SSHB29 4267 3799
HOUSE SUMMARY OF SENATE AMENDMENTS
HB 29 2021 Regular Session Jefferson
RETIREMENT/FIREFIGHTERS: Provides relative to Firefighters' Retirement System
Synopsis of Senate Amendments
1.Removes proposed law which allowed participation within the Firefighters'
Retirement System (FRS) Deferred Retirement Option Plan (DROP) for up to
five years.
Digest of Bill as Finally Passed by Senate
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 three 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.
Collection of Unpaid Amounts
Present 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.
Proposed law provides that attorney fees and court costs are recoverable by FRS if delinquent
payments are recovered in court or through a concursus proceeding.
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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. 11:2262(D)(2)(b) and 2265(A)(2); Adds R.S. 11:2262(D)(2)(c) and 2262.1)
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