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

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

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

4. 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. 5 Procedures for Forms LASERS will accept forms downloaded from web LASERS will accept forms officially approved by LASERS

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

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

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

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

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

11. 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. 12 LASERS Website www.lasersonline.org Website Offers: Employer Self Service Publications for Employers & Members Forms for Employers & Members Seminar Registration Frequently Asked Questions Contact Information Ask LASERS Helpful Links

14. 14 Chapter 1 Enrollments & Membership

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

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

17. 17 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)

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

19. 19 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.

20. 20 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.

21. 21 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:

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

23. 23 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.

24. 24 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.

25. 25 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.

26. 26 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.

27. 27 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.

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

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

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

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

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

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

34. 34 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

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

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

37. 37 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

38. 38 Eligibility for Other Classes of Employees Peace Officers: All peace officers with Dept of Public Safety & Corrections, office of state police other than state troopers shall be eligible to retire according to La. R. S. 11:444 (A)(2)

39. 39 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.

40. 40 Eligibility for Other Classes of Employees Alcohol and Tobacco Agents: Full-time law enforcement personnel, supervisors, and administrators who are employed with the Dept. of Revenue, Office of Alcohol and Tobacco Control (ATC Agents) shall be governed by La. R. S. 11:444(A)(2).

41. 41 Eligibility for Other Classes of Employees Wildlife Agents: Wildlife Agents employed with Enforcement Division of Louisiana Wildlife and Fisheries Commission shall be governed by La. R. S. 11:581-592.

42. 42 Eligibility for Other Classes of Employees Legislators & certain legislative employees: Employees who are/have been members of Legislature, Clerk or Sergeant at Arms of House of Representatives, Secretary or Sergeant at Arms of Senate, President of the Senate, Governor, or Lt. Governor and State Treasurer are governed by La. R. S. 24:36.

43. 43 Eligibility for Other Classes of Employees Judges & Court Officers: Shall be governed by La. R. S. 11:551 – 11:571

44. 44 Eligibility for Other Classes of Employees Appellate Law Clerks: Law clerks of a Judge or Justice of an Appellate Court shall be governed by La. R. S. 11:551 – 11:571

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

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

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

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

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

50. 50 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

51. 51 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

52. 52 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

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

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

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

56. 56 Calculation of Service Credit before 01/01/1973 15 - 89 days.25 year 90 - 179 days.50 year 180 - 269 days.75 year 270 or more days1.00 year

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

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

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

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

61. 61 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

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

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

64. 64 Questions?

65. 65 Chapter 2 Refunds & Purchases

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

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

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

69. 69 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

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

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

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

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

74. 74 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

75. 75 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

76. 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

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

78. 78 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

79. 79 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.

80. 80 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.

81. 81 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

82. 82 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

83. 83 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

84. 84 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

85. 85 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)

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

87. 87 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

88. 88 Reciprocals (R. S. 11:142) Recognition of service credit in one Louisiana retirement system by another Louisiana retirement system

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

90. 90 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.

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

92. 92 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.

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

94. 94 Questions?

95. 95 Chapter 3 Survivor Benefits

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

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

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

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

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

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

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

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

104. 104 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).

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

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

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

108. 108 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

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

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

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

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

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

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

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

116. 116 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

117. 117 Questions?

118. 118 Chapter 4 Disability

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

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

121. 121 Disability- Judges & Court Officers If disabled while performing job duties 50% of FAC immediately preceding disabling condition, or Amount equal to Maximum retirement allowance per R. S. 11:444 plus additional 1% for years of service credit as judge or court officer, whichever is greater (R. S. 11:561)

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

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

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

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

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

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

128. 128 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

129. 129 Questions?

130. 130 Chapter 5 Retirement Eligibility

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

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

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

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

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

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

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

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

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

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

141. Alcohol Tobacco Control Agents Eligibility Requirements Accrual rate: Hired on or before 06/30/2007: 3.33% even for years not worked as ATC agent Hired on or after 07/01/2007: 2.5% for years prior to 07/01/2007 and 3.33% for years worked as ATC agent after 07/01/2007 Prior accrual rate dependent on meeting definition under R.S. 40:2402(1)(a) and certified statement from agency Contribution rate is 9.0% 36 month FAC used to calculate benefits 141

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

143. 143 Wildlife Agents with Enforcement Division of Dept. of Wildlife and Fisheries Eligibility Requirements Must have at least 10 years served as a wildlife agent immediately prior to application for retirement Accrual rate: For all years prior to July 1, 20033.00% For all years after July 1, 20033.33% Contribution rate is 9% 36 month FAC used to calculate benefits

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

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

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

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

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

149. 149 Retirement Eligibility This chart helps determine eligibility dates: January 1.10July 15.60 February 15.20August 15.70 April 1.30September 30.80 May 1.40October 30.90 June 1.50December 1 1.00

150. 150 Retirement Formula Years of Service CreditX Accrual RateX Final Average Compensation= Maximum Benefit* *Add $300 annually to Maximum Benefit if hired before 07/01/1986.

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

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

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

154. 154 Questions?

155. 155 Chapter 6 Regular Retirement & Initial Benefit Option Applications

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

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

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

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

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

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

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

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

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

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

166. 166 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

167. 167 Questions?

168. 168 Chapter 7 Conversion of Unused Leave

169. 169 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)

170. 170 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

171. 171 Unused Leave Credit Conversion 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

172. 172 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

173. 173 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

174. 174 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

175. 175 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

176. 176 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

177. 177 Questions?

178. 178 Chapter 8 Retirement Options

179. 179 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

180. 180 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

181. 181 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

182. 182 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

183. 183 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

184. 184 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

185. 185 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!

186. 186 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

187. 187 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

188. 188 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

189. 189 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

190. 190 Questions?

191. 191 Chapter 9 Deferred Retirement Option Plan (DROP)

192. 192 DROP Old DROP Must be eligible for retirement on or before 01/01/1996 Meet regular retirement eligibility No window

193. 193 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

194. 194 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

195. DROP Example of DROP Window including 60 day grace period: Entry DateExit Date 10/01/200909/30/2012 + 60 calendar days 11/30/200911/29/2012 02/01/201011/29/2012 (2 months lost) 06/01/201011/29/2012 (6 months lost) 11/01/200910/31/2012 (36 mos./entered within 60 day grace period) 195

196. 196 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

197. 197 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.

198. 198 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.

199. 199 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

200. 200 DROP Interest (Accounts held at LASERS) Interest rates change annually based on investment earnings Past interest rates do not guarantee future success

201. 201 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%

202. 202 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

203. 203 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

204. 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

205. 205 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

206. 206 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

207. 207 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

208. 208 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

209. 209 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

210. 210 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

211. 211 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

212. 212 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

213. 213 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

214. 214 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

215. 215 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

216. 216 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

217. 217 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

218. 218 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

219. 219 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

220. 220 Self Directed Plan Initial Benefit Option When preliminary calculation done, 80% of IBO balance transfers at termination When final calculation complete, remaining 20% transfers

221. 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

222. 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

223. 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

224. 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

225. 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: $4,938.85Maximum 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

226. 226 Questions?

227. 227 Chapter 10 Rehired/Reemployed Retirees

228. 228 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

229. 229 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

230. 230 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

231. 231 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

232. 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

233. 233 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

234. 234 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

235. 235 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

236. 236 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

237. 237 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

238. 238 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

239. 239 Questions?

240. 240 Chapter 11 Agency Contribution Reporting

241. 241 General Information All agencies must submit monthly report either manually via ISIS, tape, or FTP The preferred method of submission is via FTP Reports and payments must be received within 15 days of close of each calendar month for the previous month’s earnings and contributions

242. 242 Required Information Agency Retirement Number Report Month Member name and social security number Base Pay Earnings (do not include overtime) Employee and employer contributions Information should be in SSN order

243. 243 Electronic Reporting Use computer reporting if possible More efficient for agency and LASERS Can use tape, cartridge (our preference) or diskette If interested in FTP, contact Information Technology Division at 1-800-256-3000 or 225-925-7631, request copy of specifications

244. 244 Manual Reporting Information on the LASERS turnaround document is as follows: Make corrections on turnaround document Return and remit to LASERS by 15 th of next month LASERS uses current turnaround document to generate next report, please be accurate See Retirement Reference Manual (RRM), page 11.6 for sample of report

245. 245 Reporting Base Pay The base pay for different types of employees should be reported monthly as follows: Employee Types Base Pay 12 month1/12 of annual salary 9 month 1/12 of annual salary 10 month1/12 of annual salary Part-time1/12 of annual F/T salary NOTE: To determine the annual salary multiply the salary per pay period by the number of pay periods

246. 246 Reporting Earnings The earnings for different types of employees should be reported monthly as follows: Employee Types Earnings 12 month Actual amount paid 9 month 1/9 of annual salary 10 month1/10 of annual salary Part-timeActual amount paid

247. 247 Reporting Contributions Changes to the percentage of employee and employer contributions that should be withheld and submitted to LASERS should be made timely. Employee and employer contributions should not be withheld and reported to LASERS when a member is in DROP participation. Employee contributions should not be withheld and reported to LASERS when a member is 100 percent fully vested. (This is forty years of service for the regular class of employees.)

248. 248 Contribution Rates 2010-2011/Liaison Memo 10-03 Employee EmployerRate State Employees Hired before 7/01/06 7.522.0 Hired after 7/01/06 8.022.0 Corrections Plan Admin. Staff 7.522.0 Corr. Officers 9.022.0 Peace Officers 9.022.0 Wildlife & Fisheries Plan Agency 017, Hired before 7/01/067.522.0 Agency 017, Hired after 7/01/068.022.0 Agency 518 9.522.0 Governor/Lt. Governor11.522.0 State Treasurer 7.522.0 Legislative Plan11.522.0 Judges Plan11.522.0 Bridge Police Plan 8.522.0 Optional Retirement Plan Hired before 7/01/067.522.0 Hired after 7/01/068.022.0

249. 249 Monthly Report Adjustments Omitted Employee Report lump sum and send breakdown Breakdown must have: Earnings EEs and ERs for each month Balance to total Can only go back 1 year Example: See RRM, Page 11.6

250. 250 Monthly Report Adjustments Employee Reported in Error If employee should NOT have been reported, take credit on next retirement report Credit should reflect: All earnings EEs and ERs previously reported

251. 251 Monthly Report Adjustments Retroactive pay Report total earnings & contributions Provide breakdown Breakdown must be received in order for member to receive proper earnings and service credit Calculate ERs at rate of year error occurred If adjustment result of court settlement or Civil Service ruling, send copy to apply adjustments Contact Membership Division for any additional cost

252. 252 Monthly Report Adjustments Overpaid Employee Contributions Will allow credit if employee has not terminated state service If employee is or has requested a refund, a credit will be allowed if approved A credit will be denied if employee has been refunded all contributions Agency will be billed for underpayment of contributions

253. 253 Agency Changes Contact LASERS if changes in Agency name Agency Liaison or Payroll Contact Mailing address or phone number Submit information Agency Information, Form FIS 25 Can be mailed or faxed If faxed, send to (225) 925-7457; Attention: Charles Stewart

254. 254 Contributions for Employees on Military Leave Many employees are being called to active duty. They shall be treated as being on military leave during period of service. Employee has option to use any amount or combination of annual, paid leave or compensatory time If on paid leave during military absence, both employee and employer contributions must be paid to LASERS If on LWOP, employee has option to pay employee contributions. Must submit choice on signed memo/letter to Human Resources office

255. 255 Contributions for Employees on Military Leave Reservist may pay employee contributions during service period Must be sent to employer based on salary that would have been earned if full time Employer must report applicable earnings and remit employee and employer contributions to LASERS If employee contributions are not paid by reservist, they are entitled to receive retirement eligibility for the time they are on military duty They will have the option to purchase credit for benefit computation after reemployment

256. 256 Questions?

257. 257 Chapter 12 Glossary

258. 258 Glossary Includes General Terms DROP Terms Definition of Part-time, Seasonal, and Temporary per Title 26-Internal Revenue List of Forms

259. 259 Chapter 13 Map to LASERS

260. 260 Chapter 14 LASERS Extras

261. 261 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

262. 262 Chapter 15 Optional Retirement Plan (ORP)

263. 263 ORP R. S. 11:502, 502.2 (A) and B (1) ORP participation opened for certain state employees thru 12/7/2007. If member elected ORP from 07/01/2000 – 07/01/2002 can regain membership in LASERS defined benefit plan. All contributions and earnings in ORP must be transferred. Any deficiency must be paid; no service credit given until deficiency paid Cost will offset liability to LASERS Cannot have credit in both systems Must transfer funds before retiring or entering DROP

264. 264 ORP Procedures to join Defined Benefit Plan Must complete Membership Registration, Form 1-1 Must sign waiver on ORP Transfer from ORP to Defined Benefit Plan, Form 15-1A $150 fee to actuary

265. 265 ORP Eligibility narrowly defined Provides retirement benefits with portability Is a defined contribution plan Third party vendor for Investment Administration and Benefit Distribution

266. 266 ORP Current Eligibility Any unclassified state employee who is appointed by a statewide elected official and whose appointment is subject to confirmation by the LA Senate; Any unclassified state employee who is a member of immediate staff of any such employee described above; The Chief Executive officer of State Group Benefits Program; Members of Executive Career Services (to be established and defined by Civil Service). Sunsets December 7, 2007

267. 267 ORP Other ORP Provisions: Members who were appointed from 12/07/2003 to June 30, 2004 had until August 31, 2004 to enroll. Anyone who enrolls in ORP after July 1, 2002, IRREVOCABLE election Member immediately vested at enrollment No disability or death benefit No loans or hardship withdrawals

268. 268 ORP Other ORP Provisions: (Cont’d) Investment options provided by Third Party Administrator Great West sole provider at this time Investment decisions by member

269. 269 ORP Other ORP Provisions: (Cont’d) Benefit payments to participants is sole obligation of the ORP provider, based on individual account value No further benefit entitlements in LASERS Defined Benefit plan.

270. 270 ORP Role of LASERS Receive & process enrollment, funds and reports from agencies Verify member election and contributions Retain Administration Fee and UAL funding Obtain corrections OR reject incomplete member forms, reports, or funds Remit funds to provider WITHIN 5 working days or return funds to agency for resubmission next month Transfer existing member balances (EEs ONLY)

271. 271 ORP Liability of LASERS Require disclosures and acknowledge receipt by member Require signed enrollment form (Form 1-1) before accepting/remitting monies Track actuarial data/impact to Master Plan

272. 272 ORP Important Contact Information Fiscal: Charles Stewart/225-922-0123/cstewart@lasersonline.org Mary Arnold/225-922-0476/marnold@lasersonline.org Public Information (Chapter 15): LASERS’ Website: www.lasersonline.org/ORP Sectionwww.lasersonline.org/ORP Provider: Joe Dionisi, Great West Retirement Services/225-926-8086 or 1-800-345-4699 / joe.dionisi@gwl.com

273. 273 ORP Enrolling Employees in ORP Send ORP Enrollment Application, Form 15-1 Signature required by member and agency liaison ORP Provider section must be completed Send completed form to LASERS ORP section Form must be received prior to or with 1 st ORP contribution report, but within 60 days of appointment to eligible position

274. 274 ORP Contributions to LASERS Current LASERS member When ORP enrollment form is received, transfer of EEs will start Employee contributions ONLY Those made before the effective date of ORP enrollment are transferred, no administration fee deducted

275. 275 ORP Contributions to LASERS (Cont’d) New LASERS members Will contribute to LASERS defined benefit plan until election is made All contributions sent to provider during election period Consists of employee and normal cost portion of employer contributions, less Administrative fee established by LASERS Board of Trustees (1% of earnings)

276. 276 ORP Reporting to LASERS Manual report (example in RRM) Diskette, tape or FTP file All agencies must submit report with remittance

277. 277 ORP Remitting ORP Contributions Contributions are due by 10 th day of following month Can be paid by check or EFT Can be paid through ISIS

278. 278 ORP Remitting by Check Check may be mailed or hand delivered Check must be payable to LASERS Check must include agency number and report month

279. 279 ORP Remitting by EFT Funds should be wired to Chase Bank using instructions in RRM, page 15.5 Payment distribution voucher and hardcopy of form must be faxed within 1 business day of EFT EFT transfer must indicate remittance is for ORP

280. 280 ORP Submitting through ISIS Continue to report and remit to ISIS ISIS will remit to LASERS ORP Fax or mail hardcopy of report along with any special instructions The five day rule for LASERS begins when remittance is received from ISIS

281. 281 ORP Terminating ORP Membership ORP election is IRREVOCABLE, can only terminate by leaving state employment Employer must remove member from report or other filing media LASERS must be notified in writing Employee must contact ORP provider concerning funds transfer

282. 282 ORP Final Notes: ORP election is IRREVOCABLE LASERS does not assume liability (5 working days) until complete reports and remittance received from agency The agency, NOT LASERS, determine who is eligible Role of LASERS-to collect funds from agency, remit to ORP provider. Agency responsible for correct information to LASERS.

283. 283 ORP Final Notes (Cont’d): If LASERS contacts agency with problem, please address ASAP No funds sent to ORP provider until problem resolved

284. 284 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

285. 285 Questions?