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ACT No. 226
Regular Session, 2014
HOUSE BILL NO. 38
BY REPRESENTATIVE PEARSON
AN ACT1
To amend and reenact R.S. 11:441(A)(2)(b), 461(B)(3)(b), 726(B), 761(A)(3) and (4),2
765(A) and (B)(1), 780, 783(A)(3)(a), 786(A)(2) and (3), 802, 1141(A), 1142, and3
1147(C)(4) and to enact R.S. 11:441(A)(2)(c), 461(B)(3)(c), 761(A)(5), and4
786(A)(4), relative to retirement eligibility for certain new hires in the Louisiana5
State Employees' Retirement System, the Teachers' Retirement System of Louisiana,6
and the Louisiana School Employees' Retirement System; to establish new7
retirement eligibility for certain members hired on or after July 1, 2015; to provide8
relative to disability retirements; to provide for technical corrections; to provide for9
an effective date; and to provide for related matters.10
Notice of intention to introduce this Act has been published11
as provided by Article X, Section 29(C) of the Constitution12
of Louisiana.13
Be it enacted by the Legislature of Louisiana:14
Section 1. R.S. 11:441(A)(2)(b), 461(B)(3)(b), 726(B), 761(A)(3) and (4), 765(A)15
and (B)(1), 780, 783(A)(3)(a), 786(A)(2) and (3), 802, 1141(A), 1142, and 1147(C)(4) are16
hereby amended and reenacted and R.S. 11:441(A)(2)(c), 461(B)(3)(c), 761(A)(5), and17
786(A)(4) are hereby enacted to read as follows:18
§441. Eligibility for retirement19
A.20
* * *21
(2)22
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(b) Except for members of the Hazardous Duty Services Plan, as defined in1
R.S. 11:612, any member whose first employment making him eligible for2
membership in one of the state systems occurred on or after January 1, 2011, and on3
or before June 30, 2015, including any judge, court officer, governor, lieutenant4
governor, clerk or sergeant-at-arms of the House of Representatives, secretary or5
sergeant-at-arms of the Senate, or state treasurer, shall be eligible for retirement if6
he has:7
(i) Five years or more of service, at age sixty or thereafter.8
(ii) Twenty years of service credit at any age, exclusive of military service9
and unused annual and sick leave, but any person retiring under this Item shall have10
his benefit, inclusive of military service credit and allowable unused annual and sick11
leave, actuarially reduced from the earliest age that he would normally become12
eligible for a regular retirement benefit under Item (i) of this Subparagraph if he had13
continued in service to that age. Any employee who elects to retire under the14
provisions of this Item shall not be eligible to participate in the Deferred Retirement15
Option Plan provided by R.S. 11:447 or the Initial Benefit Option provided by R.S.16
11:446.17
(c) Except for members of the Hazardous Duty Services Plan, as defined in18
R.S. 11:612, any member whose first employment making him eligible for19
membership in one of the state systems occurred on or after July 1, 2015, including20
any judge, court officer, governor, lieutenant governor, clerk or sergeant-at-arms of21
the House of Representatives, secretary or sergeant-at-arms of the Senate, or state22
treasurer, shall be eligible for retirement if he has:23
(i) Five years or more of service, at age sixty-two or thereafter.24
(ii) Twenty years of service credit at any age, exclusive of military service25
and unused annual and sick leave, but any person retiring under this Item shall have26
his benefit, inclusive of military service credit and allowable unused annual and sick27
leave, actuarially reduced from the earliest age that he would normally become28
eligible for a regular retirement benefit under Item (i) of this Subparagraph if he had29
continued in service to that age. Any employee who elects to retire under the30 ENROLLEDHB NO. 38
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provisions of this Item shall not be eligible to participate in the Deferred Retirement1
Option Plan provided by R.S. 11:447 or the Initial Benefit Option provided by R.S.2
11:446.3
* * *4
§461. Eligibility; certification5
* * *6
B. The board of trustees shall award disability benefits to eligible members7
who have been officially certified as disabled by the State Medical Disability Board.8
The disability benefit shall be determined as follows:9
* * *10
(3)11
* * *12
(b) Any person who has not attained the age of sixty and whose employment13
first making him eligible for membership in the system occurred on or after July 1,14
2006, and on or before June 30, 2015, shall receive a disability benefit equal to two15
and one-half percent of average compensation for every year of creditable service.16
When the disability retiree attains the age of sixty, he shall receive his regular17
retirement benefit upon making application therefor to the board. The provisions of18
this Subparagraph shall not apply to any person who receives an additional benefit19
pursuant to R.S. 11:444(A)(2)(b) or (c) or 557 or R.S. 24:36 whose first employment20
making him eligible for membership in one of the state systems occurred on or21
before December 31, 2010.22
(c) Any person who has not attained the age of sixty-two and whose first23
employment making him eligible for membership in one of the state systems24
occurred on or after July 1, 2015, shall receive a disability benefit equal to two and25
one-half percent of average compensation for every year of creditable service. When26
the disability retiree attains the age of sixty-two, he shall receive his regular27
retirement benefit upon making application therefor to the board.28
* * *29 ENROLLEDHB NO. 38
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§726. Termination of membership; withdrawal from service after five years;1
retirement at age sixty regular retirement2
* * *3
B.(1) However, any member whose first employment making him eligible4
for membership in one of the state systems occurred on or before June 30, 2015, who5
has credit for five or more years of service may withdraw from service and elect to6
leave his accumulated contributions in the system and, upon reaching age sixty, he7
shall receive a retirement allowance based on the credits he had at the time of his8
withdrawal from service.9
(2) Any member whose first employment making him eligible for10
membership in one of the state systems occurred on or after July 1, 2015, who has11
credit for five or more years of service may withdraw from service and elect to leave12
his accumulated contributions in the system and, upon reaching age sixty-two, he13
shall receive a retirement allowance based on the credits he had at the time of his14
withdrawal from service.15
* * *16
§761. Retirement benefits; application; eligibility requirements; effective date;17
cancellation; errors and omissions18
A.19
* * *20
(3) Any person whose first employment making him eligible for membership21
in one of the state systems occurred on or after January 1, 2011, and on or before22
June 30, 2015, may retire upon written application to the board of trustees, if at the23
time of application the member:24
(a) Has attained the age of sixty years and has credit for five years of25
accredited service.26
(b) Has twenty years of service credit at any age, exclusive of unused annual27
and sick leave and military service other than qualified military service as provided28
in 26 U.S.C. 414(u) earned on or after December 12, 1994, but any person retiring29
under this Subparagraph shall have his benefit, inclusive of military service credit30 ENROLLEDHB NO. 38
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and allowable unused annual and sick leave, actuarially reduced from the earliest age1
that he would normally become eligible for a regular retirement benefit under2
Subparagraph (a) of this Paragraph if he had continued in service to that age. Any3
member who elects to retire under the provisions of this Subparagraph shall not be4
eligible to participate in the Deferred Retirement Option Plan provided by R.S.5
11:786 or the Initial Lump-Sum Benefit option provided by R.S. 11:783.6
(4) Any person whose first employment making him eligible for membership7
in one of the state systems occurred on or after July 1, 2015, may retire upon written8
application to the board of trustees, if at the time of application the member:9
(a) Has attained the age of sixty-two years and has credit for five years of10
accredited service.11
(b) Has twenty years of service credit at any age, exclusive of unused annual12
and sick leave and military service other than qualified military service as provided13
in 26 U.S.C. 414(u) earned on or after December 12, 1994, but any person retiring14
under this Subparagraph shall have his benefit, inclusive of military service credit15
and allowable unused annual and sick leave, actuarially reduced from the earliest age16
that he would normally become eligible for a regular retirement benefit under17
Subparagraph (a) of this Paragraph if he had continued in service to that age. Any18
member who elects to retire under the provisions of this Subparagraph shall not be19
eligible to participate in the Deferred Retirement Option Plan provided by R.S.20
11:786 or the Initial Lump-Sum Benefit option provided by R.S. 11:783.21
(5)(a) A properly executed application for retirement shall be considered as22
officially filed when received by the board of trustees of this system. Retirement23
benefits shall become effective as of the date a properly executed application for24
retirement is received by the board of trustees of this system or the day after the25
member terminates from teaching service, whichever is later.26
(b) A member may cancel his application for retirement only prior to27
negotiating, cashing, or depositing any benefit check including an estimated benefit28
check.29
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§765. Withdrawal from service after five years; retirement at age sixty1
A.(1) Any member whose first employment making him eligible for service2
in one of the state systems occurred on or before June 30, 2015, who has credit for3
five or more years of service may withdraw from service and elect to leave his4
accumulated contributions in the system and, upon reaching age sixty, he shall5
receive a retirement allowance based on the credits he had at the time of his6
withdrawal from service.7
(2) Any member whose first employment making him eligible for8
membership in one of the state systems occurred on or after July 1, 2015, who has9
credit for five or more years of service may withdraw from service and elect to leave10
his accumulated contribution in the system and, upon reaching age sixty-two, he11
shall receive a retirement allowance based on the credits he had at the time of his12
withdrawal from service.13
B.(1) The retirement allowance under this Section shall be due and payable14
by the system effective the first day of the month following the attainment of the age15
sixty required pursuant to Subsection A of this Section, but shall not be paid until a16
written application for retirement is executed and filed with the system.17
* * *18
§780. Reexamination of beneficiaries retired for disability retirees; modification of19
benefits; restoration to active service20
A. Once each year during the first five years following any retirement of a21
member on a disability retirement allowance and once in every three-year period22
thereafter, the board of trustees shall require any disability beneficiary retiree whose23
first employment making him eligible for membership in one of the state systems24
occurred on or before June 30, 2015, who has not yet attained the age of sixty years25
and any disability retiree whose first employment making him eligible for26
membership in one of the state systems occurred on or after July 1, 2015, who has27
not yet attained the age of sixty-two to undergo a medical examination at the28
beneficiary's retiree's expense, to be made at the place of residence of the beneficiary29
retiree or other place mutually agreed upon, by a physician or physicians designated30 ENROLLEDHB NO. 38
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by the board of trustees. The periodic reexaminations may be discontinued upon1
advice of the medical board that the retiree's condition is either terminal or that2
chances of recovery are highly improbable. If any such disability beneficiary retiree3
who has not yet attained the age of sixty years refuses to submit to at least one4
medical examination in any such year by a physician or physicians designated by the5
board of trustees, his allowance may be discontinued until his withdrawal of such6
refusal; but if his refusal continues for one year, all of his rights in and to his pension7
may be revoked by the board of trustees.8
B. Every disability beneficiary retiree except a disability beneficiary retiree9
who had no earnings and is determined by the Teachers' Retirement System of10
Louisiana to be incapacitated or who is residing in a nursing home shall submit to11
the board of trustees by May first of every year, a notarized annual earnings12
statement detailing his earned income from employment in the previous tax year.13
Should a beneficiary retiree refuse to submit such an earnings statement by May14
first, his allowance may be discontinued without retroactive reimbursement, until the15
statement is filed. Should his refusal continue for the remainder of the calendar year,16
all his rights in and to his disability pension may be revoked by the board of trustees.17
C.(1) Notwithstanding the provisions of R.S. 11:221, if the medical board18
reports and certifies to the board of trustees that a disability beneficiary retiree is able19
to engage in a gainful occupation paying more than the difference between his20
retirement allowance and the average final compensation, and if the board of trustees21
concurs in this report, then, except as provided in either Paragraph (2) or (3) of this22
Subsection, the amount of his pension shall be reduced to an amount which, together23
with his annuity and the amount earnable by him, shall equal the amount of his24
average final compensation. If his earning capacity is later changed, the amount of25
his pension may be further modified; provided, that however, the new pension shall26
not exceed the amount of the pension originally granted nor an amount which, when27
added to the amount earnable by the beneficiary retiree together with his annuity,28
equals the amount of his average final compensation.29 ENROLLEDHB NO. 38
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(2)(a) The pay which is used to reduce benefits pursuant to Paragraph (1) of1
this Subsection shall not include the amount equal to the difference between the2
beneficiary's retiree's total annual benefit and the poverty threshold for a family unit3
of one person under age sixty-five as determined by the United States Bureau of the4
Census for the year in which such pay is earned.5
(b) Any disability beneficiary retiree who is engaged in a gainful occupation6
shall provide such information or documentation as may be requested by the system7
to implement the provisions of this Paragraph.8
(3)(a) If, pursuant to the provisions of this Subsection, the board of trustees9
reduces the pension of any disability beneficiary retiree of this system who retired10
pursuant to a reciprocal agreement between this system and any other state or11
statewide public retirement system, the reduction shall be subject to Subparagraph12
(b) of this Paragraph, provided the beneficiary retiree satisfies all of the following13
provisions of this Subparagraph:14
(i) The vocational rehabilitation program within the Department of Children15
and Family Services furnishes the beneficiary retiree with durable medical16
equipment for use, subject to a requirement that the beneficiary retiree be engaged17
in a gainful occupation for at least twenty hours per week.18
(ii) The beneficiary retiree furnishes any documentation as may be requested19
by the Teachers' Retirement System of Louisiana.20
(b) Any income earned while working the twenty hours required by the21
vocational rehabilitation program in order to use such durable medical equipment22
shall not be included in the pay which is used to implement Paragraph (1) of this23
Subsection. Any income which is derived from the same employment, but which is24
derived from work in excess of the twenty hours required in relation to such25
equipment shall be included for purposes of implementing Paragraph (1) of this26
Subsection.27
D. For the purposes of this Section, there shall be an annual cost-of-living28
adjustment to the average final compensation figure used in the modification29
computations. This cost-of-living adjustment shall be based upon and directly reflect30 ENROLLEDHB NO. 38
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the annual percentage increase or decrease in the Consumer Price Index for the1
preceding calendar year.2
E. If any disability beneficiary retiree is restored to active service, his3
retirement allowance shall cease, he shall again become a member of the retirement4
system, and he shall contribute thereafter at the current rate in effect at the time he5
is restored to service, and if he contributes for at least three years, the period of time6
on disability shall be counted as accredited service for purposes of establishing7
retirement eligibility, but not for computation of benefits. Any prior service8
certificate on the basis of which his service was computed at the time of his9
retirement shall be restored to full force and effect and, in addition, upon his10
subsequent retirement he shall be credited with all his service as a member.11
* * *12
§783. Selection of option for method of payment after death of member13
A. 14
* * *15
(3) Initial Lump-Sum Benefit. (a) If a member has not participated in the16
Deferred Retirement Option Plan provided by the provisions of this Chapter, he shall17
be eligible to select an initial lump-sum benefit. The initial lump-sum benefit shall18
be available to any member of the system whose first employment making him19
eligible for membership in one of the state retirement systems occurred on or before20
December 31, 2010, and who has thirty years of creditable service, or is at least age21
fifty-five and has twenty-five years of creditable service, or is at least age sixty and22
has ten years of creditable service. Any member of the system whose first23
employment making him eligible for membership in one of the state retirement24
systems occurred on or after January 1, 2011, and on or before June 30, 2015, may25
select the initial lump-sum benefit if he is at least age sixty and has five years of26
service. Any member of the system whose first employment making him eligible for27
membership in one of the state retirement systems occurred on or after July 1, 2015,28
may select the initial lump-sum benefit if he is at least age sixty-two and has five29
years of service. If the maximum benefit, Option 2, 2A, 3, 3A, 4, or 4A above is30 ENROLLEDHB NO. 38
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chosen, then the member may further elect to receive a reduced retirement allowance1
plus an initial benefit. The creditable service referenced in this Paragraph shall not2
include unused accumulated sick leave and unused accumulated annual leave.3
* * *4
§786. Deferred Retirement Option Plan5
A.6
* * *7
(2) Any member of this system whose first employment making him eligible8
for membership in one of the state retirement systems occurred on or after January9
1, 2011, and on or before June 30, 2015, and who is not covered by R.S. 11:801 and10
who has five years of service credit and is at least age sixty may elect to participate11
in the Deferred Retirement Option Plan.12
(3) Any member of this system whose first employment making him eligible13
for membership in one of the state retirement systems occurred on or before June 30,14
2015, who is covered by the provisions of R.S. 11:801 who has thirty years of15
service credit and is at least age fifty-five or has ten years of service credit and is at16
least age sixty may elect to participate in the Deferred Retirement Option Plan.17
(4) Any member of this system whose first employment making him eligible18
for membership in one of the state retirement systems occurred on or after July 1,19
2015, who has at least five years of service credit and is at least age sixty-two may20
elect to participate in the Deferred Retirement Option Plan.21
* * *22
§802. Eligibility for regular retirement23
A. Any member covered by R.S. 11:801 whose first employment making24
him eligible for membership in one of the state systems occurred on or before June25
30, 2015, shall be eligible to retire if he has at least:26
(1) Thirty years of creditable service, and is at least age fifty-five.27
(2) Five years of creditable service, and is at least age sixty.28 ENROLLEDHB NO. 38
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B. Any member covered by R.S. 11:801 whose first employment making1
him eligible for membership in a state system occurred on or after July 1, 2015, shall2
be eligible to retire if he has at least:3
(1) Five years of creditable service, and is at least age sixty-two.4
(2) Twenty years of service credit at any age, exclusive of unused annual and5
sick leave and military service other than qualified military service as provided in 266
U.S.C. 414(u) earned on or after December 12, 1994, but any person retiring under7
this Paragraph shall have his benefit, inclusive of military service credit and8
allowable unused annual and sick leave, actuarially reduced from the earliest age that9
he would normally become eligible for a regular retirement benefit under Paragraph10
(1) of this Subsection if he had continued in service to that age. Any member who11
elects to retire under the provisions of this Paragraph shall not be eligible to12
participate in the Deferred Retirement Option Plan provided by R.S. 11:786 or the13
Initial Lump-Sum Benefit option provided by R.S. 11:783.14
* * *15
§1141. Retirement benefits; application; eligibility requirements; effective date;16
cancellation17
A. Any member whose first employment making him eligible for18
membership in one of the state systems occurred on or before June 30, 2010, may19
retire upon written application to the board of trustees, if the member at the time of20
application has attained the age of sixty years and has credit for ten years of21
accredited service or has attained the age of fifty-five years and has credit for22
twenty-five or more years of accredited service or at any age with thirty or more23
years of accredited service. Any member whose first employment making him24
eligible for membership in one of the state systems occurred on or after July 1, 2010,25
and on or before June 30, 2015, may retire upon written application to the board of26
trustees, if the member at the time of application has attained the age of sixty years27
and has credit for five years of accredited service. Any member whose first28
employment making him eligible for membership in one of the state systems29
occurred on or after July 1, 2015, may retire upon written application to the board30 ENROLLEDHB NO. 38
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of trustees, if the member at the time of application has attained the age of sixty-two1
years and has credit for five years of accredited service. An application for2
retirement shall be officially filed with the board when received in the office of the3
director. Retirement benefits shall become effective as of the date an application for4
retirement is filed in the office of the director or the day after the member terminates5
from service, whichever is later. A member may cancel his application for6
retirement only prior to negotiating, cashing, or depositing any benefit check7
including an estimated benefit check.8
* * *9
§1142. Withdrawal after ten years; retirement allowance at age sixty 10
A. Any member whose first employment making him eligible for11
membership in one of the state systems occurred on or before June 30, 2015, who12
has credit for ten or more years of regular, full-time service may withdraw from13
service and elect to leave his accumulated contributions in the system and upon14
reaching age sixty, he shall be eligible to receive a retirement allowance based on the15
credits he had at the time of his withdrawal from service. 16
B. Any member whose first employment making him eligible for17
membership in one of the state systems occurred on or after July 1, 2015, who has18
credit for ten or more years of regular, full-time service may withdraw from service19
and elect to leave his accumulated contributions in the system and upon reaching age20
sixty-two, he shall be eligible to receive a retirement allowance based on the credits21
he had at the time of his withdrawal from service.22
* * *23
§1147. Disability retirement24
* * *25
C.26
* * *27
(4)(a) Regardless of the effective date of his retirement and notwithstanding28
the provisions of R.S. 11:220(A) and R.S. 11:221(C)221(C), a disability retiree29
whose first employment making him eligible for membership in one of the state30 ENROLLEDHB NO. 38
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systems occurred on or before June 30, 2015, shall no longer be required to submit1
to regular medical exams nor to file the annual income report upon attainment of age2
sixty and thereafter.3
(b) Regardless of the effective date of his retirement and notwithstanding the4
provisions of R.S. 11:220(A) and 221(C), a disability retiree whose first employment5
making him eligible for membership in one of the state systems occurred on or after6
July 1, 2015, shall no longer be required to submit to regular medical exams nor to7
file the annual income report upon attainment of age sixty-two.8
Section 2. This Act shall become effective on June 30, 2014; if vetoed by the9
governor and subsequently approved by the legislature, this Act shall become effective on10
June 30, 2014, or on the day following such approval by the legislature, whichever is later.11
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: