SLS 10RS-474 ENGROSSED
Page 1 of 3
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), relative to the Parochial Employees'2
Retirement System of Louisiana; to provide with respect to continuing liability of a3
participating employer which terminates its agreement for coverage of employees;4
to provide relative to interest rates on delinquent amounts owed to the system; to5
provide for an effective date; and to provide for related matters.6
Notice of intention to introduce this Act has been published.7
Be it enacted by the Legislature of Louisiana:8
Section 1. R.S. 11:1903(C)(2), (D), and (E) are hereby amended and reenacted to9
read as follows:10
ยง1903. Admission of taxing districts; district indigent defender programs; soil and11
water conservation districts12
* * *13
C.(1) * * *14
(2) Every political subdivision or instrumentality required to make payments15
under Paragraph (1) of this Subsection as is authorized, in consideration of the16
employee's retention in, or entry upon, employment after enactment of this Chapter,17 SB NO. 84
SLS 10RS-474 ENGROSSED
Page 2 of 3
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
to impose upon its employees, as to services which are covered by an approved plan,1
a contribution with respect to earnings equal to such amount as may be provided in2
Parts III and IV of this Chapter, and to deduct the amount of such contribution from3
the earnings as and when paid. Contributions so collected shall be paid into the4
contribution fund in partial discharge of the liability of such political subdivision or5
instrumentality under Paragraph (1) of this Subsection. Failure to deduct such6
contribution shall not relieve the employee or employer of liability therefor.7
* * *8
D. Delinquent payments due under Paragraph (1) of Subsection C of this9
Section, may, with interest at the system's actuarial valuation rate of six percent10
per annum compounded annually, be recovered by action in a court of competent11
jurisdiction against the district subdivision or instrumentality liable therefor or may,12
upon due certification of delinquency and at the request of the board of trustees, be13
deducted from any other moneys monies payable to such district by any department14
or agency of the state.15
E. (1) If any plan entered into under this Section is terminated, the taxing16
district, branch, or section of a parish which terminates its plan may not again17
participate in the system pursuant to this Section, unless approved by the board of18
trustees and the Joint Legislative Retirement Committee.19
(2) Notwithstanding any other provision of law, if an employer20
terminates its agreement for coverage of its employees, the employer shall remit21
to the system that portion of the unfunded actuarial accrued liability, if any,22
which is attributable to the employer's participation in the system. The amount23
required to be remitted pursuant to this Paragraph shall be determined as of24
the December thirty-first immediately prior to the date of termination. Such25
determination shall be made using the entry age normal actuarial funding26
method.27
(3) The amount due shall be determined by the actuary employed by the28
system and shall either be paid in a lump sum or amortized over ten years in29 SB NO. 84
SLS 10RS-474 ENGROSSED
Page 3 of 3
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
equal monthly payments with interest at the system's actuarial valuation rate1
in the same manner as regular payroll payments to the system, at the option of2
the employer. 3
(4) Should the employer fail to make payment timely, the amount due4
shall be collected in the same manner as authorized by Subsection D of this5
Section and R.S. 11:2014. 6
* * *7
Section 2. This Act shall become effective on July 1, 2010; if vetoed by the governor8
and subsequently approved by the legislature, this Act shall become effective on July 1,9
2010, or on the day following such approval by the legislature, whichever is later; and shall10
be applicable to any employer which terminates participation with the retirement system on11
or after July 1, 2010.12
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Lauren B. Bailey.
DIGEST
B. Gautreaux (SB 84)
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.
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))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Retirement to the original bill.
1. Removes all references to R.S. 11:2014(C).