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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2014
SENATE BILL NO. 23
BY SENATOR GUILLORY
TEACHERS RETIREMENT. Allows an optional retirement plan participant to transfer to
the regular plan. (2/3 - CA10s29(F)) (6/15/14)
AN ACT1
To enact R.S. 11:926.1, relative to the optional retirement plan of the Teachers' Retirement2
System of Louisiana; to allow a participant to execute an actuarial transfer from the3
optional retirement plan into the regular plan; to provide for an effective date; and4
to provide for related matters.5
Notice of intention to introduce this Act has been published.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 11:926.1 is hereby enacted to read as follows:8
ยง926.1. Establishment of regular retirement plan membership9
A. Notwithstanding R.S. 11:925, 928, or any other provision of law to the10
contrary, any active contributing optional retirement plan participant may11
establish or reestablish membership in the regular defined benefit retirement12
plan of the Teachers' Retirement System of Louisiana by complying with the13
provisions of this Section.14
B. The person shall be eligible to receive an amount of service credit15
based on the duration of his participation in the optional retirement plan16
related to his active account. Service shall be calculated as though the person17 SB NO. 23
SLS 14RS-199 ORIGINAL
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
has been a member of the regular defined benefit retirement plan. The person1
shall receive such credit by paying to the system an amount, calculated in2
accordance with the provisions of R.S. 11:158, sufficient to totally offset any3
increase in liability of the system caused by the person receiving such credit.4
This payment shall be made by the transfer of all funds from the active optional5
retirement plan account plus any other payments from the person, as further6
provided in this Section. The transfer of funds from the account shall be7
classified as an eligible rollover distribution to the regular retirement plan.8
C.(1) Any optional retirement plan participant electing to establish or9
reestablish membership in the regular defined benefit retirement plan in10
accordance with the provisions of this Section shall transfer all funds in the11
active optional retirement plan account to the regular retirement plan and shall12
not have contributions or other funds in both plans. All monies contributed to13
the optional retirement plan by or on behalf of the person together with any14
earnings attributable thereto shall be transferred to the regular retirement plan15
and applied to the payments required by this Section.16
(2)(a) Except as provided in Subparagraph (b) of this Paragraph, in the17
event that the amount of funds transferred from the active optional retirement18
plan account is less than the actuarial cost of purchasing service credit in the19
system equal to the duration of the person's active participation in the optional20
retirement plan, the person transferring shall pay the deficit or difference21
including interest at the system's board-approved actuarial valuation rate.22
(b) In lieu of paying the deficit or difference plus interest, the person may23
at his option, but only at the time of transfer, be granted an amount of credit in24
the system which is based on the amount of funds actually transferred from the25
active optional retirement plan account, plus any additional funds less than the26
deficit paid by the person.27
D. If the person transferred any monies from the regular defined benefit28
retirement plan into the optional retirement plan in accordance with R.S.29 SB NO. 23
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
11:926(A) or R.S. 11:925(B), he may reestablish that credit in the regular1
retirement plan by complying with the provisions of R.S. 11:736, except that the2
repayment may be made at any time before retirement or entry into the3
Deferred Retirement Option Plan.4
E. Benefit calculation and retirement eligibility in the regular defined5
benefit retirement plan for any optional retirement plan participant electing to6
establish or reestablish membership in the regular retirement plan in7
accordance with the provisions of this Section shall be determined based on the8
date the individual's first employment making him eligible for membership in9
a state system occurred.10
F. The provisions of this Section shall terminate on June 30, 2020.11
Section 2. Anything not covered in this Act shall be administered as otherwise12
provided in Subtitle I and Chapter 2 of Subtitle II of Title 11.13
Section 3. This Act shall become effective on June 15, 2014; if vetoed by the14
governor and subsequently approved by the legislature, this Act shall become effective on15
June 15, 2014, or on the day following such approval by the legislature, whichever is later.16
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Laura Gail Sullivan.
DIGEST
Present law provides for an optional retirement plan (ORP) for certain persons who would
otherwise be members of the regular defined benefit plan of the Teachers' Retirement
System of Louisiana (Teachers' or TRSL). Provides two opportunities for a person to join:
at first employment covered by the system or at any time before the person accrues five
years of service credit in the regular defined benefit retirement plan.
Proposed law retains present law.
Present law provides that the election to join the ORP in lieu of membership in the regular
plan is irrevocable, regardless of when the choice is made.
Present law (R.S. 11:143) generally provides for transfers between La. public retirement or
pension systems, plans, and funds.
Proposed law allows an ORP member to transfer into the Teachers' regular retirement plan.
Provides for this transfer to be on an actuarial basis pursuant to present law transfer statutes.
Proposed law specifies that benefit calculation and retirement eligibility after a transfer
pursuant to proposed law shall be determined based on the date of the person's first
employment making him eligible for state system membership. SB NO. 23
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words in boldface type and underscored are additions.
Proposed law provides that proposed law terminates on June 30, 2020.
Effective June 15, 2014.
(Adds R.S. 11:926.1)