RÉSUMÉ DIGEST
ACT 249 (HB 21) 2020 Regular Session Bacala
New law amends various provisions of existing law relative to the Municipal Police
Employees' Retirement System (MPERS), including provisions for membership in the
system, required medical examinations, reemployment of retirees, survivor benefits, transfers
of service credit, and disability benefits.
System Membership
Existing law provides that an elected police chief is a member of the system if his salary is
above a monthly minimum. Prior law provided that the monthly minimum was $100. New
law increases the monthly minimum to $1,000.
Existing law defines employer as a municipality that employs a full-time police officer at a
salary above a monthly minimum. Prior law provided that the monthly minimum was $100.
New law increases the monthly minimum to $1000 per month.
Existing law provides that a person who is 50 years old or older does not become a member
upon employment. New law removes the age restriction for persons hired on or after July 1,
2021.
Existing law provides that a person ceases to be a member of the system if he is absent from
service for more than five years and is not entitled to a deferred annuity. New law limits the
applicability of this provision to a person who is absent for five years prior to July 1, 2021.
Medical Examinations
Existing law requires a new employee to receive a medical examination to be paid for by the
employing municipality. Requires the employee to waive any future claim for a disability
benefit based on a disability associated with a condition existing at the time of employment.
Requires submission of the examination and waivers to the retirement system within six
months after employment; upon timely submission of the documents, the person is
considered a member from the date of employment.
New law provides that if a medical examination is not completed because the employer
refuses to pay for the physical examination, the employer is liable for any disability benefit
to which the member would be entitled.
Existing law provides that a person who does not timely submit the examination and waiver
documents is a member for purposes of receiving regular benefits but is not eligible for
disability benefits until the documents are submitted. New law limits the applicability of
existing law to employees who become eligible for membership in the system prior to July 1,
2021. For other employees, new law provides that a person who does not timely submit the
documents is a member eligible to begin vesting for regular benefits but is not eligible to
begin vesting for disability benefits for an injury not incurred in the line of duty until the
documents are submitted.
New law requires completion of a new physical examination if the employee has a break in
service longer than one year.
Reemployment of Retirees
Existing law provides relative to retirees who return to work covered by the system. Existing
law defines employee such that return to work provisions are generally applicable to retirees
who return to work in a full-time position. New law specifically provides that any retiree
who is employed full-time by a municipal police department is defined as an employee.
Existing law provides that if the retiree becomes an employee, payment of retirement benefits
is suspended and the employee and employer contribute to the system toward creditable
service. Upon termination of post-retirement employment, the retiree shall receive an
additional retirement benefit based on his additional service. Provides relative to
computation and options for the additional benefit. New law provides relative to the retirement benefits of a retiree who returns to work for an
employer in the system but who is not an employee as defined by law. Provides that the
retirement benefits of such a person are suspended during any such employment that occurs
within 24 months of the person's retirement. Requires the employer and the employee to
notify the system of any such reemployment and provides relative to recovery of benefits
paid in violation of new law.
Survivor Benefits
Existing law provides for payment of retirement benefits to a surviving spouse. Provides that
such benefits cease if the spouse remarries before a specified age. Prior law provided that
the age was 60. New law reduces that age to 55. New law also requires a surviving spouse
under the age of 55 to annually verify his marital status. Provides for suspension and
possible termination of survivor benefits if the spouse fails to timely verify his marital status.
New law provides for the payment of survivor benefits to a special needs trust created for a
disabled child.
New law requires claims for survivor benefits or refunds of accumulated contributions to be
filed within three years of the death.
Existing law provides for Hazardous Duty and Nonhazardous Duty Subplans of MPERS;
members whose first employment making them eligible for membership in the retirement
system occurs on or after Jan. 1, 2013, are in one of the subplans. Existing law for members
of both subplans requires a member to have at least 10 years of creditable service to be
eligible for survivor benefits. New law provides that the 10 years of service requirement is
not applicable to a member killed in the line of duty.
Transfer of Service Credit
Prior law, applicable only to MPERS, authorized the transfer of service credit that was
earned as a full-time law enforcement officer from another public retirement system.
Required that the system from which the individual transferred credit to transfer all employee
and employer contributions plus compounded 6% interest. Required that the member pay
the difference between the amount transferred and the amount which would have been
contributed to MPERS plus interest thereon; however, under certain circumstances,
authorized the member to transfer a lesser amount of service credit based on the amount of
funds transferred. New law repeals existing law.
Existing law, applicable to retirement systems generally, provides relative to transfers of
service credit between systems. Requires that the system from which the person transfers
credit to transfer to the receiving system an amount which is the lesser of the following:
(1)The greater of the actuarial cost to the receiving system for the service transferred or
all employee contributions from the transferring system.
(2)All employee contributions and all employer contributions.
Existing law provides that if the amount transferred is less than the actuarial cost of the
service transferred, the person transferring shall pay the difference, including interest thereon,
or be granted an amount of credit based on the amount of funds actually transferred and any
deficit paid by the member.
Existing law provides that if the accrual rate of the receiving system is greater than the
accrual rate of the transferring system, the person may purchase the accrual rate of the
receiving system for the purpose of applying that accrual rate to the transferred service credit.
New law authorizes a member transferring service credit to MPERS to pay for the higher
accrual rate to be applicable to all or any portion of the transferred service credit.
Disability Retirement
New law requires that claims for disability benefits by a person who becomes disabled after
June 30, 2021, be filed within three years from the date of disability. New law authorizes a member to appeal a decision made by a physician or by the MPERS
board of trustees regarding eligibility for disability benefits. Provides that such an appeal
shall be made to the Nineteenth Judicial District Court; requires that the petition be filed with
the court within 30 days after receipt of written notice of the decision.
Existing law authorizes the board of trustees of a retirement system to require that a disability
retiree who has not reached the age of regular retirement to undergo periodic medical
examinations to determine continued eligibility for disability retirement benefits. Provides
that payment for such medical exams are the retiree's responsibility. New law provides that
MPERS shall pay for such examinations of its retirees.
Other Provisions
Existing law provides retirement benefit options that include the continued payment of some
level of retirement benefit to a beneficiary after the death of the retiree. New law provides
that a member who is married under a community property regime has only one option, a
50% joint and survivor annuity, unless the spouse consents to another option or the member
proves that he cannot locate the spouse.
New law requires the board of trustees to use all reasonable means to collect benefits paid
by the system to an individual who was not due the benefit. Provides for prescriptive periods
on such collections. Authorizes withholdings from future benefits to collect such
overpayments.
Effective July 1, 2020.
(Amends R.S. 11:2213(11)(b) and (12), 2214(A)(2)(a) and (d)(ii) and (B), 2220(B)(1)(a)(i)
and (2)(d), 2223(F), 2241.4, 2241.8(1)(a), and 2242.8(1)(a); Adds R.S. 11:2213(11)(h),
(12.1), and (21.1), 2214(A)(2)(d)(iv) and (v), 2220(B)(2)(e) and (6) and (J), (K), and (L),
2223(A)(3) and (G), 2224(G) and (H), 2241.8(5), and 2242.8(5); Repeals R.S. 11:2219)