RETIREMENT/FIREFIGHTERS: Prohibits certain post-divorce earnable compensation in the Firefighters' Retirement System from being included in a former spouse's portion of community property (EN NO IMPACT APV)
Summary
HB 1017 creates a new provision in Louisiana law governing the Firefighters’ Retirement System (FRS) to address how retirement benefits are divided when a firefighter divorces. The bill says that if a member’s earnable compensation increases after the termination of the community of acquets and gains, and that increase depends on the member passing both a written examination and a working test, that post-divorce increase cannot be counted in calculating the former spouse’s share of community property.
In practical terms, the bill narrows the portion of an FRS retirement benefit that may be treated as marital property in divorce cases. It does not change the general definition of earnable compensation or the basic method for calculating FRS benefits, which remains tied to the average of the highest three years of earnable compensation. Instead, it excludes a specific category of later-earned compensation from being divided with a former spouse.
Impact
The bill adds R.S. 11:2256.5 to the Louisiana Revised Statutes and affects divorce-related property division involving FRS retirement benefits. It limits the amount of retirement compensation that can be included in a former spouse’s community property share when the member’s compensation rises after the end of the marital community due to advancement conditioned on testing and a working test. The change primarily affects firefighters, former spouses in divorce proceedings, and courts or attorneys calculating community property interests in public retirement benefits.
Sentiment
The available voting history suggests the bill was broadly supported and not controversial in the House, passing final passage 90-0. There are no committee transcript snippets indicating opposition or debate, and the bill ultimately became law without the Governor’s signature as Act 968. Overall, the sentiment appears favorable and consensus-driven, likely reflecting a targeted technical adjustment to retirement and divorce law rather than a broad policy dispute.
Contention
The main potential point of contention is the treatment of post-divorce increases in compensation: the bill protects those increases from being shared with a former spouse if they result from the member’s later passage of a written examination and working test. That could be viewed by former spouses as reducing the marital share of a retirement benefit, while supporters would likely characterize it as preventing division of compensation earned after the marriage ended. No recorded committee debate is available, and the unanimous House vote indicates no visible legislative opposition.
Provides relative to the administration and participation in the Deferred Retirement Option Plan for the Firefighters' Retirement System (EN SEE ACTUARIAL NOTE APV)
Requests the Firefighters' Retirement System to study the feasibility of merging members of the New Orleans Firefighters' Pension and Relief Fund hired after a certain date into the system