Louisiana 2020 2020 Regular Session

Louisiana House Bill HB11 Engrossed / Bill

                    HLS 20RS-97	ENGROSSED
2020 Regular Session
HOUSE BILL NO. 11
BY REPRESENTATIVE CARPENTER
RETIREMENT/FIREFIGHTERS:  Provides relative to benefit payments if an eligible
member of the Firefighters' Retirement System dies prior to retirement
1	AN ACT
2To amend and reenact R.S. 11:2256(A)(3) and (B)(1)(d), to enact R.S. 11:2256(A)(6), and
3 to repeal R.S. 11:2256(B)(1)(f), relative to benefits in the Firefighters' Retirement
4 System; to provide with respect to payment of benefits if a member dies prior to
5 retirement; to provide for a benefit recipient; and to provide for related matters.
6	Notice of intention to introduce this Act has been published
7	as provided by Article X, Section 29(C) of the Constitution
8	of Louisiana.
9Be it enacted by the Legislature of Louisiana:
10 Section 1.  R.S. 11:2256(A)(3) and (B)(1)(d) are hereby amended and reenacted and
11R.S. 11:2256(A)(6) is hereby enacted to read as follows:
12 ยง2256.  Benefits; refund of contributions, application, and payment
13	A.
14	*          *          *
15	(3)(a)  Any member who has completed twenty or more years of creditable
16 service and who leaves employment covered by this system before attaining age fifty
17 or any member who has completed twelve or more years of creditable service and
18 who leaves employment covered by this system before attaining age fifty-five may
19 select, at any time prior to thirty days before the date that benefits are scheduled to
20 commence to the member, any optional retirement allowance as provided for in R.S.
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HB NO. 11
1 11:2259; within the same time period allowed above, the member may change the
2 option selected or the beneficiary of the option selected or both.
3	(b)  However, in the event of the death of if the member dies after the
4 selection of the option but prior to the commencement of benefits, the optional
5 benefit will become payable to the option beneficiary, at the time the member would
6 have otherwise begun to receive benefits.  In the event that If the member selects
7 neither the maximum regular retirement benefit nor an optional retirement allowance
8 within the time period allowed above, Option 2 will be automatically assumed to
9 have been selected and the member's designated beneficiary shall be the beneficiary
10 of the option. prior to thirty days before the date that benefits are scheduled to
11 commence, the surviving eligible spouse shall be paid benefits as though the member
12 had elected Option 2 of R.S. 11:2259, naming the member's surviving spouse as the
13 option beneficiary.  If a member has no surviving eligible spouse, the designated
14 beneficiary shall be the option beneficiary.  However, in the event that If a member
15 has no surviving eligible spouse or designated beneficiary, the accumulated
16 contributions of the member shall be refunded to his estate immediately upon receipt
17 of proof of death.
18	*          *          *
19	(6)  For purposes of this Section, "surviving eligible spouse" means the
20 spouse who was married to and living with the member at the time of his death.
21	B.(1)  Benefits shall be payable to the surviving eligible spouse or designated
22 beneficiary of a deceased member as specified in the following:
23	*          *          *
24	(d)  If any active contributing member who is eligible for retirement dies
25 before retiring, the member's designated beneficiary surviving eligible spouse shall
26 automatically be paid benefits as though the member had retired on the date of the
27 death and elected Option 2 of R.S. 11:2259, naming the member's designated
28 beneficiary surviving eligible spouse as the option beneficiary of the option.  If a
29 member has no surviving eligible spouse, the designated beneficiary shall be the
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HB NO. 11
1 option beneficiary.  This benefit shall be payable even though if the member may has
2 not have completed one year of membership service at the date of death.  Any person
3 entitled to benefits under this Subparagraph may decline such benefits and elect to
4 receive benefits under Subparagraph (a) or (b) of this Paragraph, whichever is
5 applicable.
6	*          *          *
7 Section 2.  R.S. 11:2256(B)(1)(f) is hereby repealed in its entirety.
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 11 Engrossed 2020 Regular Session	Carpenter
Abstract:  Provides that if a member of the Firefighters' Retirement System (FRS) dies
before retirement, his benefit payments are payable to the surviving spouse rather
than the designated beneficiary.
Present law provides for payment of benefits if a retirement-eligible member of FRS dies
prior to retirement.
If a member of FRS completes the required number of years of creditable service to qualify
for retirement but leaves covered employment, fails to elect a retirement payment option,
and dies before reaching retirement age, present law provides that the system will assume
Option 2 benefits would have been selected, and the member's designated beneficiary shall
receive the benefits payable at the time the member would have otherwise begun to receive
benefits.
If an active contributing member who is eligible for retirement dies before retiring, present
law provides that the member's designated beneficiary shall receive Option 2 benefits.
In these two instances, proposed law changes the automatic benefit recipient from the
designated beneficiary to the member's surviving eligible spouse.  Proposed law further
provides that if the member has no surviving eligible spouse, the designated beneficiary shall
be the beneficiary of the option.
Present law defines "surviving eligible spouse" as the spouse who was married to and living
with the member at the time of his death.  Present law provides that Option 2 is an actuarily
reduced benefit allowance that is payable to the member throughout his life and, upon his
death, payable to a beneficiary throughout the life of the beneficiary.  Proposed law retains
present law.
(Amends R.S. 11:2256(A)(3) and (B)(1)(d); Adds R.S. 11:2256(A)(6); Repeals R.S.
11:2256(B)(1)(f))
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CODING:  Words in struck through type are deletions from existing law; words underscored
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