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words in boldface type and underscored are additions.
Regular Session, 2012
SENATE BILL NO. 32
BY SENATOR GUILLORY
TEACHERS RETIREMENT. Changes the actuarial valuation method to entry age normal.
(6/30/12)
AN ACT1
To amend and reenact R.S. 11:22(B)(13) and 102(B)(1) and to enact R.S. 11:102(D),2
relative to the actuarial valuation method of the Teachers' Retirement System of3
Louisiana; to change such method from projected unit credit to entry age normal; to4
provide for the amortization of any gain or loss attributable to such change; to5
provide relative to employer contributions after such change; to provide for an6
effective date; and to provide 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. 11:22(B)(13) and 102(B)(1) are hereby amended and reenacted and10
R.S. 11:102(D) is hereby enacted to read as follows:11
§22. Methods of actuarial valuation established12
* * *13
B. The following funding methods shall be utilized to determine actuarially14
required contributions:15
* * *16
(13) Teachers' Retirement System of Louisiana: projected unit credit entry17 SB NO. 32
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
age normal.1
* * *2
§102. Employer contributions; determination; state systems3
* * *4
B.(1) Except as provided in Subsection C of this Section for the Louisiana5
State Employees' Retirement System and except as provided in Subsection D of6
this Section for the Teachers' Retirement System of Louisiana and except as7
provided in R.S. 11:102.1 and 102.2 and in Paragraph (5) of this Subsection, for each8
fiscal year, commencing with Fiscal Year 1989-1990, for each of the public9
retirement systems referenced in Subsection A of this Section, the legislature shall10
set the required employer contribution rate equal to the actuarially required employer11
contribution, as determined under Paragraph (3) of this Subsection, divided by the12
total projected payroll of all active members of each particular system for the fiscal13
year. Each entity funding a portion of a member's salary shall also fund the14
employer's contribution on that portion of the member's salary at the employer15
contribution rate specified in this Subsection.16
* * *17
D. The employer contribution rate for the Teachers' Retirement System18
of Louisiana, for any employer contribution rate based on a valuation using the19
entry age normal actuarial valuation method, shall be the rate determined20
pursuant to Subsection B of this Section plus seven-tenths of one percent. The21
additional monies generated by such seven-tenths of one percent shall be22
applied to the outstanding balance of the Original Amortization Base without23
reamortization of such base and until such base is fully liquidated. After the24
liquidation of the Original Amortization Base, the additional seven-tenths of one25
percent shall be applied to the outstanding balance of the Experience Account26
Amortization Base without reamortization of such base and until such base is27
fully liquidated. After the liquidation of the Experience Account Amortization28
Base, the additional seven-tenths of one percent shall continue to be applied29 SB NO. 32
SLS 12RS-131 ORIGINAL
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
toward the balance of the oldest outstanding amortization base or bases in a1
manner determined by the board of trustees and approved by the Public2
Retirement Systems' Actuarial Committee.3
Section 2. This Act shall become effective on June 30, 2012; if vetoed by the4
governor and subsequently approved by the legislature, this Act shall become effective on5
June 30, 2012, or on the day following such approval by the legislature, whichever is later.6
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Laura Gail Sullivan.
DIGEST
Present constitution (Art. X, Sect. 29(E)(1)) provides that the legislature shall establish, by
law, the particular method of actuarial valuation to be employed by each state or statewide
retirement system for purposes of attaining and maintaining the actuarial soundness of such
system.
Present law (R.S. 11:4(A)(1)(a)) provides that the Teachers' Retirement System of La.
(TRSL) is a state retirement system.
Proposed law retains present law.
Present law (R.S. 11:22(B)(13)) provides that TRSL's valuation method shall be projected
unit credit.
Proposed law changes the TRSL valuation method to entry age normal.
Present law (R.S. 11:102) provides for required employer contributions to state retirement
systems including TRSL.
Proposed law provides that the TRSL employer contribution rate shall be the rate determined
pursuant to present law plus 0.7%. Provides for accumulation and application of the
additional contributions to reduce the unfunded accrued liability (UAL) of TRSL.
Effective June 30, 2012.
(Amends R.S. 11:22(B)(13) and 102(B)(1); adds R.S. 11:102(D))