HLS 10RS-5320 ORIGINAL
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Approved
6-21-10
Regular Session, 2010
HOUSE CONCURRENT STUDY REQUEST NO. 8
BY REPRESENTATIVE TUCKER
RETIREMENT/STATE SYSTEMS: Relative to state retirement systems, requests the
House and Senate committees on retirement to study issues related to board
membership and system investments
A CONCURRENT STUDY REQUEST1
To the House Committee on Retirement and the Senate Committee on Retirement to meet2
and to function as a joint committee to study issues related to investments and board3
membership of the four state public retirement systems: the Louisiana State4
Employees' Retirement System (LASERS), the Teachers' Retirement System of5
Louisiana (TRSL), the Louisiana School Employees' Retirement System (LSERS),6
and the State Police Pension and Retirement System (STPOL) and to report the7
findings of the joint committee to the legislature not later than 60 days prior to the8
convening of the 2011 Regular Session of the Legislature of Louisiana.9
WHEREAS, the Louisiana Constitution requires the state to guarantee the benefits10
payable to members of the state retirement systems; and11
WHEREAS, the solvency of the state retirement systems is dependent upon the12
systems' ability to meet their respective Actuarially Assumed Rates of Return over the long13
term; and14
WHEREAS, a state retirement system's failure to meet its Actuarially Assumed Rate15
of Return in a given fiscal year can have a detrimental impact on the funding status of the16
system, which in turn can lead to increased employer contributions on behalf of the state and17
the local school systems; and18 HLS 10RS-5320 ORIGINAL
HCSR NO. 8
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WHEREAS, monumental market losses in Fiscal Year 2008-2009 led to a significant1
decrease in funding for the state retirement systems, causing dramatic increases in the2
employer contributions on behalf of the state and the local school systems; and3
WHEREAS, for the fiscal year ending June 30, 2009, LASERS' funded ratio was4
59.3%, TRSL's funded ratio was 55.7%, LSERS' funded ratio was 65.5%, and STPOL's5
funded ratio was 58.37%, and the unfunded accrued liability for those four state retirement6
systems combined equaled $16,836,958,351; and7
WHEREAS, the state has a compelling interest in maintaining financially sound8
systems for the benefit of the membership they individually serve and for Louisiana's public;9
and10
WHEREAS, increasingly complex market conditions and investment vehicles must11
be relied upon by the state retirement systems in order to meet rates of return on investments12
necessary to properly fund the systems and provide sustainable levels of benefits; and13
WHEREAS, the decisionmaking with regard to system investments should be14
undertaken by knowledgeable and qualified individuals.15
THEREFORE, the Legislature of Louisiana requests the House Committee on16
Retirement and the Senate Committee on Retirement to meet and to function as a joint17
committee to study issues relative to investments and board membership of the four state18
retirement systems and to report the findings of the joint committee to the legislature not19
later than sixty days prior to the convening of the 2011 Regular Session of the Legislature20
of Louisiana. 21
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)]
Tucker HCSR No. 8
Requests the House and Senate committees on retirement to study issues related to
investments and board membership of the four state public retirement systems and to report
the findings of the joint committee to the legislature not later than 60 days prior to the 2011
R.S.