Louisiana § RS 11:952.38 - Retirement allowance options

§ RS 11:952.38. Retirement allowance options

A.  A member may retire under one of the following options:

Option 1:  pays total of retirement allowance formula in a retirement benefit for life of member, with no benefits payable to a beneficiary after his death except as provided in R.S. 11:952.42(D).

Option 2:  pays ninety percent of total retirement allowance formula in a retirement benefit for life of member.  Upon member's death, pays fifty-five percent of total retirement allowance formula as a benefit to the surviving spouse for life provided the spouse was married to the member at least two years prior to his retirement.

Option 3:  pays a reduced retirement allowance benefit which depends on the difference between member's age and the age of the person the member names to receive benefits after the member's death.  The retirement allowance benefit payable to the member shall be reduced ten percent of the total retirement allowance formula, if the named beneficiary is either older, same age, or less than five years younger; fifteen percent if the named beneficiary is five but less than ten years younger; twenty percent if the named beneficiary is ten but less than fifteen years younger; twenty-five percent if the named beneficiary is fifteen but less than twenty years younger; thirty percent if the named beneficiary is twenty but less than twenty-five years younger; thirty-five percent if the named beneficiary is twenty-five but less than thirty years younger, and forty percent if the named beneficiary is thirty or more years younger.  Upon member's death after retirement, the person named will receive one-half of the member's reduced retirement allowance benefit.

B.  The election of an optional benefit may not be revoked or changed by the member after the date his retirement allowance becomes effective.  If the member or the beneficiary designated under the option dies prior to the date as of which the retirement allowance becomes effective, the election shall thereby be revoked.

C.  If a member fails to file a written designation of an option with the board of supervisors by the date his retirement allowance is to become effective, Option 1 benefits shall be applied and cannot be revoked or changed by the member's late filing for another option.

Added by Acts 1971, No. 26, §1.  Amended by Acts 1972, No. 519, §1.  Redesignated from R.S. 17:1631 pursuant to R.S. 24:253.