SLS 11RS-103 ORIGINAL
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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, 2011
SENATE BILL NO. 6
BY SENATOR GAUTREAUX
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
TEACHERS RETIREMENT. Provides for continued payment of the unfunded accrued
liability portion of employer contributions after participation ceases. (6/30/11)
AN ACT1
To enact R.S. 11:887.1, relative to the Teachers' Retirement System of Louisiana; to provide2
for payment of unfunded accrued liability by an employer that withdraws some or3
all of its employees from the retirement system; to provide for all other withdrawal4
liabilities of such employers; to provide for determination of amount of withdrawal5
liability payment and collection of same; to provide an effective date; and to provide6
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. 11:887.1 is hereby enacted to read as follows:10
ยง887.1 Unfunded accrued liability; payment by employing agency11
A.(1) Notwithstanding any other provision of law to the contrary, if an12
employing agency is authorized by law to terminate its participation in the13
retirement system and terminates participation for all of its employees, such14
employing agency shall remit to the retirement system its proportionate share15
of any unfunded actuarial accrued liability of the retirement system, as further16
provided in this Section.17 SB NO. 6
SLS 11RS-103 ORIGINAL
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
(2) Notwithstanding any other provision of law to the contrary, if an1
employing agency terminates its participation in the retirement system for some2
of its employees by eliminating positions held by such employees through3
privatizing, outsourcing, contracting the service with a private employer, or any4
other means, the employer shall remit to the retirement system its proportionate5
share of any unfunded actuarial accrued liability, as further provided in this6
Section.7
(3) Notwithstanding any other provision of law to the contrary, if a8
school or entity under an employer's jurisdiction is converted to any other9
governance model or transferred to any other entity, the receiving entity shall10
remit to the retirement system the proportionate share of any unfunded11
actuarial accrued liability, as further provided in this Section.12
B.(1) The amounts required to be remitted pursuant to this Section shall13
be determined by the actuary employed by the retirement system as of June14
thirtieth immediately prior to the respective date of the termination of15
participation, elimination of positions, or conversion or transfer of the school16
or entity, and shall account for any legacy costs attributable to the employing17
agency's retirees.18
(2) The amounts due pursuant to this Section shall, at the option of the19
employing agency, be paid either in a lump sum or in equal monthly payments20
with interest at the retirement system's actuarial valuation rate amortized over21
ten years or less.22
C. Should an employing agency fail to make payment pursuant to this23
Section timely, the amount due shall be collected in the same manner as24
authorized by R.S. 11:886 and 887.25
Section 2. The provisions of this Act shall apply to any employing agency26
participating in the retirement system in any plan year ending on or after June 30, 2011.27
Section 3. This Act shall become effective on June 30, 2011; if vetoed by the28
governor and subsequently approved by the legislature, this Act shall become effective on29 SB NO. 6
SLS 11RS-103 ORIGINAL
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
June 30, 2011, or on the day following such approval by the legislature, whichever is later.1
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Lauren B. Bailey.
DIGEST
Present law does not provide for a mechanism for an employer to withdraw some or all of
its employees from the Teachers' Retirement System of Louisiana (TRSL).
Proposed law relative to TRSL provides that if an employing agency is authorized by law
to terminate its participation in the retirement system and terminates its participation for
some or all of its employees, such employing agency shall remit to the retirement system its
share of any unfunded accrued liability (UAL) of the retirement system existing on the June
30
th
immediately prior to the date of the employing agency's termination.
Proposed law provides that the amounts due shall be determined by the actuary employed
by the system and shall be paid in a lump sum or amortized over ten years or less in equal
monthly payments with interest either at the retirement system's actuarial valuation rate, at
the option of the employer. Provides that the calculation shall account for any legacy costs
attributable to the employing agency's retirees.
Proposed law provides that should an employing agency fail to make payment the amount
due shall be collected in the same manner as authorized by present law (R.S. 11:886 and
887).
Effective June 30, 2011.
(Adds R.S. 11:887.1)