ENROLLED
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ACT No. 403
Regular Session, 2014
HOUSE BILL NO. 77
BY REPRESENTATIVE MONTOUCET
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
ยง2254.1. 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
discretion over whether an employee's leave is converted lies solely with the21
employee.22
(4) The board of trustees shall promulgate all regulations necessary to govern23
the procedures for employers to elect to allow conversion of unused earned leave and24
other regulations necessary to implement the provisions of this Section.25 ENROLLEDHB NO. 77
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B.(1) An election by an employer to allow conversion of leave pursuant to1
this Section shall be made by adoption of a resolution evidencing such election.2
Such a resolution shall not become effective until it is submitted to and approved by3
this system. An election to allow leave conversion pursuant to this Section is4
irrevocable.5
(2) In making such election, the employer shall also elect whether the6
conversion of leave shall occur on the effective date of an employee's entry into the7
Deferred Retirement Option Plan or upon the effective date of his separation from8
service. The election made pursuant to this Paragraph shall be expressly stated in the9
resolution, shall be applied uniformly to all employees that choose to convert unused10
earned leave, and is also irrevocable.11
C.(1) Unused earned leave that has been accrued and accumulated by an12
employee, except as provided in Paragraph (2) of this Subsection, and for which13
payment has not been made shall be converted to years of service credit and applied14
to the member's account on a proportional basis according to the following fraction:15
the numerator is the number of hours of leave to be converted and the denominator16
is the number of hours worked in the employee's particular position which equals the17
equivalent of one year of work for that position as certified by the employer. The18
board of trustees may accept the employer's certification or may apply its own yearly19
equivalence.20
(2) The employee solely shall determine the amount of his unused earned21
leave that is to be converted to service credit; however, such conversion shall not22
cause the employee's benefit to exceed one hundred percent of his average final23
compensation. No member, survivor, or beneficiary may use unused earned leave24
to attain eligibility for any benefit provided by this Chapter.25
D. At the time the employee applies for conversion, the employer shall26
submit to the board a report of unused earned leave, computed in hours only.27
E.(1) In order for a conversion of leave that is otherwise authorized to be28
effective, the employer shall pay into the system an amount which, on an actuarial29
basis, totally offsets the increase in accrued liability of the system resulting from the30 ENROLLEDHB NO. 77
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conversion. The employer shall pay the actuarial cost of providing the conversion to1
this system within thirty days after receiving an invoice from this system.2
(2) No funds derived from the assessments against insurers pursuant to R.S.3
22:1476 shall be used to pay such cost in whole or in part.4
(3) The amount payable shall be calculated based on such interest and5
mortality factors as adopted by the board of trustees.6
Section 2. Any person who is participating in the Deferred Retirement Option Plan7
when his employer elects to allow conversion of unused earned leave to service credit8
effective upon entry into the Deferred Retirement Option Plan pursuant to R.S. 11:2254.19
as enacted by this Act shall be eligible to convert his unused earned leave to retirement credit10
and have his benefits recalculated retroactive to either the effective date of this Act or the11
date of his entry into the Deferred Retirement Option Plan, whichever date occurred more12
recently. Any such conversion shall be made in accordance with R.S. 11:2254.1 as enacted13
by this Act.14
Section 3. Any increase in benefits resulting from conversion of leave pursuant to15
provisions of this Act shall not be an accrued benefit subject to the protection of Article X,16
Section 29(E) of the Constitution of Louisiana until the system has received full payment17
for such conversion.18
Section 4. This Act shall become effective upon signature by the governor or, if not19
signed by the governor, upon expiration of the time for bills to become law without signature20
by the governor, as provided in Article III, Section 18 of the Constitution of Louisiana. If21
vetoed by the governor and subsequently approved by the legislature, this Act shall become22
effective on the day following such approval.23
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: