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. Page 1 of 3 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 20RS-97 ENGROSSED 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 Page 2 of 3 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 20RS-97 ENGROSSED 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)) Page 3 of 3 CODING: Words in struck through type are deletions from existing law; words underscored are additions.