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Procedures Manual

8.0: Employment Covered by Other Retirement Systems

Last Revised: Aug 1, 2013


Purpose

These procedures should be used for:

  1. Members who wish to have credit in TRSL jointly recognized by another Louisiana public retirement system(s).

    Reciprocal recognition of credit allows a member who has six months of service credit in TRSL to combine his service credit with credit in any other Louisiana public retirement system in order to gain eligibility for service retirement, disability retirement, or survivor benefits as required by the system with the highest minimum eligibility requirements. No more than one year of service shall be credited for any one calendar or fiscal year (LSA-R.S. 11:142). An individual must have at least six months of TRSL service credit and repay his contributions to the other system in order to gain reciprocal recognition between TRSL and the other retirement system(s).
    • The member must meet the retirement eligibility requirements of the system with the highest minimum requirements before he or she may receive a retirement benefit from both systems. If a member meets the retirement eligibility requirements of one system using service credit earned in that one system, the member can receive a retirement benefit from that one system as long as he or she is not contributing to another public retirement system.
       
    • Each system will compute the retirement benefit using only the compensation and years of service actually earned and credited during membership in each system. The total retirement benefits payable from all systems shall not exceed 100 percent of the highest average compensation or the highest benefit payable from any one system as if all the service had been credited in that one system.
       
    • After retirement applications have been submitted to all systems, a monthly benefit check will be issued from each system.
       
  2. Members who wish to have credit in another Louisiana public retirement system actuarially transferred to TRSL.

    Actuarial transfer of credit allows a member who has six months of service credit in TRSL to transfer credit from other Louisiana public retirement systems to TRSL in order to gain service credit for service retirement, disability retirement, or survivor benefits under TRSL provisions. No more than one year of service shall be credited for any one calendar or fiscal year (LSA-R.S. 11:143). No service credit for unused sick and/or annual leave may be obtained for years transferred.
     
  3. Members who wish to continue membership in TRSL when a change in employment would normally mandate membership in another Louisiana statewide retirement system.

    Retaining membership
    in TRSL is allowed for persons who have five or more years of service credit in TRSL if they change to employment which makes them eligible for membership in another Louisiana public retirement system (LSA-R.S. 11:723[A]). This does not apply to employment covered by the Assessors’ Retirement Fund, Clerks’ of Court Retirement and Relief Fund, Municipal Employees’ Retirement System, or the Parochial Employees’ Retirement System. No more than one year of service shall be credited for any one calendar or fiscal year. (Refer to Index 2.0 for more information and necessary forms.)

    If a member is not informed of his right to remain a member of TRSL, the system may allow such member to retain his membership in TRSL upon satisfactory proof, including a written verification by the member’s new employer, that he was not properly informed of his right to retain membership in the system. Any contributions due TRSL shall be accepted and processed only in accordance with the provisions of LSA-R.S. 11:888.

Note

Payment for a deficiency associated with an actuarial transfer of credit may be made by a rollover of funds from a conduit IRA, 401(a), 403(b) tax-sheltered annuity, or 457 deferred compensation plan. A conduit IRA may contain only funds that were rolled over from a qualified retirement plan along with the interest/dividends earned on those funds and cannot be commingled with any other funds.


Sections

Reciprocal Recognition of Credit  Actuarial Transfer of Credit

Related Forms

Application for Reciprocal Recognition of Service (Form 8)

Application for Transfer of Creditable Service (Form 8A)

Application for Purchase of Refunded Service to Reciprocate
(Form 8BR)

Application for Purchase of Refunded Service to Transfer 
(Form 8BT)

Action to be Taken for Reciprocal Recognition of Credit
  1. Active Members
    • A member, at the time of enrollment or any other time he is eligible, may request reciprocal recognition of service credit in another Louisiana public retirement system(s). The member must submit an Application for Reciprocal Recognition of Service (Form 8) with original signatures. The reciprocal agreement will not be recognized until the member has six months of retirement credit in TRSL.
       
    • If the member has withdrawn contributions from the other retirement system(s), those contributions must be repaid, plus interest, to the other system(s) at that system’s actuarial valuation interest rate which is subject to change each fiscal year.
       
  2. Inactive Members

Employer Checklist • Reciprocal Recognition of Credit

Members must make application for reciprocal recognition of service credit in writing by completing and submitting an Application for Reciprocal Recognition of Service (Form 8). Reciprocal recognition of service credit may be established between TRSL and another Louisiana public retirement system for which the member holds service credit. Members must complete the reciprocal recognition of service before the effective date of retirement or DROP.

Application for Reciprocal Recognition of Service (Form 8)
  • Have member complete Section 1.
  • Certify questionable years using the online update processes.
  • Keep a copy of all completed forms for the member’s personnel file.
  • Give a copy of all completed forms to the member.
  • Send TRSL all forms and required documents.
 (click to enlarge)



Action to be Taken for Actuarial Transfer of Credit
  1. Active Members
    • To initiate an actuarial transfer of credit, a member must complete an Application for Transfer of Creditable Service (Form 8A) after six months of service credit has been obtained in TRSL.
       
    • If the member has withdrawn contributions from the other retirement system(s), contributions must be repaid to the other system(s), plus interest, at that system’s actuarial valuation interest rate, which is subject to change each fiscal year.
       
    • The member will be required to pay a nonrefundable fee of $150 to TRSL’s actuary for the computation of the actuarial cost of the transfer.
       
    • If tax-sheltered contributions are to be transferred from TRSL to a public retirement system in Louisiana that is not a tax-qualified system, there will be tax consequences to the member, including, but not limited to, a mandatory 20% withholding for federal income taxes.
       
    • Effective June 30, 2013, with Act 365, a member can elect to purchase at the accrual rate of TRSL if TRSL has the higher accrual rate.
       
  2. Inactive Members

Employer Checklist • Transfer of Service Credit

Members must apply for transfer of service credit in writing by completing and submitting an Application for Transfer of Creditable Service (Form 8A). Service credit may be transferred from another Louisiana public retirement system in which the member has service credit. Members must transfer service credit before the effective date of their retirement or DROP.

Application for Transfer of Creditable Service (Form 8A)
  • Have member complete Section 1.
  • You complete Section 2.
  • Certify questionable years using the online update processes.
  • Have member attach nonrefundable fee made payable to S.J. Actuarial Associates.
  • Keep a copy of all completed forms for the member’s personnel file.
  • Give a copy of all completed forms to the member.
  • Send all completed forms and required documents to TRSL.
 (click to enlarge)


Related Forms

Application for Reciprocal Recognition of Service (Form 8)

Application for Transfer of Creditable Service (Form 8A)

Application for Purchase of Refunded Service to Reciprocate (Form 8BR)

Application for Purchase of Refunded Service to Transfer (Form 8BT)

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