MERS Handbooks & Administrative Rules

1.05.010 Name And Establishment Of The System 1.05.020 Definitions 1.05.010 Name And Establishment Of The System The retirement system has the power and privileges of a corporation and is known as the “Municipal Employees' Retirement System of Louisiana.” The system is composed of two separate and distinct accounts known as Plan A and Plan B. The reserves, funds, securities, and assets of the two plans are held separately and distinctly and are not commingled. (R.S. 11:1731) Revised on April 2021 1.05.020 Definitions Unless a different meaning is plainly required by the context, the following words and phrases as used in the statutes have the following meanings: “Accumulated contributions” means the sum of all amounts deducted from a member's compensation, paid to the system, and credited to the individual employee’s account in the system. “Actuarial equivalent” means a benefit of equal value when computed upon the basis of mortality and interest tables adopted by the board of trustees. “Agreement” means the document of participation between a participating employer and the board that sets forth the requirements and procedures for covering the employees of the participating employer in the system. “Agreement date” means the date as of which the provisions of the system became applicable to an employer. “Annuity Savings Fund” means the fund to which all accumulated contributions of members are credited. “Authorized agent” means the employee authorized by a participating employer to act on behalf of and as the agent of the employer as coordinator between the board and the participating employer. “Beneficiary” means the person designated in writing by a member to receive any benefits from the system to which such person may be entitled. “Board” or “board of trustees” means the board of trustees of the system. “Creditable service” means all periods of time for which credit is allowed towards any benefits from the system. “Disability” means a condition, which in the determination of the board renders an employee permanently and totally disabled, leaving him incapable of any employment. The definition of disability requires that the condition not be directly or indirectly the result of military service, engaging in a felonious criminal enterprise, caused by habitual drunkenness or use of narcotics, intentionally self- inflicted, or due to a declared war or enemy action. “Earnings” means the full amount of compensation earned by a member for service rendered as an employee, excluding bonuses or fees paid in excess of regular salary or retainer, overtime pay, and payments relative to termination of employment including, but not limited to, accrued sick or annual leave and severance pay. (Special rules apply to the earnings of certain marshals including certain supplements, fees, and commissions. For details related to these issues, please contact the retirement system office or review the relevant statutes including R.S. 11:1732, R.S. 11:1782, and R.S. 11:1802.) “Employee” means a person, including an elected official, actively employed by a participating employer on a permanent, regularly scheduled basis of at least an average of thirty-five hours per week. “Temporary” or “seasonal” employees hired for a period of, for example, three months, are not employed on a “permanent, regularly scheduled basis”. Therefore, such employees do not satisfy the definition of employee under the statutes related to the system and may not become members of the system regardless of the number of hours they work each week. In addition, students employed during the summer months in, for example, a town’s recreational program, may not become members of the system regardless of the number of hours they work each week for the same reason. Any mayor working an average of at least thirty-five hours a week is considered "full-time" and must become and be a member of the system. Any such mayor working less than an average of thirty-five hours a week may not participate in the system. A mayor is presumed to be full-time unless there is a contrary declaration by the governing authority. Members of city councils, city-parish councils, town councils, aldermen, and constables are deemed to be part-time officials and are not allowed to become or be members of the retirement system. This prohibition of membership in the retirement system does not apply to any person who was serving as a member of a city council, city-parish council, town council or as an alderman or constable on January 1, 1997, and who was a member of a retirement system covering that position on that date. Those persons are required to be members of the system if and when they serve as a member of a city council, city-parish council, town council, or as an alderman or constable.) "Employee" shall also mean a person who receives earnings from more than one participating employer, of which one is the Vinton Public Power Authority. Such a person shall qualify as an employee of each participating employer based on the cumulative hours worked for all participating employers. “Employer” or “participating employer” means an incorporated city, town, or village in the state of Louisiana, which has entered into an agreement with the board. In addition, the Louisiana Municipal Association, the Louisiana Energy and Power Authority, the Cajundome Commission, The West Calcasieu Parish Community Center Authority, The Vinton Public Power Authority, the Local Tax Division of the Board of Tax Appeals, the Louisiana Local Government Environmental Facilities and Community Development Authority, the Firefighters’ Pension and Relief Fund in the city of New Orleans, the Louisiana Uniform Local Sales Tax board, the LA Asset Management Pool, marshals or constables of city courts not in other retirement systems, the retirement system, any planning and development commission in the state of Louisiana which has entered into an agreement with the board, and any tax board or commission of a municipality or parish in the state of Louisiana that has entered into an agreement with the board as outlined in R.S. 11:1733 are deemed employers under the statutes. “Employer” does not mean a city school board. “Final compensation” means a member's average monthly earnings during the highest paid sixty consecutive months or joined months if service was interrupted. However, the earnings to be considered for the thirteenth through the twenty-fourth month may not exceed one hundred and fifteen percent of the earnings for the first through the twelfth months. The earnings to be considered for the twenty-fifth through the thirty-sixth month may not exceed one hundred fifteen percent of the earnings for the thirteenth through the twenty-fourth months. The earnings for the thirty-seventh through the forty-eighth month may not exceed one hundred and fifteen percent of the earnings of the twenty-fifth through the thirty-sixth months. The earnings for the forty-ninth through the sixtieth months may not exceed one hundred fifteen percent of the earnings for the thirty-seventh through the forty-eighth months. The definition of “final compensation” has changed multiple times since June 30, 2006 for members of MERS. For a member whose first employment making him eligible for membership in the system began on or before June 30, 2006, two legislative changes led to special rules related to minimum final compensation levels. First, final compensation shall not be less than the final compensation as of June 30, 2011 based on the previous anti-spiking provision which stated that a member’s annual compensation could not increase by more than twenty-five percent per year during the three-year average compensation period. Additionally, such a member’s final compensation shall not be less than the final compensation as of December 31, 2012 based on the updated anti-spiking provision which stated that a member’s annual compensation could not increase by more than fifteen percent per year but using the previous three-year average compensation period. In addition, for members whose first employment making them eligible for membership in the system began between July 1, 2006, and June 30, 2011, only one legislative change led to a special rule related to a minimum final compensation level. For these individuals, the final compensation shall not be less than the final compensation as of June 30, 2011, based on the previous anti-spiking provision which stated that a member’s annual compensation could not increase by more than twenty-five percent per year during the five-year average compensation period. “Final salary” means a member's average monthly earnings during the twelve-month period immediately preceding their death or retirement. “Fiscal year” means the twelve-month period ending on June 30th of each year. “Medical board” means the board of physicians, chosen by the board of trustees that arrange for and/or review medical examinations relative to disability cases. “Member” means a contributing employee. “Minor child” means an unmarried child under the age of eighteen years or child who had a disability at the time of the member's death and who remains disabled. "Child" means the issue of a marriage of a member, the legally adopted child of a member, the natural child of a female member, or the child of a male member if a court of competent jurisdiction has made an order of filiation declaring the paternity of such a member for the child or the father has formally acknowledged the child. “Plan A” means the revised plan, which replaced the combination of the previous regular and supplemental plans effective October 1, 1978. Plan A is comprised of Tier 1, for those members of Plan A who were hired on or before December 31, 2012, and Tier 2, for those members of Plan A who were hired on or after January 1, 2013. “Plan B” means the revised plan, which replaced the previous regular plan effective October 1, 1978. Plan B is comprised of Tier 1, for those members of Plan B who were hired on or before December 31, 2012, and Tier 2, for those members of Plan B who were hired on or after January 1, 2013. “Regular plan” means the original plan that became effective upon the establishment of the system in 1955, excluding the supplemental plan, which was established subsequently. “Revision date” means October 1, 1978, the effective date of the establishment of Plans A and B. “Supplemental plan” means the supplementary plan established by Act No. 569 of 1968 to provide benefits in addition to those of the regular plan. “Surviving spouse” means a legal spouse who was married to a member at the time of the member’s death and for at least twelve months immediately prior thereto. (Louisiana law does not recognize arrangements known as “common law marriages” as legal marriages and the parties to such arrangements are not legal spouses.) “System” or “retirement system” means the Municipal Employees' Retirement System of Louisiana as established by state law and operated by the board. In this Handbook, the terms “municipality,” “city”, “employer”, and "participating employer" are, for the most part and unless a contrary meaning is clearly indicated, used interchangeably and all, in general, refer to an employer that has executed a participation agreement with the board. (R.S. 11:1732, 1789.1, and 1808.1) Revised on June 2026 Acts 221, 278, and 406 of 2026

1.10.010 Membership 1.10.020 Persons Not Eligible For Membership In The Firefighters' Retirement System Of Louisiana Or The Louisiana Municipal Police Employees' Retirement System Due To Age - Board Policy 1.10.030 Persons Not Eligible For Membership 1.10.040 Agreement For Coverage Of Employees Of Incorporated Cities, Towns, Villages, And Tax Boards Or Commissions 1.10.050 Agreement Amendments 1.10.060 Part-Time Public Officials; Membership Prohibited 1.10.070 Persons Who Become Eligible For Membership In Other Systems 1.10.080 Membership Of Employees After Consolidation 1.10.090 Termination Of Membership 1.10.100 Members Who Have Credit In Plan A And Plan B 1.10.110 Dual Employment 1.10.120 Retention Of Membership 1.10.010 Membership All eligible employees of participating employers (see definition of “employee”), except those specifically excluded by statute, must become members of the system. Employees of the Louisiana Municipal Association are members of Plan A in conjunction with an agreement with the Board of Trustees. Any employee who has retired from any Louisiana state public retirement system, plan, or fund and is over the age of sixty-five is not required to participate in the system. The agreement between the employer and the board is the determining factor for purposes of placing members into the appropriate plan. Any elected official who would otherwise be required to be a member of the system, but who is subject to term limits which prevent the earning of the minimum number of years of creditable service needed to receive a benefit are not eligible for membership in the system. Elected officials who have contributed in the past but fit this description may no longer be members of the system and may apply for a refund of contributions. Any person who qualifies as an employee pursuant to R.S. 11:1732(13)(b) must participate in and contribute to the system on all earnings from all participating employers. A member who is employed by multiple employers will not earn more service credit than what would have been earned if all earnings were paid by a single participating employer. (PLEASE NOTE: There is no waiting period or any other kind of delay between the date of employment and enrollment in membership in the retirement system. All “employees” (see definition of “employee”) must be enrolled as members of the retirement system on and as of the date they are employed by a participating employer.) Each employee must complete a personal history/enrollment form at the time of employment. Changes to the information contained on that form (changes in the member's address, designated beneficiary, name, marital status, etc.) must be submitted to the system in writing in a form that includes the member’s signature to become effective. (R.S. 11:1751, 1751.1, 1789.2, and 1808.2) Revised on June 2026 1.10.020 Persons Not Eligible For Membership In The Firefighters' Retirement System Of Louisiana Or The Louisiana Municipal Police Employees' Retirement System Due To Age - Board Policy If an employee is hired by a municipality’s police or fire department and is not eligible to be a member of Firefighters’ Retirement System (FRS) or Municipal Police Employees’ Retirement System (MPERS) due to age, he has the option to join MERS or to instead participate in the benefits that are offered by the Social Security Administration. The employee must select his option on his date of hire, and the decision is irrevocable. Revised on April 2021 1.10.030 Persons Not Eligible For Membership Persons who are members of any retirement system or who are eligible for membership in any retirement system financed wholly or partly by public funds for the retirement of employees by the state of Louisiana or by a city, parish, village, or other political subdivision in the state of Louisiana are not eligible for membership in this system. (For example, any person who is employed on or after July 1, 1999 in a position as defined in the municipal fire and police civil service system who is employed on a full-time basis by a police department of any municipality in Louisiana, is under the direction of a chief of police, is under the age of fifty years at the time of such employment, and is paid at least $375.00 per month from the budget of the applicable police department is eligible for membership in the Municipal Police Employees’ Retirement System and is therefore not eligible for membership in the Municipal Employees’ Retirement System.) Persons paid jointly by a participating employer and a parish are not eligible for membership in the system, except for city marshals and their employees, city constables and their employees, and clerks of city courts except in the city of New Orleans. (However, see the section titled Dual Employment.) The definition of the term “employee” provides additional detail on the requirements of membership and descriptions of persons not eligible for membership in the system. (R.S. 11:1752) Revised on April 2021 1.10.040 Agreement For Coverage Of Employees Of Incorporated Cities, Towns, Villages, And Tax Boards Or Commissions Each incorporated city, town, or village and any other entity included in the definition of “employer” may submit for approval by the board an agreement for extending the benefits of the system to its employees. The board shall approve each agreement or amendment if it is in conformity with the rules of the board and applicable state law. Each agreement must: 1. Specify the plan of the system in which the employer wishes to enroll. 2. Designate the classes of employees to be enrolled and certify that such employees meet the membership criteria of the MERS statutes. 3. Specify that all eligible employees will become members of the system on the agreement date and that all future employees who are eligible for membership will become members at the time of their employment as a condition of employment. (PLEASE NOTE: There is no waiting period or any other kind of delay between employment and enrollment in membership in the retirement system. All “employees” (see definition of “employee”) must be enrolled as members of the retirement system on and as of the date they are employed by a participating employer.) 4. Certify all periods of employment for each employee and specify the extent to which credit for prior service will be granted. 5. If credit for prior service is to be granted, the enrolling entity must provide, as an attachment to the agreement, an actuarial study of the accrued liability of the prior service, performed at the employer’s expense. 6. Provide for payment to the system at the time of enrollment, an amount to be determined by the board in accordance with its funding philosophy, which will offset the increase in the accrued liability to the system if credit for prior service is to be granted. (See the section titled Purchase Price of Retirement Credit - Actuarial Cost) 7. Specify the source or sources from which the funds necessary to make the required payments are expected to be derived, that such sources will be adequate for such purpose, and that all required contributions will be timely collected and remitted to the system.  8. Certify, if enrollment is to be in Plan A, that the employer has officially terminated its agreement with the Department of Health, Education and Welfare for employee coverage under the Social Security Act, except as noted in R.S. 11:1734, or agrees not to apply for such coverage. 9. Provide for the appointment of an authorized agent. 10. Provide that the authorized agent will make such reports in such form and containing such information as the board may from time to time require and comply with such provisions as the board may find necessary to assure the correctness and completeness of such reports. 11. Authorize the board to terminate the agreement in its entirety if it finds on the part of the city or other participating entity a failure to substantially comply with any provision of the agreement, such termination to take effect on such conditions as may be provided by the board. The board may not refuse final approval of an agreement or terminate an agreement without giving reasonable notice and an opportunity for a hearing to the employer. (R.S. 11:1733(A) - R.S. 11:1733(B)) Revised on April 2021 1.10.050 Agreement Amendments If an employer transfers from Plan B to Plan A or in any other way amends its agreement with the board, an amendment to the agreement must be executed subject to the same procedures and payments for existing accrued liability as if a new agreement is executed. If a municipality transfers participation from Plan B to Plan A, the municipality may not convert the service credit and contributions standing to the credit of its employees in Plan B from Plan B to Plan A unless an actuarial study is conducted by the system's actuary, at the municipality's expense, to determine the actuarial cost associated with converting the Plan B credit to Plan A and the municipality pays to the system in a lump sum payment the actuarial cost associated with the conversion. (R.S. 11:1734) Revised on April 2021 1.10.060 Part-Time Public Officials; Membership Prohibited Members of city councils, city-parish councils, town councils, aldermen, and constables are deemed to be part-time officials and are not allowed to become or be members of the retirement system. However, this prohibition of membership in the retirement system does not apply to any person who was serving as a member of a city council, city-parish council, or town council or as an alderman or constable on January 1, 1997 and who was a member of a retirement system covering that position on that date. Those persons are required to be members of the system if and when they serve as a member of a city council, city-parish council, or town council or as an alderman or constable. (R.S. 11:164) Revised on April 2021 1.10.070 Persons Who Become Eligible For Membership In Other Systems Any member who becomes eligible for membership in any other retirement system covering the same employment may elect to remain a member of this system in lieu of membership in the other system by filing a notice, in writing, with the system within ninety (90) days of becoming eligible for membership in the other system. Such election is irrevocable. (R.S. 11:1752(C)) Revised on April 2021 1.10.080 Membership Of Employees After Consolidation If the governing authorities of a parish and a municipality consolidate into one governing authority and if the employees of the municipality are, at the time of the consolidation, members of this system, then, subsequent to the consolidation, those persons who are members of this system at the time of the consolidation will remain members of this system for as long as they remain continuously employed by the consolidated government. The consolidated government will be deemed to be the “employer” of such persons regarding participation in the system with all of the responsibilities incumbent therewith. A person who becomes employed by the consolidated government subsequent to the consolidation is not eligible for membership in the system.* *Any employee first employed on or after November 1, 2010, and prior to November 1, 2020, by any department created by the Home Rule Charter for the Lafayette City-Parish Consolidated Government or by the City Court of Lafayette should contact the system with any questions regarding rules for membership. Employees of the Lafayette City Parish Consolidated Government, other than fire and police, employed after November 1, 2020, are generally enrolled in the Parochial Employees’ Retirement System. (R.S. 11:1753) Revised on April 2021 1.10.090 Termination Of Membership An employee ceases to be a member of the system upon resignation, dismissal, other separation from service, or withdrawal from active service with a retirement or disability benefit provided by the system. (R.S. 11:1754) Revised on April 2021 1.10.100 Members Who Have Credit In Plan A And Plan B The provisions of a reciprocal recognition agreement relative to eligibility for retirement are applicable to a member who has credit in Plan A and Plan B as if the two plans are two distinct, separate, and independent public retirement systems. However, for benefit computation purposes, final compensation upon retirement will be based on all service in the system, regardless of the plan in which it was earned, as if all credit were in the same plan (unless there is concurrent service in both plans). Revised on April 2021 1.10.110 Dual Employment A person who is employed in more than one position of public employment and who, by reason of such dual employment, is eligible to be a member of more than one public retirement system, must be a contributing member of each retirement system applicable to their various positions of public employment. Credit in more than one system for the same period of time may not be transferred or reciprocally recognized to attain more than one year of credit in any one system for any one year. For any member elected to the legislature for a term commencing on or after July 1, 2011 who holds another position of public office or employment making him eligible for membership, the earnable or earned compensation, or its equivalent, upon which his retirement benefit is calculated, shall not include any compensation for his service in the legislature occurring on or after July 1, 2011. No service credit accrues for service as an elected member of the legislature. Neither employee nor employer contributions are required on compensation for elected service in the legislature. (R.S. 11:191) Revised on April 2021 1.10.120 Retention Of Membership A member of MERS with at least five years of service credit who becomes employed in a position eligible for membership in the Louisiana State Employees’ Retirement System (LASERS) has the right to remain a member of MERS. The member must file the Retain Membership in MERS form within 30 days after the effective date of employment in the LASERS eligible position. The election to remain in MERS is irrevocable. (R.S.11:1751.2) Revised on August 2025

1.15.010 Plan A - Normal Retirement Eligibility 1.15.020 Plan A - Normal Retirement Benefit Computation 1.15.030 Plan A - Normal Retirement Benefit Computation Example 1.15.040 Plan A - Early Retirement Eligibility And Benefit Computation 1.15.050 Plan A - Disability Retirement Eligibility 1.15.060 Plan A - Disability Retirement Benefit Computation 1.15.070 Plan A - Survivor Benefit Eligibility And Computation 1.15.080 Plan A - Employee Contributions 1.15.010 Plan A - Normal Retirement Eligibility A member of Plan A Tier 1 (defined as those members whose first employment making them eligible for membership in MERS occurred before January 1, 2013) is eligible to retire and receive normal retirement benefits if: 1. The member has credit for at least twenty-five years of Plan A service, regardless of age; or, 2. The member has credit for at least ten years of Plan A service and is at least sixty years of age. A member of Plan A Tier 2 (defined as those members whose first employment making them eligible for membership in MERS occurred on or after January 1, 2013) is eligible to retire and receive normal retirement benefits if: 1. The member has credit for at least thirty years of Plan A service, and is at least fifty-five years of age; or, 2. The member has credit for at least ten years of Plan A service and is at least sixty-two years of age; or, 3. The member has credit for at least seven years of Plan A service and is at least sixty-seven years of age. (R.S. 11:1781 and R.S. 11:1789.3) Revised on April 2021 1.15.020 Plan A - Normal Retirement Benefit Computation The monthly maximum Plan A normal retirement benefit is an amount equal to three percent of the member's final compensation (see definition) multiplied by the member’s years of creditable service, provided that: 1. A member who was hired on or before December 31, 2012 and held an elective office in a participating municipality is paid an additional monthly benefit equal to one-half of one percent of final compensation multiplied by each year of such elective service; and 2. For an employee who was a member only of the supplemental plan prior to the revision date, the monthly benefit earned for service credited prior to the revision date will be determined on the basis of one percent of final compensation plus two dollars per month for each year of service credited prior to the revision date, and three percent of final compensation for each year of service credited after the revision date. Normal retirement benefits are paid for the life of the retiree and, if an optional mode of benefit payment is selected (see Mode of Payment Options), a benefit reduced from the maximum will be paid to the retiree for life. In addition, monthly benefits, payable upon the death of the retiree, as determined by the option selected at the time of retirement, will be paid to the option beneficiary according to the description of the option selected. Applications for normal retirement should be submitted to the system at least six weeks prior to the planned retirement date. A copy of the member's birth certificate and Social Security card, and, if an optional mode of benefit payment is selected (see Mode of Payment Options), a copy of the option beneficiary's birth certificate and Social Security card must be attached to the application for retirement. If a retired member dies without receiving total retirement and/or DROP benefits equal to the accumulated employee contribution balance at retirement and leaves no eligible survivors due any benefits, the difference between the accumulated employee contribution balance and the amount received in retirement benefits will be paid to the member’s designated beneficiary or estate. Such a payment will be made only upon proper application. Please note that under certain circumstances described in the statutes, a portion of the benefits payable to certain city marshals or deputy city marshals is calculated in a different manner. For information on such benefits, please contact the retirement system or refer to R.S. 11:1732(12)(b), R.S. 11:1782(3), R.S. 11:1789.4(1), and R.S. 11:1808.4(2). (R.S. 11:1782 and R.S. 11:1789.4(2)) Revised on April 2021 1.15.030 Plan A - Normal Retirement Benefit Computation Example The following is an example of the method used to compute a Plan A member’s maximum monthly retirement benefit under the statutes in effect as of March 2021. If a member has service credit in Plan A for exactly twenty-seven years of service (after accounting for any breaks in service credit and/or periods of leave without pay), has not held elective office during the period of membership in the retirement system, and has a final compensation (see definition) of $3,000 per month, the maximum normal retirement benefit would be computed as follows: 27 years of service credit x 3% per year × $3,000 per month = $2,430 per month. This is a simple example that does not include service credit transferred into the retirement system at a different accrual rate, service in another plan within the retirement system, “supplemental only” service credit served prior to the revision date, or other complications. This example assumes that the member has met eligibility requirements, which would mean that the member had attained at least age 62 if he were covered by Tier 2 statutes. For an actual estimate of benefits, please contact the retirement system office. Revised on April 2021 1.15.040 Plan A - Early Retirement Eligibility And Benefit Computation A member of Plan A Tier 1 (defined as those members whose first employment making them eligible for membership in MERS occurred before January 1, 2013) who has credit for twenty years of Plan A service or a member of Plan A Tier 2 (defined as those members whose first employment making them eligible for membership in MERS occurred on or after January 1, 2013) who has twenty-five years of Plan A service, exclusive of military service and unused annual and sick leave, may retire at any age. However, the benefits paid to such a member shall be inclusive of military service credit and allowable unused annual and sick leave, and must be actuarially reduced from the member’s earliest normal retirement age assuming continuous service to that age. The early retirement eligibility standard is not available for participation in the Deferred Retirement Option Plan. Applications for early retirement benefits must be signed by the member before the last day of employment. If the application is not signed before the member’s last day of employment, retirement benefits shall be subject to the provisions of the “Deferred Normal Retirement/Vesting” section. (R.S. 11:1781.1 and R.S. 11:1789.3) Revised on April 2021 1.15.050 Plan A - Disability Retirement Eligibility A member of Plan A who has at least five years of Plan A service credit, is not eligible for normal retirement benefits, suffers disability, and is approved by the board of trustees after medical review is eligible to retire and receive disability retirement benefits. In order to be considered for disability by the board of trustees, a member must undergo the procedures for medical review as discussed in the section titled “Application For Disability Benefits, Rules Related to the Commencement of Disability Benefits, and the Payment of Disability Benefits” and be certified as disabled by the State Medical Disability Board. (R.S. 11:1783) Revised on April 2021 1.15.060 Plan A - Disability Retirement Benefit Computation The monthly Maximum Plan A disability retirement benefit is the lesser of: 1. An amount equal to three percent of the member's final compensation (see definition) multiplied by the member’s years of service, but not less than forty-five percent of the member's final compensation, or 2. An amount equal to what the member's normal retirement benefit would be based on the final compensation (see definition) at the time of disability, but assuming continuous service until the  member’s earliest normal retirement age and using the retirement benefit computation factors which would be applicable at the normal retirement age. An applicant for disability retirement may select an optional mode of benefit payments as described in R.S. 11:1757 (For a description, see Mode of Payment Options). Option reductions for disability benefits will be based on the ages of the member and option beneficiary projected to the member’s earliest normal retirement date assuming continuous service until that time. (R.S. 11:1784) Revised on April 2021 1.15.070 Plan A - Survivor Benefit Eligibility And Computation Upon the death of a member of Plan A who has credit for five or more years of service and who is not eligible for normal retirement benefits, the following survivor benefits are payable to a qualifying spouse or minor child upon proper application. A surviving spouse must have been married to the deceased member for at least twelve months immediately preceding the member's death to be eligible for survivor benefits. 1. A surviving spouse with minor children – The statutes provide for a monthly benefit equal to sixty percent of the member's final compensation (see definition) to continue for as long as the spouse lives and cares for a minor child. A surviving spouse is deemed to have minor children for as long as at least one minor child is legally under his care. 2. A surviving spouse with no minor children ̶ The statutes provide for a monthly benefit equal to either; a. Forty percent of the member's final compensation (see definition), payable when the surviving spouse attains the age of sixty years or becomes disabled and payable for as long as the surviving spouse lives, or b. A benefit equal to the actuarial equivalent of the benefit described in subsection (a), but not less than twenty percent of the member’s final compensation (see definition), payable upon the death of the member and payable for as long as the surviving spouse lives. (To select this form of benefit, a surviving spouse must notify the system of such selection within ninety days of the application for benefits and such selection is final and irrevocable. Selecting the benefit in this section precludes the survivor from eligibility for the forty-percent benefit payable when the surviving spouse attains the age of sixty years). 3. A surviving minor child (or children) with no surviving spouse - The statutes provide for a monthly benefit equal to thirty percent of the member's final compensation (see definition) to each child; however, total payments may not exceed sixty percent of the member's final compensation (see definition). If more than two minor children survive the member and there is no surviving spouse, the benefit payable at any time to each child is an amount determined by dividing the total amount payable (sixty percent of the member's final compensation – see definition) by the number of children then eligible for a benefit. Only the person who has legal care, custody, and control of the minor child may apply for and be paid the minor child survivor benefits. A member who is eligible for normal retirement at the time of death and who leaves a surviving spouse will be deemed to have retired and selected Option 2 benefits on behalf of the surviving spouse on the date of death. Such benefits will begin only upon proper application, and are paid in lieu of any other survivor benefits. Upon the death of any member who is eligible for normal retirement at the time of death and who leaves surviving minor children but no surviving spouse, an amount equal to thirty percent of the member’s final compensation (see definition) is payable to each minor child, however, the total amount paid cannot exceed an aggregate of sixty percent. If more than two minor children survive such a member, the benefit payable at any time to each child is an amount determined by dividing the total amount payable (sixty percent of the member's final compensation – see definition) by the number of children then eligible for a benefit. Minor child survivor benefits may only be applied for and paid to the person who has legal care, custody, and control of the minor child. A copy of the member and survivor's marriage license must be attached to the application for survivor benefits if the applicant is the surviving spouse of a member. A copy of the minor child's birth certificate, Social Security card, and applicable custody judgment if the applicant is not the surviving spouse must be attached to the application for survivor benefits if the application is filed on behalf of a surviving minor child of a member. If only one person is eligible for survivor benefits, that person may apply for and be paid a refund of the deceased member's accumulated employee contributions in lieu of payment of survivor benefits. A refund of the deceased member’s accumulated employee contributions may be split among two or more persons eligible for survivor benefits in lieu of payment of survivor benefits if all eligible survivors agree to the refund and make proper application. The survivor(s) must notify the board in writing of the decision to request a refund in lieu of the survivor benefits prior to receiving any survivor benefits and must execute a waiver of the survivor benefits. Such refund payments are subject to the same provisions as are other refund payments. Special rules exist for certain members who die while on a leave of absence to perform qualified military service. Refer to R.S. 11:1785(D). (R.S. 11:1785 and R.S. 11:1759(C)) Revised on April 2021 1.15.080 Plan A - Employee Contributions Each member of Plan A shall contribute a percentage of earnings from each and every payment of earnings based upon the Board approved employee contribution rate selected for each fiscal year within a range from 9.25% to 10% for Tier 1 members and from 8% to 10% for Tier 2 members. Currently, Plan A members in Tiers 1 and 2 contribute 10% of pay. (R.S. 11:1786, R.S. 11:1789.5, and R.S. 11:62(7)) Revised on April 2021

1.20.010 Plan B - Normal Retirement Eligibility 1.20.020 Plan B - Normal Retirement Benefit Computation 1.20.030 Plan B - Normal Retirement Benefit Computation Example 1.20.040 Plan B - Early Retirement Eligibility And Benefit Computation 1.20.050 Plan B - Disability Retirement Eligibility 1.20.060 Plan B - Disability Retirement Benefit Computation 1.20.070 Plan B - Survivor Benefit Eligibility And Computation 1.20.080 Plan B - Employee Contributions 1.20.010 Plan B - Normal Retirement Eligibility A member of Plan B Tier 1 (defined as those members whose first employment making them eligible for membership in MERS occurred before January 1, 2013) is eligible to retire and receive normal retirement benefits if: 1. The member has credit for at least thirty years of Plan B service, regardless of age; or, 2. The member has credit for at least ten years of Plan B service and is at least sixty years of age. A member of Plan B Tier 2 (defined as those members whose first employment making them eligible for membership in MERS occurred on or after January 1, 2013) is eligible to retire and receive normal retirement benefits if: 1. The member has credit for at least thirty years of Plan B service and is at least age fifty-five years of age; or, 2. The member has credit for at least ten years of Plan B service and is at least sixty-two years of age. 3. The member has credit for at least seven years of Plan B service and is at least sixty-seven years of age. (R.S. 11:1801 & R.S. 11:1808.3) Revised on April 2021 1.20.020 Plan B - Normal Retirement Benefit Computation The monthly Maximum Plan B normal retirement benefit is an amount equal to two percent of the member's final compensation (see definition) multiplied by the member’s years of creditable service, provided that a member who was hired on or before December 31, 2012 and held an elective office in a participating municipality is paid an additional monthly benefit equal to one-half of one percent of final compensation multiplied by each year of such elective service Normal retirement benefits are paid for the life of the retiree and, if an optional mode of benefit payment is selected (see Mode of Payment Options), a benefit reduced from the maximum will be paid to the retiree for life. In addition, monthly benefits, payable upon the death of the retiree, as determined by the option selected at the time of retirement, will be paid to the option beneficiary according to the description of the option selected. Applications for normal retirement should be submitted to the system at least six weeks prior to the planned retirement date. A copy of the member's birth certificate and Social Security card, and, if an optional mode of benefit payments is selected (see Mode of Payment Options), a copy of the option beneficiary's birth certificate and Social Security card must be attached to the application for retirement. If a retired member dies without receiving total retirement benefits equal to the accumulated employee contribution balance at retirement and leaves no eligible survivors due any benefits, the difference between the accumulated employee contribution balance and the amount received in retirement benefits will be paid to the member’s designated beneficiary or estate. Such a payment will be made only upon proper application. Please note that under certain circumstances described in the statutes, a portion of the benefits payable to certain marshals is calculated in a different manner. For information on such benefits, please contact the retirement system or refer to R.S. 11:1732(12)(b) and R.S. 11:1802(3). (R.S. 11:1802 and R.S. 11:1808.4) Revised on April 2021 1.20.030 Plan B - Normal Retirement Benefit Computation Example The following is an example of the method used to compute a Plan B member’s maximum monthly retirement benefit under the statutes in effect as of July 1, 2018: If a member has service credit in Plan B for exactly twenty-seven years of service (after accounting for any breaks in service credit and/or periods of leave without pay), has not held elective office during the period of membership in the retirement system, and has a final compensation (see definition) of $3,000 per month, the maximum normal retirement benefit would be computed as follows: 27 years of service credit x 2% per year × $3,000 per month = $1,620 per month. This is a simple example that does not include service credit transferred into the retirement system at a different accrual rate, service in another plan within the retirement system, or other complications. This example assumes that the member has met eligibility requirements, which would mean that the member had attained at least age 60 if he were covered by Tier 1 statutes or 62 if he were covered by Tier 2 statutes. For an actual estimate of benefits, please contact the retirement system office. Revised on April 2021 1.20.040 Plan B - Early Retirement Eligibility And Benefit Computation A member of Plan B Tier 2 (defined as those members whose first employment making them eligible for membership in MERS occurred on or after January 1, 2013) who has twenty-five years of Plan B service, exclusive of military service and unused annual and sick leave, may retire at any age. However, the benefits paid to such a member shall be based on service inclusive of military service credit and allowable unused annual and sick leave, and must be actuarially reduced from the member’s earliest normal retirement age assuming continuous service to that age. The early retirement eligibility standard is not available for participation in the Deferred Retirement Option Plan. Applications for early retirement benefits must be signed by the member before the last day of employment. If the application is not signed before the member’s last day of employment, retirement benefits shall be subject to the provisions of the “Deferred Normal Retirement/Vesting” section. (R.S. 11:1808.3) Revised on April 2021 1.20.050 Plan B - Disability Retirement Eligibility A member of Plan B who has at least ten years of Plan B service credit, is not eligible for normal retirement benefits, suffers disability, and is approved by the board of trustees after medical review is eligible to retire and receive disability retirement benefits. In order to be considered for disability by the board of trustees, a member must undergo the procedures for medical review as discussed in the “Disability Benefit Procedures” section of this document and be certified as disabled by the State Medical Disability Board. (R.S. 11:1803) Revised on April 2021 1.20.060 Plan B - Disability Retirement Benefit Computation The monthly Maximum Plan B disability retirement benefit is the lesser of:  1. An amount equal to two percent of the member's final compensation (see definition) multiplied by his years of service, but not less than thirty percent of the member’s final compensation, or 2. An amount equal to what the member's normal retirement benefit would be based on the final compensation (see definition) at the time of disability, but assuming continuous service until the member’s earliest normal retirement age and using the retirement benefit computation factors which would be applicable at the normal retirement age. An applicant for disability retirement may select an optional mode of benefit payments as described in R.S. 11:1757 (for a description, see Mode of Payment Options). Option reductions for disability benefits will be based on the ages of the member and option beneficiary projected to the member’s earliest normal retirement date assuming continuous service until that time. (R.S. 11:1804) Revised on April 2021 1.20.070 Plan B - Survivor Benefit Eligibility And Computation A surviving spouse must have been married to the deceased member for at least twelve months immediately preceding the member’s death to be eligible for survivor benefits. Upon the death of a member of Plan B who has credit for five or more years of service and who is not eligible for normal retirement benefits, the following survivor benefits are payable to a qualifying spouse upon proper application. In this case, a surviving spouse will be paid either: 1. A monthly benefit equal to thirty percent of the member’s final compensation (see definition), payable when the surviving spouse attains the age of sixty years or becomes disabled and payable for as long as the surviving spouse lives, or 2. A monthly benefit equal to the actuarial equivalent of the benefit described in section (1), but not less than fifteen percent of the member’s final compensation (see definition), payable upon the death of the member and payable for as long as the surviving spouse lives. (To select this form of benefit, a surviving spouse must notify the system of such selection within ninety days of the application for benefits and such selection is final and irrevocable. Selecting the benefit in this section precludes the survivor from eligibility for the thirty-percent benefit payable when the surviving spouse attains the age of sixty years). A member who is eligible for normal retirement at the time of death and who leaves a surviving spouse will be deemed to have retired and selected Option 2 benefits on behalf of the surviving spouse on the date of death. Such benefits will begin only upon proper application and are paid in lieu of any other survivor benefits. A copy of the member and survivor's marriage license must be attached to the application for survivor benefits. As per R.S. 11:1759(C), a surviving spouse who is eligible for survivor benefits may apply for and be paid a refund of the deceased member's accumulated employee contributions in lieu of payment of survivor benefits. The survivor must notify the board in writing of the decision to request such a refund in lieu of the survivor benefits prior to receiving any survivor benefits and must execute a waiver of the survivor benefits. Such refund payments are subject to the same provisions as are other refund payments. Special rules exist for certain members who die while on a leave of absence to perform qualified military service. Refer to R.S. 11:1805(C). (R.S. 11:1805) Revised on April 2021 1.20.080 Plan B - Employee Contributions Each member of Plan B shall contribute a percentage of earnings from each and every payment of earnings based upon the Board approved employee contribution rate selected for each fiscal year within a range from 5.0% to 6.0% for Tier 1 members and from 4% to 6% for Tier 2 members. Plan B members, in Tiers 1 and 2, currently contribute 5% of pay. (R.S. 11:1806, R.S. 11:1808.5, and R.S. 11:62(7)) Revised on April 2021

1.25.010 Return Of Accumulated Employee Contributions 1.25.012 Policy For Granting Partial Refunds 1.25.020 Deferred Retirement Option Plan 1.25.030 Application For Benefits, Rules Related To The Commencement Of Benefits, And The Payment Of Normal And Survivor Benefits 1.25.040 Mode Of Payment Options 1.25.050 Conversion Of Unused Leave To Retirement Credit 1.25.060 Cost Of Living Adjustments To Benefits 1.25.062 Policy For Granting Cost-Of-Living Adjustments 1.25.070 Forfeiture Of Retirement Benefits; Public Corruption Crimes 1.25.010 Return Of Accumulated Employee Contributions A member who ceases to be an employee may apply for and be paid a refund of accumulated employee contributions. This application may be made at any time after the member ceases to be an employee. If a member dies and does not leave a survivor eligible for benefits, upon receipt of a proper application, the accumulated employee contribution balance at the time of death will be paid to the designated beneficiary or estate. Refunds of accumulated employee contributions may not be paid to a member, a designated beneficiary, or estate until and unless the member has been terminated from a participating employer for thirty days and until all contributions for the member have been submitted by the member's employer. Refunds are paid in accordance with policies that are, from time to time, adopted by the board of trustees. Employee contributions made to MERS prior to January 1, 2000 were not eligible to be tax sheltered. Therefore, prior to January 1, 2000, a member’s full gross income should have been considered taxable. Employee contributions made on or after January 1, 2000, when the retirement system became a qualified plan, were eligible for tax sheltering. When employee contributions were tax- sheltered, federal income taxes were not required to be paid on the tax-sheltered contributions. An employee who participated in the system prior to January 1, 2000, terminates employment after January 1, 2000, and who thereafter applies for a refund of accumulated employee contributions will have two categories of accumulated employee contributions:  1. Employee contributions paid prior to January 1, 2000, were not tax sheltered and therefore, if taxes were paid on the full gross salary of the member, refunded employee contributions for this period would not be considered a taxable distribution. 2. Employee contributions paid on and after January 1, 2000, might have been tax sheltered and therefore would require different treatment. Such sheltered employee contributions, unless rolled over into a qualified plan or IRA, have restrictions placed on their treatment at the time they are refunded. a. First, an employee would owe ordinary income taxes on refunded contributions that were not previously taxed as income. b. A 10% income tax penalty may apply if the refund is made before the employee reaches age 59½. (Certain exceptions apply that include distributions made on or after an employee’s death, a distribution attributable to the employee’s being totally and permanently disabled, a distribution made to an employee after separation from service after attainment of age 55, a distribution made to satisfy a federal tax levy, a distribution to an alternate payee pursuant to a domestic relations order, or a distribution for certain medical expenses that would be allowable as an itemized deduction.) c. The retirement system is required to withhold 20% of the sheltered employee contributions that are eligible for rollover if they are instead paid directly to the member. The 20% withholding may be more or less than the actual federal income taxes owed as a result of the refund. Members should consult a tax accountant for advice on matters related to refunded employee contributions. The 10% income tax penalty and the 20% withholding requirement can be avoided if the employee elects to rollover all sheltered employee contributions into an IRA or other qualified retirement plan. The portion of any refund equal to those employee contributions that were paid prior to January 1, 2000, may not be rolled over. Example: Assume that an employee terminated employment on January 1, 2007, that the employee contribution balance includes $1,000 in employee contributions made prior to January 1, 2000 and $5,000 in sheltered employee contributions made on and after January 1, 2000. Upon proper application for a refund of contributions, the amount of $1,000 will be refunded directly to the member and is not subject to withholding or tax penalty since the employee has already paid federal income taxes on these contributions. The $5,000 of sheltered employee contributions may either be (1) rolled-over into an IRA or other qualified retirement plan without withholding of federal income taxes, or (2) refunded directly to the member with 20% withheld. If a refund is made to the member with 20% withheld for federal income taxes, the distribution is a taxable event reported to the IRS and may be subject to a 10% penalty if the employee is under the age of 59½ years when the refund is paid and does not fit any of the exceptions provided for by the Internal Revenue Service. Payment of a refund of employee contributions cancels all rights and credit in the system. Neither the former member nor any other person will be entitled to any benefits on the former member's account after a refund is paid. A member who ceases to be an employee may leave the accumulated employee contributions on deposit with the system, but such funds do not accrue interest that could be paid to the former member at a subsequent time upon a request for a refund of accumulated employee contributions. A person who ceases to be an employee and who leaves their accumulated employee contributions on deposit with the system is not a member of the system unless they otherwise return to membership and will not, except as otherwise specified, be eligible for any benefits due members. A refund may be requested at any time and if a former member who had not withdrawn their accumulated employee contributions dies, the accumulated employee contributions on deposit will, upon proper application, be paid to the designated beneficiary or, if none, the former member’s estate. A few reasons exist for a member who ceases to be an employee to leave the accumulated employee contributions on deposit with the system. Such a member may: 1. Have enough years of service credit to be eligible for a deferred retirement benefit. 2. Expect to return to covered employment and become eligible for a benefit at a later date. 3. Expect to be employed by another public entity in Louisiana where they will become a member of another public retirement system. In this case, a terminated member with all employee contributions remaining on deposit may execute a reciprocal recognition agreement with another eligible public retirement system or complete a transfer of service credit. Upon completion of a transfer of service credit, an amount including the member’s employee contribution balance will be sent to the receiving system (For more details see Reciprocal Recognition of Credited Service in Other Public Retirement Systems and Transfers Between Public Retirement Systems). A person who was previously a member of the system and who returns to covered employment must again and at that time become a member of the system (see exceptions related to certain reemployed retirees in sections R.S. 11:1762 and R.S. 11:1762.1). The requirement to become a member of the system exists regardless of whether the member withdrew their contributions made during the previous period of membership. If a retired member dies without having received in retirement benefits an amount equal to his accumulated employee contributions and if that member is survived by no person eligible for any other benefits, the difference between the accumulated employee contribution balance and the amount received in retirement benefits will be paid to the designated beneficiary or, if none, the member’s estate. (R.S. 11:1759 and R.S. 11:1782(4)) Revised on June 2026 HISTORY Act 278 of 2026 1.25.012 Policy For Granting Partial Refunds A member who terminates service with an employer is entitled to a refund of the employee contributions they made to the Municipal Employees’ Retirement System (MERS). Rule 501 adopted by the Board of Trustees and published in Title 58 of the Administrative Code provides that refunds are issued only after all contributions are received from the employer. This process typically takes 30 to 45 days. The Rule provides that the director may authorize a partial refund in exceptional circumstances, as set out in a written policy. Exceptional circumstances warranting consideration of a partial refund include the following situations: 1. The employer has not timely remitted contributions. 2. The refund is the result of the death of the member.  3. The member has documented a financial emergency such as a foreclosure, eviction, or repossession. 4. The member has documented significant medical expenses for the member, a spouse, or a child. A partial refund must be requested in writing by the member. The director shall carefully consider documentation provided by the member in determining whether to grant or deny a partial refund. A decision by the director on a partial refund request is final. Partial refunds shall not be granted in the case of a vested member. If a partial refund is approved and granted, the remaining amount due to the member shall be paid as soon as possible after receipt of all contributions from the employer. 1.25.020 Deferred Retirement Option Plan In lieu of terminating employment and accepting a normal retirement benefit, a member who is eligible for normal retirement may elect to participate in the Deferred Retirement Option Plan (DROP). Credit in another retirement system may not be used to attain eligibility to participate in the DROP even if a reciprocal recognition agreement is in effect. The duration of participation in DROP must be specified and may not exceed three years. A person may participate in DROP only once. IMPORTANT: The member must select the mode of benefit payment and the option beneficiary prior to DROP entry. These selections are irrevocable and may not be changed at a later date even if there are unexpected changes in a person’s life situation prior to terminating employment and receiving retirement benefits. (For information on available options, see Mode of Payment Options) Upon the effective date of commencement of participation in the DROP, active contributing membership in the system terminates even though the participant continues in employment. Employer contributions continue to be payable by the employer during the DROP participation period, but payment of employee contributions cease during this period. For purposes of applying the calculation rules related to DROP, a participant's compensation and creditable service remain as they existed on the effective date of commencement in DROP. Therefore, retirement credit is not earned during DROP participation. The monthly retirement benefits that would have been paid had the participant terminated employment and applied for normal retirement will be credited to the participant's individual DROP account. Amounts credited to a participant's account remain part of the retirement system's assets until paid to the participant and are not subject to state income tax while maintained in the DROP account or upon distribution. A participant in the plan is not eligible to receive a cost-of-living adjustment to the benefit calculated at DROP entry while participating in the DROP. A former member is not eligible to receive a cost-of-living adjustment until one full year after termination of the employment, which made the participant eligible to be a member of the system. The DROP is not subject to any fees, charges, or other similar expenses of any kind for any purpose. If a participant dies during the DROP participation period, a lump sum payment equal to the DROP account balance will be paid to the named beneficiary or, if none, the estate. In order to receive such a payment, the system must receive a properly executed application. If the member chose a reduced benefit at DROP entry in order to provide a survivor benefit under R.S. 11:1757, the survivor benefit as chosen may be payable to the beneficiary named to receive such benefit on the DROP application. If a participant terminates employment prior to the end of the specified DROP participation period, the participant must apply in writing to receive payment of the DROP account balance and to begin payment of the monthly retirement benefit. If a participant terminates employment at the end of the specified DROP participation period, the participant must apply in writing to receive payment of the DROP account balance and to begin payment of the monthly retirement benefit. If a participant does not terminate employment at the end of the specified period of participation in the plan, payments to the participant's DROP account cease and the member must resume active contributing membership in the system. Payments to the participant from the DROP account may not be made until employment is terminated and the member has applied in writing. In addition, the monthly benefits that were being paid into the member’s DROP account do not begin to be paid to the member until employment is terminated. When employment is terminated, the member must apply for retirement in order to receive payment of the DROP account balance and to begin payment of the monthly retirement benefit. The total monthly benefits payable to the applicant will include the monthly benefit that was previously being credited to the participant's DROP account and an additional benefit based on the service rendered since termination of participation in the plan. This additional benefit will be computed using the normal method of benefit computation, subject to the following: 1. If the participant’s period of additional service after termination of participation in DROP is less than the number of months used in the computation of his original DROP benefit, the average compensation figure used to calculate the original benefit will be used to calculate the additional benefit. 2. If the participant’s period of additional service is equal to or more than the number of months used in the computation of the original DROP benefit, the average compensation figure used to calculate the additional benefit will be based on the compensation earned during the period of additional service. (Special rules apply for members who entered DROP during calendar 2013 or 2014.) However, in no event may the additional benefit exceed an amount which, when combined with the original benefit that was being credited to the DROP account, equals the average compensation figure used to compute the additional benefit. If a person dies or becomes disabled during the period of additional service, it will be deemed that the member retired on the date of death or commencement of disability. Upon termination of employment, neither the mode of benefit payments nor the selection of the option beneficiary may be changed from that which was selected at the time participation in DROP began. Payment of the DROP account balance to retired members who were formerly in DROP, or their survivors, may be made as a lump sum payment from the system equal to the DROP account balance, a true annuity equal in value to the DROP account balance, or any other method of payment approved by the board. After a participant in the plan has terminated DROP participation, the individual DROP account balance will earn interest. The method of interest accrual may be based upon the date the member became eligible for participation in the Deferred Retirement Option Plan. For greater details on the accrual of interest on DROP account balances, contact the retirement office. Lump sum and periodic distributions (annual or monthly) which will result in distribution of the retiree’s DROP account in less than ten years are eligible for rollover into an Individual Retirement Account (IRA) or other qualified retirement plan. If a lump-sum or eligible periodic DROP distribution is rolled- over into an IRA or other qualified retirement plan, the distribution by the retirement system is a non- taxable distribution, with federal tax being deferred until later distribution from the IRA or qualified plan; if such distributions are not rolled-over, then they are a taxable distribution and will be reported to the Internal Revenue Service as such. If a lump sum DROP distribution is paid directly to the retiree by the retirement system, under most circumstances, the system is required by federal law to withhold 20% of the distribution for federal income taxes. Such a distribution is a taxable event in the calendar year the distribution is paid and will be reported to the IRS as such; the distribution may also be subject to a 10% tax penalty if the retiree is under the age of 59 1/2 years. If a retiree elects to withdraw (and not rollover) a certain dollar amount from the DROP account on an annual or monthly basis, which will result in distribution of the retiree’s DROP account in less than ten years, the system must also withhold 20% of each annual or monthly withdrawal for federal taxes and report each distribution to the IRS. DROP distributions received by a retiree on the basis of life expectancy, or periodic distributions that will result in distribution of the retiree’s account in ten or more years, are not eligible to be rolled over. Such distributions are still subject to ordinary federal income tax, but the 10% tax penalty may not apply even if the retiree is under the age of 59 1/2 years. If a retiree reaches the age of 70 1/2 years and still has funds in the DROP account, then mandatory minimum distributions must commence over the retiree’s remaining life expectancy. These minimum distributions are not eligible to be rolled over and ordinary federal income taxes are payable, but the 10% tax penalty does not apply. (R.S. 11:1763) Revised on April 2021 1.25.030 Application For Benefits, Rules Related To The Commencement Of Benefits, And The Payment Of Normal And Survivor Benefits A member, or survivor of a member, who is eligible for benefits from the system must apply for such benefits before payment can be made. As per R.S. 11:1757(D), if the member is married, the application must be signed by the member's spouse before the application may be submitted to the system. In lieu of signing the original application, the spouse may execute an agreement with the system consenting to the selection of the mode of benefit payments made by the member. If a member attains eligibility for benefits prior to withdrawal from employment, benefits commence on the first day of the first month following withdrawal of the member from employment, subject to approval by the system’s Board of Trustees. If a member dies while employed and benefits are due to a beneficiary, such benefits will commence on the first day of the first month following receipt by the retirement system of a properly executed application for such benefits. See R.S. 11:1785 regarding deadlines for application for certain survivor benefits. If a member terminates with sufficient service to be vested in a deferred benefit (i.e. the member has sufficient service credit for receipt of benefits in the plan, but has not attained the necessary age required for receipt of benefits at the time of termination of service), the benefit will become payable on the first day of the first month following the member’s properly executed application for such benefits. Such application is valid only after the member has reached the necessary age to be eligible for receipt of the benefit. Normal retirement benefits are paid in equal monthly installments for the life of the retiree and survivor benefits are paid in equal monthly installments for as long as the survivor is eligible. Benefits may not be increased, decreased, revoked, or repealed except in the case of an error in the computation or where otherwise specifically provided by law. If a normal or disability retiree selected an optional mode of benefit payments providing lifetime survivor benefits, the option beneficiary, upon the death of the retiree, will be paid benefits in equal monthly installments for the remainder of their life. (R.S. 11:1756) Revised on April 2021 1.25.040 Mode Of Payment Options Upon applying for regular or disability retirement benefits, an applicant may elect to receive the maximum benefits payable for life computed as described in the sections on computing benefits. Instead of receiving the maximum possible benefit, an applicant may elect, at the time of application for regular or disability retirement benefits, to receive the actuarial equivalent of such benefits in a reduced retirement allowance payable throughout his life with payments to his designated beneficiary after his death. See below for option descriptions: Maximum: The largest possible monthly benefit available to the retiree. With the exception of a guarantee that normal retirees receive in benefits an amount that is at least equal to their accumulated contributions, maximum benefits do not provide for benefits to a designated beneficiary. Option 2: Upon the member’s death, the option beneficiary that the member designated on the application for retirement, if such beneficiary is living at the time of the member’s death, will continue to receive the same monthly benefit that the member was receiving at the time of his death. The beneficiary will continue to receive a benefit for the remainder of her lifetime. Option 3: Upon the member’s death, the option beneficiary that the member designated on the application for retirement, if such beneficiary is living at the time of the member’s death, will receive a monthly benefit equal to one-half of the amount of the benefit that the member was receiving at the time of his death. The beneficiary will continue to receive a benefit for the remainder of her lifetime. Option 4: At retirement, the member chooses a form of benefits to be paid to the member or to be paid to the member and designated beneficiary or beneficiaries, provided that the sum of all such benefits is certified by the system's actuary to be of equivalent actuarial value to the member’s maximum retirement benefits. The board must approve any selection of the Option 4 mode of benefit payments. Option 4.2: Upon the member’s death, his reduced retirement allowance shall be continued throughout the life of and paid to the option beneficiary that the member designated on the application for retirement, if such beneficiary is living at the time of the member’s death. If the designated beneficiary dies before the retiree dies, the benefits payable to the retiree shall be increased to the amount the retiree would have received had the retiree selected the maximum benefit. The retiree's benefit shall change to the maximum benefit effective on the first day of the next month following the death of the designated beneficiary. The retiree shall notify the system of the death of the beneficiary and furnish to the system the beneficiary's death certificate. Option 4.3: Upon the member’s death, one-half of his reduced retirement allowance shall be continued throughout the life of and be paid to the option beneficiary that the member designated on the application for retirement, if such beneficiary is living at the time of the member’s death. If the designated beneficiary dies before the retiree dies, the benefits payable to the retiree shall be increased to the amount the retiree would have received had the retiree selected the maximum benefit. The retiree's benefit shall change to the maximum benefit effective on the first day of the next month following the death of the designated beneficiary. The retiree shall notify the system of the death of the beneficiary and furnish to the system the beneficiary's death certificate. R.S. 11:247 provides for additional forms of optional benefit that are actuarially equivalent to the maximum allowable benefit and provide a reduced retirement allowance plus an annual two and one- half percent cost-of-living adjustment (COLA) effective on the retirement anniversary date of the retiree and shall be payable to any retiree who is age fifty-five or older. The annual COLA shall be based on the optional benefit selected by the member plus any COLAs provided by R.S. 11:247, but shall be exclusive of any COLA or permanent benefit increase paid pursuant to any other provision of law. If a member is married at the time of application, the member’s spouse must sign the application before it may be submitted to the system. In lieu of signing the original application, the spouse may execute an agreement with the system that he/she consents to the selection of the mode of benefit payments made by the member. A retiree may not change the designation of the option beneficiary after retirement. If the option beneficiary dies before the retiree (except in certain cases when a member elects to receive an Option 4 benefit that provides otherwise – see example above), then all benefit payments cease when the retiree dies. A retiree may not change the option selection later than sixty days after the application for retirement is received by the system. When a disability retiree selects Option 2, 3, 4, 4.2, or 4.3, the computation of the benefits will be based upon the option factors the system utilizes for normal retirement and the ages of the member and the option beneficiary, projected to the member's earliest normal retirement age assuming that the member remains in continuous service until that time. (R.S. 11:1757 and R.S. 11:247) Revised on April 2021 1.25.050 Conversion Of Unused Leave To Retirement Credit The conversion of unused leave is allowed for any member of the system whose employer irrevocably elects such coverage. The actuarial cost of the conversion of unused leave to retirement credit must be born solely by and paid to the system by the member’s employer within thirty days of the date that the member retires. (PLEASE NOTE THAT ONCE AN EMPLOYER ELECTS TO ALLOW THIS CONVERSION OPTION TO PROVIDE THEIR EMPLOYEES WITH THE USE OF UNUSED LEAVE FOR RETIREMENT CREDIT, THE EMPLOYER MAY NOT THEREAFTER CHANGE THAT DECISION.) All unused earned annual and sick leave which has been accrued and accumulated by such a member and for which payment cannot be made shall be converted to retirement credit at the time of the member’s retirement pursuant to the following scale: Days Percentage of a Year 1 - 26 10 27 - 52 20 53 - 78 30 79 - 104 40 105 - 130 50 131 - 156 60  157 - 182 70 183 -208 80 209 - 234 90 235 - 260 100 There is no limit on the amount of unused leave that may be converted to retirement credit. The conversion of unused leave may not be used by any member, survivor, or other beneficiary to attain eligibility for any type of benefit payable by the system. The member’s employer is required to submit a report of unused leave, computed in days only, at the time the member retires. Fractional days of one-half or more shall be granted as one day and less than one-half day shall be disregarded. Any member who had previously terminated employment for any period of time, but who later becomes re-employed, must contribute to the system for at least eighteen months subsequent to re-employment before the member may be allowed to convert unused leave to retirement credit. Credit obtained by the conversion of unused leave may not be used in the computation of average compensation. (R.S. 11:1755(E)) Revised on April 2021 1.25.060 Cost Of Living Adjustments To Benefits It must be recognized that, unless a member chooses a retirement option with an automatic cost-of- living adjustment, those adjustments are not guaranteed. The section of statutes that relates to all state and statewide retirement systems in Louisiana provide two potential cost of living adjustments as detailed in R.S. 11:241 and R.S. 11:246. R.S. 11:241 provides that cost of living benefits shall be in the form (unless the board otherwise specifies) of up to $1 times the total of the number of years of credited service accrued at retirement or at death of the member or retiree plus the number of years since retirement or since death of the member or retiree to the system’s fiscal year end preceding the payment of the benefit increase. R.S. 11:246 provides cost of living increases for retirees and beneficiaries over the age of 65 equal to 2% of the benefit in payment on October 1, 1977, or the date the benefit was originally received if retirement commenced after that date. Such an increase may be granted only in years where the system earns an actuarial rate of return in excess of the valuation interest rate. The adjustments are payable only from the investment income in excess of that determined by the application of the valuation interest rate to the actuarial value of assets. R.S. 11:1761 provides for a cost of living formula specifically for the Municipal Employees’ Retirement System. It allows the board of trustees to use interest earnings on Plan A and Plan B investments in excess of the normal requirements, as determined by an actuarial study, to provide cost-of-living adjustments to benefit recipients in their respective plans. Such recipients must have been retired for at least one year to qualify. The cumulative amount of the adjustment may not exceed two percent of the original benefit for each full calendar year of retirement. Alternately, the Board is authorized to provide a one-time, permanent monthly cost-of-living adjustment, not to exceed three percent of the member’s normal benefit, but not less than twenty dollars per month. The Board of Trustees made an irrevocable election to be governed by R.S. 11:243 in place of R.S. 11:242. R.S. 11:243 states that the system may not provide a cost-of-living during any fiscal year until the lapse of at least one-half of the fiscal year and that cost-of-living increase must be funded either from a credit balance in the Funding Deposit Account or the system must meet one of the following tests: 1. The system has a funded ratio of ninety percent or more and has not granted a benefit increase to retirees, survivors, and beneficiaries in the most recent fiscal year. 2. The system has a funded ratio of eighty percent or more and has not granted a benefit increase to retirees, survivors, and beneficiaries in either of the two most recent years. 3. The system has a funded ratio of seventy percent or more and has not granted a benefit increase to retirees, survivors, and beneficiaries in any of the three most recent years. (R.S. 11:241, R.S. 11:243, R.S. 11:246, and R.S. 11:1761) Revised on April 2021 1.25.062 Policy For Granting Cost-Of-Living Adjustments The Board of Trustees for the Municipal Employees' Retirement System of Louisiana (MERS) recognizes that it has the authority to grant cost-of-living adjustments (COLAs) for its retirees and beneficiaries under two different statutory mechanisms: 1) an excess interest earnings COLA of up to 3%, in accordance with R.S. 11:1761, or 2) a Funding Deposit Account COLA, using RS. 11:243. The Board may grant an additional COLA of 2% to retirees over age 65, pursuant to R.S. 11:246. Based upon the recommendation of its actuary, and to ensure the actuarial soundness of the system, the Board of Trustees unanimously agreed to adopt the Funding Deposit Account method as its preferred mechanism to grant COLAs. The Funding Deposit Account receives funds when the employer contribution rate set by the Board is higher than the actuarially required contribution. Accordingly, the Board agreed that the following parameters are prerequisites to granting a COLA: • The balance in the Funding Deposit Account for the plan for which a COLA is considered must have a sufficient balance to pre-fund the amount of the COLA granted. • Retirees to receive the COLA must have been retired for at least one year from the effective date of the COLA. In the case of survivors, the combination of both retiree and survivor payments must have been for a minimum of twelve (12) months prior to the date of the COLA. • The funded ratio for the plan in which the COLA is granted must be at least 70%. • If the funded ratio is between 70% and 80%, the Board may grant a COLA if the above conditions are met, and no COLA was granted in the three most recent fiscal years. • If the funded ratio is between 80% and 90%, the Board may grant a COLA if the above conditions are met, and no COLA was granted in the two most recent fiscal years. • If the funded ratio is 90% or greater, the Board may grant a COLA if the above conditions are met, and no COLA was granted in the most recent fiscal year. The Board therefore instructs its actuary to account for COLA funding based on this policy. Nothing in this policy should be construed as a limitation on the Board's authority to allocate monies from the Funding Deposit Account for purposes other than the payment of COLAs. Adopted this 21st day of April, 2022. 1.25.070 Forfeiture Of Retirement Benefits; Public Corruption Crimes The law stipulates that in certain limited circumstances, public employees and elected officials might forfeit their rights to benefits in MERS if they commit a felony while employed or serving as an elected official. (R.S. 11:293 and Constitution of the State of Louisiana, Article 10, Section 29(G)) Revised on April 2021

1.30.010 Deferred Normal Retirement/Vesting 1.30.020 Deferred Disability Retirement 1.30.030 Deferred Survivor Benefits 1.30.010 Deferred Normal Retirement/Vesting A person who has credit for ten or more years of service in Tier 1 or seven or more years in Tier 2, who ceases to be an employee prior to attaining the age required for normal retirement eligibility, and who does not withdraw his accumulated employee contributions from the system will become eligible for normal retirement benefits upon attaining the required age. The computation of such benefits will be based on the provisions of law which were in effect at the time the former member withdrew from service and will be based on the final compensation (see definition) and creditable service at the time of withdrawal. During the time between withdrawal from membership and attaining the age required for retirement, the former member is not a member of the system and is not eligible for any benefits due members. Former members who return to covered employment prior to retiring with a benefit from the system, must become active, contributing members of the system and comply with the then effective laws, rules, policies, and regulations. Deferred normal retirement benefits become payable on the first day of the first month following receipt by the retirement system of the application for such benefits. (No deferred normal retirement benefits will be paid retroactively for more than 60 days even though the former member was eligible to apply for such benefits at an earlier date.) (R.S. 11:1760, R.S. 11:1789.6, and R.S. 11:1808.6) Revised on April 2021 1.30.020 Deferred Disability Retirement A person with twenty or more years of service credit who withdraws from active service prior to attaining the age required to be eligible for retirement may leave their contributions on deposit with the system and, if they become totally and permanently disabled prior to attaining the age required for normal retirement, they will be eligible for a benefit. The benefit will equal the lesser of either the applicable disability benefit or the applicable normal benefit and will be payable upon application and approval by the board of trustees. Upon attaining the normal vested retirement age, the disability benefit shall cease and the member will receive the full vested normal retirement. (R.S. 11:217) Revised on April 2021 1.30.030 Deferred Survivor Benefits Upon the death of any former member of the retirement system who had credit for at least twenty years of service, who withdrew from active service prior to attaining the age required to be eligible for normal retirement benefits, and who had not withdrawn from the system their accumulated employee contributions, the surviving spouse of such former member shall be eligible for survivor benefits. The survivor benefits provided in such cases will equal the actuarial equivalent of the Option 2 benefits that would have become payable to the surviving spouse at the time the former member would have begun receiving deferred normal retirement benefits, had the member survived until that date, elected Option 2, and died at that time. (R.S. 11:1766) Revised on April 2021

1.35.010 Application For Disability Benefits, Rules Related To The Commencement Of Disability Benefits, And The Payment Of Disability Benefits 1.35.020 Certification Of Continuing Eligibility For Disability Benefits 1.35.030 Authority Of The Board To Modify Disability Benefits 1.35.040 Rules Related To Disability Retirees Who Return To Service 1.35.010 Application For Disability Benefits, Rules Related To The Commencement Of Disability Benefits, And The Payment Of Disability Benefits A member who becomes totally disabled, who files an application for disability benefits while in service, and who, upon medical examination and certification as set forth below, is determined to be totally disabled will, if otherwise qualified, be eligible for disability benefits if the disability was incurred while the member was an active contributing member of the system in active service. If the application for disability benefits is not filed while the member is in active service, it will be presumed that the disability was not incurred while the member was an active contributing member of the system in active service (unless the application is for Deferred Disability Retirement as described in R.S. 11:217). Such presumption may be overcome only by clear, competent, and convincing evidence that the disability was incurred while the member was an active contributing member of the system in active service. A disability claimed by a member must have been incurred after commencement of membership in the system. Disability claims will not be honored in the case of preexisting conditions. The applicant may submit any medical evidence, data, and other related material which the member feels is material, related to, or in support of the application for disability benefits along with the application for disability benefits. In addition, the applicant's supervisor must submit a report that includes a brief history of the case and the supervisor's opinion as to the applicant's present ability to perform their normal required duties. The board of trustees may require additional information be included in the application. The applicant's disability case history will be examined either by that member of the State Medical Disability Board whose area of specialty most closely relates to the nature of the claimed disability or by an outside physician designated by the board. The examining physician will either conduct a medical examination of the applicant or waive the medical examination if obvious and overwhelming medical evidence of disability exists to his satisfaction. The cost of the examination, including costs of laboratory tests, X-rays, and other such direct examination procedures will be borne by the retirement system; however, all non-direct costs, such as hospital room and board charges and other such expenses, must be borne by the applicant. The initial examination should be completed within six weeks of the date of the applicant's filing for benefits. The examining physician must submit to the board an in-depth report that must include the physician’s medical evaluation and conclusions as to the applicant's claimed disability. Each member of the State Medical Disability Board or any board-designated physician has full authority to certify total disability with regard to an applicant they examine. An applicant will be considered as certified totally disabled if, in the in-depth report submitted by the examining physician, the physician declares the applicant to be totally incapacitated for the further performance of the applicant’s normal duties and states that such incapacity is likely to be permanent. If either the applicant or the board of trustees contests the examining physician’s final certification decision, the contesting party has the right to request a second medical examination. Such an examination is allowed if a written appeal is filed within thirty days of notification of the certification decision. This second examination will be performed by a member of the State Medical Disability Board or by a board-designated physician and will be performed at the expense of the requesting party. The second physician must also submit an in-depth report to the board. This report must include a medical evaluation of the applicant and conclusions as to the applicant's claimed disability. If the second examining physician concurs in the findings and recommendations of the first physician, the first physician's decision will stand as final and binding and will not be subject to further appeal other than through the courts. If the second examining physician disagrees with the findings and recommendations of the first physician, the two physicians must select a third specialist to conduct another examination and prepare and file a third report in the same manner as the first two. The majority opinion of the three examining physicians will be final and binding and not subject to further appeal other than through the courts. The cost of the third medical examination will be the responsibility of the retirement system if the applicant is certified as disabled or the applicant if the disability claim is denied. The board should receive a final and binding disability certification from a member of the State Medical Disability Board, or a board-designated physician, and retire an eligible disability applicant within one hundred and twenty days of the applicant's date of filing for disability retirement. Disability benefits become payable on either the filing date of the application for disability retirement or the day following the exhaustion of all sick leave or annual leave claimed by the applicant, whichever is the later. (R.S. 11:210, R.S. 11:216, and R.S. 11:218) Revised on April 2021 1.35.020 Certification Of Continuing Eligibility For Disability Benefits Once each year during the first five years following disability retirement, and once in every three-year period thereafter, the board may require a disability retiree who has not yet attained the equivalent age of normal retirement to undergo a medical examination at the retiree's expense. The examination will be made at the place of residence of the retiree if such retiree is immovable or such other place agreed to by a physician on the State Medical Disability Board or a board designated specialist. The examining physician shall submit a report to the board recommending either the continuation or the cessation of the former member’s disability status. If a member of the State Medical Disability Board issues a final and binding report to the board declaring a disability retiree's total disability to have ceased, the board must order the discontinuation of the disability benefit. A contested decision may be appealed pursuant to the procedures previously described. If, in any year, a disability retiree, who has not yet attained the equivalent age of normal retirement, refuses to submit to at least one medical examination by a medical board physician or a physician designated by the board, payment of the disability benefit will be discontinued. Payment will be discontinued until the disability retiree submits to the examination. If the disability retiree’s refusal continues for one year, the board will revoke all rights in and to the disability pension. In the event that the retirement system receives a final and binding report from a member of the State Medical Disability Board declaring a beneficiary’s total disability to have ceased, the board will discontinue the disability allowance. Neither the former receipt of nor the involuntary termination of disability benefits will affect the right of a person to normal retirement benefits based upon age or service to which such person may be or become eligible. (R.S. 11:220, R.S. 11:1758(B), and R.S. 11:1758(F)) Revised on April 2021 1.35.030 Authority Of The Board To Modify Disability Benefits If the board of trustees determines that a disability retiree is engaged in or is able to engage in a gainful occupation paying more than the difference between the disability retirement benefit and the disability recipient’s average final compensation (see definition), then the amount of the disability benefit will be reduced. The total disability benefit will be set equal to an amount that when added together with the amount earned or earnable by the disability retiree equals the average final compensation (see definition). If the former member’s earning capacity later changes, the amount of the disability benefit may be further modified. Such modification may not cause the new benefit to exceed the amount of the original benefit or an amount which, when added to the amount earnable by the former member, equals the recipient’s average final compensation. Each disability retiree must submit to the board of trustees by May 1st of every year a notarized annual earnings statement detailing any earned income from employment in the previous tax year. If a disability retiree refuses to submit such an earnings statement by May 1st, their disability benefit may be discontinued, without retroactive reimbursement, until the statement is filed. If such a refusal continues for the remainder of the calendar year, the board of trustees may revoke all rights in and to the disability pension. A disability retirement benefit will be modified when the sum of a whole life annuity equivalent of the benefits or financial awards which accrue to a disability retiree solely as a result of their disability and the disability benefit to which they are entitled exceeds their final compensation (see definition). The disability retirement benefit is reset so that the sum of the above equals the final compensation (see definition). If these outside benefits or awards are reduced, exhausted, or terminated, the board may increase the disability benefit then being paid so that the sum of the disability benefit and the outside benefits equals the amount of the disability retiree's final compensation (see definition). However, in no case may the disability benefit be increased to an amount greater than that to which the retiree was originally entitled at retirement. Individual private insurance settlements and separate private retirement accounts and other similar non system resources, including disability benefits from the Social Security Administration and the Veterans Administration, other than worker's compensation, are exempt from consideration in these computations. Social security will not be considered if the plan from which the member is retired provides for joint participation and benefits with social security. An annual cost-of-living adjustment will be made to the average final compensation figure used in all disability benefit modification computations. This cost-of-living adjustment will be based upon and directly reflect the annual percentage increase or decrease in the Consumer Price Index for the preceding calendar year. A member who retires while in service on a disability retirement and who has credit for the number of years of service required for normal retirement will, upon attainment of the age required for normal retirement, be eligible to receive full normal retirement benefits. To receive such benefits, the member must file an application with the board and, upon the commencement of payments of normal retirement benefits, the payment of disability benefits shall cease. (R.S. 11:221, R.S. 11:1758(C), and R.S. 11:1758(E)) Revised on April 2021 1.35.040 Rules Related To Disability Retirees Who Return To Service A disability retiree who is restored to active service with a participating municipality at a salary less than his final compensation may not become a member of the system. If a disability retiree is restored to service with a participating municipality with compensation equal to or greater than the prior period final compensation, payment of the disability benefit will stop and the recipient must again become an active contributing member of the system. Upon becoming a member again, the former disability retiree is subject to the laws, rules, policies, and regulations then in effect. All prior service in effect at the beginning of disability retirement will be restored to full force and effect and upon subsequent normal retirement, the member will be credited with all additional service. If such a member contributes for at least three years, the period of time on disability will be counted as service for purposes of establishing eligibility, but not used in the computation of normal retirement benefits. Disability retirees who are restored to active service after age fifty who receive a benefit upon subsequent retirement may not receive a benefit which exceeds the sum of the previous disability benefit which was being received prior to his last restoration and the benefit that he would have received on account of his service since his last restoration had he entered service at that time as a new entrant. (R.S. 11:224 and R.S. 11:1758(D)) Revised on April 2021

1.40.010 Retirement Benefit Estimates 1.40.020 Payment Of Monthly Benefits; Electronic Transfer; Direct Deposit 1.40.030 Maximum Benefit Limitation 1.40.040 Receipt Of Benefits 1.40.050 Part-Time Re-Employment Of Normal Retirees 1.40.060 Full-Time Re-Employment Of Normal Retirees 1.40.070 Re-Employment Waiting Period 1.40.010 Retirement Benefit Estimates Members may use the calculator on the self service portal of the MERS website to calculate an estimate of their benefits. Alternatively, members may submit a signed written request for an estimate of benefits. There is no charge for an estimate of benefits. Revised on July 2023 1.40.020 Payment Of Monthly Benefits; Electronic Transfer; Direct Deposit All new retirees are required to have their monthly benefits electronically directly deposited into an account at a financial institution. To begin receiving benefits, a retiree or beneficiary must provide a copy of their social security card, name, complete address, routing number of the financial institution, account number in that financial institution, and a statement describing whether the account is a regular checking account or a savings account. For electronic transfer into a checking account, please enclose a voided check with such a request. For electronic transfer into a savings account, please enclose a deposit slip or other document with the appropriate account information. A request for direct deposit must be signed by the person eligible to receive the benefit payment. Direct deposit payments are issued on the first business day of the month for which they are due. For those individuals who receive a monthly check, checks are mailed on the last business day of the month prior to the month in which they are due, and dated the first of the month for which they are due. Revised on April 2021 LAC 58:XXV.105 1.40.030 Maximum Benefit Limitation The actual retirement benefit paid to a retiree at the time of retirement, whether for normal or disability retirement and whether the benefit is the full maximum allowable or is reduced because of the selection of an optional mode of benefit payments, may be as much as but not more than the retiree's final salary or final compensation (see definition), whichever is greater. (R.S. 11:1764) Revised on April 2021 1.40.040 Receipt Of Benefits Other than payments from the Deferred Retirement Option Plan and refunds of accumulated employee contributions, all benefits may only be paid in equal monthly payments; benefits may not be paid in a lump sum or actuarially-equivalent lump sum. (R.S. 11:155) Revised on April 2021 1.40.050 Part-Time Re-Employment Of Normal Retirees If a retiree receiving normal retirement benefits is re-employed by any participating employer, but he does not meet the definition of employee, and has monthly earnings equal to or less than the difference between his final compensation (see definition) and monthly retirement benefit, payment of the retirement benefit continues and the former retiree may not be a member of the system. If a retiree receiving normal retirement benefits is re-employed by any participating employer, but he does not meet the definition of employee, and has monthly earnings that exceed the difference between his final compensation (see definition) and monthly retirement benefit, the monthly retirement benefit will be reduced by the amount of excess for every month of re-employment. In addition, such a re-employed retiree may not be a member of the system. (Calculation of monthly earnings does not include income for service as a part-time elected official.) For a retired member who was first employed on or after July 1, 2016, if he is re-employed by any participating employer, but he does not meet the definition of employee, payment of both employee and employer contributions are required to be made to the system in the same manner as a regular active member. However, the member will not accrue additional service for such period of re-employment. When the retiree ceases re-employment, he may request a refund of the employee contributions that were made during his period of re-employment. The employer contributions are not refundable. Both the retired member and the employer are required to immediately notify the board of trustees of the retiree's date of employment, the amount of monthly earnings, any changes in earnings, the number of hours worked per week, the estimated duration of employment, and the date of the termination of employment. The average final compensation (see definition) figure used to determine whether a benefit is continued or reduced will be subjected to an annual cost-of-living adjustment based upon the annual percentage increase or decrease in the Consumer Price Index for the preceding calendar year or years. EXCEPTION: If a retiree is at least age 60 and retired with at least 30 years of creditable service, the retiree may return to work for less than 35 hours per week with no limit on their part-time earnings. Employee and employer contributions must be made for the period of rehire for retired members first employed on or after 7/1/2016. Employee contributions are refunded at the request of the member after termination of re-employment. Employer contributions are not refunded. (R.S. 11:1762) Revised on August 2024 Act 634 of 2024 Regular Session 1.40.060 Full-Time Re-Employment Of Normal Retirees If a retiree receiving normal retirement benefits is re-employed by any participating employer on or after July 1, 2017, the retiree’s benefit will be suspended and he must resume active membership in the system. Upon subsequent termination, the member’s original retirement benefit will resume. If the retiree worked more than 12 months, he will receive a supplemental benefit based on his service and compensation during re-employment, subject to the same option selection as his original retirement benefit. The supplemental benefit when combined with the original benefit may not exceed the final compensation figure used to compute the supplemental benefit or the original benefit, whichever is greater. If the retiree is re-employed for fewer than 12 months, he will not qualify for the computation of a supplemental benefit; the employee contributions that were withheld during re-employment will be returned without interest. The employer contributions will not be refunded. If a retiree receiving normal retirement benefits is re-employed by any participating employer prior to July 1, 2017, the retired member may elect to have his benefit suspended and be a member of the system. (R.S. 11:1762.1) Revised on April 2021 1.40.070 Re-Employment Waiting Period Effective October 1, 2021, in order for MERS to consider a member retired and re-employed, there is a waiting period of one month from a retiree’s effective date of retirement before the retiree can return to work with a participating employer of MERS. Revised on April 2021 LAC 58:XXV-603 HISTORY Amended by Res. BOARD 8-19-2021 on 9/22/2021

1.45.010 Venue For Any Legal Action Against The System 1.45.020 Community Property Interests 1.45.030 Protection Against Fraud 1.45.040 Correction Of Errors 1.45.050 Application Of Statutory Amendments 1.45.060 Changes In Laws Which Govern The Retirement System 1.45.070 Membership Information; Public Access And Exemptions 1.45.080 Compulsory Retirement Prohibited 1.45.010 Venue For Any Legal Action Against The System The venue for any legal action (lawsuit) that may be brought against the system is exclusively in the Nineteenth Judicial District Court of Louisiana. (R.S. 11:264.7) Revised on April 2021 1.45.020 Community Property Interests Payment of a benefit (including payment of a DROP benefit) or return of accumulated employee contributions is subject to a temporary restraining order or injunction issued by a court in connection with an action which would result in a termination of a community property regime or partition of community assets and liabilities after such termination if the order or injunction involves a member or retiree of the system and his/her spouse or former spouse and provides that community assets not be disbursed, disposed of, alienated, or otherwise encumbered, but only after a certified copy of the order or judgment is received by the retirement system. Payment of a benefit or return of employee contributions is subject to a court order issued by a court upon or after termination of a community property regime if the order recognizes the community interest of a spouse or former spouse of a member or retiree of the retirement system and provides that a benefit or return of employee contributions be divided by the retirement system between the spouse or former spouse and the member or retiree, but only after a certified copy of such order has been received by the system and has been determined by the retirement system to be in compliance with applicable laws, rules, and regulations. In those instances in which no certified copy of an injunction, temporary restraining order, or court order for division of a benefit or a return of employee contributions has been received and/or approved by the system, the system shall pay the entire amount of any benefit or return of employee contributions to the member, retiree, designated beneficiary, survivor benefit recipient, or the estate of a deceased member and payment so made shall constitute a release of all accrued rights of every kind and nature against the retirement system, including, but not limited to, community property rights of a spouse or former spouse and any rights of an heir or legatee of such spouse or former spouse. In those instances in which the spouse or former spouse with whom the retirement system is to divide a benefit or a return of employee contributions dies, the retirement system shall pay the entire amount of the benefit or return of employee contributions to the member, retiree, designated beneficiary, survivor benefit recipient, or the estate of a deceased member and payment so made shall constitute a release of all accrued rights of every kind and nature against the retirement system including, but not limited to, any rights of an heir or legatee of the spouse or former spouse. The system may not pay any funds to any person until the payment normally becomes otherwise legally payable to the member. (R.S. 11:291) Revised on April 2021 1.45.030 Protection Against Fraud A person who knowingly makes any false statement or falsifies or permits to be falsified any system record or records in an attempt to defraud the system is guilty of a misdemeanor and, on conviction thereof by a court of competent jurisdiction, will be punished by a fine not to exceed one thousand dollars or imprisonment in the parish jail not to exceed twelve months, such fine and imprisonment to be determined at the discretion of the court. (R.S. 11:1736) Revised on April 2021 1.45.040 Correction Of Errors If a change or error in the system's records (either through administrative error or fraud) causes a member or beneficiary to receive from the system more or less than would have been received if the records had been correct, or if the system makes a payment which is not actually due, the error will be corrected and future payments will be adjusted to the correct amount. The system may recover an overpayment by reducing the corrected benefit so that the overpayment will be recovered within a reasonable time. The system will notify the person who received the overpayment of the amount of overpayment and the amount of the adjustment in the future payments thirty days prior to reducing the corrected benefit. (R.S. 11:1737 and R.S. 11:192) Revised on April 2021 1.45.050 Application Of Statutory Amendments Amendments to those statutes contained in R.S. 11:1731 through R.S. 11:1884 which have been or may be enacted are applicable only to persons who on or after the effective date of the amendment are in service as participating members, unless the amendatory act specifies otherwise. (R.S. 11:1738) Revised on April 2021 1.45.060 Changes In Laws Which Govern The Retirement System No proposal to effect any change in existing laws or constitutional provisions relating to the retirement system may be introduced in the legislature unless notice of intention to introduce the proposal has been published in the official state journal on two separate days. The last day of publication must be at least sixty days before introduction of the bill. The notice must state the substance of the contemplated law or proposal, and the bill must contain a recital that the notice has been given. (Article 10 of the Constitution of the State of Louisiana of 1974 – Section 29(C)) Revised on April 2021 1.45.070 Membership Information; Public Access And Exemptions Title 44 of the Louisiana Revised Statutes contains extensive rules related to requests for public records. The following summarizes a few of the applicable provisions. Any person of the age of majority may inspect, copy or reproduce, or obtain a reproduction of information deemed public records under the law. Such available information includes the following data regarding any active member of the system: 1. The names of members of the system 2. The name of the employing municipality or agency 3. The dates of any employment of the member in which the member has been eligible for membership in the system 4. The salary reported by the member’s employer for the purpose of determining contributions paid or payable to the system Retirement system records concerning the system's retirees and those persons who are participating in or who have participated in the Deferred Retirement Option Plan are exempt from the state's public records laws with a few specific exceptions. The system will provide data including the amount of a person's retirement allowance, final average compensation, the length of the person's service, the name of the entity by which the person was employed, and the dates the person was employed. However, the exemption does not apply to requests for records by any member of the Louisiana Legislature, by any state agency, by any employer that participates in the system, or any association of individuals who receive a retirement benefit from the system. All medical records, application forms, doctors’ reports and evaluations, agency certifications, and other health records of persons applying for disability retirement in the custody of the system are exempt from the public records law. MERS may collect a fee of 25 cents per page, or actual cost of electronic records for reproduction of any public records and may request payment of such fees in advance of reproduction. (See R.S. 44:32(C)) (R.S. 44:15 - R.S. 44:16 and R.S. 44:31 - R.S. 44:33) Revised on June 2026 1.45.080 Compulsory Retirement Prohibited No employee may be separated from public service by his appointing authority solely because the employee has attained any particular age. (See R.S. 11:133(B) for exceptions related to certain public safety employees) (R.S. 11:133) Revised on April 2021

1.50.010 Repayment Of Withdrawn Contributions 1.50.020 Reciprocal Recognition Of Credited Service In Other Public Retirement Systems 1.50.030 Transfers Between Public Retirement Systems 1.50.040 Correction Of Membership Errors 1.50.050 Repayment Of Refunded Contributions For Purposes Of Reciprocal Recognition Or Transfer 1.50.060 Purchase Of Military Service Credit 1.50.070 Credit For Certain Military Service Which Interrupts Covered Employment 1.50.080 Purchase Of Prior Service Credit 1.50.090 Purchase Of Prior Service Credit After Agreement To Join 1.50.100 The Purchase Of Service As A City Councilman Or Alderman For Which Credit Has Not Been Received 1.50.110 Credit For Involuntary Furlough; Credit For Leave Without Pay 1.50.120 Leave While Receiving Worker's Compensation Benefits -- Board Policy 1.50.010 Repayment Of Withdrawn Contributions A former member of the system who withdraws their accumulated employee contributions, again becomes a member of the system, and earns credit in the system for an additional six months of service may repay to the system the amount withdrawn plus interest. The amount required to repay withdrawn contributions is calculated as the withdrawn contributions plus interest at the actuarial valuation interest rate in effect at the time of the repayment, compounded annually and computed from the date of withdrawal of such contributions until repaid. Payment for service credit may be made in the form of a cash payment to the system or a trustee-to-trustee transfer of monies from an annuity in compliance with Section 403(b) of the Internal Revenue Code or from a deferred compensation plan in compliance with Section 457 of the Internal Revenue Code as long as the transfer complies with all applicable provisions of state and federal law. To repay withdrawn contributions, an application, including the member’s social security number, the name of the employer and the approximate date that the refund was paid must be filed with the system. Upon such repayment, the member is given credit for the prior service, which was cancelled at the time of the prior refund. The repayment restores all other rights that the member had in the system at the time of withdrawal. Upon approval by the board of trustees, a former member of the system who becomes a member of a plan other than the plan of their original membership may receive credit in the new plan for such prior service only after payment of an amount to be determined by an actuarial study. The cost of such a purchase will be computed as an amount to be actuarially equivalent to the change in benefits in the new plan. (For additional information regarding repayments of refunds, see below: Repayment of Refunded Contributions for Purposes of Reciprocal Recognition or Transfer – R.S. 11:144.) (R.S. 11:1755(C) and (D)) Revised on June 2026 1.50.020 Reciprocal Recognition Of Credited Service In Other Public Retirement Systems A member of the system, or an eligible survivor of a member, who has credit for service in any other Louisiana state, municipal, or parochial public retirement system may combine all service for which the member has credit in order that eligibility for regular retirement, disability retirement, or survivor benefits may be acquired. Such reciprocal recognition is available only to members who have earned credit for at least six months service in this system. To exercise such option, a member or survivor of a member must make application to this system. The application must contain the name of all other retirement systems in which the member claims membership service credit and any other necessary information. An application for reciprocal recognition made by an eligible survivor of a deceased member must be approved by the board of trustees. Each retirement system permanently keeps and retains complete records on each member and retains and maintains all contributions and liabilities for service performed by the member while a member of that retirement system. Eligibility for regular retirement, disability retirement, or survivor benefits requires the member to meet the highest age and years of service requirements of each system in which he/she has membership service credit. Service in any one system sufficient to meet the eligibility requirements of that system will qualify the member to receive benefits from that system, but no member will be eligible to receive benefits from any system while contributing to another system. Upon retirement, each system in which a member has membership service credit will compute the benefit due from that system using its benefit formula and the following provisions apply: 1. Only the compensation and years of service actually earned or credited in each system will be used in the computation of benefits payable by each system. 2. If the benefit computation of a system requires the use of a minimum number of years and the member has credit in the system for fewer than the minimum number of years, the benefit will be a pro rata portion of the benefit using the minimum required years of service. The pro rata will be based on the membership service credit in the system as a percentage of the minimum number of years required. No more than one year of membership service may be credited for any one calendar or fiscal year, and there may be no duplication of membership service credit for any period, including credit for military service. Except as required by federal law, no more than a total of four years of military service may be credited unless five years of such credit has been obtained under the rules applicable in a system, in which case a maximum of five years may be credited. The total benefits payable from all systems, plus primary employee social security benefits then available by reason of the fact that social security is a part of any of the retirement systems involved, may not exceed: 1. One hundred percent of the highest average compensation on which benefits are based, or, 2. The highest benefit that any one of the systems would provide if all service had been credited in that system. If the total computation exceeds either (1) or (2) above, then each retirement system must reduce the benefits it will pay in the proportion its benefits represent of total computed benefits. Membership in any state, municipal, or parochial public retirement system for which a member’s employment makes him eligible may not be denied an employee by reason of attained age if that employee’s credited service in another state, municipal, or parochial public retirement system, together with the prospective employment in that system until normal retirement age, would make him eligible for regular retirement benefits. In those retirement systems where thirty-six months or sixty months is used in the computation of average compensation, the average salary will be computed on the actual time in the retirement system when the person has less than the minimum number of months of service. A member may cancel an application for or agreement of reciprocal recognition of service credit prior to retirement by notifying each system in which the member has service credit. (R.S. 11:142) Revised on April 2021 1.50.030 Transfers Between Public Retirement Systems A member of this system who has been a member of the system for at least six months and who has membership credit in any other Louisiana state, municipal, or parochial public retirement system may transfer all of their credit from every other system to this system. All credit that the employee has in the system, fund, or plan from which he/she is transferring, whether credit for regular service, prior service, military service, or other credit, must be transferred, except as provided below: 1. In the event that the member has six months or more of concurrent service in the transferring system and this system, the concurrent service in the transferring system and the funds attributable to such service shall remain in the transferring system; and, 2. In the event that the member has less than six months of concurrent service in the transferring system and this system, the concurrent service in the transferring system shall be canceled and the funds attributable to such service shall be transferred to this system. The system from which the person transfers such credit will transfer to this system an amount equal to the lesser of the following: 1. The greater of the actuarial cost to this system for the credit transferred or all employee contributions previously made to the transferring system; or, 2. All employee and employer contributions made to the transferring system by and/or on behalf of such person, and interest on those contributions equal to the transferring system's actuarial valuation rate, compounded annually from each year of contribution to the date of the transfer. In systems where the employer contribution is not a fixed percentage of the employee's earnings, an employer contribution equal to the employee's contributions will be transferred. If the amount of funds transferred from the transferring system is less than an amount which, on an actuarial basis, totally offsets the increase in accrued liability resulting from the transfer of the credit, then the person transferring, except as otherwise provided, must pay the difference between the amount of the funds transferred and the actuarial value of the credit transferred. In lieu of paying the difference, the person may, but only at the time of the transfer, be granted an amount of credit in this system based on the actuarial value of the amount of funds actually transferred by the transferring system. If a person completes a transfer, the retirement percentage factor (otherwise known as the accrual rate) of the transferring system will be used to calculate the portion of the retirement benefit that is based on the transferred credit. However, if the accrual rate of the receiving system is greater than the accrual rate of the transferring system, a person executing a transfer may upgrade the accrual rate of the transferred service. The member must pay the actuarial cost applicable at the time of the accrual rate upgrade. After the transfer is completed, the system from which the member transferred will have no future liability with respect to the person who transferred. A member of this system must make a written application to this system to request a transfer. If a member dies after a written application for a transfer is received in the office of this system, this system will complete the transfer and it will be considered as having been completed the day before the death of the member. A survivor, heir, or the estate of a deceased person or member may not request a transfer. In addition, and subject to all of the above conditions, a member may execute a reverse transfer (i.e. transfer from his current public retirement system to the public retirement system to which he last contributed). Such a transfer may only be executed once and the transfer must be executed immediately prior to retirement from the receiving system. The request for a reverse transfer must be accompanied by the member's application for retirement from the receiving system and, on the day of the transfer, the member must terminate employment that made him eligible to be a member of the transferring system. The member's date of retirement from the receiving system shall be made effective on the next business day following the transfer. The member is allowed to apply the transferred credit toward attainment of the retirement eligibility requirements of the receiving system. Any member who would not be eligible to retire from the receiving system after the transfer may not execute a reverse transfer. Any member who executes a reverse transfer and is re-employed by an employer who participates in the transferring system shall be ineligible for membership in the transferring system after the effective date of the transfer. A person who formerly was a member of this system, who has credit and contributions on deposit with this system, and who becomes a member of any of the other public retirement systems in this state may transfer credit and contributions plus interest out of this retirement system into the other public retirement system if the other system allows such transfers. (R.S. 11:143) Revised on April 2021 1.50.040 Correction Of Membership Errors If a person is employed in a position that on the date of employment was covered by MERS, but was by error enrolled in another retirement system, and has not retired from or participated in the deferred retirement option plan of the incorrect system, he must be enrolled in MERS, if he remains eligible for membership, and all service credit must be transferred to MERS. The statutes specify rules related to the transfer of funds from the system into which the employee was incorrectly enrolled into MERS in such cases. Once the transaction is complete, the member should be credited with the employee contribution balance, service credit, and accrual rate that would have existed if he had been properly enrolled. In some cases, the employer is responsible for additional costs to complete the transaction. For details, please refer to the statute. (R.S. 11:143.1) Revised on April 2021 1.50.050 Repayment Of Refunded Contributions For Purposes Of Reciprocal Recognition Or Transfer A member of this system who has credit in this system for at least six months of service may repay refunded contributions to any other state, municipal, or parochial public retirement system, plus compounded interest at the other system's board approved actuarial valuation interest rate from the date of refund until repayment, to reestablish such credited service for purposes of attaining reciprocal recognition of service credit in more than one system or transfer service credit to this system. Likewise, a member of any other public retirement system in this state who has credit therein for at least six months of service may repay refunded contributions to this system, plus compounded interest thereon at this system's board approved actuarial valuation rate from the date of refund until repayment, to reestablish such credited service for purposes of reciprocal recognition or to transfer such service to the other system. (R.S. 11:144) Revised on April 2021 1.50.060 Purchase Of Military Service Credit A member of the system may purchase credit for regular or non-regular military service. Regular military service means any state or federal full-time active duty military service. Non-regular military service means any state or federal military service, which is not regular service, for which retirement points are assigned for participation in such service, including, but not limited to, duty served in the state national guard, coast guard, or any reserve component of the United States armed forces. A member may purchase credit for up to four years of either regular or non-regular military service, or a combination of both, not exceeding four years total. In order to purchase military service, an application must be filed with the system. Included with the application must be proof of the inclusive dates of military service, such as a copy of the member’s Form DD 214, or an official copy of the record of retirement points as maintained by the member’s respective military branch. Credit for regular service shall be based on one day of retirement credit for each day of full-time service. Credit for non-regular service shall be based on one day of retirement credit for each one of the member’s accrued retirement points. Creditable service for service in the uniformed services gained through the application of USERRA (Uniformed Services Employment and Reemployment Rights Act) is not considered a purchase of military service credit for purposes of R.S. 11:153. In order to purchase credit for such regular or non-regular military service, the member must pay, in one lump sum, an amount determined by the general rule relative to the purchase price of retirement credit (see Purchase Price of Retirement Credit - Actuarial Cost). Generally, this is an amount that, on an actuarial basis, totally offsets the increase in accrued liability of the system resulting from the purchase of the credit. No member may purchase credit for military service if credit has already been granted for such service in any other Louisiana public retirement system from which the member is receiving any form of retirement benefits. No member who previously received credit for military service in any retirement system for members of the armed forces of the United States from which plan the member is drawing a regular retirement benefit may purchase such military credit. This restriction does not apply to members who are drawing disability benefits based on twenty-five percent or less disability received as a result of military service. In addition, members who are receiving retirement benefits pursuant to Chapter 1223 of Title 10 of the United States Code may purchase credit for military service, either regular or non-regular, provided that the service was rendered prior to the initial date of municipal employment. Military service may not be used for the purpose of acquiring eligibility for early retirement, disability, or survivor’s benefits. In addition, any retiree who has earned benefits equal to one hundred percent of average final compensation may purchase military credit only for the limited purpose of using such credit for survivor benefits. Military service credit may not be used to satisfy the normal retirement eligibility requirement for rules which require fewer than twenty years of service credit in either Plan A or B. Military service credit may not be used in the computation of average compensation for retirement benefit computation purposes. No member who was released or discharged from service under less than honorable conditions may purchase credit for military service. (R.S. 11:153) Revised on April 2021 1.50.070 Credit For Certain Military Service Which Interrupts Covered Employment Any employee who leaves covered employment to perform military service, completes service in the uniformed services, and applies for re-employment upon release from service or discharge from hospitalization incidental to service is entitled to receive up to a maximum of four years of retirement credit for such period of service, unless otherwise required by federal law. For purposes of these provisions, the term “service in the uniformed services” means the performance of duty on a voluntary or involuntary basis in a uniformed service under competent authority and includes active duty, active duty for training, initial active duty for training, inactive duty training, full-time National Guard duty, and a period for which a person is absent from a position of employment for the purpose of an examination to determine the fitness of the person to perform any such duty. Active duty by members of the National Guard who are activated pursuant to a call of the governor as provided by law, and service in the armed forces of the United States pursuant to Congressional authority or presidential proclamation under the War Powers Resolution, also qualify. Members that wish to continue to receive retirement credit for their period of military service may pay the required employee contributions to the retirement system during such period of service in the uniformed services. Employee contributions that would have been deducted from the member’s compensation for retirement system coverage must be paid to the employer on a timely basis. Upon receipt, the employer must remit the employee contributions to the retirement system along with the employer contributions that would have been contributed on behalf of the member. The employee must notify the employer of the election to pay the required employee contributions at the time of entry into service in the uniformed services. The qualified military service of a member who has been reemployed under the terms of Section 414(u) of the United States Internal Revenue Code shall be treated, for vesting and benefit accrual purposes, as creditable service, provided the member timely remits to the system any employee contributions which would have been required but for the member's leave of absence to perform qualified military service, in accordance with the terms of federal law. Any member who did not elect to make employee contributions as provided above can receive credit for service in the uniformed services upon payment into the system of an amount equal to the employee contributions that would have been paid had the member continued in employment and not been called to service in the uniformed services, together with interest on such contributions at the valuation interest rate of the system in effect at the time payment is made, as allowed by federal law. The contributions must be based on the salary, including any increases in compensation, which the member would have received had he/she remained in employment during the period of service in the uniformed services. Upon such payment by the employee of the employee contributions and interest, the employer must pay the employer contributions that would have been paid had the employee remained in service, plus interest at the valuation interest rate in effect at the time payment is made. The employer contributions and interest must be paid within thirty days after the employee has paid all of the employee contributions due to the system. All employee contributions and interest due under this provision must be received by the system within the time period allowed by federal law, currently within four years of the member's re-employment. If the member fails to pay the required contributions and interest by the required deadline, the credit for service in the uniformed services shall only count toward determining eligibility for retirement benefits and not toward the computation of such benefits. For rules related to the circumstances under which service in the uniformed services may be counted as creditable service for the purposes of determining eligibility for survivor benefits, see R.S. 29:415. The system must comply with the requirements of USERRA (Uniformed Services Employment and Reemployment Rights Act) and any related rules or regulations issued by the United States Department of Labor or other federal agency. To do so, the Board of Trustees may promulgate necessary rules. (R.S. 29:411-412, R.S. 29:414-415, R.S. 11:152.1, and R.S. 11:1755(G)) Revised on April 2021 1.50.080 Purchase Of Prior Service Credit The purchase of retirement credit that is otherwise authorized, other than the receipt of current credit (which requires regular employee and employer contributions) or the repayment of refunded contributions, requires payment to the system of the greater of either: 1. The actuarial cost of the credit which is defined as an amount that, on an actuarial basis, totally offsets the increase in accrued liability of the system resulting from the purchase of the credit, or, 2. The employee and employer contributions that would have been paid plus interest thereon, compounded annually from the time the contributions would have been paid, at the system's assumed actuarial valuation rate of interest. The amount payable will be calculated by use of the system's actuarial funding method, assumptions, and tables in use at the time of application for purchase of the credit. The actuary may modify the assumptions utilized to reflect the effects of anti-selection. (R.S. 11:158) Revised on April 2021 1.50.090 Purchase Of Prior Service Credit After Agreement To Join If a member was employed by a participating employer prior to the effective date of the agreement to join MERS, he may purchase prior service credit for any such period of employment. In order to purchase such service credit, the member must make application to MERS to purchase prior service in accordance with R.S. 11:158(C). (R.S. 11:1755(F)) Revised on April 2021 1.50.100 The Purchase Of Service As A City Councilman Or Alderman For Which Credit Has Not Been Received A member of the system serving, or who has served, as a city councilman or alderman, and who has prior service in that office and has been precluded from purchasing credit for that service may purchase credit for such service. To obtain such credit, the member must pay to the system an amount as determined by the general rule relative to the purchase price of retirement credit (see Purchase Price of Retirement Credit - Actuarial Cost). Payment may only be made in a lump-sum amount. The member must apply to the system to make such a purchase and must furnish a detailed statement of all service for which credit is claimed. (R.S. 11:1765) Revised on April 2021 1.50.110 Credit For Involuntary Furlough; Credit For Leave Without Pay Rules related to the purchase of service credit for certain members who are involuntarily furloughed without pay can be found in R.S. 11:163. (R.S. 11:163) Revised on April 2021 1.50.120 Leave While Receiving Worker's Compensation Benefits -- Board Policy When a member is receiving worker’s compensation benefits, he is not eligible to contribute on the worker’s compensation payments. The employer is responsible for notifying MERS of the effective date on which the member begins receiving such benefits and the date on which the member returns to full- time employment. The member must become a contributing member immediately upon returning to full- time employment. He is not eligible to receive service credit for the period during which he receives worker’s compensation benefits. Revised on April 2021

1.55.010 Board Of Trustees; Membership; Term Of Office; Compensation; Voting Power; Vacancies 1.55.020 Board Officers 1.55.030 Board Responsibilities, Powers, And Duties 1.55.040 Educational Requirements For Members Of The Board Of Trustees 1.55.050 Duties Of The Administrative Director 1.55.060 The State Medical Disability Board 1.55.070 Actuary 1.55.080 Authorized Agent; Powers And Duties 1.55.090 Investment Of Funds By The Board Of Trustees 1.55.100 Private Interest Of Trustees And Employees In Financial Operation Of The System Is Prohibited 1.55.110 Fiduciary And Investment Responsibilities 1.55.120 Actuarial Soundness 1.55.010 Board Of Trustees; Membership; Term Of Office; Compensation; Voting Power; Vacancies The board of trustees is authorized and empowered to administer the provisions of the system and to establish such rules and regulations as are required for the administration of the system and the transaction of its business. The board consists of eleven trustees: three are active and contributing members of the system who must have credit for at least six years of service and who are elected officials of participating municipalities; two are active and contributing members of the system who must have credit for at least six years of service and who are not elected officials of participating municipalities; one is a retired member of the system; one is the president of the Louisiana Municipal Association or his designee; one is the chairman of the Senate Retirement Committee, or his designee; one is a member of the House Retirement Committee who is appointed by the Speaker of the House, or his designee; one is the commissioner of administration or his designee; and one is the state treasurer. No more than two elected trustees who are employed by the same employer may serve on the board at the same time. Trustees occupying seats specified in R.S. 11:1821(B)(1) and (2) shall be elected by the members of the system in accordance with the election rules prescribed by the board. The retired trustee position shall be filled by an election among the retired membership of the system. If a qualified member is elected to service on the board and his employment status changes, he may serve the remainder of his term if he remains a member of the system. However, if a trustee ceases to hold the elective office that qualified him to serve on the board, he is not eligible to continue serving on the board. The statutes provide certain rules as to the timing of elections for the various seats described above. For greater information on the terms of office of specific members of the Board of Trustees, contact the system’s administrative office. Any person whose name is submitted to the system as a candidate for election to the board shall have his/her name included on the election ballot, provided their name is submitted in accordance with the rules applicable to all candidates for such election. Only elected officials of participating municipalities who have credit for at least six years of service may be nominated when the seat on the board up for election is one then occupied by an elected official. Only non-elected officials of participating municipalities who have credit for at least six years of service may be nominated when the seat on the board up for election is one then occupied by a non-elected official. Each nominee shall be eligible to attend the counting of the ballots and the director of the system shall provide sufficient advance written notice to each person whose name appears on the ballot, stating the time, date, and location that the ballots will be counted and the results announced. For purposes of eligibility to run for election to the board and voting in any board member election, persons who are participating in the system’s Deferred Retirement Option Plan are considered to be active and contributing members of the system and, as such, are eligible to run for election to the board and vote in any board member election. The term of office for the six trustees who are elected by the members of the system is six years. No person who has been elected to serve as a trustee for more than one and on-half terms shall be elected to the board for another term. Each trustee serves without compensation but is paid, as per R.S. 11:181, a per diem of seventy-five dollars plus the normal expense allowance for attendance at meetings of the board. In addition, the statutes limit the acceptance of anything of economic value from prohibited sources unless the thing of value is food, drink, or refreshments consumed by the trustee while the personal guest of someone during an educational or professional development seminar or conference. Trustees are covered by additional ethics laws. Each trustee is entitled to one vote on any and all actions before the board and a majority of concurring votes is required for every decision or action taken by the board. Only decisions or actions presented and approved at a regular or duly called special meeting of the board shall become effective. If there is a vacancy on the board in one of the six elected seats and the remainder of the term is at least two years, it is filled for the remainder of the term through election by the members of the system. A vacancy on the board in one of the six elected seats where the remainder of the term is less than two years may be filled by the appointment of a new member by the board of trustees to complete the remainder of the term. If a trustee retires during a term, that trustee may continue to serve for the remainder of the elected term. If a trustee otherwise ceases to be a member, his term expires and the vacated seat is to be filled under the rules outlined above. (R.S. 11:1821, R.S. 11:181) Revised on April 2021 1.55.020 Board Officers The board elects from its members a chairman and vice-chairman who serve at the board's pleasure without compensation. (R.S. 11:1822) Revised on April 2021 1.55.030 Board Responsibilities, Powers, And Duties Each member of the board must discharge their fiduciary duties solely in the interest of the system's members and beneficiaries and for the exclusive purpose of providing benefits to the members and their beneficiaries, with the care, skill, prudence and diligence under the circumstances then prevailing, that a prudent man acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims. The board has the following powers and duties in administering the system: 1. To formulate and promulgate any and all necessary rules and regulations to facilitate the proper functioning of the system or the administration of any of its funds. The board has full authority to determine all questions of coverage and qualifications as to participation in and receipt of benefits from the system and to construe, interpret, and apply the provisions of law which govern the system. Discretionary actions taken by the board with respect to the classification of the employees, contributions, or benefits must be uniform in their nature and applicable to all employees similarly situated. 2. To authorize or suspend the payment of any benefit in accordance with applicable law. 3. To prepare and approve, prior to the beginning of each fiscal year, a budget of operating expenses for such year. 4. To compel witnesses to attend meetings and to testify upon any necessary matter concerning the system. 5. To request such information from any member or participating employer as is necessary for the proper operation of the system. 6. To determine the length of prior service from such information as is available. 7. To establish an office or offices with suitable space for meetings of the board and for use of the necessary administrative personnel. 8. To appoint an administrative director to manage the office and carry out technical administrative duties of the system. 9. To appoint an actuary to perform all the necessary actuarial requirements of the system. 10. To appoint such investment counsel as may be required from time to time. 11. To obtain by employment or by contract such additional actuarial, legal, medical, clerical, or other services as may be required for the efficient administration of the system. 12. To determine and fix the rate of compensation to be paid to the administrative director, actuary, investment counsel, auditor, legal or medical counsel, and system employees and contractees. 13. To have the accounts of the system audited annually by a certified public accountant. 14. To submit an annual statement to the authorized agent of each participating employer as soon after the end of each fiscal year as possible. The statement shall include items such as a balance sheet showing the financial and actuarial condition of the system as of the end of the fiscal year, a statement of receipts and disbursements during the year, and additional statistics as are deemed necessary for a proper interpretation of the condition of the system. 15. To submit an individual statement to any participating member upon their reasonable request. The statement shall indicate the amount of creditable service and accumulated contributions  standing to the employee's credit as of the latest date practicable. 16. To determine the limitations on the amount of cash to be invested in order to maintain such cash balances as may be deemed advisable to meet current requirements, and invest the available cash within these limits. 17. To keep in convenient form the data necessary for all required calculations and valuations as required by the actuary. 18. To keep a permanent record of the proceedings of the board and such other records as may be necessary or desirable for the administration of the system. 19. To establish such rules and regulations in accordance with applicable law as may be necessary or desirable for the efficient administration of the system, including the time and manner of reporting and making contributions by participating employers. 20. To appoint committees of three or more trustees to perform such functions as may be directed by the board. 21. To carry on generally any other reasonable activities, including, without limitation, the making of administrative decisions on participation and coverage, which are necessary for carrying out the intent of the system in accordance with applicable law. 22. To include in the financial statement submitted to the legislature, pursuant to R.S. 11:171(A), an itemized schedule of all amounts paid by the system to the system’s board members. 23. To deduct monthly life and health insurance premiums from the benefits payable to any retiree or other beneficiary. (R.S. 11:1823) Revised on April 2021 1.55.040 Educational Requirements For Members Of The Board Of Trustees Members of the Board of Trustees must complete continuing education or professional development training each year of their participation on the Board of Trustees. This includes education on topics such as investment decisions, actuarial science, laws and rules of the retirement system, and fiduciary duties and ethics. Members of the Board must meet certain minimum requirements to be permitted to vote and receive per diem payments. (R.S. 11:185) Revised on April 2021 1.55.050 Duties Of The Administrative Director The administrative director is in charge of the general administration of the system. The administrative director has such special powers and duties as may be properly delegated or assigned by the board from time to time. Such general administrative duties include: the employment of the system's office staff; the correlation of the board's actions with the authorized agent of each employer; the supervision of periodic disclosures to the members and beneficiaries of information necessary for the full understanding of their rights and obligations under the system; the computation of the amounts of benefits, prior service credits, and contributions required for reinstatement of credits for board consideration; the processing of accrued benefit claims and expenses of administration for payment; the placing of any and all matters before the board which require action or are in the interest of the board or system; the preparation and maintenance of necessary and proper records for administrative and actuarial purposes; the preparation of any necessary or desirable communications in the course of operations of the system; and the carrying out of any actions of the board which are so delegated. (R.S. 11:1824) Revised on April 2021 1.55.060 The State Medical Disability Board The State Medical Disability Board is to be composed of physicians appointed by the board of trustees. Each medical board member is responsible for either reviewing the medical case histories or conducting medical examinations of members of the system who apply for disability benefits and for submitting findings and recommendations to the board of trustees. The State Medical Disability Board or any member thereof or the board of trustees may call upon physicians in any area of medical specialty and from any area of the state either to review case histories or to conduct regular or appeal examinations of disability retirement applicants or retirees. These alternate physicians shall follow the same procedures and have the same authority as regular members of the State Medical Disability Board. (R.S. 11:219) Revised on April 2021 1.55.070 Actuary The actuary is the technical advisor to the board on matters regarding the operation of the funds of the system. The actuary makes actuarial investigations of the members as to mortality, disability, retirement, separation, marital status, re-marriage of surviving spouses, interest, and earning rates. In addition to such other duties as the board may prescribe, the actuary: 1. Recommends actuarial tables to be used for computing benefits and rates of contribution required of participating employers and members. 2. Makes an annual valuation of the liabilities and reserves for present and prospective annuities and benefits. 3. Reviews the terms of each new agreement as pertains to prior service, conducts such investigations as are necessary to determine the existing liability, and recommends to the board the payment required to offset such liability. (R.S. 11:1826) Revised on April 2021 1.55.080 Authorized Agent; Powers And Duties The authorized agent is the representative of the employer to act on behalf of the employer with and for the system. The authorized agent is the agent of and acts on behalf of the employer, not the retirement system. Such person has a duty to act within the terms of the agreement between the board and the respective employer to facilitate the efficient operation of the system as it pertains to those employees of the employer who are members. Their duties include: 1. Attendance at board meetings on behalf of their employer when necessary.  2. Presenting membership and retirement applications from their employer's members to the system. 3. Coordinating with the administrative director to insure that information and data pertinent to the employer is recorded correctly. 4. Acting on behalf of the employer on all questions of eligibility, participation, benefits, coverage, administration, and contributions to the system. 5. Ensuring that all communication from the system to the employer or its employees are properly distributed and disseminated. (R.S. 11:1827) Revised on April 2021 1.55.090 Investment Of Funds By The Board Of Trustees The board of trustees is the trustee of the system's funds and has full power to invest and reinvest such funds in accordance with applicable law. The board has full power to hold, purchase, sell, assign, transfer, and dispose of the securities and investments in which the system's funds may have been invested as well as the proceeds of the investments and any assets belonging to the system's funds. The board is the custodian of the system's funds. The assets of the system are held for the exclusive benefit of the system’s members and retirees and their survivors and beneficiaries. The system’s assets may not be used for or diverted to purposes other than the exclusive benefit of such members and retirees and their survivors or beneficiaries. (R.S. 11:1841) Revised on April 2021 1.55.100 Private Interest Of Trustees And Employees In Financial Operation Of The System Is Prohibited No trustee or employee of the board may have any direct interest in the gains or profits of any investment made by the board, nor, as such, receive any pay or emolument for his service other than reimbursement of expenses. No trustee or employee of the board may, directly or indirectly, for himself or as an agent in any manner use the same, except to make such current and necessary payments as are authorized by the board, nor may any trustee or employee of the board become an endorser or surety or in any manner an obligor for assets loaned or borrowed by the board of trustees. (R.S. 11:1845) Revised on April 2021 1.55.110 Fiduciary And Investment Responsibilities The system is required to apply the prudent-man rule with regard to the investment of system funds. This rule requires each fiduciary of the system and the board of trustees acting collectively on behalf of the system to act with the care, skill, prudence, and diligence under the prevailing circumstances that a prudent institutional investor acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims. The standard requires the exercise of reasonable care, skill, and caution, and is to be applied, with regard to investments, not in isolation, but in the context of the trust portfolio, and as part of an overall investment strategy, which shall include an asset allocation study and plan for its implementation, incorporating risk and return objectives reasonably suitable to the trust (i.e. the retirement system). The statutes describe a number of specific risks that must be considered. Notwithstanding the prudent-man rule, the board may invest more than fifty-five percent of the system's total portfolio in equities, so long as not more than sixty-five percent of the total portfolio is invested in equities and at least ten percent of the total equity portfolio is invested in one or more index funds which seek to replicate the performance of the chosen index or indices. The statutes provide guidance regarding certain factors that boards should consider when contemplating any investment, action, or asset allocation. The prudent man rule does not prohibit investment in small and emerging businesses, small business investment companies, and venture capital firms. The board of trustees may, but is not required to, divest itself of any holding in a company having facilities or employees or both located in Iran, Libya, North Korea, Sudan, or Syria. Fiduciaries are those persons who (1) exercise any discretionary authority or discretionary control with respect to the management of system funds or assets or (2) render investment advice or services for compensation, direct or indirect, with respect to system funds or assets. However, legislators, state officials, system attorneys, accountants, and actuaries shall not be considered to be fiduciaries unless they exercise discretionary control over the management or administration of the system or some authority or control over system assets. Any person who has been convicted of a felony offense shall be restricted from serving as a system fiduciary for a period of five years after the conviction or after the end of imprisonment, whichever is later. Fiduciaries must discharge their duties solely in the interest of system members and beneficiaries for the exclusive purpose of providing benefits to participants and beneficiaries, and paying the expenses of administering the plan. The law describes how breaches of fiduciary duty are to be handled, including liability of fiduciaries, responsibilities of cofiduciaries, and legal remedies when breaches of duty occur. See R.S. 11:264.5 – R.S. 11:264.8. (R.S. 11:263, R.S. 11:264, and R.S. 11:264.1 - R.S. 11:264.8) Revised on April 2021 1.55.120 Actuarial Soundness Neither the state nor the board of trustees may take any action that will cause the actuarial present value of expected future expenditures of the system to exceed or further exceed the sum of the current actuarial value of assets and the actuarial present value of expected future receipts of the retirement system, except with respect to the following: 1. Normal business operating expenses of the system. 2. Capital outlay expenditures of the system. 3. Management of investments of the system. 4. Cost-of-living increases to retirees, as provided by law, provided the system is approaching actuarial soundness as provided by law and the granting of such increase does not cause an increase in the actuarially required contribution rate. All assets, proceeds, or income of the retirement system and all contributions and payments made to the system to provide for retirement and related benefits are held, invested as authorized by law, or disbursed as in trust for the exclusive purpose of providing such benefits, refunds, and administrative expenses under the management of the board of trustees and may not be encumbered for or diverted to any other purpose. The accrued benefits of members may not be diminished or impaired. Future benefit provisions for members of the system may be altered only by legislative enactment. Any changes to benefit provisions that have an actuarial cost must be approved by at least two-thirds of the legislature. Additionally, any changes that have an actuarial cost cannot be approved unless there is a funding source that provides new or additional funds sufficient to pay the actuarial cost of such a change within ten years of the effective date of the change. (Constitution of the State of Louisiana, Article 10, Section 29(E)) Revised on April 2021

1.60.010 Payment Of Contributions; Penalty For Delinquent Contributions; Deductions 1.60.020 Employer Contributions 1.60.030 Funding Deposit Account 1.60.040 Tax Sheltering Of Employee Contributions 1.60.050 Funds Payable To A Succession Or Estate 1.60.060 Surviving Minor's Benefit Placed In Trust 1.60.070 Exemption From Execution And State Income Tax 1.60.010 Payment Of Contributions; Penalty For Delinquent Contributions; Deductions Each participating employer must pay to the system, with respect to its employees' earnings, at such time or times as the board may by regulation prescribe, contributions in the amounts and at the rates prescribed by the board as set by law. Every employer required to make such contributions is authorized to deduct the mandatory employee contributions from each employee’s earnings when the employee is paid. Contributions so collected must be paid to the board in partial discharge of the liability of the employer. Failure to deduct such contributions does not relieve the employee or employer of liability to remit such contributions. The employer must certify to the board on each and every payroll or in such other manner as the board may prescribe, the amounts to be deducted and each of said amounts must be deducted and when deducted be paid to the system and credited to the individual account of the member from whose compensation the deduction was made. Reports of employee earnings and payment of the employee and employer contributions are due monthly and become delinquent if not received by the system on the 10th of the following month. MERS allows a grace period for receipt of the contributions, if the postmark is dated on or before the due date or if the due date falls on a holiday, of up to five days after the 10th of the month. Delinquent contribution payments will be charged interest at the system’s valuation interest rate computed from the date the payments became delinquent. Such delinquent contributions and interest may be recovered by action in a court of competent jurisdiction against the employer. Otherwise, once the delinquent contributions and interest has been certified, the board may request that such amounts be deducted from any funds payable to the employer by any department or agency of the state. Under extenuating circumstances, and if an employer provides advance notice that contribution will be delinquent, MERS reserves the right to waive the fees applicable to late payments. If an employer terminates its agreement or eliminates an employee position or class of positions covered by the system by contracting with a private entity for the work that was formerly done by employees in the eliminated positions, the employer must remit its portion of the unfunded accrued liability existing on June 30th immediately prior to the date of termination of participation. The amount due will be calculated by the System’s actuary and must be paid in a lump sum or amortized over ten years in equal payments with interest at the valuation interest rate. If the employer fails to make such payments in a timely manner, additional interest will apply. The mechanism for payment of withdrawal liability by employers is detailed in R.S. 11:1733(F). Except when transferring service credit according to the provisions of R.S. 11:143, employer contributions will not be returned, refunded, transferred, or rolled over to any employee or employer or to any other retirement system. (R.S. 11:1864 and R.S. 11:1733(C) - R.S. 11:1733(F)) Revised on June 2026 1.60.020 Employer Contributions Each participating employer shall contribute a percentage of each employee’s earnings as determined each year by the Public Retirement Systems' Actuarial Committee (PRSAC). However, subject to certain restrictions, the board of trustees may set the employer contribution rate at a higher level than the minimum rate set by PRSAC. According to R.S. 11:105, the Board may maintain the employer contribution rate for the next fiscal year at the same rate as the current year if the rate determined by the Public Retirement Systems’ Actuarial Committee for the next fiscal year is less than the rate for the current year. According to R.S. 11:106, the Board may require a net direct employer contribution rate of up to three percent more than the rate determined under R.S. 11:103. According to R.S. 11:107, the Board may set the employer rate at any level between the previous year’s employer contribution rate and the decreased rate that would otherwise occur. (R.S. 11:103 through R.S. 11:107 and R.S. 11:127) Revised on April 2021 1.60.030 Funding Deposit Account A special side fund called the Funding Deposit Account was created in 2008. When the Board sets the employer contribution rate at a level above the minimum recommended rate, based on R.S. 11:105, 11:106, or 11:107, any excess employer contributions resulting from the higher rate are deposited into the Funding Deposit Account. The funds in the account earn interest annually at the Board approved actuarial valuation interest rate. The Board of Trustees may direct that funds from the account be charged for the following purposes: 1. To reduce the unfunded accrued liability 2. To reduce the present value of future normal costs 3. To pay all or a portion of any future net direct employer contributions. 4. To provide for cost-of-living increases. In no event shall the funds charged from the account exceed the outstanding account balance. (R.S. 11:107.1) Revised on April 2021 1.60.040 Tax Sheltering Of Employee Contributions Tax sheltering of employee contributions means that a member does not pay federal income taxes on, and the employer does not report as taxable income, that portion of income that is deducted from gross earnings and remitted to the retirement system as an employee contribution. All employee contributions withheld from a member’s earnings on and after January 1, 2000 are eligible to be tax sheltered. Therefore, if tax sheltered, the employee does not pay federal income taxes on, and the employer does not report as taxable income, such contributions in the year in which they are remitted to the system. Employee contributions that were withheld from a member’s earnings prior to January 1, 2000 were not given this treatment. Example: Assume an employee’s salary is $1,000 per month. In Plan A, such an employee would contribute $100.00 (10% of earnings, as of March 2021). Prior to January 1, 2000, the taxable income would have been $1,000 per month. However, on and after January 1, 2000, the taxable income would be $900.00 per month. This represents the employee’s gross monthly salary of $1,000 minus the employee’s sheltered retirement contribution of $100.00. At the end of the calendar year, the annual taxable earnings that would be reported to the Internal Revenue Service (IRS) under such a scenario are $10,800 ($900.00 x 12), not $12,000 ($1,000 x 12) as would be the case without tax sheltering. In Plan B, such an employee would contribute $50.00 (5% of earnings) to the Municipal Employees’ Retirement System. Prior to January 1, 2000, the taxable income was $1,000 per month. However, on and after January 1, 2000, the taxable income is only $950.00 per month. This represents the employee’s gross monthly salary of $1,000 minus the employee’s sheltered retirement contribution of $50.00. At the end of the calendar year, the annual taxable earnings that would be reported to the Internal Revenue Service (IRS) under such a scenario are $11,400 ($950.00 x 12), not $12,000 ($1,000 x 12) as would be the case without tax sheltering. (R.S. 11:154) Revised on April 2021 1.60.050 Funds Payable To A Succession Or Estate When funds are payable by the retirement system to the succession or estate of a deceased member or retiree, the funds may be paid to the member's surviving spouse, provided that neither the member or spouse had previously instituted divorce proceedings. If the deceased member leaves no surviving spouse, or if either the member or the spouse had instituted a divorce proceeding, the funds may be paid to any major child of the deceased member. In order to receive such funds, the surviving spouse or major child must execute an instrument before two witnesses that provides the following: 1. Name, address, date, and place of death of the deceased member. 2. The relationship of the person requesting payment to the deceased member. 3. The name and address of the deceased member’s surviving spouse or children, if any. 4. Such other information as the system may require. The system may make these payments without any court proceedings, court order, or authorizing judgment of a court (i.e. the formal opening of a succession) and without determining whether any inheritance taxes may be due or whether the funds belong to the separate estate of the decedent or to the community that existed between the decedent and the surviving spouse. Such payments should only be made in cases where the system forwards an affidavit stating the name of the deceased, the amount paid, the name of the recipient, and a copy of the release document substantiating the release to the secretary of the Department of Revenue within ten calendar days of the release of the funds. The execution of the instrument by the recipient and the receipt by such person of such payment constitutes a full release and discharge of the system for the amount paid and for all inheritance taxes which may be determined to be due. No person, natural or juridical, shall have any right or cause of action against the system because of such payment. (R.S. 11:165 and R.S. 9:1515) Revised on April 2021 1.60.060 Surviving Minor's Benefit Placed In Trust If a trust has been created under Louisiana law by a member of the system for the benefit of the member's minor child(ren), the terms of the instrument creating the trust so provide, and the retirement system has been provided with a certified copy of the trust document, then a survivor benefit due a minor child(ren) shall be paid to the trustee for addition to the trust property. (R.S. 11:235 (B)) Revised on April 2021 1.60.070 Exemption From Execution And State Income Tax The right of a person to a normal retirement, disability retirement, survivor benefit, return of contributions, or any other right accrued or accruing to any person from and/or by the system, and the assets in the various system funds are exempt from any state or municipal tax and from levy and sale, garnishment, attachment, or any other process whatsoever except as provided in R.S. 11:292. The exception provided in R.S. 11:292 states that any retirement benefit paid to any retiree is subject to garnishment or court-ordered assignment to pay child support, or restitution or fines, or any costs of incarceration, probation, or parole as a result of a felony that occurs on or after July 1, 2010, and is associated with the member’s service as an elected official or public employee. In addition, the system is required to honor Internal Revenue Service levies and garnishments. If the contributions of an employee are paid by an employer to purchase credit for prior service, these funds may be assigned to the employer. Such assignment shall continue until the employee has repaid to the employer the amount of the contributions paid or the employer has released the contributions it paid by giving written notice to the board. Benefits paid by the system are exempt from state income tax. Benefit and refund payments are also subject to certain court orders (see section labeled Community Property Interests). (R.S. 11:1735 and R.S. 11:292) Revised on June 2026 HISTORY Act 278 of 2026

Authorized representatives/agents are appointed by the Mayor or Director of your municipality or organization. This representative is the only employee besides the Mayor or Director that is allowed to certify employee information, i.e., enrollment forms, applications, contribution reports, etc. It is your responsibility to certify that all information is correct on the following: 1. Enrollment Forms 2. Contribution Reports 3. Retirement/DROP Applications 4. Disability Applications 5. Survivor Applications 6. Refund of Contribution Applications 7. Salary Evaluation Forms 8. Status Change Forms 9. Retire from DROP Forms 10. Conversion of Unused Leave 11. Return to Work Earnings When there are any changes in administrative personnel or contact information, the following must be completed and returned to the retirement system’s office: 1. Employer Contact Information Form 2. Designated Authorized Employer Representative Form This information is used to update our website and to verify that correct signatures are on all forms received. LA R.S. 11:1827, Authorized agent; powers and duties The authorized agent shall be the representative of the employer for the system. It is his/her duty to act within the terms of the agreement between the board and the respective employer to facilitate the efficient operation of the system as it pertains to those employees of the employer who are members. His/her duties shall include: 1. Attendance at board meetings on behalf of his/her employer. (only when necessary) 2. Presentation of membership and retirement applications from his/her employer’s members to the system. 3. Coordinating with the administrative director to insure the correct recordation of information and data pertinent to his/her employer and the system. 4. Acting on behalf of his employer on all questions of eligibility, participation, benefits, coverage, administration, and contributions of the system. 5. Ensuring that all communications from the system to the employer or its employees are properly distributed and disseminated. Revised on May 2021

All eligible employees must be enrolled in the retirement system effective on their first day of employment. There is no waiting or probationary period to become a member of the retirement system. 1. All full-time employees working 35 hours or more per week are required to become members of the retirement system. 2. Do not include any employees of the police or fire department. If an employee is in a position that is normally covered by the Firefighters’ Retirement System (FRS) but is not eligible per statute, the employee may become a member of MERS. You must submit a letter certifying the member is not eligible for FRS from their office on their letterhead. The member has the option to enter MERS or pay Social Security. This option must be made on the employee’s date of hire and is irrevocable. 3. Effective July 1, 2021, no employees of the police department, regardless of their age, are eligible to become members of MERS. 4. All rehires are to be treated like new employees. All forms listed in item 8 need to be completed. 5. Do not include temporary, part-time, or seasonal employees. 6. Councilmen and/or aldermen are not eligible for membership, although in certain situations (prior MERS membership) they may be eligible. Please call the retirement system for verification.  7. All full-time Mayors must become members of the retirement system. There are some exceptions. Please call the retirement system for verification. 8. The following forms must be completed in their entirety, or they will be returned. a. Enrollment Packet b. SSA 1945 – Only required from members not contributing to Social Security. c. Copy of social security card must be attached. 9. The “Forfeiture of Benefits Attestation” must be completed but do not send to the retirement system. Keep in employee’s personnel file. These documents may be scanned and uploaded through the Employer Portal, faxed, or mailed. Do not send duplications by scanning or faxing, then mailing the originals. Emails are not acceptable due to sensitive information sent in a non-secure environment. Revised on May 2021

The retirement system must be kept updated with all changes to a member’s information, which includes the following: 1. Address changes 2. Marital Status changes a. If an employee’s marital status changes from the date the employee enrolled into MERS, this office must be notified. If the member becomes divorced, a copy of the divorce decree must be attached to the change form. b. If an employee’s spouse deceases, a copy of the death certificate should be submitted with the beneficiary change. 3. Beneficiary changes a. The employee must complete a ‘Beneficiary Change Form’ to provide beneficiary name(s), date of birth, relationship, social security number, and address. b. If there is more than one beneficiary, a separate sheet of paper may be attached to the change form. Benefits will be distributed evenly between all beneficiaries unless otherwise stated. 4. Name Change a. If the employee changes their name for any reason, MERS must be notified. The ‘Personal Information Changes’ form should be completed and returned to the MERS office to make changes to an employee’s account, except for a beneficiary change. Use the ‘Beneficiary Change Form’ for beneficiary changes. Only the information that has changed needs to be completed. The member must sign this form for it to be valid. These documents may be scanned and uploaded through the Employer Portal, faxed, or mailed. Do not send duplications by scanning or faxing, then mailing the originals. Emails are not acceptable due to sensitive information sent in a non-secure environment. Revised on May 2021

Employee and employer contributions are due on the 10th of the month following the reporting period and are tax deferred (withhold contributions before Federal and State withholding). In accordance with R.S. 11:1733 (E), Employers that remit late contribution payments will be charged delinquent fees at the actuarial valuation rate compounded annually. EARNINGS The definition of “earnings” in LA R.S. 11:1732 means the full amount of compensation earned by a member for service rendered as an employee, excluding bonuses or fees paid in excess of regular salary or retainer, overtime pay, and payments relative to termination of employment including, but not limited to, accrued sick or annual leave and severance pay. Compensation from all sources earned by the employees in the Marshal’s Office and the City Court’s Office, excluding the Judge, must have contributions withheld and submitted to the retirement system. Earnings sources and earnings not to be included in compensation are listed in the charts below: ALL MEMBERS EARNINGS EARNINGS ARE NOT Regular Wages Overtime Holiday Pay Workmen's Compensation Vacation Pay Lump Sum Vacation or Sick Leave Sick Pay Bonuses MARSHALS & DEPUTY MARSHALS ONLY EARNINGS EARNINGS ARE NOT Regular Wages Overtime Holiday Pay Workmen’s Compensation Vacation Pay Lump Sum Vacation or Sick Leave Sick Pay Bonuses Fees for service of civil papers & Commissions received as a result of sales & garnishments pursuant to R.S. 13:5807 Supplemental Salary from State of LA If a police officer is eligible to become a member of MERS and receives a supplemental salary from the State of LA, this supplemental salary will be deemed earnings and contributions must be withheld. If an employee receives a worker’s compensation check and receives a paycheck for vacation or sick pay, contributions should not be withheld until the employee returns to full-time employment. The employee will have a break in service from the date worker’s compensation or short-term disability begins through their return date to full-time employment. If an employee receives a partial paycheck due to leave without pay, you must submit an ‘Active Member Status Change Form’ detailing the days that were not paid. The retirement system will adjust their service credit accordingly. CONTRIBUTION RATES Contribution rates are set by the Board of Trustees after the annual Actuarial Valuation is approved by PRSAC (Public Retirement Systems’ Actuarial Committee). This report is usually approved in February or March. Rates for Plan A and Plan B are changed on July 1st and remain the same through June 30th each year. New rates are uploaded to the Employer Portal for July reporting. The correct employee and employer rates must be used for each fiscal year. Make sure your rates are correct in your payroll system to ensure accuracy in reporting correct contributions. Your new rate should be uploaded to your payroll system after you have processed your last payroll in June. If your rates have not been changed, you will receive errors for all members on your July report. CONTRIBUTION REPORTING 1. All reports are submitted through the Employer Portal using the credentials issued by MERS to the employee responsible for submitting the monthly contributions. After receipt of your confirmation email, payment must be made through the employer portal. 2. Contributions are due on the 10th of the following month reporting. Delinquent fees will be incurred for all late reports. 3. All new hires or re-hires should complete enrollment packets to be submitted to MERS either by uploading them through the Employer Portal, fax, or mail. If MERS receives these enrollments before you process your report, the new employees will be on your report. If you have not sent the enrollment packet, you will need to add these employees when submitting your report to avoid errors. 4. If an employee has entered DROP and a portion of their monthly salary has contributions withheld and a portion does not, enter these salaries as two (2) lines for the employee. The salary needs to be separated. 5. Do not take credits on reports without approval from MERS. If a credit is owed by MERS you will have a credit amount reflected in the Employer Portal. In the case of overpayment, employee contributions are always returned. Employer contributions are not refunded if the overpayment is more than a year old. Employer contributions made within the last year are returned only if allowed by IRS guidelines (For example, errors discovered within a month are returned. Errors more than a month old, but less than a year, are returned in the case of a mistake of fact.) Revised on June 2026

The retirement system must be notified of all changes to a member’s status and breaks in service.  1. An ‘Active Member Status Change’ form must be completed and sent in with all employee status changes: a. Leave Without Pay (LWOP) b. Out on disability or worker’s compensation c. Terminated d. Family Medical Leave (FMLA) e. Military Leave (Allowed to pay contributions (both EE & ER) not to lose service credit. 2. All the above must be reported on an ‘Active Member Status Change’ form when the employee stops paying contributions, and again when they return to work and begin paying contributions. 3. If a member’s status changes and MERS is not notified to update the member’s account, you will have an error when submitting your monthly report. 4. It is not necessary to report employees that are terminating due to retirement. 5. DO NOT REPORT less than 8 hours in a day. 6. DO NOT REPORT earnings for a member that is out on leave without pay, worker’s compensation, FMLA, or short-term disability. If the member receives vacation, sick, or holiday pay during this period of time, no earnings or contributions should be reported. Revised on May 2021

REFUNDS ARE NOT MANDATORY AT TERMINATION Terminated employees are eligible to receive a refund of their contributions paid into the system during their employment. The system will retain the employer’s contributions. Employees changing from full- time to part-time status are not eligible to refund their contributions. Members are eligible to receive their refund not less than 30 days from their termination date and not until all contributions have been received by the retirement system. Refunds are processed on the 5th, and 20th of each month. It may take up to sixty (60) days to receive a refund. To process a refund: 1. A ‘Refund of Contributions’ packet must be completed and must include direct deposit information, copy of social security card, and picture I.D. 2. If MERS has been notified of the member’s termination by the employer, the member can call the retirement system to request a DocuSign refund packet through email. 3. For the packet to be considered complete, include a copy of a voided check (pre-printed checks only), bank form signed by bank employee, or certification by Authorized Representative that account information is the same as member’s last paycheck. 4. All refunds are direct deposited to a valid bank account or debit card. Checks will be mailed for rollover of refunded contributions only. 5. The bank account and/or debit card must be in the member’s name. Refunds cannot be deposited in an account not belonging to the member. 6. The application must be signed by the member.  7. The application must be certified by the authorized representative of the employer which includes the date of last paycheck and termination date. ROLLOVER OF REFUNDED CONTRIBUTIONS 1. Sheltered employee contributions may be rolled into another qualified plan, such as an IRA or 457 plans. 2. The Financial Institution must complete Section 6 of the ‘Refund of Contributions’ packet or attach a ‘Request to Transfer’ form from the financial institution with payment instructions. These forms must accompany the application for refund. VESTED REFUNDS 1. Vested members must submit a ‘Vested Release’ form signed and notarized to the retirement system before a refund application will be processed. This release acknowledges that the member is forfeiting all present and/or deferred benefits with the retirement system. This form will be mailed to the member by the retirement system with an estimate of benefits. It cannot be downloaded for completion. 2. If the member is legally married, the spouse must also sign the ‘Vested Release’ form acknowledging the fact that their spouse is forfeiting all present and/or deferred benefit with the retirement system. This form will be mailed to the member by the retirement system with an estimate of benefits. It cannot be downloaded for completion. TERMINATED VESTED MEMBERS 1. Vested members may leave their contributions on deposit with the retirement system and begin receiving their retirement benefit upon reaching the eligible retirement age of their plan. 2. Vested members do not have to notify the system of this decision. No action is required except to keep the retirement system updated with current address and contact information. 3. Vested members will be notified in writing approximately two (2) months prior to their eligible age to go to their former employer’s office to complete a retirement application. (See Retirement Application page 16) 4. Vested benefits are effective the first (1st) day of the month following the date the retirement application is received in the retirement system office or the first (1st) of the month after reaching eligibility, whichever is later. 5. Vested benefits are retroactive to the date of eligibility for retirement only if received within 60 days of the date of eligibility for retirement. Applications received more than 60 days after the date of eligibility are only paid for the 60 days prior to the date the application is received. Revised on May 2021

RETIREMENT OR DROP ESTIMATES 1. Must be within 3 years of eligibility. 2. The effective date must be at least 2 months in the future. 3. The effective date is always the 1st of the month.  4. Maximum of 2 different dates may be requested on the same estimate form. 5. Use the form on the website instead of sending a letter. 6. There is no charge for the preparation of estimates 7. Allow 2 - 4 weeks for completed estimates. 8. An alternative way to obtain an estimate is to register for the Member Self Service Portal. 9. Option 4 Calculations have a fee for estimates and applications. REPAYMENT OF REFUND CALCULATIONS 1. Requests for repayment of refunds are at no charge. 2. Use the form on the website and fill out as much information that is known. 3. If the member has received more than one refund, all refunds will be used in the calculation. The member must repay all refunds in one lump sum. Partial payments are not accepted. 4. The member may use qualified funds (IRA, 457 Plan, Deferred Compensation Plans, etc.) to repay their refund. The member must complete a ‘Trustee Transfer’ form to give to their financial institution sending the funds. TRANSFER CALCULATIONS 1. Requests for transfer of creditable service calculations from other Louisiana pension funds into MERS have a fee of $50.00. 2. Complete the form ‘Transfer of Creditable Service’ and return to the retirement system’s office. 3. Transfer calculations take a minimum of 4 – 6 weeks. 4. The member may use qualified funds (IRA, 457 Plan, Deferred Compensation Plans, etc.) to pay for transfers if there is a cost to the member. The member must complete a ‘Trustee Transfer’ form to give to their financial institution sending the funds. RECIPROCAL RECOGNITION If a transfer of service credit is not beneficial, the other option would be to enter a reciprocal recognition between MERS and the other LA public pension plan. 1. Requests for reciprocal recognition are at no cost. 2. Complete three (3) originals of “Reciprocal Recognition” form and return them to the retirement system’s office. 3. When completed the employee will receive an original with signatures from both systems verifying membership and transcripts of service credit. PURCHASE OF MILITARY SERVICE 1. There is no charge to calculate the cost to purchase military service credit. 2. The member is eligible to purchase up to four (4) years of military service. 3. The years of military service purchase are not allowed to be used to reach your vesting years (10 years or 7 years depending on tier).  4. The member will be required to complete the ‘Military Purchase Application’ and attach a copy of the DD214 (discharge papers). No member who has been released or discharged from service under less than honorable conditions is eligible to purchase credit for military service. 5. Military purchase calculations take approximately 2 - 4 weeks. 6. The member may use qualified funds (IRA, 457 Plan, Deferred Compensation Plans, etc.) to pay for purchases of military service credit. The member must complete a ‘Trustee Transfer’ form to give to their financial institution sending the funds. Revised on April 2024

An employee must meet normal retirement eligibility to enter the DROP program. 1. A member may only enter DROP once and can participate for up to three (3) years. 2. DROP participation always begins on the first (1st) of the month. Employee contributions should stop being withheld on the last day of the month prior to the DROP effective date. Employer contributions will continue. 3. Length of participation: a. If the member signs the application for less than 36 months, the length of participation cannot be extended. b. If the member signs the application for 36 months and terminates employment before the DROP program is completed, their DROP participation will end on their termination date without any penalties. c. If the member becomes temporarily disabled or unable to work during their DROP participation, the retirement system must be notified immediately. The member’s DROP deposits will be suspended until he/she returns to regular employment and the date of their DROP participation will be extended to include no more than thirty-six (36) monthly deposits. 4. After the application is signed and submitted to the retirement system, neither the beneficiary nor the option chosen may be changed after the effective date. The option and beneficiary chosen at the time of applying for DROP will become the member’s retirement option and beneficiary. 5. The applicant’s signature must be witnessed by one person other than the named beneficiary. 6. The application must be certified by the employer’s authorized representative/agent. 7. The applicant must sign page 3 of the application stating that he/she understands the option chosen and how their benefit will be handled if they should decease. 8. Page 4 must be signed by the applicant certifying that the member understands the date DROP becomes effective and the date DROP will end. 9. If the member is legally married and does not leave at least a 50% survivor benefit to their spouse, a ‘Spousal Consent Form’ must be completed and notarized. 10. If the member is widowed, a certified copy of the spouse’s death certificate is required. 11. If the member divorces, a certified copy of the divorce decree is required.  12. If the member is an elected official in Tier 1, a copy of their ‘Certificate of Elected Service’ is required. 13. Copies of birth certificates and social security cards for the member and their beneficiary are required. 14. The salary evaluation form must be completed by the Authorized Representative/Agent, signed by both the representative and the member, and be attached to the application. Make sure any breaks in service during the member’s employment is noted. 15. Please refer to the DROP Application Checklist on the first page of the application to make sure all the proper paperwork has been completed and remitted. ELIGIBILITY FOR DROP PARTICIPATION PLAN A DATE OF HIRE BEFORE 1/01/2013 25 years of service credit at any age TIER 1 10 years of service credit at age 60 DATE OF HIRE ON OR AFTER 01/01/2013 7 years of service credit at age 67 TIER 2 10 years of service credit at age 62 30 years of service credit at age 55 PLAN B DATE OF HIRE BEFORE 1/01/2013 30 years of service credit at any age TIER 1 10 years of service credit at age 60 DATE OF HIRE ON OR AFTER 01/01/2013 7 years of service credit at age 67 TIER 2 10 years of service credit at age 62 30 years of service credit at age 55 If you have any questions concerning eligibility for DROP, please call our office. Revised on May 2021

The retirement system will notify the Authorized Representative/Agent when a member’s DROP participation is ending. 1. A couple of months before a member’s DROP participation is to end, the retirement system will send a DROP completion form to the Authorized Representative/Agent with the member’s name and DROP ending date. The member must decide whether to terminate employment and retire or continue working. This form must be signed by both the member and the Authorized Representative/Agent and returned to the retirement system before the DROP ending date. 2. If terminating employment and retiring, a ‘Direct Deposit’ form and voided check must be attached.  3. If continuing to work, the member must begin contributing employee contributions on the first (1st) day of the month following the DROP ending date. 4. If a member decides to terminate employment and retire before their DROP ending date, a ‘DROP End Early & Retire’ form must be completed and returned to the retirement system indicating the termination date. This form must be signed by both the Authorized Representative/Agent and the member and include a ‘Direct Deposit’ form and voided check. 5. If a member continues to work after DROP and then decides to retire, a ‘Retire from DROP’ form must be completed and returned to the retirement system indicating the termination date along with a ‘Direct Deposit’ form and voided check. Revised on May 2021

At the end of DROP participation, the total amount of DROP earnings credited to the member’s account will be transferred to the Guaranteed Interest Fund at Empower Retirement. A representative with Empower Retirement will notify the member of the transfer of their funds to set up their account with access 24 hours a day, seven (7) days a week at www.louisianadcp.com. Note that should the member decide to self-direct their DROP funds in any of the other available funds: Self-directed DROP funds are invested by member at member’s risk and are subject to possibility of loss of value. By participating in self-directed investing, member accepts this risk and releases MERS from any obligation for said loss, as provided by R.S. 11:1763. All transactions after the transfer of funds will be processed by Empower Retirement, not MERS. Empower Retirement may be contacted at 800-701-8255 with any questions. DROP withdrawals are allowed only after termination of employment. Revised on May 2021

1. After a retirement application is signed and submitted to the retirement system, the member has 60 days from receipt of the application to change their beneficiary or option chosen. 2. The applicant’s signature must be witnessed by one person other than the named beneficiary. 3. The application must be certified by the employer’s authorized representative/agent. 4. The applicant must sign the last page of the application stating that he/she understands the option chosen and how their benefit will be handled if they should decease. 5. If the member is legally married and chooses the maximum option, a ‘Spousal Consent Form’ must be completed and notarized. 6. If the member is widowed a certified copy of the spouse’s death certificate is required. 7. If the member divorces a copy of the divorce decree is required. 8. If the member is an elected official in Tier 1, a copy of their ‘Certificate of Elected Service’ is required. 9. Copies of birth certificates and Social Security cards for the member and their beneficiary are required.  10. The salary evaluation form must be completed by the Authorized Representative/Agent, signed by both the representative and the member, and be attached to the application. Make sure any breaks in service during the member’s employment is noted. 11. Please refer to the Retirement Application Checklist on the first page of the application to make sure all the proper paperwork has been completed and remitted. Revised on May 2021

PLAN A DATE OF HIRE BEFORE 1/01/2013 25 years of service credit at any age 10 years of service credit at age 60 TIER 1 20 years of service credit at any age actuarially reduced DATE OF HIRE ON OR AFTER 01/01/2013 7 years of service credit at age 67 10 years of service credit at age 62 TIER 2 30 years of service credit at age 55 25 years of service credit at any age actuarially reduced PLAN B DATE OF HIRE BEFORE 1/01/2013 30 years of service credit at any age TIER 1 10 years of service credit at age 60 DATE OF HIRE ON OR AFTER 01/01/2013 7 years of service credit at age 67 10 years of service credit at age 62 TIER 2 30 years of service credit at age 55 25 years of service credit at any age actuarially reduced Revised on May 2021

Only employers that have signed resolutions are eligible to convert unused/unpaid leave at retirement for their employees. The following are eligible for leave conversion: Abbeville Ball Bossier City Clinton Coushatta Franklin Franklinton Kentwood Louisiana Community Development Authority (LCDA) Mandeville New Roads Oak Grove Slidell 1. A ‘Conversion of Leave’ form must be submitted with the member’s retirement application certifying the number of days of unused/unpaid leave at termination date. 2. The retirement system will calculate the cost for the conversion and send an invoice to the employer. 3. The additional benefit for converted leave will not be paid to the member until the employer has made payment to the retirement system. 4. The additional benefit will be paid retroactively to the retirement effective date. 5. Converted leave is not allowed for calculation of DROP. It will be calculated when the member terminates employment. NOTE: Employers interested in offering conversion of leave to employees at retirement should contact MERS for further information. Revised on May 2021

Disability applications should be submitted before the member exhausts all leave or terminates employment. Disability applications take approximately 2 – 3 months for approval. 1. Disability benefits are effective the 1st of the month following termination of employment or receipt of the completed disability application packet, whichever is later. 2. Processing of disability benefits will not begin without all required paperwork: a. Disability Application b. Disability Report by Supervisor c. Notification of Income from Other Sources d. Member Statement of Disabling Condition e. Copies of all medical records pertaining to the disability – Member’s Responsibility. f. Authorization to request income information. g. Salary Evaluation form  h. Authorization for Direct Deposit i. Copy of member’s birth certificate and social security card j. Copy of beneficiary’s birth certificate and social security card k. Spousal Consent Form if legally married and chooses the maximum l. Copy of Certificate of Elected service if the member is an elected official in Tier 1. m. Certified copy of death certificate of spouse if deceased n. Copy of divorce decree if divorced. 3. The retirement system will send the proper paperwork and medical records to the system’s physician for review and approval. The decision as to whether a member is eligible to receive a disability benefit is made by the retirement system’s physicians. 4. The physician may require a physical exam. Failure to submit completed paperwork will delay processing. ELIGIBILITY FOR DISABILITY RETIREMENT PLAN A - 5 years of service credit at any age PLAN B - 10 years of service credit at any age Revised on May 2021

If a member is absent due to a worker’s compensation or short-term disability claim, no contributions are to be withheld from worker’s compensation payments, short term disability payments, or leave/wages paid until the member returns to full-time employment. The member will have a break in service for the entire duration worker’s compensation or short-term disability is being received. The employer shall be responsible for notifying the Municipal Employees’ Retirement System of Louisiana the effective date worker’s compensation or short-term disability begins and the effective date of the member’s return to full-time employment.

Survivors of members of the retirement system will either receive a refund of the member’s contributions or a monthly survivor benefit. The following survivors must complete a survivor application. PLAN A Legal spouse of member for at least the last twelve (12) months before death and member had five (5) or more years of service credit. Legal spouse of member for at least the last twelve (12) months before death and member is eligible for retirement. Minor children of member if member had five (5) or more years of service credit. PLAN B Legal spouse of member for at least the last twelve (12) months before death and member had five (5) or more years of service credit. Legal spouse of member for at least the last twelve (12) months before death and member is eligible for retirement. The following survivors must complete a refund application: PLAN A Named beneficiaries that are not the legal spouse or minor child of the member. Legal spouse or minor child of a member that has less than five (5) years of service credit. PLAN B Named beneficiaries that are not the legal spouse of the member. Legal spouse of a member that has less than five (5) years of service credit. Revised on May 2021

PART-TIME RE-EMPLOYMENT A retired member must wait for one month from their effective date of retirement before the retiree may return to employment with an employer participating in MERS. Members retiring with a ‘Disability’ or ‘Early’ retirement benefit are not eligible to return to work for any employer participating in MERS. For retirees who are first rehired to work part-time (less than 35 hours a week) for a member employer on or after July 1, 2016, the employer and employee will pay the normal contributions into the system based on their earnings. The retiree shall not receive any additional service credit and shall not accrue any additional retirement benefit with MERS. Upon termination of re-employment, employee contributions paid after retirement, upon application, may be refunded to the retiree or transferred to another qualified plan (IRA) without interest. The system will retain the employer’s contributions. All other restrictions remain in place concerning notifying the system and earnings limitations. 1. If a retiree is considering returning to employment part-time with an employer that is a member of MERS, the retiree should complete a ‘Request for Earnings Limit’ form. The retirement system will inform the member as to how much they can earn in gross monthly wages before their retirement benefit is offset. There is no limit for retirees who are at least age 60 who retired with at least 30 years of service credit and who returned to work prior to July 1, 2026. Their reemployment must be continuous to use this exception. 2. If the retiree receives more in gross wages than allowed, their retirement benefit will be reduced by the overage monthly.  3. The retiree and the employer will make contributions to MERS during part-time employment after retiring. 4. The employer must submit a ‘Retiree Returning to Work Notification’ form signed by both the employer and the retiree. 5. It is the responsibility of both the retiree and the employer to make sure monthly gross wages are reported to the retirement system. A ‘Monthly Gross Earnings for Retirees Returning to Part- Time Employment’ form should be submitted monthly for all retirees that return to active employment. 6. Monthly gross earnings should include wages earned from the 1st of the month through the last day of the month (examples: January 1 through January 31 or June 1 through June 30, etc.). Do not report gross earnings by pay periods. 7. Employers will be required to report monthly salaries, employee contributions, and employer contributions for retirees that are first re-employed on July 1, 2016, and afterwards. 8. The retiree will not accrue any additional service credit or receive any additional benefit when they terminate employment. 9. When the retiree terminates employment, the member will be eligible to receive a refund or rollover of their employee contributions upon application. FULL-TIME RE-EMPLOYMENT A retired member must wait one month from their effective date of retirement before the retiree may return to employment with an employer participating in MERS. For retirees who are first rehired to work full-time (35 hours or more per week) for a member employer on or after July 1, 2017, the employer and employee, will pay the normal contributions into the system based on their earnings. The retiree’s retirement benefit will cease, and the retiree shall receive additional service credit and accrue an additional retirement benefit with MERS if re-employed for twelve (12) months or longer. If the retiree is re-employed for less than twelve (12) months, upon termination, employee contributions paid since re-employment shall, upon application, be refunded to the retiree or transferred to another qualified plan (IRA) without interest. The system will retain the employer’s contributions. 1. The retiree and the employer will make contributions to MERS during full-time employment after retiring. 2. The retiree’s monthly benefit will be suspended while employed. 3. The employer must submit a ‘Retiree Returning to Work Notification’ form signed by both the employer and the retiree. 4. Employers will be required to report monthly salaries, employee contributions, and employer contributions for full-time return to work retirees first hired on July 1, 2017, and afterwards. 5. A ‘Retire from Full-Time Re-employment’ form must be submitted when the retiree terminates employment. 6. The retiree will accrue additional service credit if re-employed for twelve (12) months or longer and receive an additional benefit when he/she terminates employment. 7. If the retiree is re-employed for less than twelve (12) months, the retiree will be eligible to receive a refund or rollover of their employee contributions, upon application. Revised on June 2026 Act 228 of 2026 Regular Session Act 634 of 2024 Regular Session HISTORY Amended by Res. BOARD 8-19-2021 on 9/22/2021

Retired members of MERS have a responsibility to update the retirement system with any changes in address, direct deposit, beneficiary deaths, etc. 1. A ‘Retiree/Survivor Update Form’ must be completed, signed by the member, dated, and returned to the retirement system’s office for any of the following changes: a. Name Change b. Address Change c. Death of beneficiary (certified copy of death certificate is required) 2. A ‘Direct Deposit’ form needs to be submitted if there are any changes to the retiree’s banking information. 3. If a retiree needs an income verification, the ‘Retiree Income Verification Request’ form on the website should be completed, signed, and returned to the retirement system’s office. 4. If a retired member needs to change and/or begin Federal tax withholding, a W4P form should be downloaded from the retirement system’s website and returned for any changes to be made. 5. If a retiree becomes unable to tend to their legal affairs, an original notarized Power of Attorney should be completed and mailed to the retirement system to put in the retiree’s file. The retirement system requires the member’s signature on all changes and requests. 1099s are mailed no later than January 31st of each year for retirement benefits paid to every retiree. The retirement system must be updated with all retirees’ address changes or the 1099s, and all other correspondence mailed will be returned. No requests or changes will be made via telephone conversations. All requests and changes must be made in writing and signed by the retired member. Revised on May 2021

All requests must be received in writing and signed by the member. 1. Contribution balance statements are mailed annually during the month of July and August with balances as of June 30th. These statements will have the following: a. Name, address, phone number, email address, gender, marital status, date of birth of member, employer, plan and tier, original hire date, recent hire date and termination date, if any. b. Name, relationship, gender, and date of birth of beneficiary c. Total contribution balance as of June 30th d. Total eligible service credit as of June 30th  If any of this information is incorrect, the member should note all changes, sign, and return the statement to the retirement system for updating. 2. If a member needs their contribution balance before or after the statements have been mailed, have the member complete and sign a ‘Contribution Balance Request’ form. No requests or changes will be made via telephone conversations. All requests and changes must be made in writing signed by the member. Revised on May 2021

HIRE DATE BEFORE 01/01/2013 Employee Contribution Rate 10% (tax deferred) 3% for each year of service credit or 3.5% for Accrual Rate elected officials. 25 years of service credit at any age 10 years Retirement Eligibility (minimum) of service credit at 60 years of age 20 years early out - actuarially reduced Disability Eligibility 5 years of service credit at any age 5 or more years of service credit with legal spouse for at least last 12 months before death - 40% at age 60 or minimum of 20% immediately (actuarially calculated) 5 or more years of service credit with minor children with no legal spouse - 30% to each child, not to exceed 60% Survivor Eligibility 5 or more years of service credit with minor children and legal spouse - 60% until youngest child reaches the age of 18, then legal spouse decides on immediate (not less than 20%) or deferred benefit (40% at age 60) Eligible for retirement with legal spouse for at least last 12 months before death - automatic Option 2 25 Years of service credit at any age DROP Eligibility 10 years (minimum) of service credit at 60 years of age 10 years of service credit (may receive benefit at Vested 60 years of age) Must be terminated for 30 days and all contributions received by system. Subject to 20% Refund Federal withholding and possible 10% penalty when taxes are filed with IRS. Revised on May 2021

HIRE DATE ON OR AFTER 01/01/2013 Employee Contribution Rate 10% (tax deferred) Accrual Rate 3% for each year of service credit 7 years of service credit at age 67 10 years of service credit at age 62 30 years of service credit Retirement Eligibility at age 55 25 years of service credit at any age actuarially reduced Disability Eligibility 5 years of service credit at any age 5 or more years of service credit with legal spouse for at least last 12 months before death - 40% at age 60 or minimum of 20% immediately (actuarially calculated) 5 or more years of service credit with minor children with no legal spouse - 30% to each child, not to exceed 60% Survivor Eligibility 5 or more years of service credit with minor children and legal spouse - 60% until youngest child reaches the age of 18, then legal spouse decides on immediate (not less than 20%) or deferred benefit (40% at age 60) Eligible for retirement with legal spouse for at least last 12 months before death - automatic Option 2 7 years of service credit at age 67 DROP Eligibility 10 years of service credit at age 62 30 years of service credit at age 55 7 years of service credit (may receive benefit at Vested 67 years of age) Must be terminated for 30 days and all contributions received by system. Subject to 20% Refund Federal withholding and possible 10% penalty when taxes are filed with IRS Revised on May 2021

HIRE DATE BEFORE 01/01/2013 Employee Contribution Rate 5.00% (tax deferred) 2% for each year of service credit or 2.5% for Accrual Rate elected officials.  30 years of service credit at any age Retirement Eligibility 10 years (minimum) of service credit at 60 years of age Disability Eligibility 10 years of service credit at any age 5 or more years of service credit with legal spouse for at least last 12 months before death - 30% at age 60 or minimum of 15% immediately Survivor Eligibility Eligible for retirement with legal spouse for at least last 12 months before death - automatic Option 2 30 Years of service credit at any age DROP Eligibility 10 years (minimum) of service credit at 60 yrs. of age 10 years of service credit (may receive benefit at Vested 60 years of age) Must be terminated for 30 days and all contributions received by system. Subject to 20% Refund Federal withholding and possible 10% penalty when taxes are filed with IRS. Revised on May 2021

HIRE DATE ON OR AFTER 01/01/2013 Employee Contribution Rate 5.00% (tax deferred) Accrual Rate 2% for each year of service credit 7 years of service credit at age 67 10 years of service credit at age 62 30 years of service credit Retirement Eligibility at age 55 25 years of service credit at any age actuarially reduced Disability Eligibility 10 years of service credit at any age 5 or more years of service credit with legal spouse for at least last 12 months before death - 30% at age 60 or minimum of 15% immediately Survivor Eligibility Eligible for retirement with legal spouse for at least last 12 months before death - automatic Option 2 7 years of service credit at age 67 DROP Eligibility 10 years of service credit at age 62 30 years of service credit at age 55 7 years of service credit (may receive benefit at Vested 67 years of age)  Must be terminated for 30 days and all contributions received by system. Subject to 20% Refund Federal withholding and possible 10% penalty when taxes are filed with IRS. Revised on May 2021

101 Definitions 105 Payment Of Benefits 108 Rollover Of Refunds 110 Plan Year 101 Definitions A. Use of the masculine includes the feminine and vice versa. Use of the singular includes the plural and vice versa. B. The following definitions apply unless the usage clearly indicates another meaning. Active Member—a member of the Municipal Employees’ Retirement System (MERS) who is employed by a participating employer and actively contributing to MERS or who is participating in the Deferred Retirement Option Plan (DROP). Active Member Trustee—a trustee holding a seat elected by active members of MERS or appointed to such a seat in accordance with R.S. 11:1821G(4). Board of Trustees or Board—the board of trustees of the Municipal Employees’ Retirement System. Director—the executive director of the Municipal Employees’ Retirement System. DROP—Deferred Retirement Option Plan. Inactive Member—a member who is not actively contributing to MERS but is not retired and has left their contributions in the system. MERS—the Municipal Employees’ Retirement System of Louisiana. Retired Member Trustee—a trustee holding a seat elected by retired members of MERS or appointed to such a seat in accordance with R.S. 11:1821G(4). AUTHORITY NOTE: Promulgated in accordance with R.S. 11:1823.  HISTORICAL NOTE: Promulgated by the Department of Treasury, Municipal Employees’ Retirement System, LR 48:2366 (September 2022). 105 Payment Of Benefits A. All new retirees and beneficiaries are required to have their monthly benefits electronically deposited into an account at a financial institution. B. To facilitate electronic payment of benefits, a retiree/beneficiary must provide a copy of their Social Security card, name, complete address, routing number of a financial institution, account number, and indication of whether the account is a checking account or a savings account. C. A voided check, for a checking account, or deposit slip, for a savings account must be provided by the payee. D. Direct deposit payments are issued on the first business day of the month for which they are due. Paper checks, for retirees/beneficiaries not subject to the direct deposit rule, are mailed on the last business day of the month prior to the month in which they are due and dated the first of the month for which they are due. AUTHORITY NOTE: Promulgated in accordance with R.S. 11:1823. HISTORICAL NOTE: Promulgated by the Department of Treasury, Municipal Employees’ Retirement System, LR 48:2367 (September 2022). 108 Rollover Of Refunds A. Qualified rollovers of accumulated employee contributions require a certification from the receiving financial institution that the institution is qualified to receive the rollover. AUTHORITY NOTE: Promulgated in accordance with R.S. 11:1823. HISTORICAL NOTE: Promulgated by the Department of Treasury, Municipal Employees’ Retirement System, LR 48:2367 (September 2022). ) 110 Plan Year A. The plan year for MERS shall be July 1 - June 30. AUTHORITY NOTE: Promulgated in accordance with R.S. 11:1823. HISTORICAL NOTE: Promulgated by the Department of Treasury, Municipal Employees’ Retirement System, LR 48:2367 (September 2022)

201 Active Eligible Candidates 203 Retiree Eligible Candidates 205 General Schedule Of Elections 207 Specific Schedule Of Elections 210 Nomination Process 215 Election Process 220 Emergency Situations 201 Active Eligible Candidates A. An active member candidate for a non-elected position on the board of trustees must be an active member of the system with at least six years of creditable service. B. A participant in the deferred retirement option plan (DROP) is eligible to run as an active member candidate. C. A disability retiree who has returned to work under either R.S. 11:224 or R.S. 11:225 is eligible to run as an active member candidate. D. An active member candidate for an elected official position must be holding an office elected through the state election code and must have four years of service credit. E. An active member candidate for a non-elected position may not be an elected official. F. To satisfy the requirement that no more than two elected trustees from the same employer may serve on the board at the same time, the trustees first elected have preference for the seat. If trustees are elected at the same election, the person elected with the most votes has preference for the seat. G. Any person convicted of a felony offense shall be prohibited from being a candidate for a period of five years after the latter of their conviction or the end of their imprisonment. H. Only active members, as described for candidates, may vote for an active member candidate. AUTHORITY NOTE: Promulgated in accordance with R.S. 11:1823. HISTORICAL NOTE: Promulgated by the Department of Treasury, Municipal Employees’ Retirement System, LR 48:2367 (September 2022), amended LR 51:1890 (November 2025). 203 Retiree Eligible Candidates A. A retiree member candidate for a position on the board of trustees must be a retired member of MERS as of the date that the nomination period for the seat closes. B. Any person convicted of a felony offense shall be prohibited from being a candidate for a period of five years after the latter of their conviction or the end of their imprisonment. C. Only retirees may vote for a retiree member candidate. AUTHORITY NOTE: Promulgated in accordance with R.S. 11:1823. HISTORICAL NOTE: Promulgated by the Department of Treasury, Municipal Employees’ Retirement System, LR 48:2367 (September 2022), amended LR 51:1890 (November 2025). 205 General Schedule Of Elections  A. Elections shall be held in years in which the term of an elected member of the board expires. B. In the year 2022, an election shall be held for an active member trustee who is an elected official. C. In the year 2023, an election shall be held for an active member trustee who is an elected official. D. In the year 2024, an election shall be held for an active member trustee who is not an elected official. E. In the year 2025, an election shall be held for an active member trustee who is not an elected official. F. In the year 2026, an election shall be held for an active member trustee who is an elected official. G. In the year 2027, an election shall be held for a retired member trustee. H. Elections shall be held during the sixth year after the years listed above for the described trustee seats. AUTHORITY NOTE: Promulgated in accordance with R.S. 11:1823. HISTORICAL NOTE: Promulgated by the Department of Treasury, Municipal Employees’ Retirement System, LR 48:2367 (September 2022). 207 Specific Schedule Of Elections A. The schedule for elections shall be as follows. 1. nominations open on the first business day of April; 2. nominations close by noon of the last business day of April; 3. ballots will be mailed by the last business day of May; 4. ballots are due no later than 4 p.m. of the fourth Friday in July. MERS may allow ballots to be cast by mail, telephone, and/or through an online system; 5. ballots will be tabulated by the fourth working day following the deadline for receipt of the ballots; 6. if no candidate receives a majority of the votes cast, a run-off election is required; 7. if a run-off is necessary, the candidates’ names will appear alphabetically on the ballot; 8. run-off ballots will be mailed no later than 14 business days after the last business day of June; 9. run-off ballots are due no later than 30 calendar days after the run-off ballots are required to be mailed. If this day falls on a weekend or holiday, then ballots are due by the next business day; 10. ballots will be counted by the fourth working day following the deadline for receipt of ballots. AUTHORITY NOTE: Promulgated in accordance with R.S. 11:1823. HISTORICAL NOTE: Promulgated by the Department of Treasury, Municipal Employees’ Retirement System, LR 48:2367 (September 2022), amended LR 51:1891 (November 2025). 210 Nomination Process A. Candidates for the retiree seat must be nominated by at least 10 active and/or retired members of MERS. B. Candidates for the elected and non-elected active seats must be nominated by at least 25 actively contributing members of MERS. C. The nominating petition must contain the signature, printed name, and last four digits of the Social Security number of each person nominating the candidate. D. Candidates must submit a candidate information form containing their education, positions held, and reasons they are seeking the position. E. Staff of MERS must verify that candidates and enough members signing the nominating petition meet the criteria set forth in statute and these rules. F. In the event that an election must be held for a partial term, in addition to a seat for a full term, the candidate must specify whether they are seeking the partial or full term. G. If a candidate does not have opposition, that candidate may take office at the expiration of the term of the incumbent. AUTHORITY NOTE: Promulgated in accordance with R.S. 11:1823. HISTORICAL NOTE: Promulgated by the Department of Treasury, Municipal Employees’ Retirement System, LR 48:2368 (September 2022). 215 Election Process A. Approximately five months before the expiration of a trustee’s term, the director will issue a notice of the upcoming vacancy on the MERS’ website and send a notice to participating employers. B. A nominating petition packet will be made available on the MERS’ website and will be distributed via electronic mail or through the United States Post Office upon request. C. The names of candidates will appear in alphabetical order on the ballot. If an incumbent trustee is a candidate that will be noted on the ballot. D. The director will cause ballots to be mailed to all eligible voters. The statements provided by each candidate with their nominating petition shall be included in the ballot mailout. E. The number of votes which may be cast depends on the number of vacancies for which a trustee must be elected. F. Only votes cast by the deadline will be counted. G. Votes will be tabulated by a third party, such as a certified public accountant or an election vendor, selected by the director. Candidates may attend and observe the ballot tabulating, at their own expense. H. A majority of votes is required for a candidate to win a contested election. If a single candidate does not attain a majority of votes, a runoff will be conducted in the same fashion as the original election with the top two vote recipients competing.  I. Ties affecting elected positions shall be decided by a drawing conducted by the director in the presence of at least two witnesses. The candidates, or a representative of the candidates, may attend. J. Election results shall be certified by the board of trustees. AUTHORITY NOTE: Promulgated in accordance with R.S. 11:1823. HISTORICAL NOTE: Promulgated by the Department of Treasury, Municipal Employees’ Retirement System, LR 48:2368 (September 2022), amended LR 51:1891 (November 2025). 220 Emergency Situations A. In the event an act of God or other circumstances beyond the control of the board prevents compliance with timelines set forth in these rules, the director and the board shall fulfill the responsibilities set out in these rules as soon as practicable. AUTHORITY NOTE: Promulgated in accordance with R.S. 11:1823. HISTORICAL NOTE: Promulgated by the Department of Treasury, Municipal Employees’ Retirement System, LR 48:2368 (September 2022).

301 Employer Agreements 301 Employer Agreements A. A sample agreement for coverage shall be posted on the MERS website. B. Employers are not required to use the sample agreement so long as any agreement for coverage submitted to the board of trustees for approval contains each of the elements specified in R.S. 11:1733. C. An employer must submit a resolution of its governing authority agreeing to the application for coverage before it will be considered by the board of trustees. D. The board of trustees may require that the actuarial study required with an agreement for coverage be conducted by the actuary retained by the system, at the expense of the applying employer. E. The board of trustees must approve an agreement for coverage by a majority vote at a public meeting before coverage is extended. An agreement should not be approved in the six months preceding an election which could result in a change of leadership for the employer. F. Amendments to an employer agreement require the same process. AUTHORITY NOTE: Promulgated in accordance with R.S. 11:1733. HISTORICAL NOTE: Promulgated by the Department of Treasury, Municipal Employees’ Retirement System, LR 48:2368 (September 2022), amended LR 51:1891 (November 2025).

401 Spousal Rights 401 Spousal Rights A. Because Louisiana is a community property state, a spouse has an interest in the retirement benefits of a MERS member. B. A divorced member of MERS should provide a certified copy of a judgment of divorce and/or community property settlement document indicating that their ex-spouse relinquishes their interest in the member’s benefit paid by MERS. Alternatively, the member should provide a certified copy of a Domestic Relations Order (DRO) signed by a judge and indicating how their retirement benefit must be shared with their former spouse. A certified copy of a signed court order other than a DRO dividing retirement benefits must be approved by the Executive Director prior to implementation. C. A married member of MERS must obtain consent of their spouse to leave a retirement benefit of less than fifty percent for that spouse. D. Absent a court order directing MERS to split a member’s benefit with an ex-spouse, MERS will make payments to the member only. AUTHORITY NOTE: Promulgated in accordance with R.S. 11:291 and 1823. HISTORICAL NOTE: Promulgated by the Department of Treasury, Municipal Employees’ Retirement System, LR 48:2368 (September 2022), amended LR 51:1891 (November 2025).

501 Method Of Payment 503 Documentation Required 505 Vested Employees 501 Method Of Payment A. Refunds of accumulated contributions shall be issued as an electronic payment to the member or as a rollover to a qualified financial institution. B. Refunds may be paid to a checking account, savings account, or debit card, provided the account is in the name of the member receiving the refund. C. Refunds are issued after all contributions have been received from the employer. In exceptional circumstances, as set out in a written policy, the director may authorize a partial refund. D. MERS shall withhold federal taxes on refunds as required by the Internal Revenue Service. AUTHORITY NOTE: Promulgated in accordance with R.S. 11:1823. HISTORICAL NOTE: Promulgated by the Department of Treasury, Municipal Employees’ Retirement System, LR 48:2369 (September 2022). 503 Documentation Required A. A refund to a member’s checking account requires a pre-printed voided check or other documentation from the financial institution of the validity of the account. B. A refund to a member’s savings account requires a preprinted deposit slip or other documentation from the financial institution of the validity of the account.  C. A refund to a debit card requires a signed direct deposit form from the financial institution. D. A rollover of a refund requires a qualified financial institution to complete a form to acknowledge the status of the account and the ability to accept the funds. E. A member must provide a copy of their Social Security card and a government issued photo identification. AUTHORITY NOTE: Promulgated in accordance with R.S. 11:1823. HISTORICAL NOTE: Promulgated by the Department of Treasury, Municipal Employees’ Retirement System, LR 48:2369 (September 2022). 505 Vested Employees A. A member who has earned enough service credit to qualify for monthly retirement benefits at their regular retirement age must sign a notarized statement forfeiting their monthly benefits to receive a refund. B. If the member is married, their spouse must also sign the notarized statement. C. The notarized statement to be signed by a vested member and legal spouse must state the estimated monthly benefit to which the member is entitled to receive for their lifetime upon reaching retirement age. AUTHORITY NOTE: Promulgated in accordance with R.S. 11:1823. HISTORICAL NOTE: Promulgated by the Department of Treasury, Municipal Employees’ Retirement System, LR 48:2369 (September 2022).

601 Eligibility 603 Waiting Period 605 Earnings Limit For Part-Time Reemployed Retirees 601 Eligibility A. Members who retired with an early retirement or as a disability retiree are not eligible for reemployment with a participating MERS employer. AUTHORITY NOTE: Promulgated in accordance with R.S. 11:1823. HISTORICAL NOTE: Promulgated by the Department of Treasury, Municipal Employees’ Retirement System, LR 48:2369 (September 2022). 603 Waiting Period A. A retiree of MERS wishing to return to work with a participating employer in MERS, whether part-time or fulltime, shall wait one month from the effective date of their retirement to begin reemployment. AUTHORITY NOTE: Promulgated in accordance with R.S. 11:1823. HISTORICAL NOTE: Promulgated by the Department of Treasury, Municipal Employees’ Retirement System, LR 48:2369 (September 2022). 605 Earnings Limit For Part-Time Reemployed Retirees A. A member returning to work as a part-time employee may request a written earnings limit statement from MERS. B. Monthly earnings of part-time reemployed retirees must be reported to MERS by the participating MERS employer by which they are employed. C. It is the responsibility of the reemployed retiree to stay within the statutory earnings limit. D. The member’s monthly retirement benefit may be offset to recoup overearnings as a reemployed retiree. E. If overearnings by a rehired retiree cannot be recouped through benefit payments, a payment plan subject to board approval shall be established with a promissory note required from the retiree. AUTHORITY NOTE: Promulgated in accordance with R.S. 11:1823. HISTORICAL NOTE: Promulgated by the Department of Treasury, Municipal Employees’ Retirement System, LR 48:2369 (September 2022).

701 Eligibility 705 Reporting 710 Payment 701 Eligibility A. A participating employer may irrevocably elect to have its employees convert unused and unpaid annual and sick leave to retirement credit. The employer should submit a resolution to MERS indicating its acceptance of this option. B. Only leave that is unused and unpaid by the employer at the time of the member’s retirement may be converted to retirement credit. C. Converted leave is not allowed for calculation of DROP account payments. AUTHORITY NOTE: Promulgated in accordance with R.S. 11:1755. HISTORICAL NOTE: Promulgated by the Department of Treasury, Municipal Employees’ Retirement System, LR 48:2369 (September 2022). 705 Reporting A. Within 30 days of a member’s retirement, the participating employer which has elected to convert unused leave to retirement credit shall submit a conversion of leave form certifying the member’s unused and unpaid leave. AUTHORITY NOTE: Promulgated in accordance with R.S. 11:1755. HISTORICAL NOTE: Promulgated by the Department of Treasury, Municipal Employees’ Retirement System, LR 48:2370 (September 2022). 710 Payment A. Upon receipt of the conversion of leave form from an employer, MERS will send an invoice to the employer for the actuarial cost of the leave conversion. B. The participating employer shall pay to MERS the actuarial cost of the member’s unused leave within 30 days of the date of the member’s retirement. C. The employer must make full payment of the actuarial value of the member’s unused leave before it is converted to retirement credit. D. The member’s benefit will be recalculated by MERS, to include the value of their converted leave, upon receipt of payment from the employer. Future benefit payments to the member will then include the value of the leave and a onetime retroactive payment to the date of their retirement for leave not previously compensated. AUTHORITY NOTE: Promulgated in accordance with R.S. 11:1755. HISTORICAL NOTE: Promulgated by the Department of Treasury, Municipal Employees’ Retirement System, LR 48:2370 (September 2022).

801 Application Process 801 Application Process A. Disability applications should be submitted before the member exhausts all leave or terminates employment. B. Disability applications will be processed upon receipt of the following: 1. disability application by the member; 2. disability report by supervisor; 3. member statement of disabling condition; 4. copies of all medical records pertaining to the disability; 5. authorization to request income information from the member; 6. authorization for direct deposit; 7. copy of member’s birth certificate and Social Security card; 8. copy of beneficiary’s birth certificate and Social Security card, if applicable; 9. spousal consent form if legally married and maximum option is chosen; 10. copy of certificate of elected service if the member is an elected official in Tier 1; 11. copy of death certificate of spouse if member’s spouse is deceased; and 12. certified copy of divorce decree if member is divorced. AUTHORITY NOTE: Promulgated in accordance with R.S. 11:1823. HISTORICAL NOTE: Promulgated by the Department of Treasury, Municipal Employees’ Retirement System, LR 48:2370 (September 2022), amended LR 51:1891 (November 2025).

901 Collection Of Insurance Premiums 901 Collection Of Insurance Premiums A. Health and life insurance premiums may be deducted by MERS from benefit payments issued to retirees and beneficiaries. B. The premiums collected by MERS will then be transmitted to the participating employer which is responsible for paying the premium to the insurer. C. Written authorization from participating employers to withhold premiums from their retirees’ benefits and transmit those premiums to the employer must be made to MERS. D. The member or beneficiary must provide written authorization to MERS to initiate the premium deduction and to make any changes to the deduction, other than routine rate changes. E. Deductions will cease on the first of the month following the payee’s death or upon the first of the month following notice of death. AUTHORITY NOTE: Promulgated in accordance with R.S. 11:1823. HISTORICAL NOTE: Promulgated by the Department of Treasury, Municipal Employees’ Retirement System, LR 48:2370 (September 2022).

1001 Application Process 1003 Ineligible For DROP 1005 Third Party Provider 1001 Application Process A. An application for DROP may be made when a member is eligible for retirement. B. The DROP application shall include: RETIREMENT 1. a written acknowledgement by the member of the number of months in which they will participate in DROP; 2. a copy of the member’s birth certificate and Social Security card; 3. a copy of the beneficiary’s birth certificate and Social Security card; 4. a designation of a beneficiary to receive the DROP fund balance if the member dies while participating in DROP; 5. a spousal consent form as to the retirement benefit if the member is legally married and not selecting a benefit which provides at least 50 percent to the spouse; 6. a spousal consent form as to the DROP funds if the member is legally married and not leaving at least 50 percent of their DROP fund balance to their spouse;  7. a copy of the spouse’s death certificate if the member is widowed; 8. a certified copy of the divorce judgment if the member is divorced; and 9. for elected officials, a certificate of elected service. AUTHORITY NOTE: Promulgated in accordance with R.S. 11:1823. HISTORICAL NOTE: Promulgated by the Department of Treasury, Municipal Employees’ Retirement System, LR 48:2370 (September 2022), amended LR 51:1891 (November 2025). 1003 Ineligible For DROP A. A member who has retired is not eligible to enter DROP if they become reemployed. B. A member who is approved for disability retirement is not eligible for DROP. C. A member who retires with an actuarially reduced retirement is not eligible for DROP. AUTHORITY NOTE: Promulgated in accordance with R.S. 11:1823. HISTORICAL NOTE: Promulgated by the Department of Treasury, Municipal Employees’ Retirement System, LR 48:2371 (September 2022) 1005 Third Party Provider A. MERS shall engage a third-party provider, selected by the board of trustees, to administer the DROP accounts of members. B. Upon a member’s completion of the DROP participation period, MERS shall transfer their DROP funds to the provider on the first business day of the month following the member’s completion of the DROP participation period. C. In situations where a member terminates employment and DROP prior to the selected participation period, DROP funds shall be transferred to the third- party provider on the first business day of the month following notification to MERS of the member’s termination. D. The third-party provider shall provide multiple investment options to participants, including fixed and variable investment options. Participation may result in the loss or gain of principal or earnings based on market performance. E. The third-party provider shall not process withdrawal requests made by the member until MERS notifies the provider that the member has terminated employment. AUTHORITY NOTE: Promulgated in accordance with R.S. 11:1823. HISTORICAL NOTE: Promulgated by the Department of Treasury, Municipal Employees’ Retirement System, LR 48:2371 (September 2022)

1101 Adoption Of Fees 1101 Adoption Of Fees  A. The board of trustees may adopt fees for various services provided to members through the retirement system. B. The board of trustees should recoup the amount of fees charged by the system’s actuary for member calculations. At the discretion of the director, members may not be required to pay the full amount of fees of the actuary. C. Fees may only be imposed upon adoption by the board of trustees at a public meeting with opportunity for public comment. AUTHORITY NOTE: Promulgated in accordance with R.S. 11:1823. HISTORICAL NOTE: Promulgated by the Department of Treasury, Municipal Employees’ Retirement System, LR 48:2371 (September 2022)

1201 Service Credit 1201 Service Credit A. This section is adopted in accordance with R.S. 11:152, R.S. 11:152.1, R.S. 11:153, R.S. 29:411, et seq., and the Uniformed Services Employment and Reemployment Rights Act (USERRA, 38 U.S. C. 4301 et seq.). B. Purchase of service credit for military service shall be in accordance with R.S. 11:153. C. The board shall comply with the requirements of the Uniformed Services Employment and Reemployment Rights Act (USERRA, 38 U.S. C. 4301 et seq.) as well as rules and regulations issued by the United States Department of Labor relating to USERRA. AUTHORITY NOTE: Promulgated in accordance with R.S. 11:152, R.S. 11:152.1, R.S. 11:153, R.S. 29:411, et seq. HISTORICAL NOTE: Promulgated by the Department of Treasury, Municipal Employees’ Retirement System, LR 48:2371 (September 2022)

1301 Terms And Conditions To Renounce A Benefit 1301 Terms And Conditions To Renounce A Benefit A. Any person eligible to receive, or receiving a benefit from MERS may renounce such benefit under the following terms and conditions: 1. The renunciation shall be unconditional and irrevocable. Once a benefit is renounced, MERS shall have no further obligation or liability with respect to that benefit, and the person renouncing the benefit shall, under no circumstances, be eligible to receive that benefit. 2. A base benefit may be renounced in whole or in part. An adjustment to a base benefit (cost-of-living adjustment, adjustment for inflation, or one-time supplemental payment) may only be renounced in its entirety. If an adjustment is renounced, the base benefit need not be renounced.  3. If more than one person is entitled to receive a particular survivor benefit, each person entitled to a portion of the benefit may renounce his entitlement. The person or persons who continue to have an entitlement in that benefit shall receive the benefit to which they are entitled without consideration of the person who becomes ineligible through renunciation. Any adjustment shall be prospective only. 4. If the party making the renunciation is married, the spouse must join in the renunciation. 5. If the person making the renunciation is subject to an executed and effective community property settlement, only that portion of the benefit due the person making the renunciation may be renounced. 6. If the person making the renunciation is legally separated or divorced, but is not subject to an executed and effective community property settlement, the renunciation must be approved by the court having jurisdiction over the separation or divorce. 7. If the person making the renunciation is retired and has named a joint and survivor beneficiary, the renunciation cannot affect the joint and survivors' beneficiary or benefit, including adjustments to the joint and survivor benefit. 8. If a benefit is renounced by a member prior to receipt by the member of a sum equal to his or her accumulated contributions, the balance of the accumulated contributions will be paid to the member. 9. A renunciation must be executed before a notary public and two witnesses, neither of whom may be a spouse nor presently named beneficiary. The renunciation is effective and irrevocable when received by MERS. 10. A person revoking or participating in renunciation of a benefit must hold MERS harmless from such action. 11. A renunciation may not be used to terminate active participation in MERS. 12. Amounts credited to a DROP account cannot be renounced. 13. A benefit or portion of a benefit that has been renounced may be used to recoup benefits or refunds of accumulated contributions paid by administrative error or mistake. B. MERS makes no representation with respect to the effect of a renunciation on a person's eligibility for receipt of any state or federal benefits, or for participation in any private, local, state, or federal program. Eligibility for or participation in such programs, or eligibility for or receipt of such benefits, is an issue for which the person making the renunciation is solely responsible. Ineligibility for or termination of participation in such programs or benefits shall not affect the irrevocable character of the renunciation. AUTHORITY NOTE: Promulgated in accordance with R.S. 11:1823. HISTORICAL NOTE: Promulgated by the Department of Treasury, Municipal Employees’ Retirement System, LR 48:2371 (September 2022)

1401 Due Dates 1403 Late Contributions 1401 Due Dates  A. Contribution payroll files and payment of employee and employer contributions are required by the tenth of each month, covering the preceding month. B. Employers may pay contributions through electronic means or with a check. AUTHORITY NOTE: Promulgated in accordance with R.S. 11:1823. HISTORICAL NOTE: Promulgated by the Department of Treasury, Municipal Employees’ Retirement System, LR 48:2372 (September 2022) 1403 Late Contributions A. Interest may be charged for payments submitted after the tenth of the month. B. Interest is calculated based on the system’s actuarial valuation rate. C. Payments more than 60 days late shall be reported to the board of trustees. D. The board of trustees may certify delinquent amounts and request that the state treasurer deduct the certified amount from monies payable to the delinquent employer by any department or agency of the state. E. The board of trustees may authorize the director to retain counsel to file suit for collection of certified delinquent amounts in a court of competent jurisdiction. AUTHORITY NOTE: Promulgated in accordance with R.S. 11:1823. HISTORICAL NOTE: Promulgated by the Department of Treasury, Municipal Employees’ Retirement System, LR 48:2372 (September 2022)

1501 Reporting By Money Managers 1501 Reporting By Money Managers A. Money managers shall report to MERS investments made with system funds in any company having facilities, employees, or both located in a prohibited nation as defined by the legislature. B. Such reports shall be submitted by January 30 and July 30 of each year. AUTHORITY NOTE: Promulgated in accordance with R.S. 11:312. HISTORICAL NOTE: Promulgated by the Department of Treasury, Municipal Employees’ Retirement System, LR 48:2372 (September 2022)