HLS 12RS-242 ORIGINAL
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2012
HOUSE BILL NO. 7
BY REPRESENTATIVE PEARSON
RETIREMENT/SCHOOL EMPS: Provides for annual reporting to the La. School
Employees' Retirement System on privatized jobs
AN ACT1
To amend and reenact R.S. 11:1195.1(B) and (C) and 1195.2(B) and (C) and to enact R.S.2
11:1195.1(D) and 1195.2(D), relative to the Louisiana School Employees'3
Retirement System; to provide for reporting of positions and employees that cease4
to be covered by the retirement system; to provide for audits to ensure compliance;5
and to provide for related matters.6
Notice of intention to introduce this Act has been published7
as provided by Article X, Section 29(C) of the Constitution8
of Louisiana.9
Be it enacted by the Legislature of Louisiana:10
Section 1. R.S. 11:1195.1(B) and (C) and 1195.2(B) and (C) are hereby amended11
and reenacted and R.S. 11:1195.1(D) and 1195.2(D) are hereby enacted to read as follows:12
§1195.1. Unfunded accrued liability; payment by employer ; reporting13
* * *14
B. Each employer shall report to the retirement system on all employees15
whose positions have been eliminated as provided in Subsection A of this Section.16
Such reports shall be submitted by October fifteenth of each year on a form provided17
by the retirement system. In order to ensure compliance and accuracy of the report,18
the system shall have the right to audit the records of the employer upon reasonable19
notice.20 HLS 12RS-242 ORIGINAL
HB NO. 7
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
C. The amount due shall be determined by the actuary employed by the1
system and shall be amortized over ten years. The amount shall be paid in equal2
monthly payments, in the same manner as regular payroll payments to the system.3
C. D. Should the employer fail to make a payment timely, then the amount4
due shall be collected in the same manner as authorized by R.S. 11:1202.5
§1195.2. Unfunded accrued liability; payment by employer; any position ; reporting6
* * *7
B. Each employer shall report to the retirement system on all positions that8
have been eliminated as provided in Subsection A of this Section. Such reports shall9
be submitted by October fifteenth of each year on a form provided by the retirement10
system. In order to ensure compliance and accuracy of the report, the system shall11
have the right to audit the records of the employer upon reasonable notice.12
C. The amount due shall be determined by the actuary employed by the13
system and shall be amortized over ten years. The amount may be paid in a lump14
sum or equal monthly payments with interest at the actuarial rate in the same manner15
as regular payroll payments to the system, at the option of the employer.16
C. D. Should the employer fail to make a payment timely, then the amount17
due shall be collected in the same manner as authorized by R.S. 11:1202.18
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. 7
Abstract: Requires school systems to report to the La. School Employees' Retirement
System (LSERS) on employees and positions which are no longer covered by
LSERS due to privatization, outsourcing, etc.
Present law provides that if an employer eliminates employees or positions through
privatizing, outsourcing, contracting for the covered service with a private employer, or any
other means, the employer must remit to LSERS the portion of the unfunded accrued
liability (2UAL) existing on June 30 immediately prior to the date of termination attributable
to the employee or position being terminated.
Present law further provides for calculation of the amount due to the retirement system and
penalties for failure to timely pay amounts owed under present law. HLS 12RS-242 ORIGINAL
HB NO. 7
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Proposed law retains present law.
Proposed law further requires each school system to report on all employees and positions
which have been privatized, outsourced, or otherwise eliminated pursuant to present law to
LSERS by Oct. 15 of each year. Provides for forms for submission of the reports and
provides for audits to ensure compliance.
(Amends R.S. 11:1195.1(B) and (C) and 1195.2(B) and (C); Adds R.S. 11:1195.1(D) and
1195.2(D))