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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2010
SENATE BILL NO. 84
BY SENATOR B. GAUTREAUX
PAROCHIAL EMPLOYEES RET. Requires any employer who exits the system to pay its
portion of the liabilities. (7/1/10)
AN ACT1
To amend and reenact R.S. 11:1903(C)(2), (D), and (E) and 2014 (C), relative to the2
Parochial Employees' Retirement System of Louisiana; to provide with respect to3
continuing liability of a participating employer which terminates its agreement for4
coverage of employees; to provide relative to interest rates on delinquent amounts5
owed to the system; to provide for an effective date; and to provide for related6
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. 11:1903(C)(2), (D), and (E) and 2014 (C) are hereby amended and10
reenacted to read as follows:11
§1903. Admission of taxing districts; district indigent defender programs; soil and12
water conservation districts13
* * *14
C.(1) * * *15
(2) Every political subdivision or instrumentality required to make payments16
under Paragraph (1) of this Subsection as is authorized, in consideration of the17 SB NO. 84
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words in boldface type and underscored are additions.
employee's retention in, or entry upon, employment after enactment of this Chapter,1
to impose upon its employees, as to services which are covered by an approved plan,2
a contribution with respect to earnings equal to such amount as may be provided in3
Parts III and IV of this Chapter, and to deduct the amount of such contribution from4
the earnings as and when paid. Contributions so collected shall be paid into the5
contribution fund in partial discharge of the liability of such political subdivision or6
instrumentality under Paragraph (1) of this Subsection. Failure to deduct such7
contribution shall not relieve the employee or employer of liability therefor.8
* * *9
D. Delinquent payments due under Paragraph (1) of Subsection C of this10
Section, may, with interest at the system's actuarial valuation rate of six percent11
per annum compounded annually, be recovered by action in a court of competent12
jurisdiction against the district subdivision or instrumentality liable therefor or may,13
upon due certification of delinquency and at the request of the board of trustees, be14
deducted from any other moneys monies payable to such district by any department15
or agency of the state.16
E. (1) If any plan entered into under this Section is terminated, the taxing17
district, branch, or section of a parish which terminates its plan may not again18
participate in the system pursuant to this Section, unless approved by the board of19
trustees and the Joint Legislative Retirement Committee.20
(2) Notwithstanding any other provision of law, if an employer21
terminates its agreement for coverage of its employees, the employer shall remit22
to the system that portion of the unfunded actuarial accrued liability, if any,23
which is attributable to the employer's participation in the system. The amount24
required to be remitted pursuant to this Paragraph shall be determined as of25
the December thirty-first immediately prior to the date of termination. Such26
determination shall be made using the entry age normal actuarial funding27
method.28 SB NO. 84
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words in boldface type and underscored are additions.
(3) The amount due shall be determined by the actuary employed by the1
system and shall either be paid in a lump sum or amortized over ten years in2
equal monthly payments with interest at the system's actuarial valuation rate3
in the same manner as regular payroll payments to the system, at the option of4
the employer. 5
(4) Should the employer fail to make payment timely, the amount due6
shall be collected in the same manner as authorized by Subsection D of this7
section and R.S. 11:2014. 8
* * *9
§2014. Payment of contributions; delinquency penalty; agreement to deductions10
* * *11
C. Payments due under Subsection A, above, shall be considered delinquent12
when not received by the system within fifteen days after the close of each fiscal13
quarter as determined by the Board board. Delinquent payments may, with interest14
at the system's actuarial valuation rate of one and one-half percent per month15
compounded monthly, be recovered by action in a court of competent jurisdiction16
against the employer liable therefor or shall, upon due certification of delinquency17
and at the request of the board, be deducted from any other moneys monies payable18
to such employer by any department or agency of the state.19
* * *20
Section 2. This Act shall become effective on July 1, 2010; if vetoed by the governor21
and subsequently approved by the legislature, this Act shall become effective on July 1,22
2010, or on the day following such approval by the legislature, whichever is later; and shall23
be applicable to any employer which terminates participation with the retirement system on24
or after July 1, 2010.25
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Lauren B. Bailey.
DIGEST
Present law permits the board of trustees of the Parochial Employees' Retirement System
(PERS) to collect delinquent employer contributions with interest at a rate of 6% per annum. SB NO. 84
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Proposed law retains present law but changes the interest rate collectible on delinquent
contributions from 6% to the system's actuarial valuation rate.
Present law has no provision requiring an employer who terminates its agreement for
coverage to remit payment for the accrued liability for the benefits due its employees.
Proposed law provides that any employer terminating employee coverage with PERS shall
pay its share of the system's unfunded accrued liability existing on December 31
st
prior to
such employer's termination of participation. The amount due shall be amortized over 10
years and may, at the option of the employer, be paid in a lump sum or equal monthly
payments with interest at the system's valuation interest rate.
Effective July 1, 2010.
(Amends R.S. 11:1903(C)(2), (D), and (E) and 2014(C))