§2254.1. Conversion of unused leave to creditable service

A.(1) An employer may elect to allow its employees to convert unused earned leave to service credit in accordance with this Section.

(2) For purposes of this Section "unused earned leave" means sick leave, annual leave, and compensatory leave but does not include sick leave as provided for in R.S. 33:1995.

(3) Only an employee of an employer that has elected to allow the conversion of unused earned leave in accordance with this Section may make such a conversion. If an employer elects to allow the conversion of unused earned leave, discretion over whether an employee's leave is converted lies solely with the employee.

(4) The board of trustees shall promulgate all regulations necessary to govern the procedures for employers to elect to allow conversion of unused earned leave and other regulations necessary to implement the provisions of this Section.

B.(1) An election by an employer to allow conversion of leave pursuant to this Section shall be made by adoption of a resolution evidencing such election. Such a resolution shall not become effective until it is submitted to and approved by this system. An election to allow leave conversion pursuant to this Section is irrevocable.

(2) In making such election, the employer shall also elect whether the conversion of leave shall occur on the effective date of an employee's entry into the Deferred Retirement Option Plan or upon the effective date of his separation from service. The election made pursuant to this Paragraph shall be expressly stated in the resolution, shall be applied uniformly to all employees that choose to convert unused earned leave, and is also irrevocable.

C.(1) Unused earned leave that has been accrued and accumulated by an employee, except as provided in Paragraph (2) of this Subsection, and for which payment has not been made shall be converted to years of service credit and applied to the member's account on a proportional basis according to the following fraction: the numerator is the number of hours of leave to be converted and the denominator is the number of hours worked in the employee's particular position which equals the equivalent of one year of work for that position as certified by the employer. The board of trustees may accept the employer's certification or may apply its own yearly equivalence.

(2) The employee solely shall determine the amount of his unused earned leave that is to be converted to service credit; however, such conversion shall not cause the employee's benefit to exceed one hundred percent of his average final compensation. No member, survivor, or beneficiary may use unused earned leave to attain eligibility for any benefit provided by this Chapter.

D. At the time the employee applies for conversion, the employer shall submit to the board a report of unused earned leave, computed in hours only.

E.(1) In order for a conversion of leave that is otherwise authorized to be effective, the employer shall pay into the system an amount which, on an actuarial basis, totally offsets the increase in accrued liability of the system resulting from the conversion. The employer shall pay the actuarial cost of providing the conversion to this system within thirty days after receiving an invoice from this system.

(2) No funds derived from the assessments against insurers pursuant to R.S. 22:1476 shall be used to pay such cost in whole or in part.

(3) The amount payable shall be calculated based on such interest and mortality factors as adopted by the board of trustees.

Acts 2014, No. 403, §1, eff. June 4, 2014.

NOTE: See Acts 2014, No. 403, §2, relative to participants in DROP when their employer elects coverage under this Section.

NOTE: See Acts 2014, No. 403, §3, relative to "accrual" of benefits under the constitution as it relates to this Section.