§ 11:2259 — Optional allowances

Louisiana § 11:2259

• Jurisdiction: Louisiana
• Title 11: Consolidated Public Retirement Systems

Text

§2259. Optional allowances
A.(1) With the provision that no optional selection shall be effective in case a
beneficiary dies within thirty days after retirement and that such a beneficiary shall be
considered as an active member at the time of death, until the first payment on account of any
benefit becomes due, any member may elect to receive his benefit in a retirement allowance
payable throughout life, or he may elect to receive the actuarial equivalent at the time of his
retirement allowance in a reduced allowance payable throughout life, with the provision that:
Option 1. If he dies before he has received in member's annuity payments the present
value of his member's annuity as it was at the time of his retirement, the balance shall be paid
to such person as he shall nominate by written designation duly acknowledged and filed with
the board of trustees; or
Option 2. Upon his death, his reduced retirement allowance shall be continued
throughout the life and paid to such person as he shall nominate by written designation duly
acknowledged and filed with the board of trustees at the time of his retirement; or
Option 3. Upon his death, one-half of his reduced retirement allowance shall be
continued throughout the life of and paid to such person as he shall nominate by written
designation duly acknowledged and filed with the board of trustees at the time of his
retirement; or
Option 4. Some other benefit or benefits shall be payable to any or all of the
following persons: the member, the member's spouse, the member's child or children with
a permanent mental or physical disability, or the member's dependent minor child or children
as he shall nominate, provided such other benefit or benefits, together with the reduced
retirement allowance, shall be certified by the actuary to be of equivalent value to his
retirement allowance and approved by the board of trustees.
(2) The nomination made pursuant to Option 2, Option 3, or Option 4 as provided
in this Subsection is irrevocable on and after the date that the first of any benefit payments
becomes due.
(3) If a member nominates his child or children diagnosed with a permanent mental
or physical disability to receive a benefit pursuant to Option 4 of this Subsection, the medical
determination of such disability shall be performed in immediate proximity to, but before the
effective date of, such member's retirement or entry into the Deferred Retirement Option
Plan. If a member requests the system to perform a medical determination of disability for
his child or children and the member does not allocate to the child or children at least one-half of his reduced benefit, at the discretion of the board of trustees, the member shall have
the cost of the medical determination deducted from his retirement benefit.
(4) For the purpose of this Subsection, the term "person" includes a trust or estate
administrator as provided in R.S. 11:2256.2.
B. Repealed by Acts 2019, No. 89, §1.
C. Initial benefit option. (1) The initial benefit option provided in this Subsection
is available to a member who has not participated in the Deferred Retirement Option Plan
provided in this Chapter and who selects the maximum benefit provided in Subsection A
(introductory paragraph) of this Section, or Option 2, 3, or 4 thereof and, if this initial benefit
option is selected, the person shall thereafter be ineligible to participate in the Deferred
Retirement Option Plan under this Chapter.
(2) If a member selects the initial benefit option provided in this Subsection, the
member may receive an initial benefit plus a reduced monthly retirement allowance, provided
the initial benefit together with the reduced monthly retirement allowance shall equal the
actuarially equivalent amount of his maximum retirement allowance.
(3) The initial benefit, as determined by the member, shall not exceed an amount
equal to thirty-six payments of the member's maximum retirement allowance.
(4) At the option of the member, the initial benefit shall be paid as a lump-sum
payment or shall be placed in an account called an "initial benefit account", established in
accordance with the same procedures set forth in R.S. 11:2257, with interest credited thereto
and monthly payments made from the account in accordance therewith.
(5) The monthly retirement benefit received by the retiree and the beneficiary or
survivor shall be based on the amount otherwise payable under the retirement option selected
by the member, which shall be actuarially reduced by a prorated amount calculated to offset
the cost of the initial benefit payment.
(6) If a change in option selection is allowed under the provisions of Subsection B
of this Section, the monthly benefit payable under those provisions shall be actuarially
reduced by a prorated amount calculated to offset the cost of the initial benefit payment.
(7) A person who retires under the provisions of disability retirement may not select
the initial benefit option.
(8) Cost-of-living adjustments granted by the board of trustees to retirees who select
the initial benefit option shall be computed on the basis of each retiree's regular monthly
retirement benefit or on the basis of each beneficiary or survivor's benefit based on the option
selected as reduced and shall not be computed on the initial benefit received either as a lump
sum or paid pursuant to R.S. 11:2257.
NOTE: Acts 2014, No. 811 changed terminology referring to persons with
disabilities throughout the La. Revised Statutes and codes of law, and
included a listing of terms that were deleted and their respective successor
terms (See Acts 2014, No. 811, §36). The Act provides that it is not the intent
of the legislature that changes in terminology effected therein alter or affect
in any way the substance, interpretation, or application of any law or
administrative rule; further provides that nothing in the Act shall be construed
to expand or diminish any right of or benefit for any person provided by any
law or administrative rule (See Acts 2014, No. 811, §35(C) and (D)).

Legislative History

Added by Acts 1979, No. 434, §1; Redesignated from R.S. 33:2157 by Acts 1991, No. 74, §3, eff. June 25, 1991; Acts 1997, No. 356, §1, eff. July 1, 1997; Acts 1999, No. 354, §1, eff. June 16, 1999; Acts 2006, No. 682, §1, eff. June 29, 2006; Acts 2012, No. 427, §1; Acts 2014, No. 811, §4, eff. June 23, 2014; Acts 2017, No. 21, §1, eff. June 3, 2017; Acts 2019, No. 89, §1; Acts 2021, No. 140, §1.