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Regular Session, 2010
HOUSE BILL NO. 748
BY REPRESENTATIVE PEARSON
RETIREMENT/CONTRIBUTIONS: Relative to the La. State Employees' Retirement
System, requires employers to remit to the system individualized employer
contributions
AN ACT1
To amend and reenact R.S. 11:102(B)(3)(a) and (d)(v) and to enact R.S. 11:102(C), relative2
to the Louisiana State Employees' Retirement System; to provide relative to system3
funding; to require individualized normal cost payments for employers; to require4
individualized payments for changes in actuarial liability for employers; to provide5
an effective date; and to provide for related matters.6
Notice of intention to introduce this Act has been published7
as provided by Article X, Section 29(C) of the Constitution8
of Louisiana.9
Be it enacted by the Legislature of Louisiana:10
Section 1. R.S. 11:102(B)(3)(a) and (d)(v) are hereby amended and reenacted and11
R.S. 11:102(C) is hereby enacted to read as follows: 12
ยง102. Employer contributions; determination; state systems13
* * *14
B.15
* * *16
(3) With respect to each state public retirement system, the actuarially17
required employer contribution for each fiscal year, commencing with Fiscal Year18
1989-1990, shall be that dollar amount equal to the sum of:19 HLS 10RS-466 ORIGINAL
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(a) The employer's normal cost for that fiscal year, computed as of the first1
of the fiscal year using the system's actuarial funding method as specified in R.S.2
11:22 and taking into account the value of future accumulated employee3
contributions and interest thereon, such employer's normal cost rate multiplied by the4
total projected payroll for all active members to the middle of that fiscal year. For5
the Louisiana State Employees' Retirement System, beginning with Fiscal Year6
2010-2011, the normal cost shall be determined in accordance with Subsection C of7
this Section.8
* * *9
(d) That fiscal year's payment, computed as of the first of that fiscal year and10
projected to the middle of that fiscal year at the actuarially assumed interest rate,11
necessary to amortize changes in actuarial liability due to:12
* * *13
(v) Effective July 1, 2004, and beginning with the fiscal year ending June 30,14
1999, the amortization period for the changes, gains, or losses of the Louisiana State15
Employees' Retirement System provided in Items (i) through (iv) of this16
Subparagraph shall be thirty years, or in accordance with standards promulgated by17
the Governmental Accounting Standards Board, from the year in which the change,18
gain, or loss occurred. The outstanding balances of amortization bases established19
pursuant to Items (i) through (iv) of this Subparagraph before the fiscal year ending20
June 30, 1999, shall be amortized as a level dollar amount from July 1, 2004, through21
June 30, 2029. Beginning with the year ending June 30, 2004, and for each fiscal22
year thereafter, the outstanding balances of amortization bases established pursuant23
to Items (i) through (iv) of this Subparagraph shall be amortized as a level dollar24
amount. For the Louisiana State Employees' Retirement System, beginning with25
Fiscal Year 2010-2011, amortization payments for changes in actuarial liability shall26
be determined in accordance with Subsection C of this Section.27
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C.(1) This Subsection shall be applicable to the Louisiana State Employees'1
Retirement System beginning Fiscal Year 2010-2011. For purposes of this2
Subsection, "plan" or "plans" shall mean a subgroup within the system characterized3
by the following employee classifications:4
(a) Rank-and-file members of the system hired on or before June 30. 2006.5
(b) Rank-and-file members of the system hired on or after July 1, 2006.6
(c) Full-time law enforcement personnel, supervisors, or administrators who7
are employed with the Department of Revenue or office of alcohol and tobacco8
control and who are P.O.S.T. certified, have the power to arrest, and hold a9
commission from such office.10
(d) Peace officers, as defined by R.S. 40:2402(3)(a), employed by the11
Department of Public Safety and Corrections, office of state police, other than state12
troopers.13
(e) Judges and court officers to whom Subpart A of Part VII of Chapter 1 of14
Subtitle II of this Title is applicable.15
(f) Wildlife agents to whom Subpart B of Part VII of Chapter 1 of Subtitle16
II of this Title is applicable.17
(g) Wardens, correctional officers, probation and parole officers, and18
security personnel employed by the Department of Public Safety and Corrections19
who are members of the secondary component pursuant to Subpart C of Part VII of20
Chapter 1 of Subtitle II of this Title.21
(h) Correctional officers, probation and parole officers, and security22
personnel employed by the Department of Public Safety and Corrections who are23
members of the primary component.24
(i) Legislators, the governor, and the lieutenant governor.25
(j) Employees of the bridge police section of the Crescent City Connection26
Division of the Department of Transportation and Development. 27
(2) For the Louisiana State Employees' Retirement System, beginning with28
Fiscal Year 2010-2011, the normal cost calculated pursuant to Subparagraph29 HLS 10RS-466 ORIGINAL
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(B)(3)(a) of this Section, shall be calculated separately for each employer as defined1
by R.S. 11:403 on the basis of each particular plan within the system which is2
applicable to the employees of such employer.3
(3) For the Louisiana State Employees' Retirement System, beginning with4
Fiscal Year 2010-2011, changes in actuarial liability calculated pursuant to5
Subparagraph (B)(3)(d) of this Section, shall be calculated individually for each6
employer as defined by R.S. 11:403 on the basis of each particular plan within the7
system which is applicable to the employees of such employer based on each plan's8
actuarial experience. In furtherance of this Paragraph, and for accounting purposes9
only, system assets shall be allocated among the various plans in proportion to the10
accrued liability attributable to each plan on June 30, 2010. Beginning with Fiscal11
Year 2010-2011, and every year thereafter, each plan shall be allocated, for12
accounting purposes only, the system's investment gains and losses in proportion to13
its share of system assets. Member transfers among the various plans shall not affect14
the allocation of assets and liabilities as provided in this Paragraph.15
(4) If provisions of this Section cover matters not specifically addressed by16
the provisions of this Subsection, then those provisions shall be applicable.17
Section 2. This Act shall become effective on July 1, 2010; if vetoed by the governor18
and subsequently approved by the legislature, this Act shall become effective on July 1,19
2010, or on the day following such approval by the legislature, whichever is later.20
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Pearson HB No. 748
Abstract: Relative to the La. State Employees' Retirement System (LASERS), requires
each employer to pay individualized employer contributions.
Present law (R.S. 11:102) provides for employer contributions for state retirement systems,
including LASERS. Provides that employer contributions shall be equal to the sum of the
following:
(1)The employer's normal cost (the cost of the current year's benefit accruals) for the
fiscal year. HLS 10RS-466 ORIGINAL
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(2)An amortized payment toward the unfunded accrued liability (UAL) existing on June
30, 1988.
(3)An amount necessary to amortize the previous fiscal year's over or underpayment.
(4)An amortized payment necessary to pay for changes in actuarial liabilities resulting
from: (a) cost-of-living adjustments; (b) changes in the method of valuing assets; (c)
changed in actuarial funding methods or assumptions; and (d) legislation.
Proposed law retains present law but requires LASERS employers to pay individualized
normal cost payments and amortization payments depending on which plans within the
system its employees fall into. For purposes of proposed law the individual LASERS plans
shall be as follows:
(1)Regular members hired on or before June 30, 2006.
(2)Regular members hired on or after July 1, 2006.
(3)Enforcement personnel employed by the office of alcohol and tobacco control within
the Dept. of Public Safety and Corrections (DPS&C).
(4)Peace officers employed by DPS&C in the office of state police, other than state
troopers.
(5)Judges.
(6)Wildlife agents employed by the Dept. of Wildlife and Fisheries.
(7)Corrections personnel in LASERS secondary component.
(8)Corrections personnel in LASERS primary component.
(9)Legislators, the governor, and the lieutenant governor.
(10)Bridge police employed by the Crescent City Connection Division of the Dept. of
Transportation and Development
Proposed law requires, for accounting purposes, that each plan shall be allocated system
assets in proportion to the accrued liability of each plan existing on June 30, 2010.
Beginning with FY 2010-2011 and thereafter, each plan shall be allocated investment gains
and losses in proportion to its individual assets.
Effective July 1, 2010.
(Amends R.S. 11:102(B)(3)(a) and (d)(v); Adds R.S. 11:102(C))