ENROLLED
ACT No. 652
2016 Regular Session
HOUSE BILL NO. 58
BY REPRESENTATIVES LEGER AND BAGNERIS
1 AN ACT
2 To amend and reenact R.S. 11:3385.1(H)(2) and (N), relative to the Deferred Retirement
3 Option Plan in the Firefighters' Pension and Relief Fund in the city of New Orleans;
4 to provide relative to benefit options for members electing to participate in such plan;
5 to provide with respect to account funds and interest thereon; to provide with respect
6 to administrative fees charged to such accounts; and to provide for related matters.
7 Notice of intention to introduce this Act has been published
8 as provided by Article III, Section 13 and Article X, Section
9 29(C) of the Constitution of Louisiana.
10 Be it enacted by the Legislature of Louisiana:
11 Section 1. R.S. 11:3385.1(H)(2) and (N) are hereby amended and reenacted to read
12 as follows:
13 ยง3385.1. Deferred Retirement Option Plan
14 * * *
15 H.
16 * * *
17 (2)(a) Beginning January 1, 2015, and continuing each year thereafter, upon
18 expiration of the participation period or termination of employment, if earlier, and
19 each year until the member's DROP account is distributed in its entirety, interest
20 shall be allocated annually to all member DROP accounts based on a five-year
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1 rolling average of the composite rate of return of the pension fund as determined by
2 the system actuary, less an administrative fee as determined by the board of trustees.
3 Prior to January 1, 2015, interest shall be allocated each year based on the one-year
4 composite rate of return of the pension fund, less an administration administrative
5 fee determined by the board of trustees, not to exceed two percent. The balance of
6 the a member's DROP account shall not be diminished or impaired. ,except as
7 otherwise provided in Subparagraph (c) of this Paragraph.
8 (b) Notwithstanding the provisions of Subparagraph (a) of this Paragraph,
9 upon expiration of the participation period or termination of employment if earlier,
10 a member's DROP account shall be placed in liquid asset money market investments
11 at the discretion of the board of trustees. The DROP account shall be credited with
12 interest at the actual rate of return earned on such money market investments.
13 (c) Notwithstanding the provisions of Subparagraph (a) or (b) of this
14 Paragraph, if a member participating in the Deferred Retirement Option Plan on or
15 after January 1, 2016, upon expiration of the participation period or termination of
16 employment if earlier, makes an irrevocable written election to waive the guarantees
17 contained in Subparagraphs (a) and (b) of this Paragraph and to authorize the fund
18 to debit his DROP account if the fund's investment portfolio experiences a negative
19 earning rate and to permanently reduce the value of his DROP account if the fund
20 assets are devalued by a negative earning rate, that member's DROP account may
21 earn interest at a rate based on a five-year rolling average of the composite rate of
22 return of the fund's investment portfolio as determined by the actuary, less a two
23 percent administrative fee assessed by the board of trustees.
24 * * *
25 N. Notwithstanding any other provision of law to the contrary, a member
26 may electing to participate in the Deferred Retirement Option Plan provided by this
27 Section and also make an election to shall not be eligible to receive an initial lump-
28 sum benefit as set forth in R.S. 11:3385.2.
29 * * *
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1 Section 2. This Act shall become effective upon signature by the governor or, if not
2 signed by the governor, upon expiration of the time for bills to become law without signature
3 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
4 vetoed by the governor and subsequently approved by the legislature, this Act shall become
5 effective on the day following such approval.
SPEAKER OF THE HOUSE OF REPRESENTATIVES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED:
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