Louisiana 2014 Regular Session

Louisiana Senate Bill SB25 Latest Draft

Bill / Chaptered Version

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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	ENROLLED
SENATE BILL NO. 25
BY SENATOR GUILLORY 
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
error is sent to the member, except in the case of fraud.18
B. Notwithstanding the provisions of Subsection A of this Section, if the19
individual receiving the payment committed a fraud against the system, the20
right to collect such fraudulent payment shall extend to the entire amount of21
overpayment obtained through fraud.22
C. Recovery of any amount paid to an individual to whom the benefit23
ACT No. 680 SB NO. 25	ENROLLED
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words in boldface type and underscored are additions.
was not due, collected as provided in this Section, shall be in accordance with1
the provisions of R.S. 11:192.2
*          *          *3
§1142. Withdrawal from service after ten years; retirement allowance at age sixty4
vesting5
A. Any member whose first employment making him eligible for6
membership in one of the state systems occurred on or before June 30, 2010,7
who has credit for ten or more years of regular, full-time creditable service, may8
withdraw from service and elect to leave his accumulated contributions in the system9
and upon reaching age sixty, he shall be eligible to receive a retirement allowance10
based on the credits he had at the time of his withdrawal from service. 11
B. Any member whose first employment making him eligible for12
membership in one of the state systems occurred on or after July 1, 2010, who13
has five or more years of creditable service, may withdraw from service and14
elect to leave his accumulated contributions in the system and upon reaching15
age sixty, he shall be eligible to receive a retirement allowance based on the16
credits he had at the time of his withdrawal from service.17
*          *          *18
§1147. Disability retirement19
*          *          *20
C.(1) *          *          *21
(2)(a)(i) *          *          *22
(ii) A disability retiree whose membership in the system began on or after23
July 1, 2006, but whose first employment making him eligible for membership24
in one of the state systems occurred on or before June 30, 2010, who is not eligible25
to receive a regular service retirement allowance and who has at least ten years of26
creditable service, shall receive a disability retirement allowance equal to three27
percent of his average compensation multiplied by his years of creditable service.28
*          *          *29
§1151.  Survivor benefits; members hired on or before June 30, 201030 SB NO. 25	ENROLLED
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words in boldface type and underscored are additions.
*          *          *1
F.(1) No beneficiary or beneficiaries survivor or nonretiree beneficiary2
shall receive more than one survivor's survivor benefit at any one time. Whenever3
two or more survivor benefits are payable, the survivors shall receive the larger4
benefit as long as it is payable	,. then Thereafter, the survivor shall receive the5
other benefit, if the survivor is still eligible.6
*          *          *7
§1151.1.  Survivors' Survivor benefits; members hired on or after July 1, 20108
A.(1) Survivor benefits shall be due and payable by the system effective the9
first day of the next month following the death of a member whose first employment10
making him eligible for membership in one of the state systems occurred on or after11
July 1, 2010, but shall not be paid until a properly completed and acceptable12
application is received by the system and all proper certifications have been received13
by the system.14
(2) No survivor or nonretiree beneficiary shall receive more than one15
survivor benefit at any one time. Whenever two or more survivor benefits are16
payable, the survivors shall receive the larger benefit as long as it is payable.17
Thereafter, the survivor shall receive the other benefit, if the survivor is still18
eligible.19
*          *          *20
C.(1) In addition to the amount payable in accordance with Subsection B of21
this Section, for the benefit of the surviving minor child, or children, there shall be22
paid for each such child, subject to a maximum of two children, per month fifty23
percent of the benefit to which a spouse would be entitled under Subsection B of this24
Section.  Benefits shall be payable to such children even if no spouse eligible for25
survivor benefits is present, provided the member had at least five years of service26
credit.  Benefits for a child shall cease when the child is no longer a minor child as27
defined by this Chapter. No surviving minor child shall receive more than one28
survivor's benefit at any one time. If two benefits are applicable, only the larger shall29
be paid.30 SB NO. 25	ENROLLED
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words in boldface type and underscored are additions.
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§1206.  Employee contributions; discontinuance2
The retirement benefits provided by this Part shall not annually exceed one3
hundred percent of average compensation, and when a member has earned accrued4
a benefits equal to one hundred percent of his average compensation, no further5
contributions shall be required of him. However, the employer shall continue to pay6
employer contributions to the system.7
Section 2.  R.S. 11:162(D), 1002(11), and 1144(A)(2) are hereby repealed.8
Section 3. The cost of this Act, if any, shall be funded through employer9
contributions, in compliance with Article X, Section 29(F) of the Constitution of Louisiana.10
Section 4. This Act shall become effective on June 30, 2014; if vetoed by the11
governor and subsequently approved by the legislature, this Act shall become effective on12
June 30, 2014, or on the day following such approval by the legislature, whichever is later.13
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: