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Regular Session, 2010 ENROLLED
SENATE BILL NO. 119
BY SENATOR B. GAUTREAUX
AN ACT1
To amend and reenact R.S. 11:1939, 2011, and 2014(C), and to repeal R.S. 11:1903(H) and2
2012(D), relative to the Parochial Employees' Retirement System; to provide relative3
to plans within the system; to provide for funding of such plans; to provide for4
proper contributions for funding purposes; to provide relative to the funds to which5
system assets are credited; to provide for interest and penalties; to provide for an6
effective date; and to provide for related matters.7
Notice of intention to introduce this Act has been published.8
Be it enacted by the Legislature of Louisiana:9
Section 1. R.S. 11:1939, 2011, and 2014(C) are hereby amended and reenacted to10
read as follows:11
§1939. Persons not properly enrolled or properly contributing as members12
A. Any person whose membership in the system was a mandatory condition13
of employment but was not enrolled as a member due to administrative error, may14
upon application receive credit for the time such person was otherwise eligible for15
membership. The person's employer must shall certify the inclusive dates of16
employment and the salary earned by the member during these dates, or the person17
shall submit such other evidence in lieu thereof as shall be requested by the board.18
The person, his employer, and any other person submitting evidence on his behalf,19
shall certify all evidence by an affidavit in authentic form. Should any facts or20
evidence not be true which would disqualify him from benefits, the person shall lose21
all rights to any benefits from this system. In order to receive this credit the person22
and the employer shall pay the greater of: an amount equal to the employee and23
employer contributions which would have been paid had the person been enrolled24
at the time of employment , plus interest as determined by the board, which shall be25
ACT No. 871 SB NO. 119 ENROLLED
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not less than seven percent the system's actuarial valuation rate compounded1
annually, or an amount which, on an actuarial basis, totally offsets the increase in2
accrued liability of the system resulting from the receipt of the credit by the person.3
The amount payable shall be calculated by use of the actuarial funding method,4
assumptions, and tables in use by the system at the time of the person's application5
for credit.6
B. Any member who was properly enrolled, but who was not7
contributing on his full rate of compensation due to administrative error, may8
upon application receive credit for the amount of earnings which would9
otherwise be used to determine the member's final compensation. The10
member's employer shall certify the inclusive dates of employment and the11
salary earned by the member during these dates. The member, his employer,12
and any other person submitting evidence on the member's behalf, shall certify13
all evidence by an affidavit in authentic form. In order to receive this credit the14
member and the employer shall pay the greater of: an amount equal to the15
employee and employer contributions which would have been paid using the16
member's correct rate of compensation at the time such compensation was17
received by the member, plus interest at the current system actuarial valuation18
rate, or an amount which, on an actuarial basis, totally offsets the increase in19
accrued liability of the system resulting from the receipt of the credit by the20
person. The amount payable shall be calculated by use of the actuarial funding21
method, assumptions, and tables in use by the system at the time of the22
member's application for credit. A member who does not purchase the23
additional credit relative to his full rate of compensation shall be given full24
eligibility service credit, however, he shall be given pro rata service credit based25
on the percentage of salary reported to the retirement system relative to his full26
rate of compensation for benefit computation purposes.27
* * *28
§2011. General29
All of the assets of the retirement system shall be credited according to the30 SB NO. 119 ENROLLED
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purpose for which they are held to one of thirteen twelve funds, namely the annuity1
savings fund A, the annuity savings fund B, the annuity savings fund C, the annuity2
reserve fund A, the annuity reserve fund B, the annuity reserve fund C, the pension3
accumulation fund A, the pension accumulation fund B, the pension accumulation4
fund C, the Deferred Retirement Option Plan Fund A, the Deferred Retirement5
Option Plan Fund B, and the Deferred Retirement Option Plan Fund C, and the6
expense fund. Expenses for the entire system shall be paid from the pension7
accumulation fund from Plan A. Annually, a transfer of funds from Plans B8
and C shall be made to reimburse Plan A for the pro rata expenses attributable9
to each fund.10
* * *11
§2014. Payment of contributions; delinquency penalty; agreement to deductions12
* * *13
C. Payments due under Subsections A and B, above, of this Section shall14
be considered delinquent when not received by the system within fifteen days after15
the close of each fiscal quarter as determined by the Board. Delinquent payments16
may shall, with interest at the rate of one and one-half percent per month17
compounded monthly, become due immediately upon determination of18
delinquency by the board and may be recovered by action in a court of competent19
jurisdiction against the employer liable therefor or shall, upon due certification of20
delinquency and at the request of the board, be deducted from any other moneys21
monies payable to such employer by any department or agency of the state. The22
board may request its actuary to compute the accrued liability of the system23
resulting from the delinquent receipt of these payments. If, pursuant to that24
calculation, it is determined that the payment of interest, as specified in this25
Subsection, is insufficient to pay the amount which, on an actuarial basis, totally26
offsets the increase in accrued liability of the system resulting from the receipt27
of the credit by the employee for the delinquent payments, the board shall also28
collect an additional amount, sufficient, on an actuarial basis, to totally offset29
the increase in accrued liability. This sum shall be due and owing and may be30 SB NO. 119 ENROLLED
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recovered as specified in this Subsection. The amount payable shall be1
calculated by use of the actuarial funding method, assumptions, and tables in2
use by the system at the time of the person's application for credit.3
Section 2. R.S. 11:1903(H) and 2012(D) are hereby repealed.4
Section 3. This Act shall become effective on July 1, 2010; if vetoed by the governor5
and subsequently approved by the legislature, this Act shall become effective on July 1,6
2010, or on the day following such approval by the legislature, whichever is later.7
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: