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Regular Session, 2014
SENATE BILL NO. 25
BY SENATOR GUILLORY
SCHOOL EMPLOYEES RET. Provides for administration of the system. (2/3 -
CA10s29(F)) (6/30/14)
AN ACT1
To amend and reenact R.S. 11:1142, 1147(C)(2)(a)(ii), 1151(F)(1), 1151.1(A) and (C)(1),2
and 1206, to enact R.S. 11:1132.1, and to repeal R.S. 11:162(D), 1002(11), and3
1144(A)(2), relative to the administration of the Louisiana School Employees'4
Retirement System; to provide for recovery of overpayments; to provide for5
disability and survivor benefits for certain members; to provide for technical6
corrections; to provide for an effective date; and to provide for related matters.7
Notice of intention to introduce this Act has been published.8
Be it enacted by the Legislature of Louisiana:9
Section 1. R.S. 11:1142, 1147(C)(2)(a)(ii), 1151(F)(1), 1151.1(A) and (C)(1), and10
1206 are hereby amended and reenacted and R.S. 11:1132.1 is hereby enacted to read as11
follows:12
§1132.1. Administrative errors; collections13
A. Effective July 1, 2014, the right to collect any benefit paid to an14
individual to whom the benefit was not due resulting from an administrative15
error by the system shall apply only to amounts paid during the16
thirty-six-month period immediately preceding the date on which notice of such17 SB NO. 25
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error is sent to the member, except in the case of fraud.1
B. Notwithstanding the provisions of Subsection A of this Section, if the2
individual receiving the payment committed a fraud against the system, the3
right to collect such fraudulent payment shall extend to the entire amount of4
overpayment obtained through fraud.5
C. Recovery of any amount paid to an individual to whom the benefit6
was not due, collected as provided in this Section, shall be in accordance with7
the provisions of R.S. 11:192.8
* * *9
§1142. Withdrawal from service after ten years; retirement allowance at age sixty10
vesting11
A. Any member whose first employment making him eligible for12
membership in one of the state systems occurred on or before June 30, 2010,13
who has credit for ten or more years of regular, full-time creditable service, may14
withdraw from service and elect to leave his accumulated contributions in the system15
and upon reaching age sixty, he shall be eligible to receive a retirement allowance16
based on the credits he had at the time of his withdrawal from service. 17
B. Any member whose first employment making him eligible for18
membership in one of the state systems occurred on or after July 1, 2010, who19
has five or more years of creditable service, may withdraw from service and20
elect to leave his accumulated contributions in the system and upon reaching21
age sixty, he shall be eligible to receive a retirement allowance based on the22
credits he had at the time of his withdrawal from service.23
* * *24
§1147. Disability retirement25
* * *26
C.(1) * * *27
(2)(a)(i) * * *28
(ii) A disability retiree whose membership in the system began on or after29 SB NO. 25
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July 1, 2006, but whose first employment making him eligible for membership1
in one of the state systems occurred on or before June 30, 2010, who is not eligible2
to receive a regular service retirement allowance and who has at least ten years of3
creditable service, shall receive a disability retirement allowance equal to three4
percent of his average compensation multiplied by his years of creditable service.5
* * *6
§1151. Survivor benefits; members hired on or before June 30, 20107
* * *8
F.(1) No beneficiary or beneficiaries survivor or nonretiree beneficiary9
shall receive more than one survivor's benefit at any one time. Whenever two or10
more survivor benefits are payable, the survivors shall receive the larger benefit as11
long as it is payable,. then Thereafter, the survivor shall receive the other benefit,12
if the survivor is still eligible.13
* * *14
§1151.1. Survivors' benefits; members hired on or after July 1, 201015
A.(1) Survivor benefits shall be due and payable by the system effective the16
first day of the next month following the death of a member whose first employment17
making him eligible for membership in one of the state systems occurred on or after18
July 1, 2010, but shall not be paid until a properly completed and acceptable19
application is received by the system and all proper certifications have been received20
by the system.21
(2) No survivor or nonretiree beneficiary shall receive more than one22
survivor's benefit at any one time. Whenever two or more survivor benefits are23
payable, the survivors shall receive the larger benefit as long as it is payable.24
Thereafter, the survivor shall receive the other benefit, if the survivor is still25
eligible.26
* * *27
C.(1) In addition to the amount payable in accordance with Subsection B of28
this Section, for the benefit of the surviving minor child, or children, there shall be29 SB NO. 25
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paid for each such child, subject to a maximum of two children, per month fifty1
percent of the benefit to which a spouse would be entitled under Subsection B of this2
Section. Benefits shall be payable to such children even if no spouse eligible for3
survivor benefits is present, provided the member had at least five years of service4
credit. Benefits for a child shall cease when the child is no longer a minor child as5
defined by this Chapter. No surviving minor child shall receive more than one6
survivor's benefit at any one time. If two benefits are applicable, only the larger shall7
be paid.8
* * *9
§1206. Employee contributions; discontinuance10
The retirement benefits provided by this Part shall not annually exceed one11
hundred percent of average compensation, and when a member has earned accrued12
a benefits equal to one hundred percent of his average compensation, no further13
contributions shall be required of him. However, the employer shall continue to pay14
employer contributions to the system.15
Section 2. R.S. 11:162(D), 1002(11), and 1144(A)(2) are hereby repealed.16
Section 3. The cost of this Act, if any, shall be funded through employer17
contributions, in compliance with Article X, Section 29(F) of the Constitution of Louisiana.18
Section 4. This Act shall become effective on June 30, 2014; if vetoed by the19
governor and subsequently approved by the legislature, this Act shall become effective on20
June 30, 2014, or on the day following such approval by the legislature, whichever is later.21
The original instrument was prepared by Margaret M. Corley. The following
digest, which does not constitute a part of the legislative instrument, was
prepared by Cathy R. Wells.
DIGEST
Guillory (SB 25)
Present law (R.S. 11:192) requires all state and statewide retirement systems to recover
overpayments of benefits.
Proposed law authorizes the Louisiana School Employees' Retirement System (LSERS) to
recover overpayments paid during the 36-month period immediately preceding the date
notice of such error is sent to the member, except in the case of fraud. Provides that, in the
case of fraud, the right to collect the overpayment extends to the full amount. SB NO. 25
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Present law, due to a technical error, does not provide for a disability benefit for LSERS
members whose first employment making them eligible for state system membership
occurred on or before June 30, 2010.
Proposed law corrects the technical error, providing these members with eligibility for
disability benefits after 10 years of service credit and a benefit equal to 3% of his average
compensation multiplied by his years of service.
Proposed law provides for other technical corrections to present law applicable to the
LSERS.
Effective June 30, 2014.
(Amends R.S. 11:1142, 1147(C)(2)(a)(ii), 1151(F)(1), 1151.1(A) and (C)(1), and 1206; adds
R.S. 11:1132.1; and repeals R.S. 11:162(D), 1002(11), and 1144(A)(2))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Retirement to the
original bill
1. Present law provides that any member who has ten or more years of regular
service may withdraw from service and elect to leave his contributions in the
system and upon reaching age 60, he may be eligible to receive a retirement
allowance based on the credits he had at the time of his withdrawal from
service.
2. Proposed law provides that any member whose first employment making him
eligible for membership in one of the state systems occurred on or before
June 30, 2012, who has ten or more years of regular service may withdraw
from service and elect to leave his contributions in the system and upon
reaching age 60, he may be eligible to receive a retirement allowance based
on the credits he had at the time of his withdrawal from service.
3. Proposed law provides that any member whose first employment making him
eligible for membership in one of the state systems occurred on or after June
30, 2012, who has five or more years of regular service may withdraw from
service and elect to leave his contributions in the system and upon reaching
age 60, he may be eligible to receive a retirement allowance based on the
credits he had at the time of his withdrawal from service.
Senate Floor Amendments to engrossed bill
1. Makes technical corrections.