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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 ENROLLED
SENATE BILL NO. 84
BY SENATOR B. GAUTREAUX
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
to impose upon its employees, as to services which are covered by an approved plan,18
a contribution with respect to earnings equal to such amount as may be provided in19
Parts III and IV of this Chapter, and to deduct the amount of such contribution from20
the earnings as and when paid. Contributions so collected shall be paid into the21
contribution fund in partial discharge of the liability of such political subdivision or22
instrumentality under Paragraph (1) of this Subsection. Failure to deduct such23 SB NO. 84 ENROLLED
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contribution shall not relieve the employee or employer of liability therefor.1
* * *2
D. Delinquent payments due under Paragraph (1) of Subsection C of this3
Section, may, with interest at the system's actuarial valuation rate of six percent4
per annum compounded annually, be recovered by action in a court of competent5
jurisdiction against the district subdivision or instrumentality liable therefor or may,6
upon due certification of delinquency and at the request of the board of trustees, be7
deducted from any other moneys monies payable to such district by any department8
or agency of the state.9
E. (1) If any plan entered into under this Section is terminated, the taxing10
district, branch, or section of a parish which terminates its plan may not again11
participate in the system pursuant to this Section, unless approved by the board of12
trustees and the Joint Legislative Retirement Committee.13
(2) Notwithstanding any other provision of law, if an employer14
terminates its agreement for coverage of its employees, the employer shall remit15
to the system that portion of the unfunded actuarial accrued liability, if any,16
which is attributable to the employer's participation in the system. The amount17
required to be remitted pursuant to this Paragraph shall be determined as of18
the December thirty-first immediately prior to the date of termination. Such19
determination shall be made using the entry age normal actuarial funding20
method.21
(3) The amount due shall be determined by the actuary employed by the22
system and shall either be paid in a lump sum or amortized over ten years in23
equal monthly payments with interest at the system's actuarial valuation rate24
in the same manner as regular payroll payments to the system, at the option of25
the employer. 26
(4) Should the employer fail to make payment timely, the amount due27
shall be collected in the same manner as authorized by Subsection D of this28
Section and R.S. 11:2014. 29
* * *30 SB NO. 84 ENROLLED
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Coding: Words which are struck through are deletions from existing law;
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Section 2. This Act shall become effective on July 1, 2010; if vetoed by the governor1
and subsequently approved by the legislature, this Act shall become effective on July 1,2
2010, or on the day following such approval by the legislature, whichever is later; and shall3
be applicable to any employer which terminates participation with the retirement system on4
or after July 1, 2010.5
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: