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Retirement Reference Manual (RRM) Training

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Title: Retirement Reference Manual (RRM) Training


1
Retirement Reference Manual (RRM) Training
  • Presented by
  • Retirement Education Division

2
Housekeeping
  • Cell phones, beepers
  • Coffee, snacks, restrooms
  • Lunch
  • Certificates
  • Ask questions

3
Introduction
  • RRM designed to assist with LASERS
  • procedures, rules and regulations
  • RRM is living manual evolving as issues and
    laws change
  • Website www.lasersonline.org
  • RRM Power Point on website under Employers,
    Publications for Employers, Training
  • Retirement Reference Manual under Employers,
    Publications for Employers, download by Chapter
  • Locate forms on website under Employers, Forms
    for Employers
  • Username Agency Password Lasers
  • Can complete forms online, print, sign, and mail
    to LASERS
  • Do NOT photocopy forms

4
Introduction
  • An acknowledgement is sent for most processes
  • Receipt of retirement, DROP, or IBO applications
  • Receipt of request to transfer or upgrade service
    credit
  • Receipt of request to repay refund or purchase
    service credit
  • Receipt of request to refund contributions
  • Receipt of payment for refund, transfer or
    purchase of service
  • Receipt of designation of beneficiary form
  • Receipt of Air Time purchase
  • Processed direct rollover

5
Procedures for Forms
  • LASERS will accept forms downloaded from web
  • LASERS will accept forms officially approved by
    LASERS

6
Procedures for Forms
  • LASERS will not
  • Accept forms modified or changed
  • Accept unsigned forms
  • Accept faxed forms
  • Accept copies of forms

7
New Look for Forms
  • To facilitate imaging and scanning processes
  • Numbering system
  • 1st digit Chapter number
  • 2nd digit Number of form in chapter

8
Reminders
  • Retirement Reference Manual (RRM) is located on
    website
  • LASERS will not send manuals to agencies
  • Agencies must download manual from website

9
Social Security Protection Act of 2004 Effective
January 1, 2005
  • Agencies must notify individuals employed about
    effects of Government Pension Offset (GPO) and
    Windfall Elimination Provision (WEP)
  • Member is required to sign form certifying they
    have been told about GPO and WEP

10
Social Security Protection Act of 2004 Effective
January 1, 2005
  • Employee ID number is member social security
    number
  • Employer ID number is agency number

11
Contact LASERS
  • Members and agencies in Baton Rouge area must
    dial 922-0600
  • Members and agencies outside Baton Rouge have use
    of toll free number 1-800-256-3000

12
LASERS Website www.lasersonline.org
  • Website Offers
  • Employer Self Service
  • Publications for Employers Members
  • Forms for Employers Members
  • Seminar Registration
  • Frequently Asked Questions
  • Contact Information
  • Ask LASERS
  • Helpful Links

13
(No Transcript)
14
Chapter 1
  • Enrollments Membership

15
Participation
  • Enrollment in LASERS is mandatory for all state
    employees whose agency is a LASERS participant,
    except those excluded by law
  • Proper enrollment of employees is important
  • The agency responsible for future cost to correct
    enrollment errors

16
Participation
  • Employees not eligible for membership
  • Employees who receive per diem allowance instead
    of earned compensation
  • Students, interns, and resident physicians at any
    state educational institution employed for
    temporary, part time or intermittent work
  • Independent contractors

17
Participation
  • Employees not eligible for membership (Contd)
  • Certain pool nurses
  • Certain unclassified, temporary, seasonal
    employees of Dept. of Revenue Taxation
  • Part time (20 hours or less), seasonal, temporary
    employees unless employee has 10 years of service
    credit (R. S. 11162)

18
Definitions
  • Definitions are located in Glossary (Chapter 12)
    of the Retirement Reference Manual

19
Part-time Employee
  • LA R. S. 11403 (20)
  • Part-time employee means any employee who is a
    part-time, seasonal, or temporary employee as
    defined in 26 CFR 313121(b)(7)-2, or in any
    successor regulations.
  • Note For purposes of determining eligibility
    for membership in LASERS, part-time means working
    20 hours or less per week. Agency representatives
    should monitor employees schedule to ensure that
    an employee is properly enrolled in LASERS if
    their regular scheduled hours increase above 20
    hours per week.

20
Part-time Employee
  • 26 CFR 313121(b)(7)-2
  • (iii) Definitions of part-time, seasonal and
    temporary employee
  • (A) Definition of part-time employee. For
    purposes of this section, a part-time employee is
    any employee who normally works 20 hours or less
    per week. A teacher employed by a post-secondary
    vocational school, college, university or
    graduate school is not considered a part-time
    employee for purposes of this section if he or
    she normally has classroom hours of one-half or
    more of the number of classroom hours designated
    by the educational institution as constituting
    full time employment, provided that such
    designation is reasonable under all the facts and
    circumstances.

21
Part-time Employee
  • Definition of part-time employee (Contd)
  • In addition, elected officials and election
    workers (otherwise described in section
    3121(b)(7)(F)(iv) but paid in excess of 100
    annually) are not considered part-time, seasonal
    or temporary employees for purposes of this
    section. The rules of this paragraph (d)(2)(iii)
    are illustrated by the following example

22
Part-time Employee
  • Example A community college recognizes a
    teacher as a full-time employee if the teacher is
    assigned to work 15 classroom hours per week. A
    new teacher is assigned to work 8 classroom hours
    per week. Since the assigned classroom hours of
    the teacher are at least one-half of the schools
    definition of a full-time teacher, the teacher is
    not considered a part-time employee.

23
Seasonal Employee
  • 26 CFR 313121(b)(7)-2
  • (iii) Definitions of part-time, seasonal and
    temporary employee
  • (B) Definition of seasonal employee.
  • For purposes of this section, a seasonal
    employee is any employee who normally works on a
    full-time basis less than 5 months in a year.
    Thus, for example, individuals who are hired by a
    political subdivision during the tax return
    season in order to process incoming returns and
    work full-time over a 3-month period are seasonal
    employees.

24
Temporary Employee
  • 26 CFR 313121(b)(7)-2
  • (iii) Definitions of part-time, seasonal and
    temporary employee
  • (C) Definition of temporary employee.
  • For purposes of this section, a temporary
    employee is any employee performing services
    under a contractual arrangement with the employer
    of two (2) years or less duration. Possible
    contract extensions may be considered in
    determining the duration of a contractural
    arrangement, but only if, under the facts and
    circumstances, there is a significant likelihood
    that the employees contract will be extended.

25
Temporary Employee
  • Definition of temporary employee (Contd)
  • Future contract extensions are considered
    significantly likely to occur for purposes of
    this rule if on average 80 percent of similarly
    situated employees (i.e., those in the same or
    similar job classification with expiring
    employment contracts) have had bona fide offers
    to renew their contracts in the immediately
    preceding two (2) academic or calendar years.

26
Temporary Employee
  • Definition of temporary employee (Contd)
  • In addition, future contract extensions are
    considered significantly likely to occur if the
    employee with respect to whom the determination
    is being made has a history of contract
    extensions with respect to his or her current
    position.

27
Temporary Employee
  • Definition of temporary employee (Contd)
  • An employee is not considered a temporary
    employee for purposes of this rule solely because
    he or she is included in a unit of employees
    covered by a collective bargaining agreement of
    two (2) years or less duration.

28
Participation
  • Employees that have optional membership
  • Elected part time officials
  • Officials appointed by governor subject to
    approval by Senate
  • Employees age 60 or older at time of hire
  • Employees age 55 or older w/ 40 quarters Social
    Security
  • Employees receiving benefit from another
    retirement system at time of hire

29
Classes of Members
  • Regular
  • Bridge Police w/Crescent City Connection
  • Correctional, Probation or Parole Officers /
    Security Personnel with Dept. of Corrections
  • Peace Officers
  • Legislators, Clerk or Sergeant at Arms of House,
    President or Sergeant at Arms of Senate,
    Governor, Lt. Governor, State Treasurer

30
Classes of Members
  • Alcohol and Tobacco Agents
  • Wildlife Agents
  • Legislative Plan
  • Judges and Court Officers
  • Appellate Law Clerks

31
Eligibility for Membership
  • A person employed in LASERS covered position
    except those specifically excluded or those that
    have the option or election to join
  • Any person employed in LASERS covered position
    contributing to another retirement system shall
    become a member unless election is made to remain
    in other system

32
Eligibility for Membership
  • Persons employed by agency covered by another LA
    retirement system but elect to remain in LASERS
  • Membership is optional for elected officials,
    officials appointed by governor and must be
    approved by Senate

33
Eligibility for Membership
  • State, municipal or parochial employees
    transferred with approval of the Board
  • Employees hired on a job appointment with an
    appointment date that extends over two years

34
Job Appointment
  • LA R. S. 11403 (15)
  • Job appointment means employment for a fixed
    period not to exceed two years
  • NOTE The appointment duration should be
    determined at the start of the appointment

35
Members of Other Retirement Systems
  • If agency hires employee with 5 years service
    credit in TRSL, LSERS, LA State Police or
    Municipal Police, membership can be retained in
    respective retirement system

36
Retaining Membership in Certain Cases
  • Membership can be retained if the employee meets
    the following criteria
  • Five years service credit with LASERS and
  • Eligible for TRSL, LSERS, State Police, Municipal
    and
  • Notify LASERS in writing within 30 days of hire
  • NOTE This decision is irrevocable

37
Eligibility for Other Classes of Employees
  • Bridge Police Employees
  • Eligible for the provisions of La. R. S.
    11441(F)
  • Correctional Officers/Security Personnel
  • Employees hired by LA Dept. of Public Safety
    Corrections shall be eligible to retire according
    to La. R. S. 11441 (D-E) and 11601-606

38
Eligibility for Other Classes of Employees
  • Peace Officers
  • All peace officers with Dept of Public Safety
    Corrections, office of state police other than
    state troopers shall be eligible to retire
    according to La. R. S. 11444 (A)(2)

39
Eligibility for Other Classes of Employees
  • Definition of Peace Officer in LA R. S.
    402402(1)(a)
  • Any full time employee of the state, a
    municipality, a sheriff, or other public agency,
    whose permanent duties actually include the
    making of arrest, the performing of searches and
    seizures, or the execution of criminal warrants,
    and who is responsible for the prevention or
    detection of crime or for the enforcement of the
    penal, traffic, or highway laws of the state, but
    not including any elected or appointed head of a
    law enforcement department.

40
Eligibility for Other Classes of Employees
  • Alcohol and Tobacco Agents
  • Full-time law enforcement personnel, supervisors,
    and administrators who are employed with the
    Dept. of Revenue, Office of Alcohol and Tobacco
    Control (ATC Agents) shall be governed by La. R.
    S. 11444(A)(2).

41
Eligibility for Other Classes of Employees
  • Wildlife Agents
  • Wildlife Agents employed with Enforcement
    Division of Louisiana Wildlife and Fisheries
    Commission shall be governed by La. R. S.
    11581-592.

42
Eligibility for Other Classes of Employees
  • Legislators certain legislative employees
  • Employees who are/have been members of
    Legislature, Clerk or Sergeant at Arms of House
    of Representatives, Secretary or Sergeant at Arms
    of Senate, President of the Senate, Governor, or
    Lt. Governor and State Treasurer are governed by
    La. R. S. 2436.

43
Eligibility for Other Classes of Employees
  • Judges Court Officers
  • Shall be governed by La. R. S. 11551 11571

44
Eligibility for Other Classes of Employees
  • Appellate Law Clerks
  • Law clerks of a Judge or Justice of an Appellate
    Court shall be governed by La. R. S. 11551
    11571

45
Membership Enrollment Checklist
  • Determine class of employee
  • Determine membership eligibility
  • Enroll employee through ISIS HR file, Non-ISIS
    contribution file, or Employer Self Serve on
    LASERS website
  • All agencies must submit copies of employee
    social security card and birth certificate and
    Designation of Beneficiary, Form 1-6

46
Membership Enrollment
  • Enrollment
  • ISIS Paid Agencies
  • Agency submits enrollment information to LASERS
    through ISIS weekly (HR file)
  • If Agency submits Membership Registration,
    Form 1-1 to LASERS, form will be returned to
    agency
  • Form 1-1, Membership Registration is located on
    website for Employer Use Only and should not be
    submitted to LASERS.

47
Membership Enrollment
  • Enrollment
  • Non ISIS agencies who submit FTP files
  • Agency submits enrollment information to LASERS
    through FTP monthly (Contribution file)
  • If agency submits Membership Registration,
    Form 1-1 to LASERS, form will be returned to
    agency.
  • Form 1-1, Membership Registration is located on
    website for Employer Use Only and should not be
    submitted to LASERS

47
48
Membership Enrollment
  • Enrollment
  • Non ISIS, Non FTP agencies (Manual/Paper)
  • Agency enters enrollment information to LASERS
    through Employer Self Serve, Member Enrollment
  • If agency submits Membership Registration,
    Form 1-1 to LASERS, form will be returned to
    agency for processing through Employer Self
    Serve, Member Enrollment
  • Form 1-1, Membership Registration is located on
    website for Employer Use Only and should not be
    submitted to LASERS

48
49
Updating Active Member Records
  • Address Changes
  • ISIS agencies
  • Agency submits change to LASERS through ISIS
    weekly
  • If Change of Address, Form 1-2 is submitted to
    LASERS, form will be returned to member and
    instructed to see agency to change address
  • Non ISIS agencies who submit FTP file
  • Agency submits address changes to LASERS through
    FTP monthly
  • If Change of Address, Form 1-2 is submitted to
    LASERS, the form will be returned to member and
    instructed to see agency to change address

50
Updating Active Member Records (Contd)
  • Address Changes
  • Non ISIS, Non FTP agency (Manual/Paper)
  • Agency submits change to LASERS through Employer
    Self Serve, Member Maintenance
  • If Change of Address, Form 1-2 is submitted to
    LASERS, form will be returned to member and
    instructed to see agency to change address

51
Updating Active Member Records (Contd)
  • Designation of Beneficiary, Form 1-6
  • Section 2 Primary Contingent beneficiaries
    must separately total 100
  • Must sign in presence of notary public if member
    signs with an X
  • Section 4 Requires two witnesses
  • Change of Name, Form 1-7
  • Signed Social Security card required

52
Updating Active Member Records (Contd)
  • Change of Name, Form 1-7
  • Submit through Employer Self Serve on website,
    Member Maintenance
  • Signed Social Security card required

53
Updating Retiree or Terminated Member Records
  • Address Changes
  • All agencies who report to LASERS will handle
    change of address for up to six months
  • After six months, retirees can submit Change of
    Address, Form 1-2 or make change through Retiree
    Self Serve on LASERS website
  • After six months, terminated (out of state
    service) members can submit Change of Address,
    Form 1-2 to LASERS

54
Procedures for Forms
  • Agency forms are located on LASERS website under
    Agency Information and Agency Forms.
  • User name and password to access the forms are
    agency and lasers
  • Members can download submit forms that do not
    require agency certification
  • Designation of Beneficiary, Form 1-6
  • Change of Name, Form 1-7

55
Service Credit
  • Total of all earned, transferred, and purchased
    service credit used to determine eligibility for
    retirement and calculate member benefits

56
Calculation of Service Credit before 01/01/1973
  • 15 - 89 days .25 year
  • 90 - 179 days .50 year
  • 180 - 269 days .75 year
  • 270 or more days 1.00 year

57
Part-time service before 01/01/1973
  • Actual fiscal year earnings Service
  • Full time fiscal years earnings Credit
  • Less than 25 No Credit
  • 25 but less than 50 .25 year
  • 50 but less than 75 .50 year
  • 75 but less than 100 .75 year

58
Calculation of Service Credit after 01/01/1973
  • Actual annual earnings Service
  • Full time base pay Credit
  • LASERS rounds service credit to highest tenth

59
Part-time service after 01/01/1973
  • Full time and part time service is calculated
    using the same formula

60
LSU Service
  • LSU Unfunded - Prior to 07/01/1971
  • LSU Funded - 07/01/1971 to 12/31/1978
  • Regular - 01/01/1979 to present
  • LSU must provide worksheet to determine service
    credit for unfunded and funded years

61
Workers Compensation
  • Effective 09/01/1989, a member not receiving
    normal service credit will be given service
    credit for eligibility purposes ONLY
  • Service credit not used to calculate retirement
    benefit
  • Agency must notify LASERS in writing if member on
    leave without pay receiving workers
    compensation

62
Family Medical Leave Act
  • Provides health coverage during leave
  • If on unpaid FMLA, no service credit accrued
  • If on paid FMLA, accrue service credit

63
Employer Maintenance
  • Located on website under Employers, Employer
    Self-Service, Employer Maintenance
  • Use to change and/or add someone to list of
    agency personnel authorized to sign LASERS forms
  • The authorized list should be reviewed and
    updated periodically

64
  • Questions?

65
Chapter 2
  • Refunds Purchases

66
Refund of Accumulated Contributions
  • Must terminate from state service for 30 days
  • Processing may take approximately 90 days from
    date all documents received by LASERS
  • Refund checks issued several times a month
  • Checks issued to member ONLY
  • Contributions are un-assignable by law
  • Member loses service credit, interest not paid,
    only employee contributions refunded
  • If member later returns to state service, return
    under provisions of Act 75
  • Federal tax due, no state tax due

67
Refund of Accumulated Contributions
  • Submit Refund of Accumulated Contributions, Form
    2-1
  • Nine page form, includes tax implications
  • Include copy of signed social security card or
    letter from Social Security Administration

68
Refund of Accumulated Contributions
  • Member must choose either
  • Option 1 Member receives payment, taxable event
  • Option 2 Rollover to qualified plan
  • Authorization for Direct Rollover, Form 2-1A must
    be completed
  • LASERS will only accept this form for rollover to
    financial institution, will not accept a written
    request from financial institution
  • Member must complete Section 2
  • Financial institution must complete Section 3

69
Refund of Accumulated Contributions
  • Submit Refund of Accumulated Contributions, Form
    No. 2-1 (Contd)
  • Must be submitted by HR of last employer
  • Do not have member contact LASERS for form

70
Emergency Refunds
  • Submit Emergency Refund Request, Form 2-2
  • One emergency refund allowed during lifetime,
    effective 10-08-2004
  • Include copies of social security card or letter
    from Social Security Administration
  • Reasons for emergency refund (documents required)
  • Foreclosure or eviction
  • Medical bills 2,000 or more
  • Repossession of vehicle
  • Death of member

71
Types of Purchases
  • Repay Refunds
  • Actuarial Purchases
  • Internal Revenue Code prohibits purchasing more
    than five years of time not actually worked
  • Reciprocals
  • Actuarial Transfers
  • NOTE LASERS accepts rollovers from qualified
    plans to pay for purchases

72
Reminder
  • All purchases must be made prior to application
    for retirement (Regular, IBO, or DROP)

73
Purchasing Service Credit
  • Repayment of Refunds
  • Must have 18 months of service credit
  • Must pay amount refunded plus interest
  • No fee
  • Submit Application for Repayment of Refunded
    Service, Form 2-11

74
Actuarial Purchases
  • Full time state service where credit has not been
    received (R. S. 11422)
  • Allows member to purchase years paid into social
    security or deferred compensation
  • Previous employer must be LASERS agency
  • Fee 150
  • Submit Certification for Purchase of In-State
    Service, Form 2-5

75
Actuarial Purchases
  • State service excluded due to administrative
    error (R. S. 11423)
  • Employee denied LASERS membership
  • No fee if less than 12 months
  • Fee 150 if over 12 months
  • Submit Certification for Purchase of In-State
    Service, Form 2-5

76
Actuarial Purchases
  • Leave without pay (R. S. 11163)
  • Can purchase leave without pay once member
    returns to work for the state as long as they did
    not refund contributions.
  • Submit Application for Purchase of Leave without
    Pay, Form 2-10
  • Fee 150

77
Actuarial Purchases
  • Military Relief Act (USERRA)
  • (38 U.S.C.A. 4301 et seq.)
  • Federal law that applies to purchases of service
    credit for active military time served after
    August 1, 1990
  • While on military leave, member elects to remit
    contributions to LASERS. If this is not
    exercised, member can elect to purchase leave
    after re-employed for 90 days after the leave has
    expired.

78
Actuarial Purchases
  • Military Relief Act (USERRA)
  • (38 U.S.C.A. 4301 et seq.) (Contd)
  • The purchase must be made before the deadline of
    either the lesser of
  • three times the years or service served, or
  • five years after re-employment in a LASERS
    eligible position

79
Actuarial Purchases
  • Military Relief Act (USERRA)
  • (38 U.S.C.A. 4301 et seq.) (Contd)
  • Under provision of USERRA, a LASERS member who
    leaves employment for active duty in uniformed
    services shall be eligible to purchase such
    service in the retirement plan, provided all the
    following criteria are met
  • Member returned to LASERS-covered employment
    within 90 days after discharge from military
    duties. NOTE Any such date of re-employment
    must occur on or after August 1, 1990
  • Member did not change LASERS employers
    immediately before and after military service
  • Member received an honorable discharge for
    military service.

80
Actuarial Purchases
  • Military Relief Act (USERRA)
  • (38 U.S.C.A. 4301 et seq.) (Contd)
  • Member must pay employee contributions, and
    employer must pay the employer contributions
    prior to the purchase deadline. The employer
    contributions must be paid within 30 days after
    the members payment is received.
  • Member is eligible to purchase up to five years
    of service under USERRA. Once the deadline
    expires, member must apply to purchase this time
    under the regular military provision which
    requires a 150 non-refundable actuarial
    calculation fee.

81
Actuarial Purchases
  • Military Relief Act (USERRA)
  • (38 U.S.C.A. 4301 et seq.) (Contd)
  • Submit Application for Purchase of Military
    Service, Form 2-6
  • DD-214, copy of release or discharge from active
    duty
  • Certification of salary information from agency,
    including monthly breakdown of the base,
    earnings, employee contributions, and employer
    contributions that would have been paid to LASERS
    if not on military leave
  • No Fee

82
Actuarial Purchases
  • Military Service Not under USERRA (R.S. 11153)
  • Can purchase up to four years for active military
    service
  • Credit for military service cannot be used to
    meet eligibility requirements for disability,
    survivor benefits, and shall only be used for
    purposes of acquiring eligibility for normal
    retirement benefits
  • In addition, such military service credit shall
    not be used to meet the minimum eligibility
    requirement of any retirement of 20 years or less

83
Actuarial Purchases
  • Military Service Not under USERRA (R.S. 11153)
  • Submit Application for Purchase of Military
    Service, Form 2-6
  • Submit DD2-14 - Discharge papers from Military
  • Fee 150

84
Actuarial Purchases
  • Air Time allows purchase of five years of
    service credit R. S. 11429 (B)
  • Must have 5 years service credit to apply
  • Fee 150
  • Submit Application for Purchase of Service Credit
    Under 11429 (B), Form 2-7
  • Can purchase in one year increments ONLY
  • Can NOT use to meet retirement eligibility
  • Will use for computation purposes ONLY

85
Actuarial Purchases
  • Purchases repealed by Air Bill
  • Educational leave (R. S. 11425)
  • Federal service (R. S. 11428)
  • Out of state service (R. S. 11429)

86
Actuarial Purchases
  • Voluntary or involuntary furlough (Act 301,
    effective July 1, 2009)
  • Maximum of 30 days per fiscal year
  • For members employed at public colleges /
    universities, or governing boards / management
    board of public colleges / universities
  • Employee and employer contributions must be paid
  • Can be used for eligibility and calculation of
    benefits

87
Actuarial Purchases
  • Purchases of Service Credit for Judges
    Legislators (R. S. 11143)
  • Must contact LASERS
  • Fee 150
  • Submit Application for Purchases of Certain
    Service by Legislators, Form 2-8

88
Reciprocals (R. S. 11142)
  • Recognition of service credit in one Louisiana
    retirement system by another Louisiana retirement
    system

89
Reciprocals
  • No cost to member
  • Recognize service credit in other system for
    eligibility purposes ONLY
  • No transfer of funds
  • Member receives benefit check from each system
  • Six months service credit required to apply
  • Submit Application for Reciprocal Recognition of
    Service, Form 2-3

90
Actuarial Transfers (R. S. 11143)
  • The actuarial transfer of service credit from
    one Louisiana retirement system to another
    Louisiana retirement system. All employee,
    employer contributions and interest are
    transferred.

91
Actuarial Transfers
  • Cost based on information such as age, life
    expectancy, current salary, accrual rate, funds
    to be transferred, and other factors
  • Six months required in current system
  • Member receives one check
  • Fee 150
  • Submit Application for Transfer of Creditable
    Service, Form 2-4

92
Actuarial Transfers
  • Actuarial Transfer Example Member has 5 years
    with TRSL. EEs and ERs with TRSL are 26,250.
    Member has 10 years with LASERS.
  • Actuarial cost to purchase 45,000 (5 years)
  • Transfer EEs, ERs Interest -26,250
  • Deficiency 18,750
  • Member can either accept pro-rata credit or pay
    deficiency.

93
Request for Research of Refundable Contributions
  • For members who left state service without
    retiring or withdrawing contributions
  • Can submit Request for Research of Refundable
    Contributions, Form 2-16
  • Allow 60 days for microfilm search

94
  • Questions?

95
Chapter 3
  • Survivor Benefits

96
Survivor Benefits
  • Benefits payable to survivors of a member who
    dies while in active service, except for certain
    judicial employees
  • Minor child
  • Surviving spouse with minor children
  • Surviving spouse without minor children
  • Named beneficiaries
  • Estate

97
Survivor Benefits
  • Complete Form 3-1, Application for Survivor
    Benefits
  • Does not matter if survivor is friend or family
    member
  • Form 3-1 must be submitted regardless of amount
    of service credit member had at time of death

98
Survivor Benefits
  • Total survivor benefits cannot exceed 75 of
    final average compensation
  • Sequence of events if active member dies, file
    examined for
  • Required number of years of service credit
  • A minor child eligible for benefit
  • A surviving spouse
  • Named beneficiaries

99
Survivor Benefits
  • Definition of Minor Child
  • Unmarried child under age 18
  • Child physically/mentally handicapped
  • Need documentation from physician
  • Unmarried full time student less than age 23
  • Must attend 80 of classes
  • Attendance verified twice a semester

100
Survivor Benefits
  • Surviving Minor Child
  • Deceased member must have 5 years service credit
  • Active contributing member at death, at least 2
    years earned immediately prior to death.
  • If member has 20 years service credit, does not
    matter if active, benefits payable
  • If member has less than 5 years service credit,
    contributions are paid to named beneficiaries
  • Minor Child/Children receive 75 of Final Average
    Compensation (FAC)

101
Survivor Benefits
  • Surviving spouse with minor child/children
  • Deceased must have 10 years service credit.
  • If deceased member has 20 years service credit,
    does not matter if active, benefits are payable.
  • If deceased member has less than five years,
    contributions are paid to named beneficiaries.
  • 75 of FAC
  • One third to spouse
  • Two thirds to minor child/children

102
Survivor Benefits
  • Surviving Spouse without minor child/children
  • Deceased must have 10 years service credit
  • If deceased has 20 years service credit, does not
    matter if active, benefits are payable
  • If deceased member has less than 10 years,
    contributions are paid to name beneficiaries
  • Married at least 1 year prior to death
  • Greater of 50 of FAC or 200/month

103
Survivor Benefits
  • If there is no minor child or spouse, the
    employee contributions are paid to named
    beneficiaries in a lump sum
  • If there is no minor child, spouse, or named
    beneficiary, employee contributions are paid to
    estate of deceased member in lump sum

104
Survivor Benefits Judges Court Officers
  • Benefits for spouse, minor children, handicapped
    or mentally retarded children of deceased person
    enumerated in R. S. 11553 who becomes a member
    of LASERS shall be paid in accordance with
    provisions of law applicable to survivors of
    members of the system.
  • Benefits paid to surviving spouse shall not be
    less than 1/3 third of salary or compensation
    which was being paid to the deceased person at
    time to of death or retirement, or an amount
    equal to one half of retirement pay which such
    person was entitled to receive or was receiving
    prior to his death (R.S. 11562).

105
Survivor Benefits Wildlife Agents
  • Death from injuries in line of duty
  • Surviving Spouse w/25 years, 75 FAC
  • Surviving Spouse w/less than 25 years, 60 FAC
  • Minor Child/children under age 18 (if no
    surviving spouse)
  • 4 or more, 60 FAC
  • 3 children, 50 FAC
  • 2 children, 40 FAC
  • 1 child, 30 FAC
  • Parents receiving support from deceased, no
    spouse or children, 25 of FAC

106
Survivor Benefits Wildlife Agents
  • Death not in performance of duties
  • Survivors entitled to same benefits deceased
    would receive if retired on date of death
  • Death after retirement, survivors receive 75 of
    monthly benefit

107
Survivor Benefits Correctional Officers
  • Died other than in line of duty
  • Deceased must have 10 years (2 years service
    credit immediately prior to death) or had 20
    years
  • Primary Secondary Component
  • No spouse but minor/disabled child, benefits
    greater of 75 FAC or 300
  • Spouse, but no minor child, benefits greater of
    50 or 200

108
Survivor Benefits Correctional Officers
  • Died other than in the line of duty
  • Primary Secondary Component (Contd)
  • Spouse with custody of minor/disabled child,
    benefits for spouse are greater of 25 of FAC or
    100. Benefits for minor child/children are
    greater of 50 of FAC or 300

109
Survivor Benefits Correctional Officers
  • Killed in the line of duty while serving
  • Primary Component
  • Less than 5 years service credit
  • Minor child, 60 of FAC
  • More than 5 years service credit
  • Minor child, 75 of FAC

110
Survivor Benefits Correctional Officers
  • Killed in the line of duty while serving
  • Primary Component with less than 25 years
  • Spouse only, 60 of FAC
  • Spouse with minor child/children
  • One third FAC to Spouse
  • Two thirds FAC minor child/children

111
Survivor Benefits Correctional Officers
  • Killed in the line of duty while serving
  • Primary Component with 25 years service credit or
    more
  • Spouse only, 75 of FAC
  • Spouse with minor child/children
  • One third FAC to spouse
  • Two thirds FAC to minor child/children

112
Survivor Benefits Correctional Officers
  • Killed in the line of duty while serving
  • Secondary Component with less than 25 years of
    service
  • Minor child, 60 of FAC
  • Spouse only, 60 of FAC
  • Spouse with minor child/children
  • 1/3 spouse
  • 2/3 to child/children

113
Surviving Benefits Correctional Officers
  • Killed in the line of duty while serving
  • Secondary Component with 25 years or more
  • Minor child/children, 75 of FAC
  • Spouse only, 75 of FAC
  • Spouse with minor child/children
  • 1/3 to spouse
  • 2/3 to child/children

114
Survivor Benefits
  • Submit Application for Survivor Benefits, Form
    3-1
  • Must be submitted for all members who die while
    in active service
  • Agency must certify
  • Application must be complete

115
Survivor Benefits
  • Required Documentation
  • Copies Accepted
  • Death certificate of member/spouse
  • Signed social security cards for member
    beneficiaries
  • Marriage license to prove length of marriage
  • Birth certificate for member beneficiaries
  • Certified true copy custody or judgment / divorce
    decree

116
Survivor Benefits
  • Required Documentation (Contd)
  • Certification of student status (2 times per
    semester)
  • Medical documentation of disabled child
  • Affidavit of Natural Tutorship
  • Adequate proof of handicap/mental disability
  • Affidavit of natural tutorship
  • Proof of paternity, if applicable

117
  • Questions?

118
Chapter 4
  • Disability

119
Disability
  • 10 years service credit (exceptions under
    Corrections, WLF Judicial plans)
  • State Medical Disability Board (SMDB) physician
    certifies condition is total and likely permanent
    of current job duties
  • Disabling condition must have occurred while
    active unless member has 20 years service credit
  • Not eligible for
  • Option 4A
  • DROP/IBO
  • Lump sum leave payment

120
Disability
  • Benefit calculation is same as regular retirement
  • LASERS will recertify every year first 5 years,
    then every 3 years until age 60
  • Remaining leave converted to service credit only
  • Agency pays 300 hours annual leave at hourly rate
    of pay

121
Disability- Judges Court Officers
  • If disabled while performing job duties
  • 50 of FAC immediately preceding disabling
    condition, or
  • Amount equal to Maximum retirement allowance per
    R. S. 11444 plus additional 1 for years of
    service credit as judge or court officer,
    whichever is greater (R. S. 11561)

122
Disability- Wildlife Agents
  • Disability not incurred in the line of duty
  • Must have 10 years service credit at any age
  • 75 of regular retirement benefit agent would
    receive if eligible for regular wildlife
    retirement
  • Disability incurred in line of duty
  • Wildlife agent must be totally disabled,
    resulting from injury received in line of duty
  • 60 of FAC

123
Disability- Corrections
  • If disability sustained in performance of
    official duties of hazardous nature
  • Primary Component
  • Receive 60 FAC, regardless of years of service
  • Secondary Component
  • Receive 40 FAC with less than 10 years of
    service, or
  • Benefits as provided under regular formula, if
    more than 10 years of service.
  • Unused Leave converted to service credit

124
Disability
  • Active member must submit
  • Disability Retirement Application, Form 4-1
  • Disability Report Form 4-1
  • Completed by supervisor
  • Attending Physician Statement Form 4-1
  • Completed by physician
  • NOTE This form is four pages! Disability
    section will only accept revised 03/04 Bar
    Coded Application!

125
Disability
  • After SMDB approval of disability, submit
  • Selection of Disability Retirement Plan, Form 4-2
  • Spousal Consent, Form 4-4
  • W-4P
  • Authorization for Direct Deposit, Form 4-5

126
Disability
  • Approval for disability expires after six months
    if member does not retire on disability
  • After six months, member must reapply for
    disability

127
Disability
  • Annually, disability retiree must submit
  • Disability Retiree Earned Income Statement, Form
    4-3 by May 1
  • Earnings cannot exceed FAC
  • Must be signed in presence of Notary
  • Attending Physicians Statement, Form 4-1 first
    five years, then every third year
  • LASERS will send these forms to the members each
    year

128
Disability
  • R. S. 11225 (Effective 06/15/2004)
  • Disability retiree can return to active service
    for six month trial period w/ less than 25 years
    of service credit
  • Disability benefit suspended
  • If employment ends before 6 months, benefit
    resumes
  • If employed more than 6 months, must reapply

129
  • Questions?

130
Chapter 5
  • Retirement Eligibility

131
Regular Retirement Hired Prior to July 1, 2006
  • Eligibility Requirements
  • 30 years, any age
  • 25 years, age 55
  • 10 years, age 60
  • 20 years, any age, actuarially reduced
  • Accrual rate is 2.5
  • Contribution rate is 7.5
  • 36 month FAC used to calculate benefits

132
Regular Retirement Hired on or after July 1,
2006 (Act 75)
  • Eligibility Requirements
  • 10 years at age 60
  • Accrual rate is 2.5
  • Contribution rate is 8.0
  • 60 month FAC used to calculate benefits
  • Can participate in DROP or choose IBO
  • Salaries used for FAC cannot exceed 15 per year
  • Disability retirees accrual rate 2.5 (Act 262,
    effective 06/17/2008)

133
Early Retirement
  • If member terminated for cause, agency must give
    member opportunity to send application for early
    retirement if member meets requirements by
    termination date

134
Bridge Police Employees with Crescent City
Connection
  • Eligibility Requirements (Prior to 06/30/2006)
  • 10 years, age 60
  • 25 years, age 55
  • 30 years, any age
  • 25 years at any age, last 10 years must be served
    as Bridge Police immediately prior to application
    for retirement
  • 20 years, any age, actuarially reduced benefit
  • Accrual rate is 2.5
  • Contribution rate is 8.5
  • 36 month FAC used to calculate benefits

135
Bridge Police Employees with Crescent City
Connection
  • Eligibility Requirements (After 07/01/2006)
  • 10 years, age 60
  • 25 years at any age, last 10 years must be served
    as Bridge Police immediately prior to application
    for retirement
  • Accrual rate is 2.5
  • Contribution rate is 8.5
  • 60 month FAC used to calculate benefits

136
Corrections
  • Eligibility Requirements
  • Primary Plan (hired on or before 08/15/1986)
  • 10 years, age 60
  • 20 years at any age, actuarially reduced benefit
  • Last 10 years must be served as a correctional
    officer
  • Primary Plan (hired after 8/15/1986)
  • 10 years, age 60
  • 20 years at age 50 (regular time 2/3
    eligibility)
  • 25 years at any age (effective 7/01/1999)
  • Last 10 years must be served as a correctional
    officer
  • 20 years at any age, actuarially reduced benefit
  • Accrual rate is 2.5
  • Contribution rate is 9.0
  • 36 month FAC used to calculate benefits

137
Corrections
  • Eligibility Requirements
  • Secondary Plan
  • 25 years at any age
  • 10 years, age 60
  • Last day worked must be as a Correctional Officer
  • Accrual rate is 2.5 for years in Primary Plan
    and 3.33 for years in Secondary Plan
  • Contribution rate is 9.0
  • 36 month FAC used to calculate benefits

138
Corrections
  • Members hired prior to or on 12/31/2001
  • Have choice to remain in Primary Component or
    enter Secondary Component
  • Choice was irrevocable
  • Members hired 01/01/2002 or later must enter
    Secondary Component

139
Peace Officers
  • Eligibility Requirements
  • 30 years, any age
  • 25 years, age 55
  • 10 years, age 60
  • 20 years, any age, actuarially reduced
  • Accrual rate
  • Hired on or before 06/30/2006 3.33
  • (Even for years not worked as Peace Officer)
  • Hired after 07/01/2006 3.33
  • (For all years worked as Peace Officer)
  • Contribution rate is 9
  • 36 month FAC used to calculate benefits

140
Alcohol Tobacco Control Agents
  • Eligibility Requirements
  • 25 years at any age
  • 10 years at age 60
  • 20 years, any age, actuarially reduced benefit

141
Alcohol Tobacco Control Agents
  • Eligibility Requirements
  • Accrual rate
  • Hired on or before 06/30/2007 3.33 even for
    years not worked as ATC agent
  • Hired on or after 07/01/2007 2.5 for years
    prior to 07/01/2007 and 3.33 for years worked as
    ATC agent after 07/01/2007
  • Prior accrual rate dependent on meeting
    definition under R.S. 402402(1)(a) and certified
    statement from agency
  • Contribution rate is 9.0
  • 36 month FAC used to calculate benefits

142
Wildlife Agents with Enforcement Division of
Dept. of Wildlife and Fisheries
  • Eligibility Requirements
  • Must have at least 10 years served as a wildlife
    agent immediately prior to application for
    retirement
  • If hired before 06/30/2003
  • 20 years at any age
  • 10 years at age 55
  • If hired on or after 07/01/2003
  • 25 years at any age
  • 10 years at age 60

143
Wildlife Agents with Enforcement Division of
Dept. of Wildlife and Fisheries
  • Eligibility Requirements
  • Must have at least 10 years served as a wildlife
    agent immediately prior to application for
    retirement
  • Accrual rate
  • For all years prior to July 1, 2003 3.00
  • For all years after July 1, 2003 3.33
  • Contribution rate is 9
  • 36 month FAC used to calculate benefits

144
Legislative Plan
  • Eligibility Requirements
  • 12 years at age 55
  • 16 years at any age
  • 20 years at age 50, at least 12 years as member
    of this class
  • Accrual rate is 2.5 plus 1 for years served in
    Legislature, Clerk or Sergeant-at-Arms of House,
    Secretary or Sergeant-at-Arms of Senate, Governor
    or Lt. Governor
  • Contribution rate is 11.5
  • 36 month FAC used to calculate benefits

145
Judges and Court Officers
  • Eligibility Requirements
  • 10 years as Judge or Court Officer, age 65
  • 12 years as Judge or Court Officer, age 55
  • 18 years as Judge or Court Officer at any age
  • 20 years, age 50, at least 12 years as Judge or
    Court Officer
  • Any number of years as Judge or Court Officer,
    age 70
  • 20 years, any age, actuarially reduced benefit

146
Judges or Court Officers
  • Eligibility Requirements
  • Also have the choice to retire Regular Retirement
  • Accrual rate is 2.5 plus 1 for years of service
    as Judge or Court Officer
  • Contribution rate is 11.5
  • 36 month FAC used to calculate benefit

147
Appellate Law Clerks
  • Eligibility Requirements
  • 10 years as Law Clerk, age 65
  • 12 years as Law Clerk, age 55
  • 18 years as Law Clerk, at any age
  • 20 years, age 50, at least 12 years as Law Clerk
  • Any number of years as Law Clerk, age 70
  • 20 years any age, actuarially reduced benefit

148
Appellate Law Clerks
  • Accrual Rate is 2.5
  • Contribution rate is
  • 7.5, if hired on or before June 30, 2006
  • 8, if hired on or after July 1, 2006
  • 36 month FAC used to calculate benefit if hired
    on or before June 30, 2006
  • 60 month FAC used to calculate benefit if hired
    on or after July 1, 2006

149
Retirement Eligibility
  • This chart helps determine eligibility dates
  • January 1 .10 July 15 .60
  • February 15 .20 August 15 .70
  • April 1 .30 September 30 .80
  • May 1 .40 October 30 .90
  • June 1 .50 December 1 1.00

150
Retirement Formula
  • Years of Service Credit X
  • Accrual Rate X
  • Final Average Compensation
  • Maximum Benefit
  • Add 300 annually to Maximum Benefit if hired
    before 07/01/1986.

151
Final Average Compensation (FAC) if hired before
July 1, 2006
  • Average earned compensation received during
    highest 36 months of successive employment or the
    highest joined months of employment if service
    was interrupted

152
Final Average Compensation (FAC) if hired on or
after July 1, 2006
  • Average earned compensation received during
    highest 60 months of successive employment or the
    highest joined months of employment if service
    was interrupted

153
Example - Regular
  • Member age 55 w/ 25 years service credit,
    32,000 FAC, hired before 07/01/1986
  • 25 X 2.5 X 32,000 300 20,300 annually or
    1,691.67 per month

154
  • Questions?

155
Chapter 6
  • Regular Retirement
  • Initial Benefit Option Applications

156
Retirement Application
  • Submit Application for Retirement, Form 6-1
  • Member completes Sections 1 6
  • Agency certifies application Section 7
  • Required Documentation
  • Copies accepted
  • Signed Social Security card for member
    beneficiaries
  • Birth certificates for member beneficiaries
  • Marriage certificate if Option 4-A chosen
  • Certified true copy of divorce decree, if
    applicable

157
Retirement Application
  • Authorization for Direct Rollover, Form 2-1A must
    be completed if member selects to rollover their
    leave payment
  • Member must complete Section 2
  • Financial institution must complete Section 3
  • LASERS will only accept this form for rollover to
    financial institution, will not accept a written
    request from financial institution

158
Reminders
  • Credit Union Deductions contact list
  • Other Insurance Deductions contact list
  • Date of termination Actual date member
    terminated from agency

159
Reminders Termination Date on Retirement
Application
  • Termination date is last day a member was
    employed with an agency
  • The retirement date is the day after the
    termination date if application received prior to
    termination date
  • The termination date is not the day after a
    member ceases work
  • If termination date is reported inaccurately, it
    can cause the member to be ineligible for
    retirement, retire out of state service and lose
    accrued leave time and also reduce their benefit

160
Initial Benefit Option(IBO)
  • One time lump sum amount at the time of
    retirement
  • Available amount cannot exceed 36 months of the
    maximum benefit
  • Actuarially reduced lifetime benefit
  • Eliminate Option 1 as choice
  • Not available if early retirement chosen
  • Cannot choose DROP

161
Initial Benefit Option (IBO)
  • Reasons member may choose IBO
  • Spend lump sum available
  • Save lump sum in interest bearing account for
    future use
  • Receive lump sum to reduce debt
  • Expect substantial pay increase

162
Initial Benefit Option (IBO) Example
  • If Maximum benefit is 1,562.50 per month,
    retiree may receive up to 56,250 in a lump sum.
  • (1,562.50 X 36 months 56,250)

163
Initial Benefit Option (IBO) Example
  • Retiree, 55 years old beneficiary 58 years old
  • Regular benefit Reduced benefit
  • Maximum 1,562.50 Maximum 1,119.75
  • Option 2 1,444.84 Option 2 1035.43
  • Option 3 1,501.37 Option 3 1075.94
  • Reduction in benefits depends on age of retiree.
    This benefit reduced 8.00 for every 1,000
    member receives in a lump sum

164
Initial Benefit Option (IBO)
  • Member must submit
  • Application for Retirement w/Initial Benefit
    Option (IBO), Form 6-1A
  • Member must complete Sections 1-9
  • Agency must complete Section 1
  • Spousal Consent Form, Form 04-04
  • Member must complete Section 1 and 2
  • Spouse should initial all situations which apply
    in Section 3 Selections

165
Initial Benefit Option (IBO)
  • Authorization for Direct Rollover, Form 2-1A must
    be completed if member selects to rollover their
    IBO lump sum or leave payment
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