2023 Louisiana Laws › Revised Statutes › Title 11 - Consolidated Public Retirement › §11:2256. Benefits; refund of contributions, application, and payment

RS 11:2256 - Benefits; refund of contributions, application, and payment
A.(1) Any member of this system who has completed at least twenty-five years of creditable service, who has been a member of this system for at least one year, regardless of age, or any member who has completed at least twenty years of creditable service, who has been a member of this system for at least one year, and who has attained the age of fifty years, or any member who has completed at least twelve years of service, who has been a member of this system for at least one year, and who has attained the age of fifty-five shall be entitled to retire from service.
(2) Any member who has completed twenty or more years of creditable service, and at least one year of which shall be as a member of this system, and who leaves employment covered by this system before attaining age fifty shall be entitled to a retirement benefit beginning at age fifty. Any member who has completed twelve years of creditable service, and at least one year of which shall be as a member of this system, and who leaves employment covered by this system before attaining age fifty-five shall be entitled to a retirement benefit beginning at age fifty-five.
(3)(a) Any member who has completed twenty or more years of creditable service and who leaves employment covered by this system before attaining age fifty or any member who has completed twelve or more years of creditable service and who leaves employment covered by this system before attaining age fifty-five may select, at any time prior to thirty days before the date that benefits are scheduled to commence to the member, any optional retirement allowance as provided for in R.S. 11:2259; within the same time period allowed above, the member may change the option selected or the beneficiary of the option selected or both.
(b) However, if the member dies after the selection of the option but prior to the commencement of benefits, the optional benefit will become payable to the option beneficiary at the time the member would have otherwise begun to receive benefits. If the member selects neither the maximum regular retirement benefit nor an optional retirement allowance prior to thirty days before the date that benefits are scheduled to commence, the surviving eligible spouse shall be paid benefits as though the member had elected Option 2 of R.S. 11:2259, naming the member's surviving eligible spouse as the option beneficiary. If a member has no surviving eligible spouse, the designated beneficiary shall be the option beneficiary. If a member has no surviving eligible spouse or designated beneficiary, the accumulated contributions of the member shall be refunded to his estate immediately upon receipt of proof of death.
(4) Upon such retirement, the member shall be paid an annual retirement allowance equal to three and one-third percent of his average final compensation multiplied by his total years of creditable service. However, the annual retirement allowance shall not exceed one hundred percent of his average final compensation. The member shall not be paid any amount in excess of the maximum amount permitted under Section 415 of the Internal Revenue Code of 1986, as amended. The foregoing sentence shall not prohibit payments to a member from an excess benefit plan established pursuant to Section 415(m) of the Internal Revenue Code of 1986, as amended, as provided in Section 2272 of this Chapter.
(5)(a) Upon returning to work as a full-time employee for a fire department of an employer covered by this system, retirement benefits shall cease and the employee and employer shall contribute to the system towards creditable service. The member may not change the option which was selected under the first retirement computation.
(b) When a person who is retired from this system returns to work on a part-time basis for a fire department of an employer covered by this system, employee and employer contributions shall be remitted to the system, but the retiree shall not accrue creditable service. Employee contributions shall be refunded, without interest, and the system shall retain the employer contributions.
(6) For purposes of this Section, "surviving eligible spouse" means the spouse who was married to and living with the member at the time of his death.
B.(1) Benefits shall be payable to the surviving eligible spouse or designated beneficiary of a deceased member as specified in the following:
(a)(i) If any active contributing member is killed in the line of duty before he is eligible to retire, and leaves a surviving eligible spouse, the spouse shall be paid, on a monthly basis, an annual benefit equal to two-thirds of the deceased member's average final compensation.
(ii) The board of trustees shall promulgate rules pursuant to the Administrative Procedure Act, R.S. 49:950 et seq., to provide for a procedure for determining whether a member was killed in the line of duty. The board shall use its discretion in applying the procedure. The board's promulgation of the rules and application of the procedure shall be in compliance with its fiduciary obligations as set forth in this Title.
(b) If any active contributing member dies before he is eligible to retire from a cause not in the line of duty and leaves a surviving eligible spouse, the spouse shall be paid, on a monthly basis, an annual benefit equal to three percent of the deceased member's average final compensation multiplied by his total years of creditable service; however, in no event shall the annual benefit be less than forty percent nor more than sixty percent of the deceased member's average final compensation.
(c) If the surviving spouse receiving benefits under Subparagraph (a) or (b) of this Paragraph remarries, such benefits shall continue without interruption, regardless of when the remarriage occurs.
(d) If any active contributing member who is eligible for retirement dies before retiring, the member's surviving eligible spouse shall automatically be paid benefits as though the member had retired on the date of death and elected Option 2 of R.S. 11:2259, naming the member's surviving eligible spouse as the option beneficiary. If a member has no surviving eligible spouse, the designated beneficiary shall be the option beneficiary. This benefit shall be payable even if the member has not completed one year of membership service at the date of death. Any person entitled to benefits under this Subparagraph may decline such benefits and elect to receive benefits under Subparagraph (a) or (b) of this Paragraph, whichever is applicable.
(e) Benefits shall be payable to the surviving eligible spouse of a disability retiree who dies after retirement as specified in R.S. 11:2258(C).
(f) Repealed by Acts 2020, No. 2, §2.
(2) Benefits shall be payable to the surviving child or children of a deceased member or retiree as specified in the following:
(a) If any active contributing member or a disability retiree dies and leaves in addition to a surviving spouse, one or more children under eighteen years of age, each child under age eighteen shall be paid, on a monthly basis, an annual benefit equal to ten percent of the deceased member's or retiree's average final compensation, or two hundred dollars per month, whichever is greater. However, benefits payable on account of each child, when added to the benefits payable to the surviving eligible spouse, shall not exceed an aggregate of one hundred percent of the average final compensation. Benefits for a surviving child shall cease upon the child's attaining age eighteen years or upon marriage, whichever occurs first, except that benefits shall continue for an unmarried surviving child who has a physical or intellectual disability as provided in Paragraph (3) of this Subsection. Additionally, any unmarried surviving child, who graduates from high school and enrolls, on a full-time basis, in an institute of higher education, shall have his benefit continued as long as he remains enrolled on a full-time basis and remains unmarried; however, the benefit payments shall not extend past four additional years nor past the surviving child's twenty-second birthday. Benefits payable under the provisions of this Subparagraph may be paid in trust as provided in R.S. 11:2256.2.
(b) If a member or a disability retiree dies and does not leave a surviving spouse but leaves two or more children under the age of eighteen, each child under age eighteen shall be paid, on a monthly basis, an annual benefit equal to thirty percent of the deceased member's or retiree's average final compensation. Benefits paid on account of all children shall not exceed, on a monthly basis, an annual benefit in the aggregate of sixty percent of the average final compensation. In the event the deceased member or disability retiree is survived by only one minor child, the child shall be paid, on a monthly basis, an annual benefit of not less than forty percent of the deceased member's or retiree's average final compensation. Benefits shall continue after the minor child attains age eighteen as provided in Paragraph (3) of this Subsection. Benefits payable under the provisions of this Subparagraph may be paid in trust as provided in R.S. 11:2256.2.
(3)(a) Benefits shall be payable as specified in this Paragraph to any surviving child of a deceased member or retiree if the child has a total physical disability or an intellectual disability. The surviving child of a deceased active contributing member, a deceased disability retiree, or a deceased regular retiree, whether under or over the age of eighteen years, shall be entitled to the same benefits, payable in the same manner as are provided in this Section for minor children, if the child has a total physical disability or an intellectual disability and had such disability at the time of death of the member or retiree, and the child is dependent upon the surviving spouse or other legal guardian for subsistence. Benefits payable under the provisions of this Paragraph may be paid in trust as provided in R.S. 11:2256.2.
(b) A medical determination of permanent mental or physical disability of a member's child or children that is approved by the board of trustees pursuant to R.S. 11:2259(A)(1)(Option 4) shall also be sufficient certification of such disability for purposes of this Paragraph.
(4) Any benefit payable under this Subsection shall be paid on an actuarial basis.
(5) Effective January 1, 2007, if a member dies while on a leave of absence to perform qualified military service as described in 26 U.S.C. 414(u), his beneficiary is entitled to any benefit, except benefits that accrued during the period of qualified military service, that would have been provided under the plan had the member resumed and then terminated employment due to death, in accordance with 26 U.S.C. 401(a)(37); however, the member's beneficiary is entitled to benefits that accrued during the period of qualified military service if the beneficiary timely remits to the system any employee contributions which would have been required but for the member's leave of absence to perform qualified military service in accordance with the terms of federal law and R.S. 11:2254.
C. Should a member die before retirement and no one be entitled to survivors' benefits, the amount of his accumulated contributions standing to the credit of his individual account shall be paid to his estate or to such person as he shall have nominated by written designation, duly executed and filed with the board of trustees.
D. Notwithstanding any provision of Subsection A of this Section or any other provision of law to the contrary, when the retirement plan of any municipality, parish, or fire protection district merges its active members into the system, the persons merged shall not be eligible to receive a benefit from the system until one year after the effective date of the merger. However, if a member who is merged into the system, would normally be eligible to retire based on his age and total years of service credit prior to one year after the merger, he may retire, and the benefits shall be the obligation of the municipality until one year after the date of the merger.
E.(1) Any member who ceases to be an employee, except by death or retirement under the provisions of this Subpart, may apply for and obtain a refund of the amount of the accumulated contributions on deposit in his individual account in the Annuity Savings Fund. No refund shall be payable to any applicant if the applicant becomes employed again as an employee as defined in R.S. 11:2252(9) prior to the processing of his refund request by the retirement system.
(2) In order to obtain a refund, the member must complete and submit an application form furnished by the system. The member's application form must be certified by the employer but no earlier than thirty days after termination or resignation.
(3) A refund of accumulated employee contributions shall not be payable until the board of trustees approves the refund at a meeting that occurs at least thirty days after termination or resignation and not until all employee contributions for the member have been received by the retirement system. Refunds of accumulated employee contributions for members who previously assigned their contributions in consideration of a loan will be processed under the provisions of R.S. 11:2265.
(4) No interest shall be credited to any individual account and no interest shall be paid on funds withdrawn from the retirement system.
F.(1) The board of trustees may implement a court order which is not rendered against the system if all of the following are satisfied:
(a) The court order applies to another Louisiana public retirement or pension system, plan, or fund.
(b) The order applies to the benefits related to the creditable service in the other system earned or accrued by a member of this system.
(c) The court order directs the system to which it applies to pay benefits to the member or to another person or both.
(d) The assets and creditable service to which the order applies have been transferred from the other system to this system.
(2)(a) The board may apply the provisions of this Subsection to a court order regardless of the date of such order.
(b) The application of the order shall not diminish or impair the benefits which the order directs the other system to pay to the member or any other person named in the order; however, the board's implementation of the order shall not result in the sum of benefits paid to the member or any other person being in excess of the benefits the board would pay in the absence of the order, nor shall the implementation result in the board paying a benefit sooner than it would in the absence of the order.
G. Notwithstanding any other provision of law to the contrary, the board of trustees may implement a court order directing payment of any portion of a benefit to a trust or estate administrator pursuant to the provisions of R.S. 11:2256.2.
H.(1)(a) A surviving eligible spouse who is receiving a survivor benefit pursuant to Subsection B of this Section may designate his deceased spouse's child or children with a permanent mental or physical disability, hereafter in this Subsection referred to as a child with a disability, or the deceased member's dependent minor child or children, hereafter in this Subsection referred to as a minor child, to receive a specified amount of benefits payable to the surviving eligible spouse. Prior to any such payment to a minor child or child with a disability, the system's actuary shall certify that the benefit to be paid to the minor child or child with a disability plus the remaining benefit to be paid to the surviving eligible spouse is of equivalent value to the total benefits that would otherwise be payable to the surviving eligible spouse. Any benefit paid to a child with a disability pursuant to Subparagraph (B)(2)(a) of this Section shall be factored to mitigate any reduction of the surviving spouse's benefit that may be related to designating such child as a beneficiary pursuant to this Subsection.
(b) The designation made pursuant to Subparagraph (a) of this Paragraph is irrevocable on and after the date that the first of any benefit payment pursuant to Subparagraph (a) of this Paragraph becomes due.
(c) If a surviving eligible spouse designates a child with a disability to receive a benefit pursuant to this Subsection, the surviving eligible spouse shall furnish the system such medical documentation as required, within the sole discretion of the board of trustees, to determine the existence and medical certainty of any claimed permanent mental or physical disability. The surviving eligible spouse is responsible for furnishing the medical evidence of disability, including all costs thereof. Within the board of trustees' sole discretion, and upon receipt of written consent of the surviving eligible spouse, the cost of any such additional medical processes may be deducted from the benefits payable to the surviving eligible spouse or child or children or all of the foregoing beneficiaries.
(2)(a) If a surviving eligible spouse irrevocably designates a minor child to receive a benefit as set forth in Paragraph (1) of this Subsection, the benefits of a surviving child shall cease upon the child's attaining the age of majority or upon marriage, whichever occurs first. Additionally, an unmarried minor child who graduates from high school and enrolls on a full-time basis in an institute of higher education shall have his benefit continued as long as he remains enrolled on a full-time basis and remains unmarried; however, the benefit payments shall not extend past four additional years nor past the surviving child's twenty-second birthday.
(b) If a surviving eligible spouse irrevocably designates a child with a disability to receive a benefit as set forth in Paragraph (1) of this Subsection, that benefit shall continue unless the disabling condition is no longer medically determined to be permanent.
(3)(a) If a child that has been designated to receive a benefit as set forth in Paragraph (1) of this Subsection predeceases the surviving eligible spouse, the surviving eligible spouse's benefits shall be increased to account for the forgone payment of benefits to such child, less any actuarial reduction related to the period in which the child was alive and subject to receipt of benefits pursuant to the designation.
(b) If the surviving eligible spouse predeceases any designated child, then the benefits payable to the child shall continue for the duration specified in Paragraph (2) of this Subsection.
(c) If the surviving eligible spouse predeceases a designated child and the child dies prior to receiving benefits for the duration specified in Paragraph (2) of this Subsection, then the benefits payable to such deceased child shall revert to any other surviving designated child on a prorated basis. The benefit payable shall continue until the last surviving child or children are no longer eligible pursuant to the provisions of this Subsection.
(4) Any active contributing member may prefile with the system prior to retirement, on forms prescribed by the system, a notarized statement whereby a surviving eligible spouse consents to legally waive in advance, in whole or in part, any portion of benefits payable to the surviving eligible spouse. The prescribed form shall include a hold-harmless clause whereby the system is acknowledged to be an administrator only and not liable for any consequences of relinquished rights or obsolescence of or failure to update any forms prefiled by the member.
(5) If any colorable issue or cause of action arises as it relates to the provisions of this Subsection, the system may place the entire matter in concursus for the interested parties to assert their positions in court. All costs related to such concursus shall be paid by the parties in defense, and no cost shall be allocated to the system.
Acts 1979, No. 434, §1; Acts 1980, No. 178, §1; Acts 1980, No. 799, §1; Acts 1981, No. 609, §1; Acts 1982, No. 16, §1; Acts 1982, No. 684, §1; Acts 1983, No. 229, §1; Acts 1984, No. 472, §1; Redesignated from R.S. 33:2155 by Acts 1991, No. 74, §3, eff. June 25, 1991; Amended by Acts 1992, No. 253, §1, eff. July 1, 1992; Acts 1992, No. 455, §1, eff. July 1, 1992; Acts 1992, No. 1094, §1, eff. July 1, 1992; Acts 1995, No. 596, §1, eff. July 1, 1995; Acts 1995, No. 597, §1; Acts 1999, No. 1320, §1, eff. July 12, 1999; Acts 2003, No. 719, §1, eff. June 27, 2003; Acts 2006, No. 492, §1, eff. July 1, 2006; Acts 2008, No. 496, §1, eff. June 25, 2008; Acts 2012, No. 427, §1; Acts 2012, No. 480, §1, eff. July 1, 2012; Acts 2014, No. 811, §4, eff. June 23, 2014; Acts 2020, No. 2, §§1, 2; Acts 2020, No. 4, §1; Acts 2020, No. 164, §1, eff. June 11, 2020; Acts 2021, No. 140, §1; Acts 2023, No. 337, §1, eff. June 12, 2023.
NOTE: Acts 2014, No. 811 changed terminology referring to persons with disabilities throughout the La. Revised Statutes and codes of law, and included a listing of terms that were deleted and their respective successor terms (See Acts 2014, No. 811, §36). The Act provides that it is not the intent of the legislature that changes in terminology effected therein alter or affect in any way the substance, interpretation, or application of any law or administrative rule; further provides that nothing in the Act shall be construed to expand or diminish any right of or benefit for any person provided by any law or administrative rule (See Acts 2014, No. 811, §35(C) and (D)).