RÉSUMÉ DIGEST
ACT 36 (SB 21) 2021 Regular Session Robert Mills
Prior law allowed any member of a state or statewide retirement system who is furloughed
or placed on leave without pay to purchase service and salary credit for each day of service
that he was furloughed or on such leave at the actuarial cost.
New law, relative to Municipal Employees' Retirement System of Louisiana (MERSLA),
provides that any member, due to the COVID-19 pandemic, was involuntarily furloughed
without pay due to a reduction-in-force of his employer or was involuntarily furloughed or
placed on leave without pay may purchase service and salary credit for each day of service
during the period beginning on April 1, 2020, and ending on November 30, 2020, that he was
furloughed or on such leave if such service was not credited to his account, subject to the
limitations contained in new law.
New law provides that a member who purchases service and salary credit pursuant to
proposed law shall pay to the system or to his employer the employee and employer
contributions which would have been remitted to the system by his employer if not for the
involuntary furlough or leave without pay. Such contributions, if paid to the employer, shall
be remitted by the employer to the system. The member shall remit the contributions no later
than December 31, 2021.
New law provides that any service and salary credit purchased pursuant to new law shall be
subject to the following conditions and limitations:
(1) There shall be no duplication of service credit.
(2) The employer shall certify the lost service credit was due to the COVID-19
pandemic.
(3) The purchased service and salary credit may not be used for the purpose of meeting
the minimum service requirements for disability retirement.
(4) Compensation on which the required contributions for purchase of service and salary
credit are based shall be the rate of compensation in effect for the last full pay period
ending on or before the date the member was furloughed or placed on leave without
pay.
(5) The right to purchase service and salary credit pursuant to new law shall not apply
to routine personnel actions or separations which are not the direct result of the
COVID-19 pandemic.
(6) Any dispute arising under the limitations of new law shall be resolved in the sole and
exclusive discretion of the board of trustees of the retirement system.
Provides that the board of trustees may adopt rules to implement new law.
Effective upon signature of the governor (June 1, 2021).
(Adds R.S. 11:163.2)