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 29 Original 2021 Regular Session Jefferson
Abstract: Provides for participation within the Firefighters' Retirement System (FRS) Deferred
Retirement Option Plan (DROP) for up to five years and with respect to payments of the
unfunded accrued liability (UAL) should a fire department fully or partially dissolve.
DROP Participation
Present law provides for participation within DROP for up to three years.
Proposed law provides for DROP participation to not exceed:
(1)Three years for members with less than 30 years of creditable service.
(2)Five years for members with at least 30 years of creditable service.
Proposed law allows a current DROP participant to select a longer participation period as authorized
by proposed law.
Present law provides that FRS benefits are based on a 36-month period when compensation was
highest.
Proposed law retains present law except that the benefits of a person who selects a DROP period
longer than 36 months shall be based on a 60-month period when compensation was the highest.
Dissolution of Fire Department and UAL Payment
Proposed law provides that if an employer dissolves or partially dissolves its fire department, then
beginning on the first July following the dissolution, the employer shall pay the department's portion
of the UAL to the system according to the percent included in the prior fiscal year's employer
pension report. Provides the amount due to the system shall include interest at the system's
valuation interest rate.
Proposed law provides that if an employer partially dissolves its fire department, it shall pay a pro
rata portion of the system's UAL.
Proposed law provides that a partially dissolved fire department meet one of the following criteria: (1)The number of participating employees of the employer as of June 30 is 70% less than June
30 of the previous year and either the number of participating employees decreases by at least
two or participating employees is zero.
(2)The number of participating employees of the employer, as of June 30 is at least 50 fewer
than the previous year.
Proposed law provides that payments due to the system be determined by the system's actuary and
amortized over 15 years in equal payments.
Proposed law provides that if the number of employees of a partially dissolved employer returns to
the number participating prior to withdrawal, payments will cease and payments made will be
credited as an offset of any amount due by the employer attributable to any subsequent withdrawal
that occurs within 15 years of payment.
Proposed law provides for collection of funds if an employer fails to make payments by either:
(1)Action in a court of competent jurisdiction against the employer. The employer is
responsible for legal fees incurred by the system.
(2)The board of trustees may submit a resolution and certification to the state treasurer of the
name of the delinquent employer and amount owed. The state treasurer shall deduct monies
payable to the employer and remit said monies directly to the system.
Employee Contributions and Credit Loans
Present law authorizes a member of FRS to assign the accumulated contributions he has made to the
system to a firefighters' credit union in consideration of a loan. If a member with less than 12 years
of creditable service leaves employment, present law requires that his contributions be paid to the
credit union.
Proposed law requires payment of such contributions to the credit union if the member has 12 or
more years of creditable service and dies without a survivor who is entitled to benefits.
(Amends R.S. 11:2252(5), 2257(C) and (K), 2262(D)(2)(b), and 2265(A)(2); Adds R.S.
11:2262(D)(2)(c) and 2262.1)