TDD# 1-800-846-5277

STATE OF LOUISIANA

DEPARTMENT OF STATE CIVIL SERVICE

BATON ROUGE, LOUISIANA

May 31, 2006

This public document was published at a total cost of $9.82. 33 copies of this public document were published in this 1^st printing at a cost of $.29 each. The total cost of all printings of this document including reprints is $9.82. This document was published by the Department of State Civil Service to keep agencies, employees, and other persons informed about the personnel program under authority of Article X of the Louisiana Constitution. This material was printed in accordance with standards for printing by State Agencies pursuant to R.S. 43:31.

General Circular No. 001657

To: Heads of State Agencies and Human Resource Directors

Subject: LASERS – Changes for Employees Hired on or after July 1, 2006

Issue Date: May 31, 2006

ACT 75 of the 2005 Regular Legislative Session mandated several changes in retirement benefits and contributions for employees in LASERS-eligible positions who are hired on or after July 1, 2006. Below are the highlights of the changes this legislation created. Please incorporate these changes into your agency’s hiring processes and inform new employees of their LASERS contribution rate and benefits. Remember, these changes apply to LASERS members hired on or after July 1, 2006. Retirement benefits and contributions remain unchanged by this legislation for employees hired before July 1, 2006 as well as those who were hired before July 1, 2006 who terminate employment, leave their contributions in LASERS and become rehired on or after July 1, 2006. For members who were employed before July 1, 2006 who terminate employment, receive a refund of their contributions and return to work on or after July 1, 2006 the provisions of Act 75 will apply.

LASERS benefits and contributions for members hired on or after July 1, 2006.

• Employee Contribution Rate: 8.0 percent.
• Average Compensation: Based on the sixty highest months of successive employment or for the sixty highest joined months of successive employment where interruption of service occurred. Part-time employees who do not use sixty months of full-time employment for average compensation purposes shall be based on the base pay the part-time employee would have received had he been employed on a full-time basis. These provisions shall not apply to members who are governed by La. R.S. 11:557 (Judges), 582 (Wildlife Agents), or 602 (Public Safety Officers) or 24:36 (Legislature).
• Eligibility for Retirement: ten (10) years of service credit at age sixty (60) or thereafter ONLY.
• Disability Benefit Accrual:
• Benefit calculated at 1.8 percent accrual.
• Benefit recalculated based on regular retirement at age 60 upon application to the Board. These provisions will not apply to persons receiving a benefit pursuant to La. R.S. 11:557 (Judges) or La. R.S. 24.36 (Legislature).
• There are no provisions for participation in the Deferred Retirement Option Plan (DROP) or for retirement with an Initial Benefit Option (IBO) for those whose membership falls under the provisions of Act 75.

If you have any additional questions, please contact LASERS Member Services at (225) 925-0600 or (800) 256-3000.

Sincerely,

s/Anne Smith Soileau

Director