Actuarial Transfer – A transfer of service credit from one retirement system to another. May involve additional costs to member.
Actuarial Liability – Refers to the present value of accrued benefits paid on an immediate or deferred basis over the life expectancy of the recipient. Present value means the present day worth of pension benefits to be paid in the future that are discounted with interest, mortality, and eligibility. Accrued benefit means the pension benefit resulting from service worked to date or service to be purchased.
Actuary – A mathematician who studies and evaluates future probabilities and their financial impact by applying probability and statistical theory. Actuaries calculate pension and annuity rates based on risk factors obtained from experience tables.
Beneficiary – Upon the death of an active member, a person or trust who receives the balance of the member’s contributions if no survivor benefits are payable. At the death of a retiree, the beneficiary receives a monthly benefit payment.
Dependent Parents – Parent or parents of a deceased employee who derived their main support from the employee.
Earned Compensation – The base pay you earned as an employee. It does not include overtime, per diem, differential pay, payment in kind, premium pay, or any other authorized expense allowance.
Fiduciary – A relationship of trust and confidence where one person (the fiduciary) holds or controls property for the benefit of another person.
Final Average Compensation (Salary) – The highest average earned compensation received during a 12 month period, a 36 month period or a 60 month period, depending upon date of hire.
Hard State Trooper Service – Ccreditable service based on actual state police employment while receiving compensation from the Department of Public Safety.
Minor Child – An unmarried child less than 18 years of age or an unmarried student less than 23 years of age.
Reciprocal recognition of service – When service credit in a retirement system is recognized by other public retirement system(s) to determine eligibility for regular retirement, disability retirement, and survivor benefits. There is no cost to members.
Regular retirement – Retirement under the criteria established in R.S. 11:1307.
Retirement beneficiary – The surviving spouse, minor children, disabled children, or dependent parents, where applicable. This person is not necessarily the same as the DROP beneficiary or the life insurance beneficiary.
Retirement benefit – The monthly benefit the participant receives after employment ends. For DROP participants, the amount includes a supplemental benefit for the conversion of unused sick and annual leave to retirement credit and any service credit earned after the DROP participation ends.
Supplemental benefit – The amount added to an old DROP benefit after converting unused leave and applying credit for any service earned after the DROP participation period. The DROP benefit plus any supplemental benefit equals the retirement benefit.
Survivor benefit – Payments to the surviving spouse, minor children, and physically or mentally disabled children, or, where no surviving spouse or children exist, to Dependent parents, if an eligible active member dies. Eligibility requirement must first be met.
Student – A person under age 23, enrolled full-time in a high school, vocational-technical school, college, or university.
Back DROP – A term used to describe the DROP that began on October 1, 2009 where eligible members can “look back” at the time of retirement to decide whether they wish to receive a lump sum benefit. The “look back” period must be the excess years over the years which qualified the member for retirement eligibility.
DROP account – The special account credited with DROP benefits during the participation period in old DROP.
DROP beneficiary – The person designated as beneficiary of the amount credited to the participant’s DROP account. The DROP beneficiary is not required to be the same person as the participant’s retirement beneficiary.
DROP benefit – The monthly amount credited to the participant’s DROP account during participation. It does not include unused sick and annual leave that is converted to retirement credit when the participant ends employment.
DROP participant – An LSPRS member who has participated in the old DROP.
DROP participation period – The period chosen by the old DROP participant beginning with the date of entry into the plan and continuing for up to three years. During this time, the participant continues employment and the DROP benefit is credited to the DROP account. The participant’s state service during this period cannot be included in calculating total service credit for retirement.