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Regular Session, 2014
HOUSE BILL NO. 77
BY REPRESENTATIVE MONTOUCET
RETIREMENT/FIREFIGHTERS: Provides for conversion of leave to service credit in the
Firefighters' Retirement System
AN ACT1
To enact R.S. 11:2254.1, relative to creditable service in the Firefighters' Retirement2
System; to provide relative to the conversion of unused leave to service credit in the3
system; to authorize employers to allow such conversion; to provide for procedures4
and limitations; to provide relative to the costs of such conversions; and to provide5
for related matters.6
Notice of intention to introduce this Act has been published7
as provided by Article X, Section 29(C) of the Constitution8
of Louisiana.9
Be it enacted by the Legislature of Louisiana:10
Section 1. R.S. 11:2254.1 is hereby enacted to read as follows:11
§2254.1. Conversion of unused leave to creditable service12
A.(1) An employer may elect to allow its employees to convert unused13
earned leave to service credit in accordance with this Section.14
(2) For purposes of this Section "unused earned leave" means sick leave,15
annual leave, and compensatory leave but does not include sick leave as provided for16
in R.S. 33:1995.17
(3) Only an employee of an employer that has elected to allow the18
conversion of unused earned leave in accordance with this Section may make such19
a conversion. If an employer elects to allow the conversion of unused earned leave,20 HLS 14RS-452 ORIGINAL
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discretion over whether an employee's leave is converted lies solely with the1
employee.2
(4) The board of trustees shall promulgate all regulations necessary to govern3
the procedures for employers to elect to allow conversion of unused earned leave and4
other regulations necessary to implement the provisions of this Section.5
B.(1) An election by an employer to allow conversion of leave pursuant to6
this Section shall be made by adoption of a resolution evidencing such election.7
Such a resolution shall not become effective until it is submitted to and approved by8
this system. An election to allow leave conversion pursuant to this Section is9
irrevocable.10
(2) In making such election, the employer shall also elect whether the11
conversion of leave shall occur on the effective date of an employee's entry into the12
Deferred Retirement Option Plan or upon the effective date of his separation from13
service. The election made pursuant to this Paragraph shall be expressly stated in the14
resolution, shall be applied uniformly to all employees that choose to convert unused15
earned leave, and is also irrevocable.16
C.(1) Unused earned leave that has been accrued and accumulated by an17
employee, except as provided in Paragraph (2) of this Subsection, and for which18
payment has not been made shall be converted to years of service credit and applied19
to the member's account on a proportional basis according to the following fraction:20
the numerator is the number of hours of leave to be converted and the denominator21
is the number of hours worked in the employee's particular position which equals the22
equivalent of one year of work for that position as certified by the employer. The23
board of trustees may accept the employer's certification or may apply its own yearly24
equivalence.25
(2) The employee solely shall determine the amount of his unused earned26
leave that is to be converted to service credit; however, such conversion shall not27
cause the employee's benefit to exceed one hundred percent of his average final28 HLS 14RS-452 ORIGINAL
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compensation. No member, survivor, or beneficiary may use unused earned leave1
to attain eligibility for any benefit provided by this Chapter.2
D. At the time the employee applies for conversion, the employer shall3
submit to the board a report of unused earned leave, computed in hours only.4
E.(1) In order for a conversion of leave that is otherwise authorized to be5
effective, the employer shall pay into the system an amount which, on an actuarial6
basis, totally offsets the increase in accrued liability of the system resulting from the7
conversion. The employer shall pay the actuarial cost of providing the conversion to8
this system within thirty days after receiving an invoice from this system.9
(2) No funds derived from the assessments against insurers pursuant to R.S.10
22:1476 shall be used to pay such cost in whole or in part.11
(3) The amount payable shall be calculated based on such interest and12
mortality factors as adopted by the board of trustees.13
Section 2. Any person who is participating in the Deferred Retirement Option Plan14
when his employer elects to allow conversion of unused earned leave to service credit15
effective upon entry into the Deferred Retirement Option Plan pursuant to R.S. 11:2254.116
as enacted by this Act shall be eligible to convert his unused earned leave to retirement credit17
and have his benefits recalculated retroactive to either the effective date of this Act or the18
date of his entry into the Deferred Retirement Option Plan, whichever date occurred more19
recently. Any such conversion shall be made in accordance with R.S. 11:2254.1 as enacted20
by this Act.21
Section 3. Any increase in benefits resulting from conversion of leave pursuant to22
provisions of this Act shall not be an accrued benefit subject to the protection of Article X,23
Section 29(E) of the Constitution of Louisiana until the system has received full payment24
for such conversion.25
Section 4. This Act shall become effective upon signature by the governor or, if not26
signed by the governor, upon expiration of the time for bills to become law without signature27
by the governor, as provided in Article III, Section 18 of the Constitution of Louisiana. If28 HLS 14RS-452 ORIGINAL
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vetoed by the governor and subsequently approved by the legislature, this Act shall become1
effective on the day following such approval.2
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. 77
Abstract: Authorizes and provides relative to the conversion of unused leave to service
credit in the Firefighters' Retirement System (FRS).
Proposed law authorizes an employer of employees in FRS to allow such employees to
convert unused earned leave to service credit. Provides that sick leave, annual leave, and
compensatory leave are convertible, except that specific extended sick leave authorized by
present law is not included.
Proposed law requires the employer to make the election to allow such conversion by
adoption of a resolution. Provides that the resolution does not become effective until it is
submitted to and approved by FRS. Requires that the resolution also include an election as
to whether the conversion of leave shall occur on the effective date of an employee's entry
into the Deferred Retirement Option Plan (DROP) or upon the effective date of his
separation from service. Provides that the election to allow conversion of leave and as to
when a conversion occurs are both irrevocable decisions.
Proposed law provides for a ratio for converting hours of unused leave to years of service
credit. Provides that the employee is solely responsible for determining the amount of leave
which he wishes to convert to service credit; however, prohibits such conversion from
causing the employee's benefit to exceed 100% of his average final compensation. Further
prohibits use of converted leave to attain eligibility for benefits provided by present law.
Proposed law requires the employer to pay the actuarial cost of the conversion. Prohibits
use of funds from assessments against insurers pursuant to present law to pay such cost.
Proposed law authorizes a person who is in DROP when his employer elects coverage under
proposed law allowing conversion of leave prior to entry into DROP to convert his unused
earned leave to service credit and have his benefits recalculated retroactive to either the
effective date of proposed law or the date of his entry into the DROP, whichever is later.
Proposed law provides that the increase in benefit resulting from application of proposed law
shall not be an accrued benefit subject to the protection of Art. X, §29(E) of the Constitution
of La. until FRS has received full payment.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Adds R.S. 11:2254.1)