MERSLA • Baton Rouge, Louisiana Need help? Phone: 225-925-4810 Toll-Free: 1-800-820-1137 Fax: 225-925-4816
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Conversion of Leave

Employers have the option to adopt the MERS Conversion of Leave policy for employees who are retiring. If adopted, unused and unpaid leave as of the member's termination date may be converted to retirement credit. The conversion is calculated using an actuarial cost paid by the employer. The actuarial cost is less than the hourly rate of pay.

The member receives an additional amount added to the retirement benefit after MERS receives the required funds from the employer. Adoption of the Conversion of Leave policy is irrevocable.

Eligibility

  • A participating employer may irrevocably elect to convert unused and unpaid annual and sick leave to retirement credit.
  • The employer should submit a resolution to MERS indicating acceptance of this option.
  • Only leave that is unused and unpaid at the time of retirement may be converted.
  • Converted leave is not used to calculate DROP account payments or member eligibility for retirement.

Reporting and Payment

  • Within 30 days of the member's retirement, the employer must submit the Conversion of Leave Form certifying unused and unpaid leave.
  • MERS will invoice the employer for the actuarial cost after receiving the form.
  • The actuarial cost must be paid within 30 days of the invoice.
  • Full payment must be received before the leave is converted to retirement credit.

Conversion of Leave Documents

Conversion of Leave FormPDF · 123 KBView Document
Employers Participating in Conversion of LeavePDF · 63 KBView Document
Explanation of Conversion of LeavePDF · 98 KBView Document
Sample ResolutionPDF · 82 KBView Document

Need help? Call MERS at 225-925-4810 or 1-800-820-1137.