Louisiana Sheriffs Pension: Options, Back-DROP and Refunds

Updated October 16, 2026. Quick answer: A Louisiana Sheriffs Pension and Relief Fund member chooses a payment option on the retirement application, and the handbook allows no change once it is filed, apart from a one-time correction of an error requested within a year. Options range from the Maximum plan to survivor options paying 100% or 50%. A member with extra service can elect Back-DROP, a lump sum of up to 36 months of Maximum benefit (48 with 30 years), and never more than the months of service accrued after first eligibility for regular retirement. A refund earns no interest, cancels all rights in the Fund, and has 20% federal withholding unless rolled over. The handbook is dated March 2021.

More on public pension systems, topic by topic: Louisiana Sheriffs Back-DROP.

What this page covers and what it does not

This page covers the Louisiana Sheriffs Pension and Relief Fund (LSPRF), the statewide fund for sheriffs and deputies. It works from the LSPRF Member Handbook, marked “Revised March 2021” and stating that its information is “valid as of July 1, 2020”, and from the Fund’s audited annual financial report for June 30, 2025 and 2024, hosted by the Louisiana Legislative Auditor. Both were read on October 16, 2026. No newer handbook and no annual comprehensive financial report from the Fund were among the documents read. The report’s membership table lists “Active members 14,528” at June 30, 2025, and “Inactive members entitled to but not yet receiving benefits 9,746”.

Two groups are compared throughout: members first employed before January 1, 2012, and those first employed on or after it. Disability retirement, reemployment after retirement and duty-death survivor benefits are outside this page.

When a pension can start

Vesting is at twelve years: the audited report says “Members are vested after twelve years of service time”. Earlier exits are priced by an actuarial reduction. For the earlier tier, the handbook says “An active, contributing member may retire with an actuarially reduced benefit at age 60 or older with at least 10, but less than 12, years of creditable service”. It adds that “A member who elects to retire under this provision shall not be eligible to participate in Back-DROP”. The handbook also describes early retirement from age 50 with at least 20 years, paid as the actuarial equivalent of the benefit at age 55 (earlier tier) or at age 60 (later tier).

The statute makes the age-50 path an election open only to a member who is already eligible for deferred retirement. For the earlier tier, section 2178(C)(3)(a) says “is eligible for deferred retirement and is over fifty years of age with at least twenty years of creditable service the member may elect to take, in lieu of deferred retirement, the actuarial equivalent of the benefit due had the member attained age fifty-five.” For the later tier the same wording ends “the actuarial equivalent of the benefit due had the member attained age sixty.” Deferred retirement itself is for “Any member who has twelve or more years of creditable service and who separates from service before attaining the minimum age required for regular retirement eligibility” and “In order to be eligible for this deferred retirement, the member shall not have withdrawn any part of his contributions from the fund.”

How the benefit is figured

The handbook gives the formula as “Accrual rate x final average compensation x creditable service = Maximum Benefit”, and says “The retirement benefit cannot exceed 100% of the average monthly salary of the member”. For members first employed on or after January 1, 2012, the audited report says “The benefit accrual rate for such members with less than thirty years of service is three percent; for members with thirty or more years of service, the accrual rate is three and one-third percent”. For the earlier tier it describes three and one-third percent of average final compensation for each year of creditable service.

The cap is set against final average compensation, a defined term, not a plain average salary. Section 2178(C)(4) says “(4) The retirement pension under this Subsection shall in no case exceed the member’s final average compensation.” For a member first employed before July 1, 2006 the definition is “the member’s average salary for the thirty-six highest successive months of employment, or the highest thirty-six successive joined months of employment where interruption of service occurred.” Earnings counted for months 13 to 24, and for the final twelve months, may not exceed 125% of the twelve months before. For first employment from July 1, 2006 through June 30, 2013 it is the sixty highest successive months, with no growth limit in the text of section 2178(A)(2). For first employment on or after July 1, 2013 it is “the member’s average salary for the sixty highest successive months of employment, or the highest sixty successive joined months of employment where interruption of service occurred.” with a tighter limit: “The earnings to be considered for the thirteenth through the twenty-fourth month shall not exceed one hundred fifteen percent of the earnings of the first through the twelfth month.” and the same 115% limit for each later twelve-month block. A separate ceiling applies to the benefit itself. Section 2179(A) says “The retirement benefit of any member of the pension and relief fund shall not exceed the maximum benefit allowed to public safety employees under Section 415 of the Internal Revenue Code of 1986, as amended.”

A recomputation of the handbook’s own illustrative example, not any member’s benefit. The handbook’s basis is “Example benefit amounts are based on 22 years creditable service, a final average compensation of $2,500.00 per month, and total employee contributions of $35,000.00”. Multiplying 3.3333% by $2,500.00 and 22 years gives a computed $1,833.32 a month, matching the handbook’s printed $1,833.32. At 3.0000% the same inputs give a computed $1,650.00, matching the printed $1,650.00.

The payment options and what each leaves a survivor

A retiring member takes the Maximum or an optional plan. The handbook says “The reductions from the Maximum under the various optional plans are based on the ages of the member and the spouse/beneficiary at the time of retirement”.

On Option 2, the handbook example says “Amount to retiree does not change if the spouse predeceases retiree”. Option 2A is the version where the retiree’s benefit rises to the Maximum if the spouse dies first, and the handbook says “The retiree is responsible to timely notify the Pension Fund of the death of their spouse, to furnish the spouse’s death certificate, and to request the change from the Option 2A benefit to the Maximum”. For Option 5, the handbook says “In this example, Option 5 would not pay a higher benefit for 50% survivorship compared to Option 3”.

Two details come from the statute. The change from Option 2A or 3A to the Maximum is not retroactive: section 2178(I)(1)(b) says “Adjustment of benefits under this Option shall not be retroactive, and shall be effective on the first day of the next month following official approval of the application for change in benefits.” So a late request forfeits the months before approval. Option 4 is wider than a special benefit computed by the actuary: it may be paid to the participant, the spouse, minor or disabled children or a nominated dependent, and it must be “certified by the actuary to be of equivalent actuarial value to the member’s retirement allowance and approved by the board.”

A computed example from an assumed $2,000 monthly Maximum, not an LSPRF figure, using the handbook’s example age factors of .85218 (Option 2) and .92019 (Option 3), which belong to a retiree age 60 and a spouse age 58 and differ for other ages: Option 2 would pay a computed $1,704.36 a month, with the spouse receiving the same. Option 3 would pay a computed $1,840.38, with the spouse receiving a computed $920.19. Option 5 at 90% would pay a computed $1,800.00, with a computed $900.00 to the spouse. The trade-off in general is at single-life versus joint-and-survivor pension; the Fund’s estimate decides the real figures.

What is irrevocable, and the deadlines

The handbook says “no change in the option selected will be permitted after the application has been officially filed with the Pension Fund; however, any member who has made an error in the selection of a retirement option, without consideration of events subsequent to the date of retirement, will be permitted to make a one-time change in the option selected provided a written request is made within a one-year period after the effective date of retirement”. Because the survivor options pay the spouse married to the member at retirement, “a retiree cannot change the designation of his beneficiary after the effective date of retirement”.

The statute adds a second exception. Section 2178(I)(3) says that if the spouse was the designated beneficiary and “a judgment of divorce is rendered with respect to the retiree and the spouse, and, in connection therewith, the spouse, irrevocably, by court order, relinquishes the spouse’s survivorship rights under the option originally selected by the retiree, the originally selected option shall be considered revoked and the retiree shall be considered as retired under the maximum benefit, subject to reduction as hereinafter set forth, and without affording the retiree the right to select an option under which the retiree could designate a new beneficiary”. The benefit rises to what the Maximum would have paid, adjusted for cost-of-living increases granted, “less any amount required as a result of such change in retirement status to render the new benefit to be the actuarial equivalent of the maximum benefit.” The retiree pays the reasonable cost of that calculation through a one-time deduction from the next benefit check, and “Adjustment of benefits under this Subsection shall not be retroactive, and shall be effective on the first day of the next month following official approval of the application for recomputation benefits.” For the one-time error correction, the statute measures the year from the option’s effective date: the change is allowed “provided the request is made within a one-year period after the effective date of the option selected.”

A married member needs the spouse’s signature: “The spouse must sign the option selection form indicating that she/he agrees with the option selected by the member”. See spousal consent to waive a joint and survivor annuity.

On timing, “It usually takes about four weeks to process a regular retirement application, provided all forms and required documents have been timely filed”.

The 2.5% COLA election and Board increases

One election exists only at retirement. The handbook says “Upon application for retirement, other than for retirement with Back-DROP or disability retirement, any member may elect to receive an actuarially reduced retirement allowance plus an annual two and one-half percent (2.5%) cost-of-living adjustment (COLA)”. It adds “Such election shall be irrevocable after the effective date of retirement”. It also says “The actuarial reduction is estimated to be approximately twenty percent (20%) of the regular benefit”.

Separately, the audited report says “The Board of Trustees is authorized to grant retired members and survivors of members who have retired an annual cost-of-living increase of 2.5% of their current benefit”. The handbook sets a waiting period: “Any member who retires and who has not attained age 60 will be subject to a three-year waiting period from the date of retirement to become eligible for a COLA”.

The statute sets the age at 61 and adds conditions. Section 2178(K)(2)(e) says “(e) Any member who has been retired for at least one year is eligible to receive a permanent benefit increase pursuant to the provisions of this Subsection if:” and then “(i) The member has attained the age of sixty-one regardless of the date of retirement.” or “(ii) The member has not attained the age of sixty-one but has been retired for at least three years.” The 2.5% is a ceiling: “(i) The permanent benefit increase shall be payable in a monthly amount not to exceed two and one-half percent of the normal monthly benefit payable to the retiree, disability recipient, or survivor on the date that the increase is granted.” The same item caps the dollars: “Except as provided in Item (ii) of this Subparagraph, the dollar amount of such increase for any recipient shall not exceed five percent of the average monthly benefit in payment to service retirees as of the end of the preceding fiscal year.” Item (ii) lifts it for benefits based on a 30-year retiree’s record. Section 2178(K)(1) lets the board pay an increase only from “earnings on investments of the fund in excess of normal requirements or funding deposit account credit balances”, as the actuary determines and the board approves, so no increase is automatic. And “(d) Notwithstanding any provision of this Subsection to the contrary, no permanent benefit increase shall be granted in any fiscal year pursuant to this Subsection if a permanent benefit increase has been granted pursuant to this Subsection in the immediately preceding fiscal year.”

Back-DROP: the lump sum at retirement

LSPRF’s lump-sum feature is Back-DROP (Back Deferred Retirement Option Plan), which the audited report says replaced the earlier DROP program effective July 1, 2001. The handbook says a member “may select a Back-DROP period consisting of whole months not to exceed 36 months (3 years) or 48 months (4 years)”. The 48-month limit applies only to a member with 30 or more years of creditable service, and the period also cannot exceed the months of service accrued after the member first became eligible for regular retirement. It adds “An active contributing member who has accrued more years of creditable service than are required for a regular service retirement may make an irrevocable election at the time of retirement to receive a Back-DROP benefit”. The statute states the limits this way. Section 2178.1(B) says “The Back-DROP period shall not exceed the lesser of thirty-six months or the number of months of creditable service accrued after the member first became eligible for regular retirement.” And: “However, members who have thirty or more years of service may select a Back-DROP period not to exceed the lesser of forty-eight months or the number of months of creditable service accrued after the member first became eligible for regular retirement.” The service must also be “sufficient to qualify for the Back-DROP period selected”. The statute adds “The member may qualify for Back-DROP only once.” and “A member or retiree who has participated in the Deferred Retirement Option Plan and who has not rescinded all of his participation period shall not be eligible to enroll in the Back-DROP.” Under section 2178.1(C)(5) the Back-DROP monthly benefit “shall be calculated based upon the member’s age, service, and the plan provisions in effect on the last day of creditable service before the Back-DROP period.”

The cost is in how the monthly benefit is set: “Accrued service credit will be reduced by the Back-DROP period”. It adds “Computation of final average compensation will exclude all earnings reported during the Back-DROP period”. In exchange, “the member will be paid a lump-sum Back-DROP benefit equal to the member’s Maximum monthly retirement benefit multiplied by the number of months selected as the Back-DROP period”. The handbook’s own example is “$1,263.86 x 24 months = $30,332.64 + $7,128.00 = $37,460.64”. Recomputed, $1,263.86 times 24 months plus $7,128.00 of contributions is $37,460.64, matching the printed balance.

The member then chooses how to receive the balance. The handbook says “At retirement, the member may make a one-time, irrevocable election to have all or a portion of his Back-DROP balance paid as an annuity, subject to such conditions as approved by the Board of Trustees”. It adds “The member will have a maximum of 30 days after retirement to make a decision regarding the election to convert his Back-DROP balance to an annuity”.

On tax, the handbook says “Back-DROP funds paid directly to the member are subject to a 20% withholding for federal income tax”. A computed example from an assumed $1,500 monthly Maximum and a 36-month period, not an LSPRF figure (ignoring contributions credited to the account and the lower Maximum that fewer service years produce): the lump sum would be a computed $54,000. If paid to the member directly, 20% federal withholding would be a computed $10,800, leaving a computed $43,200 in cash before any further tax or penalty. See 20% withholding on a pension lump sum.

Leaving before retirement: leave the money or take a refund

A member who leaves a sheriff’s office may stay in the Fund. The handbook says “Members who terminate employment in a sheriff’s office may leave their contributions on deposit, whether or not they have enough service to be vested (minimum 12 years)”. It adds “Vested members who leave their contributions on deposit are eligible for retirement benefits when they reach the required age, provided written application for benefits is submitted to the Pension Fund office”.

A refund is the other path. The handbook says “Employee contribution accounts do not earn interest, whether left on deposit or refunded” and “A refund of contributions cancels all rights in the Pension Fund, and the member forfeits all prior and military service credit as well as membership service credit for the period refunded”. It adds “Partial refunds are not permitted”. It also says “Members are not eligible for a refund until 30 calendar days after no longer being employed in any sheriff’s office”, and “If a member is married at the time of the application for a refund, the member’s spouse must also sign the refund application”. See pension refund versus leaving it for the general trade-off.

The statute adds two points. Section 2175(C)(1) allows a refund “after he has remained out of service for a period of thirty calendar days and after all contributions for said member have been submitted by the appropriate sheriff’s office.” Where the employer paid the member’s share, the member “may apply for and obtain a payment of any contributions made on his behalf by his employer pursuant to R.S. 11:2174(B)(3)(b) and (5)(b), reduced by that portion of such contributions described in R.S. 11:103, without the increase provided in R.S. 11:2174(B)(3)(b) or (5)(b), respectively.”

How a refund is taxed and paid

The handbook says “Since these contributions have been sheltered from taxes when earned, they become taxable when the member is refunded, unless the sheltered refund amount is rolled over into another qualified retirement plan, or an Individual Retirement Account (IRA)”. Further, “If not rolled over, tax-sheltered refunds are subject to a 20% federal withholding tax”. It adds that “The member may also be subject to a 10% federal early withdrawal penalty if the refund takes place before age 50, unless the refund is paid as a result of death, disability, or other exception outlined in the federal guidelines”.

A computed example from an assumed $10,000 taxable refund paid to the member, not an LSPRF figure: 20% of $10,000 is a computed $2,000 withheld for federal tax, leaving a computed $8,000 in cash before any further tax or penalty.

On Louisiana tax, the handbook (2021) says “Retirement (pension), survivor and disability benefits, and refunds of contributions, received from the Sheriffs’ Pension Fund are exempt from Louisiana state income tax and municipal tax”. The handbook adds that the exemption is not automatic and must be claimed every year by filing Schedule E with the Louisiana income tax return (Form IT-540). Wider treatment is at Louisiana retirement taxes and does Louisiana tax pensions.

Buying or repaying service credit

A member who took a refund and returned can restore the credit by paying the refund “plus interest at the board-approved actuarial valuation rate (currently 7.00%), compounded annually from the date of the refund to the date of repayment”. It adds “Only lump-sum payment is accepted”. A member with twelve years “may purchase up to five (5) years of permissive service credit”, and “On the day such purchase is completed, the member shall terminate employment and retire. Retirement shall be effective on the next business day following the purchase”. See the pension buyback calculator.

The statute is wider than the handbook on repayment and narrower on the purchase. Section 2175(C)(2)(b) says “(b) If the refund described in Subparagraph (a) of this Paragraph represents four or more years of service credit, then the refund may be repaid in two separate transactions.” Then “Service credit shall be credited to the member’s account in an amount equal to the portion of service represented by the repayment.” and “No service shall be credited to a member’s account prior to the repayment of the refund.” So each of the two payments restores its share of the service; nothing is restored before a payment is made. For permissive service credit the twelve years must be “twelve years of service credit applicable to eligibility for regular retirement”, and “The service may be purchased only in full-month increments by paying the total cost of the actuarial value of benefits to be purchased.” Also “The request to purchase permissive service credit pursuant to this Subparagraph shall be accompanied by the member’s application for retirement from the fund.”

What the IRS adds on tax

A refund or lump sum from a public pension is a distribution, so the IRS rules apply on top of LSPRF’s own. On withholding, the IRS says that a taxable eligible rollover distribution paid to you “is subject to mandatory income tax withholding (generally at a rate of 20%), even if you intend to roll it over later”, and that if you roll it over yourself “you’ll have to add funds from other sources equal to the amount withheld”. The LSPRF handbook describes the same 20% federal withholding on a refund or direct Back-DROP payment that is not rolled over. The rollover clock, if the money is paid to you: “you have 60 days from the date you receive it to roll it over to another eligible retirement plan”.

On early distributions the IRS says “the law imposes a 10% additional tax on certain early distributions from certain retirement plans”. Its list of exceptions includes “Distributions made to you after you separated from service with your employer after attainment of age 55” and “Distributions made to a qualified public safety employee from a governmental plan”, provided the employee separated from service during or after the year of reaching age 50 or 25 years of service under the plan, whichever is earlier. Whether an exception fits a particular refund depends on your own plan and facts, so confirm it with a tax preparer before you take one.

Where the sources disagree

First, the actuarial interest rate. For repaying a refund, the handbook (March 2021) says “plus interest at the board-approved actuarial valuation rate (currently 7.00%), compounded annually from the date of the refund to the date of repayment”, while the audited report for June 30, 2025 refers to “the Fund’s valuation interest rate or target rate of return of 6.85%”. The Fund should confirm which rate applies to a repayment today.

Second, the early-withdrawal penalty age. In its refund section the handbook says “The member may also be subject to a 10% federal early withdrawal penalty if the refund takes place before age 50, unless the refund is paid as a result of death, disability, or other exception outlined in the federal guidelines”. In its Back-DROP section it says “The member may be subject to a 10% early withdrawal penalty (excise tax) if he is under age 55 (or age 50 for qualified public safety employees*) at the time of withdrawal, unless he qualifies for an exemption under the Internal Revenue Code”. The IRS lists an exception for “Distributions made to you after you separated from service with your employer after attainment of age 55”, so the statements do not match one another. A tax preparer should confirm which exception fits.

Third, the handbook’s early retirement example prints “Early Retirement Maximum = $1,833.32 X 0.83982* = $1,609.65”. Multiplying $1,833.32 by 0.83982 gives a computed $1,539.66, not $1,609.65, so one printed figure does not match. The later-tier example prints “Early Retirement Maximum = $1,500.00 X 0.87023* = $1,305.35”, which does reconcile: 0.87023 times $1,500.00 is a computed $1,305.35.

What this page could not settle

• The pages read give no age-factor tables, so the reduction for any option, early retirement or the 2.5% COLA election is known only through example factors.
• The audited report describes the latest Board increase as going to retirees and survivors over age 61 who had been retired at least one year, or retired at least three years and not yet 61. The handbook’s three-year wait applies to those retiring before age 60; the statute, La. R.S. 11:2178(K)(2)(e), puts the age line at 61 (see the COLA section above).
• The handbook is revised March 2021 and states its information as valid as of July 1, 2020; the pages read do not state what has changed since.
• The pages read do not state whether the Back-DROP annuity choices listed as available “currently” are unchanged, or what rate converts a balance to an annuity.
• The pages read do not give Option 4 amounts, or which parishes tax-shelter contributions today, and the current Louisiana tax form was not checked.
• Disability retirement, reemployment of retirees, divorce division of benefits, duty-death survivors, military service purchases and the Social Security offset provisions were not examined in depth.

Common mistakes

• Assuming a survivor option can be revisited later; the handbook allows no change after the application is filed, except a one-time correction of an error requested within a year of retirement.
• Choosing an option and expecting to change the named beneficiary afterwards; the handbook says a retiree cannot change that designation after the effective date of retirement.
• Taking a refund without weighing that it cancels all rights in the Fund, forfeits the service credit and earns no interest.
• Relying on the March 2021 handbook alone for a decision made years later without asking the Fund what has changed.

Related on this site: Louisiana retirement taxes, does Louisiana tax pensions, Louisiana Firefighters retirement system retirement decisions, pension refund versus leaving it, single-life versus joint-and-survivor pension, pension buyback calculator, 20% withholding on a pension lump sum and public pension retirement decisions by system.

Sources

• Louisiana Sheriffs’ Pension and Relief Fund, Member Handbook (revised March 2021): https://www.lsprf.com/120325-LASHP-2021-Mbr-HB-2.pdf
• Louisiana Legislative Auditor, Sheriffs’ Pension and Relief Fund Annual Financial Report, June 30, 2025 and 2024: https://app.lla.la.gov/publicreports.nsf/0/072c38bd2934317a86258d7e007455cb/$file/0000989b.pdf
• IRS, Topic no. 413, Rollovers from retirement plans (irs.gov): https://www.irs.gov/taxtopics/tc413
• IRS, Topic no. 558, Additional tax on early distributions from retirement plans other than IRAs (irs.gov): https://www.irs.gov/taxtopics/tc558

Sources: the primary documents linked above, read on October 16, 2026. General information from each system’s own published materials, not legal, tax or financial advice. Your own member statement and the system’s current rules decide your benefit, and a pension counsellor at the system or a fee-only adviser is the right place to confirm anything consequential.