HLS 14RS-294 ORIGINAL
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2014
HOUSE BILL NO. 7
BY REPRESENTATIVE PEARSON
RETIREMENT/MUNICIPAL EMP: Provides relative to the accrual rate for members of
Plan A of the Municipal Employees' Retirement System first hired on or after July
1, 2014
AN ACT1
To amend and reenact R.S. 11:1789.4, relative to certain members of the Municipal2
Employees' Retirement System; to provide for calculation of benefits; to provide for3
an effective date; and to provide for related matters.4
Notice of intention to introduce this Act has been published5
as provided by Article X, Section 29(C) of the Constitution6
of Louisiana.7
Be it enacted by the Legislature of Louisiana:8
Section 1. R.S. 11:1789.4 is hereby amended and reenacted to read as follows:9
ยง1789.4. Computation of normal retirement allowances; return of accumulated10
contributions11
A.(1) The monthly amount of the retirement allowance for any member of12
MERS Plan A Tier 2 first hired on or before June 30, 2014, shall consist of an13
amount equal to three percent of the member's final compensation multiplied by his14
years of creditable service. In addition:15
(1) Any (2) In addition, any city marshal or deputy city marshal, excluding16
those members serving as city marshals and deputy city marshals of Bossier City or17
Ruston on June 30, 2003, shall receive an additional regular retirement benefit18
computed as follows: the monthly average of the seventy-two highest consecutive19 HLS 14RS-294 ORIGINAL
HB NO. 7
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are additions.
or joined months of supplemental marshals' earnings on which contributions were1
paid to the retirement system multiplied by the number of years contributions were2
paid to the retirement system on supplemental marshals' earnings multiplied by three3
percent for all service as a city marshal or deputy city marshal. Should the period4
for which contributions are paid to the retirement system for supplemental marshals'5
earnings be less than seventy-two months, then the actual period on which6
contributions were paid shall be used to determine average supplemental marshals'7
earnings used to compute this benefit.8
B.(1) The monthly amount of the retirement allowance for any member of9
MERS Plan A Tier 2 first hired on or after July 1, 2014, shall consist of an amount10
equal to two and one half percent of the member's final compensation multiplied by11
his years of creditable service.12
(2) In addition, any city marshal or deputy city marshal shall receive an13
additional regular retirement benefit computed as follows: the monthly average of14
the seventy-two highest consecutive or joined months of supplemental marshals'15
earnings on which contributions were paid to the retirement system multiplied by the16
number of years contributions were paid to the retirement system on supplemental17
marshals' earnings multiplied by two and one half percent for all service as a city18
marshal or deputy city marshal. Should the period for which contributions are paid19
to the retirement system for supplemental marshals' earnings be less than20
seventy-two months, then the actual period on which contributions were paid shall21
be used to determine average supplemental marshals' earnings used to compute this22
benefit.23
(2)C. Should a retired member die without having received in retirement24
benefits an amount equal to his accumulated contributions standing to his credit at25
the date of his retirement, and leave no eligible survivors, any balance remaining to26
his credit shall be paid to his designated beneficiary or, if none, his estate.27 HLS 14RS-294 ORIGINAL
HB NO. 7
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are additions.
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)]
Pearson HB No. 7
Abstract: Lowers the accrual rate for new hires in the Municipal Employees' Retirement
System (MERS) Plan A from 3% to 2.5%.
Present law (R.S. 11:1789 et seq.) establishes a tier (Tier 2) of benefits for members of
MERS first hired on or after Jan. 1, 2013.
Present law (R.S. 11:1789.4) provides a 3% accrual rate for members of Tier 2. Proposed
law changes the accrual rate for members first hired on or after July 1, 2014, from 3% to
2.5%.
Present law authorizes an additional benefit for certain city marshals and deputy city
marshals. Provides that the additional benefit shall equal the monthly average of the 72
highest months of supplemental marshal's earnings multiplied by years of service
contributions on such supplemental salary multiplied by 3%. Proposed law retains present
law relative to additional benefits for such marshals and deputy marshals, but lowers the
accrual rate from 3% to 2.5% for members first hired on or after July 1, 2014.
(Amends R.S. 11:1789.4)