DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of the
legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law
or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 31 Original 2018 Regular Session Pearson
Abstract: Relative to the Municipal Employees' Retirement System of La. (MERS), provides
options for a retired member's actuarially reduced benefit to increase to the maximum benefit
if the designated beneficiary predeceases the retired member.
Present law allows a member of MERS to elect, upon application for retirement, to receive his full
benefit payable throughout his life (Option 1), or an actuarially reduced benefit payable throughout
his life with one of the following provisions:
(1)Upon his death the amount of his reduced benefit is paid to a designated beneficiary through
the beneficiary's lifetime.
(2)Upon his death, one-half the amount of his reduced benefit is paid to a designated beneficiary
through the beneficiary's lifetime.
(3)Some other benefit or benefits shall be paid to the member or the designated beneficiary,
provided the other benefits, together with the reduced retirement allowance, shall be certified
by the actuary to be actuarially equivalent to his retirement allowance and shall be approved
by the board.
Present law prohibits a retiree from changing his designated beneficiary. Prohibits changes in the
option selected by the member, other than to correct administrative error, after 60 days from receipt
of retirement application by the board.
Proposed law retains present law and adds the following two options:
(1)Upon his death the amount of his reduced benefit is paid to a designated beneficiary through
the beneficiary's lifetime. If the designated beneficiary dies before the retiree dies, the
benefits payable to the retiree shall be increased to the Option 1 benefit effective on the first
day of the next month following the death of the designated beneficiary.
(2)Upon his death one-half the amount of his reduced benefit is paid to a designated beneficiary
through the beneficiary's lifetime. If the designated beneficiary dies before the retiree dies,
the benefits payable to the retiree shall be increased to the Option 1 benefit effective on the
first day of the next month following the death of the designated beneficiary.
Both options require the retiree to notify the system of the death of the beneficiary and furnish to the system the beneficiary's death certificate.
Effective July 1, 2018.
(Amends R.S. 11:1757(A))