La. Admin. Code tit. 58 § V-1303

Current through Register Vol. 50, No. 11, November 20, 2024

Section V-1303 - Transfer of Service Credits

A. In accordance with R.S. 11:143, an employee shall transfer any service credits accumulated under a public retirement system to the Firefighters' Pension and Relief Fund for the City of New Orleans (fund), including all employee and employer contributions and interest accrued thereon, at the rate specified herein; or shall transfer any service credits accumulated under this fund to a public retirement system, including all employee and employer contributions and interest accrued thereon, at the rate specified herein.

1. Definitions

Employee- a firefighter eligible under the Firefighters' Pension and Relief Fund for the City of New Orleans.

Fund- the Firefighters' Pension and Relief Fund for the City of New Orleans.

Public Retirement System- the following:

i. any public retirement or pension system, fund, or program offered within the state of Louisiana;

ii. any retirement or pension plan, fund, or program maintained primarily for officers and employees of the state of Louisiana;

iii. any retirement or pension plan, fund, or program maintained primarily for officers and employees of any political subdivision of the state of Louisiana, or any district, board, commission, agency, or any other such public entity of the state of Louisiana.

Receiving System-

i. this fund when it receives service credits accumulated by an employee under another public retirement system; or

ii. the public retirement system when it receives service credits accumulated by an employee under this fund.

i. this fund when it transfers service credits accumulated by the employee under this fund to another public retirement system; or

ii. the public retirement system when it transfers service credits accumulated by the employee under that public retirement system to this fund.

2. Eligibility

a. An employee may transfer credits from the transferring system to the receiving system upon satisfying the following conditions.

i. The employee must have been a member of the transferring system for at least six months.

ii. The employee must have membership credit in the receiving system at the time the receiving system receives the transferred service credit.

iii. The employee must not have previously received a refund of his employee contributions from either the transferring system or the receiving system. If an employee has received a refund of his employee contributions from this fund, he may repay his employee contributions plus compounded interest at the actuarial rate approved by the board of trustees from the date of the refund of his employee contributions until the date of repayment.

iv.

(a).If this fund is the receiving system, the employee must file an application with this fund requesting this fund to receive his service credits accumulated under the transferring system. An application to transfer credits to this fund shall be made on the application form approved by the board of trustees. Any other application form or document shall be unacceptable and void.

(b). If this fund is the transferring system, the employee must file an application with this fund requesting this fund to transfer the employee's service credits accumulated under this fund to the receiving system designated by the employee. An application to transfer credits from this fund shall be made on the application form approved by the board of trustees. The trustees shall accept, in lieu thereof, any similar written application from the receiving system designated by the employee, provided the requisite information is contained therein.

(c). At any time prior to completing the transfer of credit to the receiving system the employee may rescind, cancel, or withdraw his application by notifying the board of trustees, in writing, of his rescission, cancellation, or withdrawal.

3. Transfer of Credits from a Transferring System to This Fund as the Receiving System

a. If an employee transfers accumulated service credits from a transferring system to this fund (receiving fund), the following information with regard to the employee must be furnished to this fund from the transferring system:

i. the total number of credits accumulated by the employee under the transferring system and dates of service, including prior years of service, military service, or any other credit accumulated under the transferring system;

ii. the amount of contributions accumulated under the transferring system attributable to:

(a). employer contributions; and

(b). employee contributions;

iii. an amount of interest equal to the actuarial valuation rate approved by the board of the transferring system, compounded annually, calculated from the year of contribution to the date of the desired transfer of credits attributable to:

(a). employer contributions; and

(b). employee contributions;

iv. the total of all contributions accumulated by the employee under the transferring system, plus interest attributable thereto as specified herein. If the employer contributions referred to under §1303. A.3.a ii.(a) and §1303. A.3.a iii.(a) are not at least a fixed percentage of the employee's earnings, the amount of employer contributions shall equal the amount of employee contributions;

v. the job classification, grade, and salary earned under the transferring system as of the date of the last contribution to the transferring system, together with all job classifications and grades held during the time any and all service credit was earned and accrued under the transferring system.

b. Upon receipt of the appropriate information from the transferring system, as set forth above, the following calculations shall be performed:

i. the amount that would have been contributed by the employee, together with a duplicate amount designated as an employer contribution, including interest equal to the actuarial valuation rate approved by the board of trustees of this fund, compounded annually, from the date of the contribution until the date of transfer, just as if all of the employee's service credit had originally been accrued and contributions had been made in accordance with the law governing contributions to this fund;

ii. the total amount that would be transferred to this fund from the transferring system based on the total amount of all contributions and interest earned thereon, as further provided under §1303. A.3 a

c. If the total of the amount determined under §1303. A.3.b ii is equal to or greater than the amount determined under §1303. A.3.b i, the trustees shall approve the transfer of the employee's service credit upon payment of the amount calculated under §1303. A.3.b ii from the transferring system to this fund.

d. If the total amount determined under §1303. A.3.b.i is greater than the amount determined under §1303. A.3.b ii, the trustees shall not approve said transfer of service credit unless:

i. the employee pays to this fund the deficit or difference between the sums calculated under §1303. A.3.b.i and §1303. A.3.b ii, including both employer and employee contributions, plus interest compounded thereon, equal to the actuarial valuation rate approved by the board of trustees of this fund; or

ii. in lieu of paying said deficit or difference, the employee, at his option, may elect to have his transferred service credit prorated under this fund, as calculated by the trustees, based on the amount of funds that would be transferred to this fund from the transferring system, including the amount of all contributions and interest earned thereon, as further provided under §1303. A.3.a Said election may be made only at the time of transfer.

e. Notwithstanding the above provisions, the trustees shall not approve any application for transfer of credits to this fund from a transferring system unless the assets transferred, as determined under §1303. A.3.b ii, amount to at least 100 percent of the increase in accrued liability that is occasioned by the employee's transfer to this fund, as calculated by the trustees and their consulting actuaries. However, the trustees shall approve any such application if the employee pays the difference in said accrued liability.

f. Credits transferred to this fund in accordance with §1303. A.3 shall be counted toward the eligibility requirement of 20 years of service under R.S. 11:3381 and R.S. 11:3384 to entitle the employee to a retirement benefit from this fund.

g. If an employee accumulates a combined total of 20 or more years of service credit after the transfer of service credits to this fund from a transferring system, and at such time the employee is continuing to make employee contributions in accordance with the law governing employee contributions to this fund under R.S. 11:3365.A, the employee shall no longer be subject to R.S. 11:3365.A pertaining to employee contributions through salary deductions and shall not be required to submit employee contributions to this fund thereafter. An employee who accumulates more than a combined total of 20 years of service credit after the transfer of credits to this fund from a transferring system shall not be entitled to apply any excess employee contributions resulting therefrom as a credit, refund, or offset against any deficiency or disparity that may result under §1303. A 3, even though the combined total years of service credit, after the transfer of credit to this fund, exceed 20 years of service credit.

h. If the employee had accumulated under the transferring system any free service credit, he may transfer said credit to this fund only upon payment to this fund of the employee and employer contributions that would have been earned during the same period had the employee been a member of this fund, plus interest compounded thereon, equal to the actuarial valuation rate approved by the board of trustees of this fund from the date the contributions would have been due until the date paid. Said payment must be made at the time of transfer.

i. In calculating the retirement benefit of an employee who transfers service credit to this fund from a transferring system, in accordance with R.S. 11:143 and these rules and regulations, the trustees and their consulting actuary shall use the retirement percentage factor of the transferring system, based on the number of years of service credit transferred.

j. In the event an employee should die after filing with this fund his written application for transfer of credits from the transferring system to this fund, the trustees shall complete the transfer of service credit provided, however, that the application complies with R.S. 11:143 and with these rules and regulations. The trustees shall consider the application completed as of the day before the death of the employee.

4. Transfer of Credits from This Fund as the Transferring System to the Receiving System

a. If an employee transfers accumulated service credits from this fund (transferring system) to the receiving system designated by the employee, the following information with regard to the employee shall be furnished to the receiving system from this fund:

i. the number of credits accumulated under this fund and dates of service, including prior years of service, military service, or any other service credit;

ii. the amount of contributions accumulated under this fund as the transferring system attributable to:

(a). employer contributions; and

(b). employee contributions;

iii. the amount of interest equal to the actuarial valuation rate approved by the board of trustees of this fund, compounded annually, calculated from the year of contribution to the date of the desired transfer of credits attributable to:

(a). employer contributions; and

(b). employee contributions;

iv. the total of all contributions accumulated under this fund as the transferring system, plus interest attributable thereto, as specified herein. If the employer contributions referenced in §1303. A.4.a ii.(a) and §1303. A.4.a iii.(a) are not at least a fixed percentage of the employee's earnings, the amount of employer contributions shall equal the amount of employee contributions;

v. the job classification, grade, and salary earned under the transferring system at the date of the last contribution to the transferring system, together with all job classifications and grades held during the time any and all service credit was earned and accrued under the transferring system.

b. If the trustees should receive notification from the receiving system that it has approved said transfer of service credits, the trustees shall transfer to the receiving system the total contributions and interest accumulated thereon, as specified herein.

c. In the event an employee should die after filing his written application with this fund or the receiving system designated by the employee for transfer of service credits from this fund to the receiving system, the trustees shall complete the transfer of service credit provided, however, that the application complies with R.S. 11:143 and with these rules and regulations. The trustees shall consider the application completed as of the day before the death of the employee.

5. General Provisions

a. After an application is completed, this fund, as the transferring system, shall have no future liability with respect to any employee who elects to have his service credits transferred from this fund to a receiving system. Similarly, any transferring system transferring service credits to this fund, as the receiving system, shall have no future liability with respect to any employee who elects to transfer credits to this fund.

b. The trustees shall not consider any request for transfer of a deceased employee's credits if the request is made by his survivor, heir, or estate.

c. In the event an employee completes a transfer of service credit in accordance with R.S. 11:143 and these rules and regulations, and either retires with a benefit or takes a deferred retirement from this fund or from any other public retirement system, and subsequently becomes employed in employment that would otherwise render him eligible to participate in a public retirement system which has previously transferred credit, he shall not be permitted, under R.S. 11:143.H, to become a member of said public retirement system. Accordingly, the trustees shall not permit membership in this fund of any employee who has retired with a benefit or has taken a deferred benefit from any other public retirement system if this fund has previously transferred credits for that employee.

d. The trustees, in their sole and absolute discretion, shall assess an actuarial transfer fee in such amount as they may deem fit and appropriate.

La. Admin. Code tit. 58, § V-1303

Promulgated by the Board of Trustees of the Firefighters' Pension and Relief Fund of the City of New Orleans and Vicinity, LR 21:566 (June 1995).

AUTHORITY NOTE: Promulgated in accordance with R.S. 11:142, 143, and 3363.