SLS 14RS-48 ORIGINAL
Page 1 of 3
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. 5
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(C), 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(C) is hereby enacted to read as follows: 8
ยง926. Transfers 9
* * *10
C. (1) Notwithstanding R.S. 11:925, 928, or any other provision of law11
to the contrary, anyone who elected to participate in the optional retirement12
plan in lieu of the defined benefit plan before December 31, 2013, may establish13
or reestablish membership in the defined benefit plan by complying with the14
provisions of this Subsection.15
(2) The person shall receive an amount of service credit equal to the16
duration of his participation in the optional retirement plan by paying to the17 SB NO. 5
SLS 14RS-48 ORIGINAL
Page 2 of 3
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
system an amount, calculated in accordance with the provisions of R.S. 11:158,1
sufficient to totally offset any increase in liability of the system caused by the2
person receiving such credit. This payment shall be made by the transfer of all3
funds from the optional retirement plan plus any other payments from the4
person, as further provided in this Subsection.5
(3)(a) Any optional retirement plan participant electing to establish6
membership in the defined benefit plan in accordance with the provisions of this7
Subsection shall transfer all funds in the optional retirement plan to the defined8
benefit plan and shall not have contributions or other funds in both plans. All9
monies contributed to the optional retirement plan by or on behalf of the person10
together with any earnings attributable thereto shall be transferred to the11
defined benefit plan and applied to the payments required by this Subsection.12
(b)(i) In the event that the amount of funds transferred from the optional13
retirement plan is less than the actuarial cost of purchasing service credit in the14
system equal to the duration of the person's participation in the optional15
retirement plan, the person transferring, except as provided for herein, shall16
pay the deficit or difference including the interest thereon at the17
board-approved actuarial valuation rate of the system.18
(ii) In lieu of paying the deficit or difference plus interest, the person may19
at his option, but only at the time of transfer, be granted an amount of credit in20
the system which is based on the amount of funds actually transferred from the21
optional retirement plan, plus any additional funds less than the deficit paid by22
the person.23
(4) If the person transferred any monies from the defined benefit plan24
into the optional retirement plan in accordance with Subsection A of this25
Section or R.S. 11:925(B), he may reestablish that credit in the defined benefit26
plan by complying with the provisions of R.S. 11:736, except that the repayment27
may be made at any time before retirement or entry into the Deferred28
Retirement Option Plan.29 SB NO. 5
SLS 14RS-48 ORIGINAL
Page 3 of 3
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Section 2. This Act shall become effective on June 15, 2014; if vetoed by the1
governor and subsequently approved by the legislature, this Act shall become effective on2
June 15, 2014, or on the day following such approval by the legislature, whichever is later.3
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 plan.
Proposed law retains present law.
Present law provides that the election to join the ORP in lieu of membership in Teachers',
regardless of when the choice is made, is irrevocable.
Proposed law provides for an ORP member to transfer into the Teachers' regular system.
Provides for this transfer to be on an actuarial basis pursuant to present law transfer statutes
applicable to other transfers from one La. public retirement system to another.
Effective June 15, 2014.
(Adds R.S. 11:926(C))