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Great-West Guaranteed Certificate Fund 60 Month

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					Retirement Reference Manual
       (RRM) Training
           Presented by:
    Retirement Education Division
Housekeeping

• Cell phones, beepers

• Coffee, snacks, restrooms

• Lunch

• Certificates

• Ask questions

                              2
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                                            3
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
                                                               4
Procedures for Forms


• LASERS will accept forms downloaded
  from web

• LASERS will accept forms officially
  approved by LASERS




                                        5
Procedures for Forms

• LASERS will not:

  • Accept forms modified or changed

  • Accept unsigned forms

  • Accept faxed forms

  • Accept copies of forms



                                       6
New Look for Forms

• To facilitate imaging and scanning
  processes

• Numbering system
  • 1st digit:   Chapter number

  • 2nd digit:   Number of form in chapter




                                             7
Reminders

  Retirement Reference Manual (RRM) is
  located on website

  • LASERS will not send manuals to agencies

  • Agencies must download manual from
    website




                                               8
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




                                               9
Social Security Protection Act of 2004
Effective January 1, 2005


• Employee ID number is member social
  security number

• Employer ID number is agency number




                                         10
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




                                        11
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



                                         12
Chapter 1




    Enrollments & Membership




                               14
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

                                              15
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



                                                     16
Participation

• Employees not eligible for membership:
  (Cont’d)
  • 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. 11:162)

                                                 17
Definitions


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




                                             18
Part-time Employee

 LA R. S. 11:403 (20)

   “Part-time employee” means any employee who
   is a part-time, seasonal, or temporary employee
   as defined in 26 CFR 31:3121(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.

                                                   19
Part-time Employee

 26 CFR 31:3121(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.


                                                            20
Part-time Employee

Definition of part-time employee (Cont’d)


  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:



                                                     21
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 school’s definition of a full-time
 teacher, the teacher is not considered a
 part-time employee.

                                              22
Seasonal Employee

26 CFR 31:3121(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.


                                                                23
Temporary Employee

26 CFR 31:3121(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
   employee’s contract will be extended.

                                                               24
Temporary Employee

Definition of temporary employee (Cont’d)

   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.


                                                    25
Temporary Employee

Definition of temporary employee (Cont’d)

   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.




                                                     26
Temporary Employee

Definition of temporary employee (Cont’d)

   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.




                                                  27
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


                                                      28
Classes of Members

• Regular

• Bridge Police w/Crescent City Connection

• Correctional, Probation or Parole Officers /
  Security Personnel with Dept. of
  Corrections

• Peace Officers

                                                 29
Classes of Members

• Alcohol and Tobacco Agents

• Wildlife Agents

• Legislative Plan

• Judges and Court Officers

• Appellate Law Clerks
                               30
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

                                                31
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




                                               32
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




                                            33
Job Appointment

LA R. S. 11:403 (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


                                          34
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




                                               35
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
                                               36
Eligibility for Other Classes
of Employees

Bridge Police Employees:
  • Eligible for the provisions of La. R. S.
    11:441(F)


Correctional Officers/Security Personnel:
  • Employees hired by LA Dept. of Public Safety &
    Corrections shall be eligible to retire according
    to La. R. S. 11:441 (D-E) and 11:601-606




                                                        37
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. 11:444 (A)(2)




                                                       38
Eligibility for Other Classes
of Employees

Definition of Peace Officer in LA R. S. 40:2402(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.

                                                     39
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.
  11:444(A)(2).




                                           40
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. 11:581-592.




                                              41
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. 24:36.


                                               42
Eligibility for Other Classes
of Employees

Judges & Court Officers:
  • Shall be governed by La. R. S. 11:551 –
    11:571




                                              43
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. 11:551 – 11:571




                                             44
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


                                                   45
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.



                                                            46
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
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
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
                                                         49
Updating Active Member Records
(Cont’d)

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




                                                         50
Updating Active Member Records
(Cont’d)

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


                                                    51
Updating Active Member Records
(Cont’d)

• Change of Name, Form 1-7

  • Submit through Employer Self Serve on
    website, Member Maintenance

  • Signed Social Security card required




                                            52
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




                                                            53
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




                                                     54
Service Credit


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




                                            55
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




                                       56
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


                                               57
Calculation of Service
Credit after 01/01/1973


Actual annual earnings   =       Service
 Full time base pay              Credit




 LASERS rounds service credit to highest
 tenth


                                           58
Part-time service after
01/01/1973


  Full time and part time service is
  calculated using the same formula




                                       59
 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

                                                60
Worker’s 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
  worker’s compensation
                                                  61
Family Medical Leave Act

• Provides health coverage during leave

• If on unpaid FMLA, no service credit
  accrued

• If on paid FMLA, accrue service credit




                                           62
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


                                               63
Questions?




             64
Chapter 2




       Refunds & Purchases




                             65
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
                                                     66
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




                                                 67
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


                                                            68
Refund of Accumulated
Contributions

• Submit Refund of Accumulated
  Contributions, Form No. 2-1 (Cont’d)
  • Must be submitted by HR of last employer

  • Do not have member contact LASERS for form




                                                 69
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


                                                       70
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
                                                  71
Reminder




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




                                              72
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



                                                   73
Actuarial Purchases

• Full time state service where credit has
  not been received (R. S. 11:422)
  • 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
                                                    74
Actuarial Purchases

• State service excluded due to
  administrative error (R. S. 11:423)
  • 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

                                                    75
Actuarial Purchases

• Leave without pay (R. S. 11:163)
  • 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



                                                    76
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.




                                                              77
Actuarial Purchases

• Military Relief Act (USERRA)
  (38 U.S.C.A. § 4301 et seq.) (Cont’d)

  • 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




                                                             78
Actuarial Purchases

• Military Relief Act (USERRA)
  (38 U.S.C.A. § 4301 et seq.) (Cont’d)
  • 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.
                                                           79
Actuarial Purchases

• Military Relief Act (USERRA)
  (38 U.S.C.A. § 4301 et seq.) (Cont’d)
  • 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.

                                                                 80
Actuarial Purchases

• Military Relief Act (USERRA)
  (38 U.S.C.A. § 4301 et seq.) (Cont’d)
  • 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
                                                                 81
Actuarial Purchases

• Military Service Not under USERRA (R.S. 11:153)
   • 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




                                                                   82
Actuarial Purchases

• Military Service Not under USERRA (R.S. 11:153)
   • Submit Application for Purchase of Military Service,
      Form 2-6

   • Submit DD2-14 - Discharge papers from Military

   • Fee $150




                                                            83
Actuarial Purchases

• “Air Time” – allows purchase of five years
  of service credit [R. S. 11:429 (B)]
  • Must have 5 years service credit to apply
  • Fee $150
  • Submit Application for Purchase of Service
    Credit Under 11:429 (B), Form 2-7
  • Can purchase in one year increments ONLY
  • Can NOT use to meet retirement eligibility
  • Will use for computation purposes ONLY


                                                 84
Actuarial Purchases

• Purchases repealed by “Air Bill”

  • Educational leave (R. S. 11:425)

  • Federal service (R. S. 11:428)

  • Out of state service (R. S. 11:429)




                                          85
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
                                                     86
Actuarial Purchases

• Purchases of Service Credit for Judges &
  Legislators (R. S. 11:143)
  • Must contact LASERS

  • Fee $150

  • Submit Application for Purchases of Certain
    Service by Legislators, Form 2-8




                                                  87
Reciprocals
(R. S. 11:142)


  Recognition of service credit in one
  Louisiana retirement system by another
  Louisiana retirement system




                                           88
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

                                             89
Actuarial Transfers
(R. S. 11:143)


  The actuarial transfer of service credit
  from one Louisiana retirement system to
  another Louisiana retirement system. All
  employee, employer contributions and
  interest are transferred.




                                             90
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
                                                       91
Actuarial Transfers

  Actuarial Transfer Example: Member has 5 years
  with TRSL. EE’s and ER’s with TRSL are $26,250.
  Member has 10 years with LASERS.

Actuarial cost to purchase     = $45,000 (5 years)
Transfer EE’s, ER’s & Interest = -26,250
Deficiency                     = $18,750

  Member can either accept pro-rata credit or pay
  deficiency.



                                                     92
 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




                                                    93
Questions?




             94
Chapter 3




       Survivor Benefits




                           95
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


                                                 96
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




                                                      97
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




                                                   98
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



                                                   99
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)




                                                                   100
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
                                                           101
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
                                                           102
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



                                              103
Survivor Benefits
Judges & Court Officers

• Benefits for spouse, minor children, handicapped
  or mentally retarded children of deceased person
  enumerated in R. S. 11:553 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. 11:562).
                                                      104
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

                                                   105
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




                                              106
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

                                                      107
Survivor Benefits
Correctional Officers

Died other than in the line of duty
• Primary & Secondary Component (Cont’d)
  • 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




                                                     108
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




                                           109
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




                                             110
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



                                                111
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

                                           112
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


                                           113
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




                                                114
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
                                                     115
Survivor Benefits

• Required Documentation (Cont’d)
  • 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

                                                      116
Questions?




             117
Chapter 4




            Disability




                         118
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



                                                                  119
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



                                                      120
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. 11:444 plus additional 1%
    for years of service credit as judge or court
    officer, whichever is greater (R. S. 11:561)




                                                    121
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

                                                          122
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


                                                            123
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!



                                                            124
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


                                                    125
Disability

• Approval for disability expires after six
  months if member does not retire on
  disability

• After six months, member must reapply
  for disability
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

                                                     127
Disability

 • R. S. 11:225 (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



                                                     128
Questions?




             129
Chapter 5




     Retirement Eligibility




                              130
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



                                                131
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)

                                                      132
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




                                              133
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
                                                   134
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




                                                  135
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
                                                                 136
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




                                                            137
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



                                                 138
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          139
Alcohol Tobacco Control Agents

Eligibility Requirements
• 25 years at any age

• 10 years at age 60

• 20 years, any age, actuarially reduced benefit




                                                   140
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. 40:2402(1)(a) and certified statement from agency
• Contribution rate is 9.0%
• 36 month FAC used to calculate benefits


                                                            141
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




                                                     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

• 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
                                                     143
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
                                                      144
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




                                                          145
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




                                                      146
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




                                                    147
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


                                                148
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


                                                       149
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.


                                                          150
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




                                            151
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




                                            152
 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




                                                  153
Questions?




             154
Chapter 6




     Regular Retirement &
     Initial Benefit Option
           Applications



                              155
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


                                                            156
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


                                                      157
Reminders

• Credit Union Deductions contact list

• Other Insurance Deductions contact list

• Date of termination: Actual date
  member terminated from agency




                                            158
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

                                                     159
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




                                                160
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

                                          161
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)




                                             162
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
                                                   163
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

                                                           164
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
   • 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


                                                      165
Initial Benefit Option (IBO)

 Members eligible for IBO January 1, 2004
 or later:

 IBO funds will be transferred to Self
 Directed Plan (SDP) with Great West
 Retirement Services




                                            166
Questions?




             167
Chapter 7




 Conversion of Unused Leave




                              168
Conversion of Unused Leave

• Cannot use sick or annual leave to meet
  eligibility for retirement

• Agency pay up to 300 hours at hourly rate
  of pay

• Two choices
  • Convert to service credit, or
  • Lump sum payment (except disability)

                                              169
Unused Leave Credit

  Formula to convert unused annual and sick
  leave:

  Add hours annual & sick leave, divide by 8 hours,
  then divide by 260 days

  Example:
  1000 hours A/L; 800 hours S/L      = 1800 hours
  1800 hours divided by 8            = 225 days
  225 days divided by 260            = .86 years*

*Note: .86 will round to .90 years service credit
                                                    170
Unused Leave Credit
Conversion Table


      Days       Years

    001-026      0.10
    027-052      0.20
    053-078      0.30
    079-104      0.40
    105-130      0.50
    131-156      0.60
    157-182      0.70
    183-208      0.80
    209-234      0.90
    235-260      1.00

                         171
Unused Leave Credit
Conversion Example
 Regular member age 57 with 25 years of
 service credit, $2,500 FAC, 225 days
 (90%) leave balance

 Leave balance X accrual rate X FAC = Benefit

 .90 X 2.5% X $2,500= $56.25 per month or
                      $675.00 annually




                                                172
Lump Sum Payment for
Unused Leave

• Actuarial value of leave credit, not hourly
  rate of pay

• Lump sum amount calculated at an
  actuarial rate based on age at retirement
  and life expectancy

• Use value of leave when converted to
  retirement credit, then multiply by
  appropriate reserve factor based on age at
  retirement
                                                173
 Lump Sum Payment for
 Unused Leave Example

Member Age 57, Reserve factor 10.08535*

Annual benefit X Reserve Factor = Lump Sum Payment

          $675.00 X 10.08535 = $6,807.61

*Reserve factor provided by actuary based on age of
  retiree.

Tax implications on leave lump sum:
  20% mandatory income tax withholding
  10% tax penalty applies if lump sum received/not
  rolled over before age 59 1/2
                                                      174
Conversion of Unused Leave

• R. S. 11:424E, (1999 Legislative Session)
  provides if member who has leave that
  will cause retirement benefit to exceed
  100% FAC, will be able to receive an
  actuarial lump sum payment, without
  regard to 100% cap




                                              175
Conversion of Unused Leave

• Agency submits Certification of Unused
  Annual and Sick Leave, Form 7-1



• Be sure to deduct 300 hours annual leave
  before entering number of hours in
  Section 3 of Form 7-1




                                             176
Questions?




             177
Chapter 8




      Retirement Options




                           178
Retirement Options

Maximum Plan:   Retiree receives basic benefit
                Beneficiary receives balance of
                contributions in lump sum
                More than one beneficiary can be
                named and changed at any time
Option 1:       Retiree receives reduced benefit
                Beneficiary receives balance of
                contributions in lump sum
                More than one beneficiary can be
                named and changed at any time


                                                   179
 Retirement Options

  The following options allow only one beneficiary
  and are based on age of retiree and age of
  beneficiary.

Option 2A: Retiree receives reduced benefit
           Beneficiary receives same amount as
           retiree
Option 2B: Retiree receives reduced benefit
           Beneficiary receives same amount as
           retiree. At beneficiary’s death, benefit
           paid to guardian of mentally
           handicapped child / children
                                                      180
Retirement Option 2B

• R. S. 11:446 (2) (b)
  • Current law states if beneficiary dies,
    benefit payable to guardian of mentally
    handicapped child/children
  • Current law does not include physically
    handicapped child/children
  • Member must make this election to receive
    this reduced benefit
  • Calculation is based on beneficiary age,
    mentally handicapped child/children’s age
    and severity of handicap

                                                181
Retirement Option 2B

• R. S. 11:446 (2) (b)
  • LASERS requires verification of handicap
    when application submitted

  • If benefit left to spouse is less than 50%,
    spousal consent form required

  • Actuary handles calculation

  • No fee for calculation


                                                  182
 Retirement Options

  The following options allow only one beneficiary and
  are based on age of retiree and age of beneficiary.

Option 3:  Retiree receives reduced benefit
           Beneficiary receives 50% of retiree
           benefit
Option 4A*:Retiree receives 90% of maximum
           benefit
           Spouse receives 55% of maximum
           benefit

*NOTE: Must name spouse as beneficiary and have
  been married at least two years before retirement
                                                      183
 Retirement Options

  The following options allow only one beneficiary and
  are based on age of retiree and age of beneficiary

Option 4B: Retiree receives reduced benefit
           Beneficiary receives 55% of retiree
           benefit




                                                     184
Change of Option
After Retirement
There are only two ways to change option chosen:
• Death of Beneficiary – can change to Maximum
  • Notify LASERS of beneficiary’s death & request increased
    payments
  • Submit copy of beneficiary’s death certificate
  • Change of option is retroactive to first of the month
    following date of death (Act 262, 2008)
• Divorce – can change to actuarially reduced
  Maximum
  • Send LASERS written request to change to Maximum
  • Submit court ordered divorce property settlement stating
    former spouse is permanently renouncing all rights to
    benefits available under original option chosen
  • $150 fee
• CANNOT NAME ANOTHER BENEFICIARY!

                                                               185
Retirement Options

                    REMINDERS
• Louisiana is community property state
   • An ex-spouse may be entitled to portion of
     retirement benefit
   • LASERS requires a certified true copy of
     Court Order of Divorce
• Spousal consent may be required
   • Should member choose anyone other than
     spouse to receive benefit
   • If member chooses Maximum or Option 1


                                                  186
Retirement Options

R. S. 11:446 (F) (Effective 07/01/2004)

• If no spousal consent received at
  retirement, LASERS will establish benefit
  as if member selected Option 3

• Spouse will receive 50% under Option 3



                                              187
Retirement Options

• Judges and Court Officers
   • Can only choose Maximum
   • Can only name spouse as beneficiary
      • Spouse receives benefit not less than 1/3 of
        FAC which was paid to member at death, or
      • Amount equal to ½ of retirement benefit
        member was entitled to receive or was
        receiving prior to death
      • Must be married at least 1 year for spouse
        to receive benefit unless judge had 17 years
        immediately prior to death

                                                   188
Retirement Options

• Wildlife Agents, Judges & Correctional Officers
  (Chapters 16 – 18)

• Change in Option
   • Death of beneficiary
   • Divorce of beneficiary

• Spousal approval

• Division of benefit with former spouse


                                                    189
Questions?




             190
Chapter 9




  Deferred Retirement Option
              Plan
            (DROP)



                               191
DROP

Old DROP
• Must be eligible for retirement on or
  before 01/01/1996

• Meet regular retirement eligibility

• No window



                                          192
DROP

New DROP
• Defer retirement benefit while working

• One time only participation for maximum of 36
  months

• Retirement benefit deposited in DROP account
  monthly

• No interest is paid until after participation ends

• DROP may NOT be beneficial to all members

                                                       193
DROP

• Participation window closes 3 years plus 60
  days from date window opens (“deadline” for
  exiting DROP)
• Must enter DROP within 60 day “grace period”
  to participate 36 months
• Must purchase years of service credit before
  applying for DROP
• Retirement benefit calculated, retirement option
  chosen (permanent choice)
• Retirement benefit amount locked in
  (permanently) for years prior to DROP


                                                     194
DROP

Example of DROP Window including 60 day grace
  period:

Entry Date           Exit Date
10/01/2009           09/30/2012
+ 60 calendar days

11/30/2009           11/29/2012

02/01/2010           11/29/2012 (2 months lost)

06/01/2010           11/29/2012 (6 months lost)

11/01/2009           10/31/2012 (36 mos./entered
                     within 60 day grace period)
                                                  195
DROP

• Must specify length of participation when completing
  application

• Cannot extend DROP participation

• Complete Application for Deferred Retirement Option
  Plan, Form 9-1 if eligible for DROP after 01/01/2004

• Complete Application for Deferred Retirement Option
  Plan, Form 9-1A if eligible for DROP on or before
  01/01/2004

• Agency must certify these forms


                                                         196
DROP

• Retirement benefit deposited each month
  into DROP subaccount

• No interest paid during DROP participation

• Beneficiary for DROP subaccount can be
  different than beneficiary named for
  retirement option and can be changed at
  any time.

                                               197
DROP

• Three ways to exit DROP early:
  • Voluntary termination of employment
  • Involuntary termination of employment
  • Death
• During DROP
  • No employee or employer contributions are
    paid to LASERS
  • No additional service credit earned
  • Continue to earn and use leave credit
  • Eligible for merit increases, promotions,
    demotions, etc.
                                                198
After DROP Participation

Members eligible for DROP 01/01/2004 or
 later:

 DROP funds will be transferred to Self
 Directed Plan (SDP) with Great West
 Retirement Services




                                          199
DROP Interest (Accounts held at
LASERS)
• Interest rates change annually based on
  investment earnings

• Past interest rates do not guarantee future
  success




                                            200
Interest on LASERS
DROP/IBO Accounts
 2008-09   =    0.00%   1998-99   =   12.60%
 2007-08   =    7.99%   1997-98   =   12.47%
 2006-07   =   13.71%   1996-97   =   13.53%
 2005-06   =   12.46%   1995-96   =   11.84%
 2004-05   =   11.23%   1994-95   =    8.99%
 2003-04   =    5.56%   1993-94   =    8.38%
 2002-03   =    0.00%   1992-93   =    7.55%
 2001-02   =    0.00%   1991-92   =    9.90%
 2000-01   =    0.00%   1990-91   =    9.50%
 1999-00   =   13.28%




                                               201
Supplemental Benefit
After DROP

• If DROP participant works less than 36 months, use pre-
  DROP FAC

• If DROP participant works more than 36 months, use post-
  DROP FAC

• Unused leave supplement, FAC used depends on length of
  service worked after DROP

• Must work at least 13 days after DROP participation ends to
  accumulate additional service credit




                                                             202
Withdrawals from DROP/IBO Accounts

•   Monthly
•   Annually
•   Lump sum
•   Rollover
•   Annuity
•   Leave in DROP/IBO account until age
    70 ½ and earn interest, if payable




                                          203
Withdrawals from DROP/IBO Accounts

• Cannot withdraw any monies from
  DROP/IBO accounts until state
  employment ends

• Quarterly statements provided

• Subject to federal taxes upon withdrawal

• State tax exempt


                                             204
Tax Implications - DROP/IBO, Leave,
and Refund Lump Sum Withdrawals

• 20% mandatory income tax withholding
• 10% tax penalty applies if lump sum
  received/not rolled over before age 59 1/2

Exceptions to 10% tax penalty:
• Receive payment after separation from
  service during or after reaching age 55
• Receive payment after age 59 1/2
• Receive payments in equal periodic
  payments over life expectancy or joint life
  expectancies
                                                205
DROP/IBO Withdrawals

• Please verify current withdrawal rules and
  regulations

• Keep current with IRS withdrawal rules
  and regulations

• All laws and regulations are subject to
  change periodically


                                               206
Death during/after DROP

• Benefits paid to named beneficiary
  according to retirement option chosen

• DROP account payable to named
  beneficiary

• Leave converted to retirement credit



                                          207
DROP Example

• At beginning of DROP, member had 30
  years service credit/AC is $30,000/1500
  hours annual leave/1500 hours sick leave

• At end of DROP, member had 1000 hours
  annual leave/1500 hours sick leave

• At termination, member worked two years
  after DROP/1200 hours annual leave/1000
  hours sick leave

                                             208
DROP Example
DROP Benefit:
30 years X 2.5% X $30,000 + $300 = $22,800/$1,900

Leave Benefit:
1200 hrs annual + 1000 hrs sick = 275 days
275 days = 1.1 years of service credit
1.1 X 2.5% X $30,000 = $825

Additional service credit benefit:
2 years X 2.5% X $30,000 = $1,500

Final retirement benefit:
$22,800 + $825 + 1,500 = $25,125/$2,093.75

Amount in DROP Account (36 months):
$1,900 X 36 = $68,400


                                                    209
Another DROP Example

• At beginning of DROP, member had 30
  years service credit/AC is $30,000/1500
  hours annual leave/1500 hours sick leave

• At termination, member worked four years
  after DROP/AC is $35,000/1200 hours
  annual leave/1000 hours sick leave




                                             210
Another DROP Example (Cont’d)

• DROP Benefit:
  30 X 2.5% X $30,000 +$300=$22,800/$1,900

New AC after DROP = $35,000
• Leave Benefit: 1200 + 1000 = 275 days
  275 days = 1.1 years service credit
  1.1 X 2.5% x $35,000 = $962.50

• Additional service credit benefit:
  4 years X 2.5% X $35,000 = $3,500

• Final retirement benefit:
  $22,800 + $962.50 + $3,500= $27,262.50/$2,271.87

• Amount in DROP Account (36 months): $68,400
                                                     211
DROP Procedures

• Submit Application
  • Application for DROP, Form 9-1
     • If eligible to retire after 01/01/2004
  • Application for DROP, Form 9-1A
     • If eligible to retire on or before 01/01/2004


• Member completes Sections 1-7

• Agency certifies Section 8

                                                       212
DROP Procedures

• Required Documents
  • Copies accepted
    • Signed Social Security card for member and
      beneficiaries
    • Birth certificates for member and beneficiaries
    • Marriage certificate if Option 4-A chosen


  • Certified true copy of divorce decree, if
    applicable
  • Spousal Consent Form, Form 4-4 if applicable


                                                        213
DROP Procedures

• Terminate Employment
  • Certification at End of Employment, Form 9-2
    • Member completes Section 1-3
    • Agency certifies Section 4


  • Required Documents
    • No copies accepted
       • Authorization for Direct Deposit, Form 4-5
       • W-4P
       • Insurance Premium Deduction Authorization. Form 6-2




                                                               214
DROP Procedures

• Authorization for Direct Rollover, Form 2-1A must
  be completed if member selects to rollover their
  lump sum or 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


                                                      215
DROP Procedures

• Continue Employment After DROP
  • Certification of Continued Employment After
    DROP Participation, Form 9-2A
    • Member completes Sections 1 & 2

    • Agency certifies Section 3




                                                  216
DROP Procedures

• Withdrawal from LASERS DROP Account

  • Complete Request for Withdrawal from
    DROP/IBO Account, Form 9-3

  • Complete Authorization for Direct Rollover,
    Form 2-1A if member selects to rollover
    monies to a qualified plan




                                                  217
Self Directed Plan (SDP)

• Members eligible for DROP/IBO on or after
  01/01/2004 required to enter SDP

• Members with DROP/IBO account before
  01/01/2004 have irrevocable option to
  transfer to SDP

• Spousal beneficiaries with DROP/IBO
  account before 01/01/2004 have option to
  transfer to SDP

                                              218
Self Directed Plan (SDP)

• LASERS will manage subaccount while member
  participates in DROP

• Irrevocably elect to move 100% of DROP/IBO
  assets

• Balance is NOT protected from losses

• Great West Retirement Services will administer
  the account after DROP participation


                                                   219
Self Directed Plan

• Initial Benefit Option
  • When preliminary calculation done, 80% of
    IBO balance transfers at termination

  • When final calculation complete, remaining
    20% transfers




                                                 220
Self Funded Cost of Living
Allowance (COLA)-Act 270 of 2009
• Provides for an actuarially reduced
  retirement allowance with a guaranteed
  annual 2.5% COLA, effective 7/1/2009

• Make election upon application for
  retirement, IBO or DROP; election is
  IRREVOCABLE

• Not available to disability retirees

                                           221
Self Funded Cost of Living
Allowance (COLA)-Act 270 of 2009
• COLA payable to retirees at age 55 or
  older

• COLA paid annually on the retiree’s
  anniversary date or DROP anniversary
  date

• Also, if eligible for additional System
  Generated COLA granted by legislature if
  all criteria met
                                             222
Self Funded Cost of Living
Allowance (COLA)-Act 270 of 2009
• DROP Participants:
  • COLA will be credited to the participant’s DROP
    subaccount during DROP participation period
  • Following DROP participation, COLA will be
    applied to the member’s benefit even if they
    work after DROP
  • COLA will apply to any supplemental benefits
    the DROP participant earns




                                                  223
Self Funded Cost of Living
Allowance (COLA)-Act 270 of 2009
• Spousal beneficiary will receive self funded
  COLA after death of retiree

• Non-spousal beneficiary will NOT receive
  COLA after death of retiree




                                             224
Self Funded Cost of Living
Allowance (COLA)-Act 270 of 2009
Example: Retiree: 61 years old; Service Credit: 26.7
   Leave Balance: 2.3 years;
   Total Service Credit w/Leave: 29 years;
   Annual FAC: $59,266.20; Monthly: $4,938.85



Maximum Retirement Benefit         Maximum Retirement Benefit
(No COLA)                          with COLA

29 X 2.5% X $4938.85 + $25 =       $3605.67 X .809395 (COLA reduction) =
   $3605.67 monthly                        $2918.41 monthly



NOTE: $3605.67 - $2918.41=$687.26 / $3605.67=19% reduction
This retiree was eligible for COLA at age 55


                                                                           225
Questions?




             226
Chapter 10




Rehired/Reemployed Retirees




                              227
Rehired/Reemployed
Retirees
  As of 05/09/2002, retiree hired in a LASERS
  eligible position must select one of three options:
• Option 1 – May earn 50% of annual retirement
  benefit
   • No contributions to LASERS
• Option 2 – Repay Benefit/Regain Membership
   • Contribute to LASERS
   • DROP, IBO and early retirement retirees cannot choose
     this option
• Option 3 – Suspend Benefit
   •   Contribute to LASERS
   •   No earnings limits
   •   Work less than 36 months, contributions refunded
   •   Work more than 36 months, supplemental benefit
                                                             228
Rehired/Reemployed
Retirees

• Rehired retirees on a restricted or
  temporary appointment have 10 or more
  years of service credit

• Rehired retiree would need to complete
  Reemployement of Retiree, Form 10-2 and
  select an option




                                          229
Rehired/Reemployed
Retirees Procedures

• Submit Reemployment of Retiree, Form
  10-2
  • Retiree responsible for choosing one of three
    options

  • Retiree completes Sections 1-3

  • Agency certifies Section 4




                                                    230
Rehired/Reemployed
Retirees Procedures

• Required information
  • Form 10-2 must be submitted within 30 days

  • Should retiree fail to make choice within 30
    days, retiree considered reemployed under
    Option 3
     • Will pay contributions
     • In order to change option must terminate and be
       rehired under different option




                                                         231
Rehired/Reemployed
Retirees Procedures
• LASERS does not require Reemployment
  of Retiree, Form 10-2 every year. A new
  Reemployment of Retiree, Form 10-2 is
  required if the retiree terminates and is
  rehired in same position or another
  position.




                                              232
Rehired/Reemployed
Retirees Procedures

• Exceptions – Do NOT complete Form 10-2
  if:
  • Retiree in position eligible for another retirement
    system

  • Retiree has 30 years of retirement and is age 70
    at date of hire

  • Retiree hired under a professional services
    contract

                                                    233
Rehired/Reemployed
Retirees Procedures

• Retiree Address Changes
  • Agency can submit change of address up to 6 months
    through agency reporting either through ISIS, FTP, or
    Employer Self Serve-Member Maintenance
  • Retiree can change address on LASERS website under
    Retiree Self Serve or by submitting Change of Address,
    Form 1-2

• Direct Deposit

• Retiree Payroll Deductions
  • Must submit in writing to companies listed in Lagniappe
    Booklet and on website

• Retiree’s Death
                                                              234
System Generated Cost-of-Living
Adjustment (COLA), R. S. 11:542 C (1)

• These COLA’s are granted to retirees,
  survivors, and beneficiaries whenever the
  balance in the LASERS Experience Account
  is sufficient to fund such a benefit fully on
  an actuarial basis and there is legislative
  approval

• Any increase granted shall begin on the
  first of July following legislative approval
  and shall be paid annually

                                                 235
Eligibility for System Generated
COLA’s
 The retiree must:

  • Have received a benefit for at least one
    year; and

  • Have attained at least age 60




                                               236
Eligibility for System Generated
COLA’s
 Non-retiree beneficiary will be eligible for
 the PBI if:

  • Benefits had been paid to the retiree or
    the beneficiary, or both combined, for at
    least one year; and

  • In no event before the retiree would
    have attained age 60

                                                237
Amount of System Generated
COLA’s
The amount of system generated COLA’s
shall equal an amount not to exceed the
lesser of:

• Three percent, or

• If the increase in the Consumer Price Index
  (CPI-U) for the calendar year immediately
  preceding the cost of living increase is less
  than three percent, the cost of living increase
  shall be a sum equal to the CPI-U increase for
  that prior calendar year
                                                    238
Questions?




             239
Chapter 12




             Glossary




                        257
Glossary

• Includes General Terms

• DROP Terms

• Definition of Part-time, Seasonal, and
  Temporary per Title 26-Internal Revenue

• List of Forms


                                            258
Chapter 13




        Map to LASERS




                        259
Chapter 14




        LASERS Extras




                        260
Chapter 14

• Website Contents
   • Seminars – can register for PREP and RRM

   • Calculators:
      • Use Member Self Service

   • Employer Self Service

   • Agency and Member Forms

   • Subscribe to Daily Beam weblog

   • Investment allocations & experience



                                                261
Thank You

• We appreciate your attendance

• Encourage all staff to attend RRM workshops and
  read all Liaison Memorandums submitted by
  LASERS

• Please complete your evaluation form




                                                    284
Questions?




             285

				
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