HLS 14RS-441 ORIGINAL
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are additions.
Regular Session, 2014
HOUSE BILL NO. 67
BY REPRESENTATIVE MONTOUCET
RETIREMENT/FIREFIGHTERS: Provides relative to the accrual rate and Deferred
Retirement Option Plan participation in the Firefighters' Retirement System
AN ACT1
To amend and reenact R.S. 11:2256(A)(1), (2), and (4) and 2257(C), relative to the2
Firefighters' Retirement System; to provide relative to benefit accrual rates for new3
hires; to provide relative to the Deferred Retirement Option Plan; to provide4
technical changes; to provide an effective date; and to provide for related matters.5
Notice of intention to introduce this Act has been published6
as provided by Article X, Section 29(C) of the Constitution7
of Louisiana.8
Be it enacted by the Legislature of Louisiana:9
Section 1. R.S. 11:2256(A)(1), (2), and (4) and 2257(C) are hereby amended and10
reenacted to read as follows:11
§2256. Benefits; refund of contributions, application, and payment12
A.(1) Any member of this system who has been a member for at least one13
year and who meets any of the following shall be entitled to retire from service:14
(a) who The member has completed at least twenty-five years of creditable15
service, who has been a member of this system for at least one year, regardless of16
age, or.17
(b) any The member who has completed at least twenty years of creditable18
service, who has been a member of this system for at least one year, and who has19
attained the age of fifty years ,.20 HLS 14RS-441 ORIGINAL
HB NO. 67
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(c) or any The member who has completed at least twelve years of service,1
who has been a member of this system for at least one year, and who has attained the2
age of fifty-five shall be entitled to retire from service.3
(2) Deferred retirement. Any member who has been a member for at least4
one year and who meets one of the following shall be entitled to a deferred5
retirement benefit as indicated:6
(a) Any member who has completed twenty or more years of creditable7
service, and at least one year of which shall be as a member of this system, and who8
leaves employment covered by this system before attaining age fifty shall be entitled9
to a retirement benefit beginning at age fifty.10
(b) Any member who has completed twelve years of creditable service , and11
at least one year of which shall be as a member of this system, and who leaves12
employment covered by this system before attaining age fifty-five shall be entitled13
to a retirement benefit beginning at age fifty-five.14
* * *15
(4) Upon such retirement, the member shall be paid an annual retirement16
allowance, as follows:17
(a) For any member whose first date of employment occurred on or before18
June 30, 2014, the retirement allowance shall equal to three and one-third percent of19
his average final compensation multiplied by his total years of creditable service.20
(b) For any member whose first date of employment occurred on or after21
July 1, 2014, the retirement allowance shall equal the following:22
(i) Three percent of the member's average final compensation multiplied by23
his total years of creditable service if the member has less than thirty years of24
creditable service on the effective date of retirement.25
(ii) Three and one-third percent of the member's average final compensation26
multiplied by his total years of creditable service if the member has thirty or more27
years of creditable service on the effective date of retirement.28 HLS 14RS-441 ORIGINAL
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(c) However, the annual retirement allowance shall not exceed one hundred1
percent of his the member's average final compensation. The member shall not be2
paid any amount in excess of the maximum amount permitted under Section 415 of3
the Internal Revenue Code of 1986, as amended. The foregoing sentence shall not4
prohibit payments to a member from an excess benefit plan established pursuant to5
Section 415(m) of the Internal Revenue Code of 1986, as amended, as provided in6
Section 2272 of this Chapter.7
* * *8
§2257. Deferred Retirement Option Plan9
* * *10
C. The duration of participation in the plan shall be specified and shall not11
exceed three years. the following:12
(1) Three years for any member who has less than thirty years of creditable13
service.14
(2) Five years for any member who has at least thirty years of creditable15
service.16
* * *17
Section 2. Any person who has at least thirty years of creditable service and who is18
participating in the Deferred Retirement Option Plan on the effective date of this Act shall19
be allowed to extend his participation in the plan up to the five-year period provided for in20
this Act.21
Section 3. This Act shall become effective upon signature by the governor or, if not22
signed by the governor, upon expiration of the time for bills to become law without signature23
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If24
vetoed by the governor and subsequently approved by the legislature, this Act shall become25
effective on the day following such approval.26 HLS 14RS-441 ORIGINAL
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DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Montoucet HB No. 67
Abstract: Provides that the benefit accrual rate for members of the Firefighters Retirement
System (FRS) first hired on or after July 1, 2014, is based on length of service and
extends maximum DROP participation from three to five years for members with 30
or more years of service.
ACCRUAL RATE
Present law provides that any person who has been a member of FRS for at least one year
shall be entitled to retire if he has attained the following age and service criteria:
Years of
ServiceAge
12 55
20 50
25 Any
Proposed law retains present law.
Present law provides that, upon retirement, the member shall be paid an annual retirement
allowance equal to 3a% of his average final compensation multiplied by his total years of
creditable service. Proposed law retains present law for all members hired on or before June
30, 2014.
Proposed law changes the accrual rate for members whose first employment occurred on or
after July 1, 2014; ties the accrual rate for such members to length of service, as follows:
(1)3% for any member whose total years of creditable service is less than 30 years.
(2) 3a% for any member whose total years of creditable service is equal to or greater
than 30 years.
Present law provides that a member's annual retirement allowance shall not exceed 100%
of his average final compensation. Proposed law retains present law.
DROP
Present law provides that, in lieu of terminating employment and accepting retirement
benefits, any FRS member who has at least 20 years of creditable service and who is eligible
to receive retirement benefits may elect to participate in the Deferred Retirement Option
Plan (DROP) and defer the receipt of benefits.
Present law provides that, upon commencement of DROP participation, membership in FRS
ceases and neither employee nor employer contributions are payable to FRS.
Proposed law retains present law. HLS 14RS-441 ORIGINAL
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Present law provides that a member's duration of participation in the DROP plan may not
exceed three years. Proposed law retains present law for members with less than 30 years
of service. Proposed law further provides that for members with 30 or more years of service,
the period of DROP participation may not exceed five years.
Proposed law authorizes any person who has 30 or more years of creditable service and who
is participating in the DROP plan on the effective date of the Act to extend his period of
participation to the five years provided for in proposed law.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 11:2256(A)(1), (2), and (4) and 2257(C))