HLS 21RS-491 ORIGINAL
2021 Regular Session
HOUSE BILL NO. 28
BY REPRESENTATIVE ADAMS
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
RETIREMENT/FIREFIGHTERS: Provides relative to beneficiaries within the Firefighters'
Retirement System
1 AN ACT
2To amend and reenact R.S. 11:2252(6), 2256(G), 2256.1, 2256.2(A) and (E), and
3 2259(A)(3) and to enact R.S. 11:2256.2(F) and 2259(A)(4), relative to the
4 Firefighters' Retirement System; to provide relative to members' beneficiaries; to
5 provide for payment of benefits to estate administrators; and to provide for related
6 matters.
7 Notice of intention to introduce this Act has been published
8 as provided by Article X, Section 29(C) of the Constitution
9 of Louisiana.
10Be it enacted by the Legislature of Louisiana:
11 Section 1. R.S. 11:2252(6), 2256(G), 2256.1, 2256.2(A) and (E), and 2259(A)(3) are
12here by amended and reenacted and R.S. 11:2256.2(F) and 2259(A)(4) are hereby enacted
13to read as follows:
14 §2252. Definitions
15 The following words and phrases, as used in this Chapter, unless a different
16 meaning is plainly required by context, shall have the following meaning:
17 * * *
18 (6) "Beneficiary" shall mean any natural or juridical person or estate
19 administrator designated to receive a pension, an annuity, a retirement allowance, or
20 other benefit as provided by this Chapter.
21 * * *
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1 §2256. Benefits; refund of contributions, application, and payment
2 * * *
3 G. Notwithstanding any other provision of law to the contrary, the board of
4 trustees may implement a court order directing payment of any portion of a benefit
5 to a trust or estate administrator pursuant to the provisions of R.S. 11:2256.2.
6 §2256.1. Removal of former spouse as beneficiary; restoration of benefits
7 A.(1) Notwithstanding any other provision of law to the contrary, any retiree
8 may remove a former spouse as a beneficiary of any benefits paid or payable to the
9 former spouse from this system, provided the former spouse consents to such
10 removal and the consent is evidenced by a certified court order issued in connection
11 with a divorce proceeding relative to the retiree and former spouse.
12 B.(2) The benefit payable to any retiree who provides for removal of a
13 former spouse as a beneficiary pursuant to Paragraph (1) of this Subsection A of this
14 Section shall be restored to the maximum amount payable under R.S. 11:2256(A)(4),
15 less any reduction required to account for the time that the former spouse was a
16 beneficiary.
17 (3) The phrase "benefits paid or payable" as used in this Subsection shall
18 include but not be limited to benefits provided for in R.S. 11:2256, 2257, and 2258
19 and any death benefit accrued to the former spouse as part of the former community
20 property regime.
21 B.(1) Notwithstanding any other provision of law to the contrary, prior to the
22 receipt of any benefit by a named beneficiary, a retiree may remove any named
23 beneficiary and preempt the payment of any benefits payable to such person if the
24 named beneficiary being removed does not have a community property interest
25 relative to this system. The benefit payable to any retiree who removes a named
26 beneficiary pursuant to this Subsection shall be restored to the maximum amount
27 payable under R.S. 11:2256(A)(4), less any actuarial reduction required to account
28 for the time that the person was previously named as a beneficiary.
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1 (2) The phrase "benefits paid or payable" as used in this Subsection shall
2 include but not be limited to benefits provided for in R.S. 11:2256, 2257, and 2258
3 and any death benefit accrued to the person previously named as the beneficiary.
4 C. The phrase "benefits paid or payable" as used in this Section shall include
5 but not be limited to benefits provided for in R.S. 11:2256, 2257, and 2258 and any
6 death benefit accrued to the former spouse as part of the former community property
7 regime. A retiree may add a beneficiary of any benefit payable from this system,
8 without changing the option originally selected, if the retiree's benefit is reduced to
9 account for any adverse actuarial impact to this system.
10 §2256.2. Designation of benefits to be paid in trust payable to trust or estate
11 administrator
12 A. A member may designate all or a portion of any benefit paid in
13 accordance with R.S. 11:2256 or 2259 this Chapter to be paid in trust to his surviving
14 minor child or his child with a physical or mental disability regardless of such child's
15 age any beneficiary, if the terms of the trust so provide and if the system is provided
16 with a certified copy of the trust document. Such benefit or designated portion of a
17 benefit shall be paid to the trust for addition to the trust property.
18 * * *
19 E. A member may designate all or a portion of any benefit paid in
20 accordance with this Chapter to be paid monthly to a court appointed estate
21 administrator, on behalf of the member's surviving spouse, children, or both, for the
22 purpose of probating a valid testament wherein such spouse, children, or both are
23 named as legatees and the testament contains a provision for informal acceptance.
24 For payment to be made to an estate administrator, the system shall be furnished a
25 certified copy of the testament. This system's actuary shall determine the
26 methodology for calculating the amount and duration of monthly benefits payable
27 to the estate administrator based on the provisions of the testament. Such benefit or
28 designated portion that is paid to the estate administrator shall not be treated as an
29 addition to the estate assets and shall not be accessible to creditors for payment of
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1 any estate debt or the estate administrator's fees. The estate administrator shall pay
2 such monthly benefits to the appropriate legatee in accordance with the instructions
3 set forth in the testament. The estate administrator shall immediately notify this
4 system in writing of the death of any legatee receiving benefits pursuant to this
5 Subsection. If payment of a benefit or portion pursuant to this Subsection is
6 contested by any party, the system shall withhold all disputed benefit payments and
7 institute a concursus action and deposit such benefits into the registry of the court
8 until there is a final binding legal agreement or judgement regarding the proper
9 payment.
10 F. For purposes of this Section only, the term "child" means the issue of a
11 marriage of a member of this system, the legally adopted child of a member of this
12 system, a child born outside of marriage of a female member of this system, or the
13 child of a male member of this system if acknowledged or filiated pursuant to the
14 provisions of the Civil Code.
15 * * *
16 §2259. Optional allowances
17 A.
18 * * *
19 (3) If a member nominates his child or children with a permanent mental or
20 physical disability to receive a benefit pursuant to Option 4 of this Subsection, the
21 medical determination of such disability shall be performed in immediate proximity
22 to, but before the effective date of, such member's retirement or entry into the
23 Deferred Retirement Option Plan. If a member requests the system to perform a
24 medical determination of disability for his child or children and the member does not
25 allocate to the child or children at least half of his reduced benefit, the member shall
26 pay the cost of the medical determination by having the cost deducted from his
27 retirement benefit.
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1 (4) For the purpose of this Subsection, the term "person" includes a trust or
2 estate administrator as provided in R.S. 11:2256.2.
3 * * *
4 Section 2. The cost of this Act, if any, shall be funded with additional employer
5contributions in compliance with Article X, Section 29(F) of the Constitution of Louisiana.
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 28 Original 2021 Regular Session Adams
Abstract: Provides relative to beneficiaries of members of the Firefighters' Retirement
System (FRS).
Proposed law authorizes a member of FRS to add a beneficiary of any benefit to which he
is entitled if the benefit is reduced to account for the actuarial impact of adding the
beneficiary.
Present law authorizes a member to remove a former spouse as a beneficiary if the former
spouse consents to the removal.
Proposed law authorizes a member to remove any beneficiary if no payments have been
made to the beneficiary and the beneficiary does not have a community property interest
relative to FRS.
Proposed law authorizes payment of benefits to an estate administrator on behalf of a spouse
or child if the spouse or child is a legatee and the testament contains a provision for informal
acceptance. Provides procedures for such payments.
Proposed law requires the estate administrator to notify the system in writing immediately
upon the death of any legatee receiving a benefit. Provides that if payment is contested, the
system shall withhold the disputed payment, institute a concursus action, and deposit the
disputed benefit into registry of the court pending a final judgment.
Proposed law provides that if a member names a permanently disabled child to receive a
benefit, then a medical determination of such disability shall be performed in immediate
proximity to but before the member retires or enters into the Deferred Retirement Option
Plan.
Proposed law provides that if the member requests the system to perform a medical
determination of the disabled child and the member does not allocate at least half of his
reduced benefit to the child, the member shall pay the cost of the medical determination.
(Amends R.S. 11:2252(6), 2256(G), 2256.1, 2256.2(A) and (E), and 2259(A)(3); Adds R.S.
11:2256.2(F) and 2259(A)(4))
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