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 and forms under Agency Information / Agency
  Forms.
• User ID Agency Password Lasers
• Can complete forms on line, 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.
• Copies of form must be submitted to LASERS

10
Social Security Protection Act of 2004Effective
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

• Website Offers
• Calculators-Benefits Estimator Repay Refund
• Email Subscription List
• Employer Agency Questionnaire-Large Small
  Agencies
• Feedback
• On Line Education Course-Use for Employee
  orientation
• PIN Request
• Request for Research of Refundable Contributions
• Employer Self Audit Program
• Seminar Search and Registration

13
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 (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)

17
Definitions

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

18
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.

19
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.

20
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

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 schools
  definition of a full-time teacher, the teacher is
  not considered a part-time employee.

22
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.

23
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.

24
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.

25
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.

26
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.

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
• Correctional, Probation or Parole Officers /
  Security Personnel with Dept. of Corrections
• Legislators, Clerk or Sergeant at Arms of House,
  President or Sergeant at Arms of Senate,
  Governor, Lt. Governor, State Treasurer

29
Classes of Members

• Judges
• Wildlife Agents
• Bridge Police Employees with Crescent City
  Connection
• Peace Officers

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. 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

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 R. S. 11441.F(See
  Chapter 5.9)

37
Eligibility for Other Classesof Employees

• Correctional Officers/Security Personnel
• Employees hired by LA Dept. of Public Safety
  Corrections shall be eligible to retire according
  to R. S. 11441 D.(See Chapter 5.3 and Chapter
  16)
• Wildlife Agents shall be governed by R. S. 11581
  (See Chapter 5.5 and Chapter 17)

38
Eligibility for Other Classes of Employees

• Judges Court Officers in office on or after
  07/01/1983 are members of LASERS. Those who took
  office prior to 07/01/1983 will be governed by
  law at that time unless they elect to be covered
  (See Chapter 5.8 and Chapter 18)

39
Eligibility for Other Classesof Employees

• Legislators certain legislative employees
• Employees who are/have been members of
  legislature, clerk/sergeant at arms of House,
  secretary/sergeant at arms of Senate, Governor,
  or Lt. Governor shall receive legislative service
  credit and receive additional 1 benefit. (See
  Chapter 5.7)

40
Eligibility for Other Classesof Employees

• Peace Officers (Act 835 of 2006)
• All peace officers with Dept of Public Safety
  Corrections, office of state police other than
  state troopers

41
Eligibility for Other Classesof 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.

42
Membership Enrollment Checklist

• Determine class of employee
• Determine membership eligibility
• Use Employer Self Audit Program
• Enroll employee through Employer Self Serve on
  LASERS website, Member Enrollment.
• Non-ISIS agencies must include copies of employee
  social security card and birth certificate

43
Updating Active Member Records

• Address Changes
• ISIS agency
• Agency submits change to LASERS through ISIS
  weekly
• If member submits Form 1-2 to LASERS, form will
  be returned to member and instructed to see
  agency to change address
• Non ISIS agency who submit FTP file
• Agency submits change to LASERS through FTP
  monthly
• If member submits Form 1-2 to LASERS, form will
  be returned to member and instructed to see
  agency to change address

44
Updating Active Member Records (Contd)

• Address Changes
• Non ISIS, Non FTP agency
• Agency submits change to LASERS through Employer
  Self Serve, Member Maintenance
• If member submits Form 1-2 to LASERS, form will
  be returned to member and instructed to see
  agency to change address

45
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

46
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

47
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

48
Procedures for Forms

• Agency forms are located on LASERS website under
  Agency Information and Agency Forms.
• The 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

49
Service Credit

• The total of all earned, transferred, and
  purchased service credit used to determine
  eligibility for retirement and calculate member
  benefits.

50
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

51
Part-time service before01/01/1973

• 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

52
Calculation of ServiceCredit after 01/01/1973

• Actual annual earnings Service
• Full time base pay Credit
• LASERS rounds service credit to highest tenth.

53
Part-time service after01/01/1973

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

54
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.

55
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.

56
Family Medical Leave Act

• Provides health coverage during leave
• If on unpaid FMLA, no service credit accrued.
• If on paid FMLA, accrue service credit.

57
Authorized Signatures for Agency, Form No. MSD51

• Located on website under Agency Information
• User Name agency
• Password lasers
• See Agency Forms
• 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

58

• Questions?

59
Chapter 2

• Refunds Purchases

60
Refund of AccumulatedContributions

• Must terminate from state service for 30 days
• Processing may take approximately 90 days
• 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

61
Refund of AccumulatedContributions

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

62
Refund of AccumulatedContributions

• 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

63
Refund of AccumulatedContributions

• 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

64
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

65
Types of Purchases

• Repay Refunds
• Actuarial Purchases
• Reciprocals
• Actuarial Transfers
• LASERS accepts rollovers from qualified plans to
  pay for purchases.

66
Reminder

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

67
Purchasing Service Credit

• Repayment of Refunds
• Must have 18 months of service credit
• Must pay amount refunded plus interest
• No fee
• See calculator on home page LASERS website/ repay
  refund estimator
• Submit Application for Repayment of Refunded
  Service, Form 2-11

68
Actuarial Purchases

• Full time state service where credit not received
  (R. S. 11422)
• Previous employer must be LASERS agency
• Fee 150
• Submit Certification for Purchase of In-State
  Service, Form 2-5

69
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

70
Actuarial Purchases

• Military Relief Act (USERRA) (R.S. 58913)
• Employee has option to pay contributions while on
  leave without pay
• Submit Application for Purchase of Military
  Service, Form 2-6
• No Fee

71
Actuarial Purchases

• Military Service Not under USERRA (R.S. 11153)
• Cannot use to meet eligibility for regular
  retirement with less than 20 years
• Fee 150
• Submit Application for Purchase of Military
  Service Form 2-6
• Submit DD2-14 - Discharge papers from Military

72
Actuarial Purchases

• Air Time allows purchase of five years of
  service credit R. S. 11429 (B)
• Must have five 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.

73
Actuarial Purchases

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

74
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

75
Reciprocals (R. S. 11142)

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

76
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

77
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.

78
Actuarial Transfers

• Cost based on current salary difference in higher
  accrual rate and salary at LASERS
• Six months required in current system
• Member receives one check
• Fee 150
• Submit Application for Transfer of Creditable
  Service, Form 2-4

79
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 of EEs and ERs -26,250
• Deficiency 18,750
• Member can either accept pro-rata credit or pay
  deficiency.

80
Request for Research ofRefundable Contributions

• For members who left state service without
  retiring or withdrawing contributions
• Visit website/Active Employees/Refund Search
  Information
• If member name not found, can submit Request for
  Research of Refundable Contributions, Form 2-16
• Allow 60 days for microfilm search

81

• Questions?

82
Chapter 3

• Survivor Benefits

83
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

84
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

85
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
• If no minor child or spouse, no monthly benefits
  payable, employee contributions paid

86
Survivor Benefits

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

87
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)

88
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

89
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

90
Survivor BenefitsCorrectional 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

91
Survivor BenefitsCorrectional 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

92
Survivor BenefitsCorrectional 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

93
Survivor BenefitsCorrectional 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

94
Survivor BenefitsCorrectional 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

95
Survivor BenefitsCorrectional 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

96
Surviving BenefitsCorrectional 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

97
Survivor BenefitsWildlife 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

98
Survivor BenefitsWildlife 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.

99
Survivor BenefitsJudges 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).

100
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

101
Survivor Benefits

• Required Documentation
• Copies Accepted
• Death certificate of member/spouse
• Signed social security cards for member
  beneficiaries
• Marriage license
• Birth certificate for member beneficiaries
• Certified true copy custody judgment/divorce
  decree

102
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

103

• Questions?

104
Chapter 4

• Disability

105
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

106
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

107
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

108
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

109
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)

110
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!

111
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

112
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

113
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.

114

• Questions?

115
Chapter 5

• Retirement Eligibility

116
Retirement Eligibility

• Regular Members
• 30 years, any age
• 25 years, age 55
• 10 years, age 60
• 20 years, any age, actuarially reduced

117
Act 75 of 2005

• Affects NEW EMPLOYEES who join system on or
  after 07/01/2006
• Will contribute 8 (instead of 7.5)
• 10 years at age 60 (no other provisions exist)
• Eligible for DROP and IBO
• 5 year Final Average Compensation (FAC) for
  calculation of benefits (not 3 year FAC)
• Salaries cannot exceed 15 per year (previously
  25)
• Disability retirees accrual rate 2.5 (Act 262,
  2008)

118
Retirement Eligibility

• Regular Members
• Early Retirement Payroll Reduction Act 672,
  effective 01/01/2007 - 12/31/2008
• 20 years, any age
• 10 years, age 50
• Future benefits reduced
• Not eligible for DROP or IBO
• Position is abolished, abolished positions do not
  apply if Dept. of Social Services (office of
  family support/support enforcement divisions)
  Dept. of Public Safety (corrections security
  officers or probation parole officers) LSU
  health care services division
• Cannot return to work for two years

119
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

120
Early Retirement

• Example Member received early retirement
  estimate for 05/01/2004.
• Application received 05/21/2004
• Termination date was 05/21/2004
• Preliminary calculation was 50 months from
  regular retirement
• Final earnings never reported

121
Retirement EligibilityCorrectional Officers

• Primary Component
• 10 years, age 60
• 20 years, any age (hired before 08/15/1986)
• 20 years at age 50 (hired after 08/15/1986)
• 25 years, any age (hired after 07/01/1999) as
  Correctional Officer)
• NOTE Must have 10 years correctional time in
  security capacity immediately prior to submitting
  application.

122
Retirement EligibilityCorrectional Officers

• Secondary Component
• 25 years, any age
• 10 years, age 60
• May not retire under Act 570-early retirement

123
Retirement EligibilityCorrectional Officers

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

124
Retirement EligibilityCorrections

• Regular Members
• 30 years, any age
• 25 years, age 55
• 10 years, age 60
• 20 years, any age (actuarially reduced benefit)

125
Retirement EligibilityWildlife Agents

• 10 years, age 55 (hired before 07/01/2003)
• 10 years, age 60 (hired on/after 07/01/2003)
• 20 years, any age (hired before 07/01/2003)
• 25 years, any age (hired on/after 7/01/2003)
• NOTE A member must have 10 years as wildlife
  agent immediately prior to retirement

126
Retirement EligibilityJudges Court Officers

• 18 years, as judge or court officer, any age
• 20 years total service credit, at least 12 years
  as judge or court officer, age 50
• 12 years as judge or court officer, age 55
• 10 years, age 65 (effective 07/01/2003)
• Any number of years as judge, age 70

127
Retirement Eligibility-Bridge Police Employees

• 25 years, any age
• At least 10 years service credit served
  immediately prior to retirement in position with
  Bridge Police

128
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

129
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.

130
Retirement Formula

• Accrual Rates
• Regular Members
• Years of service credit 2.50
• If hired B4 07/01/1986, additional 300 annually
• Correctional Officers
• Primary 2.50
• Secondary 3.33
• Wildlife
• Years earned before 07/01/2003 3.00
• Years earned on/after 07/01/2003 3.33

131
Retirement Formula

• Accrual Rates (Contd)
• Judges Court Officers
• Judicial years 3.5
• Non-judicial years 2.5
• Legislators
• Creditable service credit 2.5
• Years of service in legislature 1.0
• Bridge Police
• Years of service credit 2.5
• If employed before 07/01/1986, additional 300
  annually
• Peace Officers
• Years of service credit 3.33
• If employed before 07/01/1986, additional 300
  annually

132
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.

133
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.

134
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

135

• Questions?

136
Chapter 6

• Regular Retirement
• Initial Benefit Option Applications

137
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

138
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

139
Reminders

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

140
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

141
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

142
Initial Benefit Option (IBO)Example

• If Maximum benefit is 1,250 per month, retiree
  may receive up to 45,000 in a lump sum.
• (1,250 X 36 months 45,000)

143
Initial Benefit Option (IBO)Example

• Retiree, 55 years old beneficiary 58 years old
• Regular benefit Reduced benefit
• Maximum 1,250.00 Maximum 890.01
• Option 2 1,142.50 Option 2 813.47
• Option 3 1,193.84 Option 3 850.02
• Reduction in benefits depends on age of retiree.
  This benefit reduced 8.00 for every 1,000
  member receives in a lump sum

144
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 10

145
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

146

• Questions?

147
Chapter 7

• Conversion of Unused Leave

148
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)

149
Unused Leave CreditConversion Table

• Days
• 001-026
• 027-052
• 053-078
• 079-104
• 105-130
• 131-156
• 157-182
• 183-208
• 209-234
• 235-260

• Years
• 0.10
• 0.20
• 0.30
• 0.40
• 0.50
• 0.60
• 0.70
• 0.80
• 0.90
• 1.00

150
Unused Leave CreditConversion Example

• Regular member age 57 with 25 years of service
  credit, 20,000 FAC, 225 days (90) leave balance
• Leave balance X accrual rate X FAC Benefit
• .90 X 2.5 X 20,000450.00 annually or
• 37.50 per month

151
Lump Sum Payment for Unused Leave

• Actuarially reduced payment, 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

152
Lump Sum Payment forUnused Leave Example

• Member Age 57, Reserve factor 10.08535
• Annual benefit X Reserve Factor Lump Sum
  Payment
• 450.00 X 10.08535 4,538.41
• 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

153
Conversion of Unused Leave

• R. S. 11424E, (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

154
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

155

• Questions?

156
Chapter 8

• Retirement Options

157
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

158
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 beneficiarys death, benefit
  paid to guardian of mentally handicapped
  child / children

159
Retirement Option 2B

• R. S. 11446 (2) (b)
• Current law states if retiree 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/childrens age and severity of
  handicap

160
Retirement Option 2B

• R. S. 11446 (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
• 150 fee, check payable to LASERS

161
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 4ARetiree 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

162
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

163
Change of OptionAfter Retirement

• There are only two ways to change option chosen
• Death of Beneficiary can change to Maximum
• Notify LASERS of beneficiarys death request
  increased payments
• Submit copy of beneficiarys death certificate
• Change of option is retroactive to 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 BENEFICARY!

164
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

165
Retirement Options

• R. S. 11446 (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

166
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

167
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

168

• Questions?

169
Chapter 9

• Deferred Retirement Option Plan
• (DROP)

170
DROP

• Old DROP
• Must be eligible for retirement on or before
  01/01/1996
• Meet regular retirement eligibility
• No window

171
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.

172
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.

173
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.

174
DROP

• Retirement benefit deposited each month into DROP
  account.
• No interest paid during DROP participation
• Beneficiary for DROP account can be different
  than beneficiary named for retirement option and
  can be changed at any time.

175
DROP

• Three ways to exit DROP
• Voluntary termination
• Involuntary termination
• Death

176
Employment Status During DROP

• With LASERS
• No employee contributions are paid to LASERS
• No additional service credit is earned
• Choose retirement option and beneficiary (THIS IS
  A PERMANENT CHOICE!)

177
Employment Status During DROP

• With Employer
• No employer contributions are paid to LASERS
• Subject to employment rights and responsibilities
• Continue to earn and use leave credit
• Agency continues to make deductions for
  insurance,