HLS 12RS-341 ORIGINAL
Page 1 of 10
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2012
HOUSE BILL NO. 60
BY REPRESENTATIVE PEARSON
RETIREMENT/STATE SYSTEMS: Provides relative to merger of the La. School
Employees' Retirement System into the Teachers' Retirement System of La.
AN ACT1
To amend and reenact R.S. 11:701(introductory paragraph), (7), and (29), 822(A)(2), 826,2
831, 832, 833, 834(A)(1) and (2)(introductory paragraph) and (B) through (D),3
1001(A) and (B), 1002(introductory paragraph), (8), (16), and (26) and 1161, to4
enact Subpart P of Part II of Chapter 4 of Subtitle I of Title 11 of the Louisiana5
Revised Statutes of 1950, to be comprised of R.S. 11:331, and R.S. 11:701(22.1) and6
1001(22.1), and to repeal R.S. 11:831, 1001(C), 1162 through 1165, and 11667
through 1171, relative to the merger of the Teachers' Retirement System of8
Louisiana and the Louisiana School Employees' Retirement System; to provide for9
consolidation of administration of the two systems; to provide for the maintenance10
of separate plans, including asset pools, actuarial valuations, contribution rates, and11
benefit entitlements; to provide for development of a strategy to consolidate the12
plans; to provide for the redesignation of certain provisions of Title 11 of the13
Louisiana Revised Statutes of 1950 and to direct the Louisiana State Law Institute14
with respect to such redesignations; and to provide for related matters.15
Notice of intention to introduce this Act has been published16
as provided by Article X, Section 29(C) of the Constitution17
of Louisiana.18
Be it enacted by the Legislature of Louisiana:19
Section 1. R.S. 11:701(introductory paragraph), (7), and (29), 822(A)(2), 826, 831,20
832, 833, 834(A)(1) and (2)(introductory paragraph) and (B) through (D), 1001(A) and (B),21 HLS 12RS-341 ORIGINAL
HB NO. 60
Page 2 of 10
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
1002(introductory paragraph), (8), (16), and (26), and 1161 are hereby amended and1
reenacted and Subpart P of Part II of Chapter 4 of Subtitle I of Title 11 of the Louisiana2
Revised Statutes of 1950, comprised of R.S. 11:331, and R.S. 11:701(22.1) and 1001(22.1)3
are hereby enacted to read as follows: 4
SUBPART P. LEGISLATIVE INTENT5
§331. Legislative intent6
The Legislature of Louisiana hereby declares that the intent of the provisions7
of this Title that originated as HB No. of the 2012 Regular Session of the8
Legislature is to attain and maintain the actuarial soundness of state and statewide9
systems as required by the Constitution of Louisiana, Art. X, Section 29.10
* * *11
CHAPTER 2. TEACHERS' RETIREMENT SYSTEM12
OF LOUISIANA13
PART I. TEACHERS' RETIREMENT PLAN14
SUBPART A. GENERAL PROVISIONS15
* * *16
§701. Definitions17
As used in this Chapter Part, the following words and phrases have the18
meanings ascribed to them in this Section unless a different meaning is plainly19
required by the context:20
* * *21
(7) "Board of Trustees" means the board provided for in Part V Subpart E22
of this Chapter Part to administer the retirement system plans provided for in this23
Chapter.24
* * *25
(22.1) "Plan" means the mechanisms, rule, regulations, and rights relative26
to retirement established in Part I of this Chapter.27
* * *28 HLS 12RS-341 ORIGINAL
HB NO. 60
Page 3 of 10
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(29) "Retirement System" or "System" means the Teachers' Retirement1
System of Louisiana as defined in R.S. 11:702 established in this Chapter, comprised2
of the Teachers' Retirement Plan and the Louisiana School Employees' Retirement3
Plan.4
* * *5
PART SUBPART V. ADMINISTRATION6
* * *7
§822. Members of board of trustees; appointment or election; terms of office;8
vacancies; compensation9
A. The board shall consist of such trustees as follows:10
* * *11
(2) One voting member representing the school support personnel members12
and members paid by school food service funds shall be elected by a majority of said13
members for a four-year term.14
* * *15
§826. Rules and regulations16
Subject to the limitations of this Part Subpart the board of trustees shall, from17
time to time, establish rules and regulations for the administration of the funds18
created and maintained by this Part Chapter and for the transaction of its business.19
The board shall prepare and submit to the Joint Legislative Committee on the Budget20
an annual budget for estimated costs of operating the system for each succeeding21
fiscal year. This budget shall be subject to approval by the Joint Legislative22
Committee on the Budget.23
* * *24
§831. Joint administration with other systems 25
The board of trustees shall take such actions as it deems necessary or26
appropriate to provide for the joint administration of the retirement system and the27
Louisiana School Employees' Retirement System and the Louisiana State School28 HLS 12RS-341 ORIGINAL
HB NO. 60
Page 4 of 10
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Lunch Employees' Retirement System; however, no action shall be taken which1
would impair the integrity of the board of trustees of each of the systems or the2
integrity of the funds and investments of each of the systems. The boards may,3
pursuant to the authority herein, appoint the same secretary-treasurer or secretary4
manager, any other provision of law to the contrary notwithstanding. Funds5
appropriated for the administration of each system shall be used for such purpose and6
in the category of expenditures appropriated but otherwise may be transferred to7
accomplish the purposes of this Section without the necessity of additional approval8
by the legislature, the Legislative Budget Committee, or its successor, or the division9
of administration or its commissioner. 10
§832. Records and other information; board's duty to keep 11
A. The board of trustees shall keep in convenient form such data as shall be12
necessary for actuarial valuation of the various funds plans of the retirement system,13
and for checking the experience of the system. 14
B. The board of trustees shall keep a record of all of its proceedings which15
shall be open to public inspection. It shall publish annually a report showing the16
fiscal transactions of the retirement system plans provided for in this Chapter for the17
preceding school year, the amount of the accumulated cash and securities of the18
system plans, and the last balance sheet showing the financial condition of the19
system plans by means of an actuarial valuation of the assets and liabilities of the20
retirement system each plan. 21
§833. Medical board; appointment; duties and powers 22
The board of trustees shall designate a medical board to be composed of three23
physicians not eligible to participate in the retirement system any plan administered24
by the Teachers' Retirement System of Louisiana. If required, other physicians may25
be employed to report on special cases. The medical board shall arrange for and pass26
upon all medical examinations required under the provisions of this Chapter, and27
shall investigate all essential statements and certificates by or on behalf of a member28 HLS 12RS-341 ORIGINAL
HB NO. 60
Page 5 of 10
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
in connection with an application for disability retirement, and shall report in writing1
to the board of trustees its conclusion and recommendations upon all the matters2
referred to it.3
§834. Actuary; appointment; duties and powers; assets; fiduciary responsibility of4
trustees; portfolio control manager; actuarial assumptions 5
A.(1) The board of trustees shall designate an actuary for each retirement6
plan provided for in this Chapter. Such actuary or actuaries who shall be the7
technical adviser of the board of trustees on matters regarding the operation of the8
their respective funds created by the provisions of this Chapter, and shall perform9
such other duties as are required in connection therewith. 10
(2) In the year nineteen hundred thirty-eight 2012, and at least once in each11
five-year period thereafter, the each actuary shall make an actuarial investigation into12
the mortality, service, and compensation experience of the members and13
beneficiaries of the his respective retirement system, and shall make a valuation of14
the assets and liabilities of the funds of the system, and taking into account the result15
of such investigation and valuation, the board of trustees shall: 16
* * *17
B. The assets of this system each plan shall be held separately in trust by the18
board of trustees, which board shall have exclusive authority and discretion to19
manage and control such each pool of assets. The assets of the system each plan20
shall be held for the exclusive purpose of providing benefits to members of the21
system the respective plan and their its beneficiaries and defraying reasonable22
expenses of administering the system such plan. 23
C. The board of trustees may employ or appoint a portfolio control manager24
managers as an employee employees, at its own cost and expense without the25
approval of the governor. 26
D.(1) Unless different actuarial assumptions are formally adopted and27
disclosed, as provided herein, the following assumptions shall determine the28 HLS 12RS-341 ORIGINAL
HB NO. 60
Page 6 of 10
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
actuarial equivalents as used in this each retirement system plan provided for in this1
Chapter: 2
(a) Interest shall be compounded annually at the rate of seven percent per3
annum.4
(b) Annuity rates shall be determined on the basis of the 1971 Group5
Annuity Mortality Tables. 6
(2) The board of trustees may authorize the use of interest and mortality rates7
in determining the actuarial equivalents which are different from the actuarial8
assumptions used for other purposes hereunder. Any change in such actuarial9
assumptions shall be considered a part of this the retirement system and shall be10
considered an amendment to the provisions of this Section. In order to be effective,11
such change must be formally adopted by the board of trustees and disclosed to12
members of the retirement system. 13
* * *14
CHAPTER 3. PART II. LOUISIANA SCHOOL EMPLOYEES'15
RETIREMENT SYSTEM PLAN16
PART I SUBPART A. GENERAL PROVISIONS17
§1001. Name and establishment of retirement system; domicile; nominee name;18
partnership 19
A. A retirement system plan is established and placed under the management20
of a board of trustees as established in R.S. 11:821 for the purpose of providing21
retirement allowances and other benefits for school bus drivers, school janitors,22
school custodians, school maintenance employees and other school employees23
employed in the state public school system. The retirement system plan is created24
as of July 31, 1946, but shall begin full operation as of July 1, 1947.25
B. It shall be a state agency domiciled in East Baton Rouge Parish and shall26
have the powers and privileges of a corporation and shall be known as the Louisiana27
School Employees' Retirement System Plan and by such name, or its nominee name28 HLS 12RS-341 ORIGINAL
HB NO. 60
Page 7 of 10
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
which is hereby established as "LSERS," "LSERP", all of its business shall be1
transacted, all of its funds invested, and all of its cash and securities and other2
property held, except as provided in Subsection C hereof. The secretary-treasurer3
of the system shall be the agent for service of legal process. 4
* * *5
§1002. Definitions6
As used in this Chapter Part, the following words and phrases shall have the7
meanings ascribed to them in this Section unless a different meaning is plainly8
required by the context:9
* * *10
(8) "Board of Trustees" means the board provided to administer the11
retirement system plans provided for in this Chapter, established in R.S. 11:821.12
* * *13
(16) "Medical board" shall mean the State Medical Disability Board board14
provided for in R.S. 11:833.15
* * *16
(22.1) "Plan" means the mechanisms, rule, regulations, and rights relative17
to retirement established in Part II of this Chapter.18
* * *19
(26) "Retirement system" or "system" means the Louisiana School20
Employees Retirement System established and described in R.S. 11:1001 the21
Teachers' Retirement System of Louisiana established in this Chapter, comprised of22
the Teachers' Retirement Plan and the Louisiana School Employees' Retirement Plan.23
* * *24
PART V SUBPART E. ADMINISTRATION25
§1161. Board of trustees; administrative powers in general 26
The general administration and responsibility for the proper operation of the27
retirement system plan and for making effective the provisions of this Chapter Part28 HLS 12RS-341 ORIGINAL
HB NO. 60
Page 8 of 10
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
are vested in a board of trustees which shall be organized immediately after a1
majority of the trustees provided for in R.S. 11:1162 shall have qualified and taken2
the oath of office. 3
* * *4
Section 2. R.S. 11:831, 1001(C), 1162 through 1165, and 1166 through 1171 are5
hereby repealed in their entirety.6
Section 3. Upon the effective date of this Act, the board member currently7
representing the members paid by school food service funds shall also be the representative8
of the school support personnel members of the system. Upon the next election for such9
board member, the member shall be elected from the constituencies as provided in this Act.10
Section 4. The terms of office of any member serving on the Louisiana School11
Employees' Retirement System board of trustees upon the effective date of this Act are12
terminated upon the effective date of this Act and the board shall be dissolved and its duties13
and functions assumed by the Teachers' Retirement System of Louisiana as provided in this14
Act.15
Section 5.(A) Upon the effective date of this Act, all obligations, property, records,16
and employees of the Louisiana School Employees' Retirement System shall transfer to the17
Teachers' Retirement System of Louisiana, as amended by this Act. No provision of this Act18
shall be construed to impair any contract of the Louisiana School Employees' Retirement19
System in place on the effective date of this Act. Any such contract shall be honored by the20
Teachers' Retirement System of Louisiana as though the board of trustees had obligated21
itself to such contract.22
(B) The board of trustees for the Teachers' Retirement System of Louisiana, as23
amended by this Act, shall complete the transfer of all administrative functions from the24
Louisiana School Employees' Retirement System within one year after the effective date of25
this Act.26
Section 6. The board of trustees, as defined in this Act, shall eliminate a total of at27
least forty administrative positions within one year after the effective date of this Act. At28
least twenty positions shall be eliminated within six months after the effective date of this29 HLS 12RS-341 ORIGINAL
HB NO. 60
Page 9 of 10
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Act, and at least an additional twenty positions shall be eliminated by the end of the1
subsequent six-month period.2
Section 7. The board of trustees, as defined in this Act, shall present a strategy to the3
Public Retirement Systems' Actuarial Committee by December 31, 2012, for the4
consolidation of the plans, assets, experience accounts, and investment policies of both plans5
within the system and shall include estimates for the savings resulting from such6
consolidation. Such strategy shall provide for consolidation of the plans within one calendar7
year. The Public Retirement Systems' Actuarial Committee shall consider the strategy and8
report its findings to the legislature by February 28, 2013.9
Section 8. The Public Retirement Systems' Actuarial Committee shall meet as soon10
as possible after the effective date of this Act to revise evaluations for the plans.11
Section 9. The Louisiana State Law Institute shall redesignate the Parts of Chapter12
2 as Subparts of Part I and the Parts of Chapter 3 as Subparts of Part II of Subtitle II of Title13
11 of the Louisiana Revised Statutes of 1950, and shall make appropriate technical changes14
to Chapter 2 of Subtitle II of Title 11 of the Louisiana Revised Statutes of 1950, as amended15
by this Act, as are necessary to accomplish such redesignation including but not limited to16
redesignating existing Subparts as Sub-Subparts.17
Section 10. The provisions of this Act shall become effective at midnight on June18
30, 2012.19
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Pearson HB No. 60
Abstract: Provides relative to merger of the La. School Employees' Retirement System into
the Teachers' Retirement System of La.
Present law creates the Teachers' Retirement System of La. and the La. School Employees'
Retirement System as separate state retirement systems.
Proposed law merges the administration of the two systems. The new combined system will
retain the name "Teachers' Retirement System of La." HLS 12RS-341 ORIGINAL
HB NO. 60
Page 10 of 10
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Proposed law treats each former system as a separate plan within the new combined system.
All present law applicable to each system shall remain in place, with the exception of
provisions relative to the governance of the system. Proposed law abolishes the LSERS
board and transfers all property, obligations, employees, and rights of the LSERS system to
the TRSL system. Proposed law further provides that the board of trustees for the TRSL
system shall govern both plans within the system.
Present law provides that one member of the TRSL board shall be a member representing
the food service members of the system. Proposed law provides that upon the effective date
of proposed law such member shall also represent the LSERS members merged into the
system. Provides that upon the next election of such board member food service employees
and school employees will elect such board member.
Proposed law provides that upon the effective date of the Act, the LSERS board shall be
abolished and all rights, obligations, property, contracts, and employees of the board shall
transfer to the new TRSL board.
Proposed law provides that the TRSL board shall eliminate a total of 40 positions within one
year after the effective date of the Act. Requires that 20 positions be eliminated within the
first six months and the second 20 positions eliminated within one year after the Act
becomes effective.
Provides that the TRSL board, as provided in proposed law, shall complete the transitions
required by proposed law within one year after the Act becomes effective. Further requires
the board to formulate a strategy to merge the two plans within one calendar year. Requires
that the board present such strategy to the Public Retirement Systems' Actuarial Committee
(PRSAC) by Dec. 31, 2012, and include an estimate of savings attributable to the merger.
PRSAC must evaluate the strategy and report to the legislature by Feb. 28, 2013.
Further provides that the Public Retirement Systems' Actuarial Committee shall meet as
soon as possible after the effective date of the Act to revise valuations for the plans.
Effective June 30, 2012.
(Amends R.S. 11:701(intro. para.), (7), and (29), 822(A)(2), 826, 831, 832, 833, 834(A)(1)
and (2)(intro. para.), and (B)-(D), 1001(A) and (B), 1002(intro. para.), (8), (16), and (26),
and 1161; Adds R.S. 11:331, 701(22.1), and 1001(22.1); Repeals R.S. 11:831, 1001(C),
1162–1165 and 1166–1171)