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, ยง29(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)