2006 Louisiana Laws - RS 11:1335 — Conversion of annual and sick leave to a monetary value; lump sum payment; payment into deferred retirement option plan account

§1335.  Conversion of annual and sick leave to a monetary value; lump sum payment; payment into Deferred Retirement Option Plan account

A.  At the time of making application for retirement, a member may request in writing that he be paid for his unused annual and sick leave in a lump sum rather than converting the leave to retirement credit as otherwise provided in this Chapter.  A member who has annual leave and sick leave that if converted to retirement credit would exceed one hundred percent of the member's average compensation shall be entitled to be paid for such leave at its actuarial value without regard to the one hundred percent cap.  The amount paid shall be the actuarial value of such leave if converted to retirement credit as determined by the retirement system's actuary.  The cost for such actuarial determination shall be paid by the member.  Payment of this lump sum shall be made only upon retirement and termination of employment.

B.  In addition to funding of Deferred Retirement Option Plan (DROP) accounts pursuant to R.S. 11:1312, a member who participated in DROP shall have the option to have the amount calculated under Subsection A of this Section deposited directly into the member's DROP account.  If a member applies for such deposit, the system shall deposit such amount directly into the member's DROP account upon termination of the member's employment.

Acts 2001, No. 731, §1; Acts 2003, No. 862, §1, eff. July 1, 2003.