Section 11:143.1 - Correction of membership errorsA. The provisions of this Section shall be applicable to all employees in positions covered by state and statewide public retirement systems.B.(1) If a person is employed in a position that on the date of employment was covered by a system to which this Section applies, but was by error enrolled in another public pension or retirement system, plan, or fund, and has not retired from or participated in the deferred retirement option plan of the incorrect system, he shall be enrolled in the correct system if he remains eligible for membership in that system, and all service credit and the funds required by Subsection C of this Section shall be transferred to the correct system.(2) Within thirty days of the date the error is discovered, the incorrect system shall notify the employee and the employer of the error and shall initiate the transfer with the correct system.(3)(a) If the employee previously received a refund of employee contributions from the incorrect system, the employee shall be given the opportunity to restore the forfeited service credit before the transfer by repaying to the incorrect system the refunded contributions plus interest at the board-approved actuarial valuation interest rate of the incorrect system. Upon receiving notification of the enrollment error, the employee shall have ninety days to restore the forfeited service credit as provided in this Paragraph.(b) If the refund is not repaid within ninety days, then the service credit associated with the refund shall not be restored before the transfer. Once the transfer is complete, the employee may still restore the forfeited service credit by paying to the incorrect system the amount required by this Paragraph. Upon repayment, the restored service credit shall be transferred immediately to the correct system in accordance with R. S. 11:143; however, notwithstanding the provisions of R.S. 11:143(D)(4) to the contrary, the retirement percentage factor of the correct system shall be used to calculate the retirement benefit based on the number of years transferred.C.(1) The correct system shall determine the employee contributions that system would have received if the employee had been properly enrolled on the date of employment. That system shall notify the incorrect system and the employee of the calculation.(2)(a) The incorrect system shall determine the contributions made by the employee, any employee contributions paid by the employer, the employer contributions paid on the earnable compensation of the employee, and interest on those contributions compounded annually at the board-approved actuarial valuation interest rate of the incorrect system and the total of these amounts. The incorrect system shall provide these calculations to the employee, the employer, and the correct system.(b) If the amount of employee contributions calculated pursuant to Paragraph (1) of this Subsection is less than the amount of contributions made by the employee as determined by the incorrect system in Subparagraph (a) of this Paragraph, the incorrect system shall pay to the employee the amount of the overpayment.(c) The incorrect system shall transfer to the correct system the total calculated pursuant to Subparagraph (a) of this Paragraph less any payment to the employee pursuant to Subparagraph (b) of this Paragraph.D.(1) The correct system shall calculate the amount necessary to fund the receipt of the service credit as provided in this Subsection.(2)(a) If the transfer occurs within three years of the enrollment error, the correct system shall receive an amount equal to all employee and employer contributions that would have been received by the correct system had the employee been properly enrolled on the date of employment, plus interest at the correct system's board-approved actuarial valuation interest rate.(b) If the transfer occurs more than three years after the enrollment error, the correct system shall receive the greater of:(i) An amount equal to all employee and employer contributions that would have been received by the correct system had the employee been properly enrolled at employment plus interest compounded annually at the correct system's board-approved actuarial valuation interest rate.(ii) The actuarial cost to the correct system for the service credit transferred, calculated in accordance with R.S. 11:158(C)(1)(a) and (2). The employer shall pay any fee or cost for this calculation.(3) If the amount transferred from the incorrect system pursuant to Subparagraph (C)(2)(c) of this Section is not sufficient to pay the amount required by the provisions of Paragraph (2) of this Subsection, the employer shall pay any difference to the correct system.(4) If the amount transferred from the incorrect system pursuant to Subparagraph (C)(2)(c) of this Section exceeds the amount required by the provisions of Paragraph (2) of this Subsection, the correct system shall credit to the employer's account the amount of the overpayment.E. Upon transfer of all monies required pursuant to Subparagraph (C)(2)(c) of this Section, all of the employee's service credit shall be transferred to the correct system and the employee's refundable contribution balance in the correct system shall be equal to the employee contributions that would have been paid to the correct system had the employee been properly enrolled in the correct system at employment. The retirement percentage factor of the correct system shall be used to calculate the employee's retirement benefit based on the number of years transferred.F. After the date on which the transfer of the funds required pursuant to Subparagraph (C)(2)(c) of this Section is completed, the system from which the employee transfers shall have no future liability with respect to the service credit, liability, or contributions transferred to the correct system.La. Consolidated Public Retirement § 11:143.1
Acts 2017, No. 285, §1, eff. June 30, 2017.Added by Acts 2017, No. 285,s. 1, eff. 6/30/2017.