shall be a full and2
complete discharge and acquittance of all claims and demands whatsoever for the3
services rendered by such person during the period covered by such payment, except4
as to the benefits provided under this Subpart. The employer shall certify to the5
board of trustees on each and every payroll or in such other manner as the board may6
prescribe, the amounts to be deducted; and each of said such amounts shall be7
deducted, and when deducted shall be paid into said Annuity Savings Fund the8
Employees' Savings Account established in R.S. 11:532, and shall be credited to the9
individual account of the member from whose compensation said deduction was10
made.11
B. Employer contributions. (1) The port commission shall annually12
contribute an amount equal to the rate per centum determined herein in accordance13
with Paragraphs (2) and (3) of this Subsection calculated pursuant to R.S. 11:102. 14
Contributions shall be made monthly based on the same salary or wages used to15
calculate the members' contributions.16
(2) The normal contribution rate shall be the rate per centum of the earned17
salary of all members obtained by deducting from the total liabilities of the fund the18
amount of the funds in hand to the credit of the fund and dividing the remainder by19
one percentum of the present value of the prospective future salaries of all members20
as computed on the basis of the mortality and service tables adopted by the board of21
trustees and interest as set forth in R.S. 11:3688(D)(5)(a)(i). The normal rate of22
contributions shall be determined by the actuary after each valuation.23
(3) The maximum contribution by the employer, Board of Commissioners24
of the Port of New Orleans, shall not exceed twenty percent of the earned25
compensation of the members in any one year. There shall be no contribution by26
employer other than the percentage of earned compensation of the members as27
provided in this Subpart, and subject to the maximum stated above, even in the event28
that the payment by employer should not be sufficient, when combined with the29 ENROLLEDHB NO. 1278
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amount in the fund, to provide the retirement allowances and other benefits payable1
out of the fund.2
* * *3
§3690.2. Unclaimed funds, checks, and property; retention by system4
Any unclaimed employee contributions, other funds, checks, or any other5
property held by this the system that could be claimed by a member or prior member,6
the member's beneficiary, heirs, or estate shall never be presumed abandoned and7
shall be held continuously by the system for the benefit of such member, prior8
member, the member's beneficiary, heirs, or estate.9
§3692. Protection against fraud 10
A. Any persons who shall knowingly make any false statement or shall11
falsify or permit to be falsified any record or records of this the retirement system in12
any attempt to defraud such system as a result of such act shall be guilty of a13
misdemeanor, and on conviction thereof by any court of competent jurisdiction shall14
be punished by a fine not exceeding five hundred dollars or imprisonment in the15
parish jail not exceeding twelve months, or both such fine and imprisonment at the16
discretion of the court.17
* * *18
§3695. Direct rollover19
* * *20
C. An For the purposes of this Section, an "eligible retirement plan" shall21
mean any of the following:22
* * *23
Section 3. R.S. 11:3682(29), 3685(D), 3688(A) through (C) and (E), 3689(B)24
through (E), 3690(C) and (D), 3690.1, 3691, 3693, and 3698 are hereby repealed in their25
entirety.26
Section 4.(A) The board of trustees of the Louisiana State Employees' Retirement27
System, the board of commissioners of the Port of New Orleans, and the board of trustees28
of the Harbor Police Retirement System shall execute a cooperative endeavor agreement for29 ENROLLEDHB NO. 1278
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the merger of the Harbor Police Retirement System into the Louisiana State Employees'1
Retirement System.2
(B) Any cooperative endeavor agreement executed pursuant to this Section shall3
include provisions regarding the following:4
(1) Rights of current participants in the Harbor Police Retirement System:5
(a) Current participants in the Harbor Police Retirement System, including retirees6
and active members, shall retain all accrued benefits and shall continue to accrue benefits7
under the terms of the Harbor Police Retirement System plan, as specified in R.S. 11:36818
through 3698, except with respect to cost-of-living adjustments which shall be governed by9
the laws and rules of the Louisiana State Employees' Retirement System.10
(b) Active members the Harbor Police Retirement System who have not participated11
in the Deferred Retirement Option Plan may join the Louisiana State Employees' Retirement12
System Hazardous Duty Services Plan and exercise the option to transfer prior service credit13
using the procedures set out in R.S. 11:620.1.14
(2) Liabilities of the Harbor Police Retirement System:15
(a) The Port of New Orleans shall agree to pay to the board of trustees of the16
Louisiana State Employees' Retirement System sums sufficient to fund all of the accrued17
liability of the Harbor Police Retirement System determined using the Louisiana State18
Employees' Retirement System actuarial assumptions.19
(b) The liabilities shall be paid under such terms and conditions as agreed to by the20
parties and shall include interest at the Louisiana State Employee s' Retirement System21
actuarially assumed rate of return as approved by the Public Retirement Systems' Actuarial22
Committee.23
(C) Any cooperative endeavor agreement executed pursuant to this Section shall be24
provided to the chairman and members of the Public Retirement Systems' Actuarial25
Committee by October 1, 2014.26
Section 5. The cost of this Act, if any, shall be funded with additional employer27
contributions in compliance with Article X, Section 29(F) of the Constitution of Louisiana.28
Section 6.(A) The provisions of this Section and Sections 1, 4, and 5 of this Act shall29
become effective on June 30, 2014.30 ENROLLEDHB NO. 1278
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(B) The provisions of Sections 2 and 3 of this Act shall become effective July 1,1
2015, only if the Public Retirement Systems' Actuarial Committee approves the terms of the2
cooperative endeavor agreement provided for in Section 4 of this Act on or before December3
31, 2014.4
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: