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Regular Session, 2012
SENATE BILL NO. 52
BY SENATOR GUILLORY
RETIREMENT SYSTEMS. Increases the employee contribution rate for certain members
of state retirement systems. (7/1/12)
AN ACT1
To amend and reenact R.S. 11:62(5)(a), (c), and (e) and (11)(c) and to enact R.S.2
11:62(11)(d) and Subpart P of Part II of Chapter 4 of Subtitle I of Title 11 of the3
Louisiana Revised Statutes of 1950, to be comprised of R.S. 11:331, relative to4
certain members of the Louisiana State Employees' Retirement System and certain5
postsecondary education members of the Teachers' Retirement System of Louisiana;6
to increase employee contribution rates; 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. 11:62(5)(a), (c), and (e) and (11)(c) are hereby amended and10
reenacted and R.S. 11:62(11)(d) and Subpart P of Part II of Chapter 4 of Subtitle I of Title11
11 of the Louisiana Revised Statutes of 1950, comprised of R.S. 11:331, are hereby enacted12
to read as follows:13
§62. Employee contribution rates established14
Employee contributions to state and statewide public retirement systems shall15
be paid at the following rates, except as otherwise provided by law:16
* * *17 SB NO. 52
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(5) Louisiana State Employees' Retirement System:1
(a) Judges, court officers, the governor, lieutenant governor, and legislators:2
(i) Employees whose first employment making them eligible for membership3
in one of the state systems occurred on or before December 31, 2010 - 11.5% 14.5%.4
(ii) Employees, other than judges in Item (iii) of this Subparagraph, whose5
first employment making them eligible for membership in one of the state systems6
occurred on or after January 1, 2011 - 8% 11%.7
(iii) Judges holding positions specified in R.S. 11:553(1), (3) through (5),8
(7), and (10) through (15) whose first employment making them eligible for9
membership in one of the state systems occurred on or after January 1, 2011 - 13%10
16%.11
* * *12
(c) Clerk and sergeant at arms of the House of Representatives and secretary13
and sergeant at arms of the Senate:14
(i) Employees whose first employment making them eligible for membership15
in one of the state systems occurred on or before December 31, 2010 - 9.5% 12.5%.16
(ii) Employees whose first employment making them eligible for17
membership in one of the state systems occurred on or after January 1, 2011 - 8%18
11%.19
* * *20
(e) All others:21
(i) Members of the optional retirement plan - 7.5%.22
(ii) Employed on or before June 30, 2006 - 7.5% 10.5%.23
(ii) (iii) Employed on or after July 1, 2006 - 8% 11%.24
* * *25
(11) Teachers' Retirement System of Louisiana:26
* * *27
(c) Members who are employees of an institution of postsecondary28
education, the Board of Regents, or a postsecondary education management29 SB NO. 52
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board who are not members of the optional retirement plan - 11%.1
(d) All others - 8%.2
* * *3
SUBPART P. LEGISLATIVE INTENT4
§331. Legislative intent; certain Acts5
The Legislature of Louisiana hereby declares that the intent of the6
provisions of this Title that were enacted by the Act that originated as Senate7
Bill No. of the 2012 Regular Session is to attain and maintain the actuarial8
soundness of state and statewide systems as required by the Constitution of9
Louisiana, Art. X, Section 29.10
Section 2. R.S. 11:62(5)(a) as amended by this Act shall not apply to an elected11
official during the term of office he is serving on July 1, 2012. The contribution rate for such12
a member shall remain what it was on July 1, 2012, for the duration of his term of office.13
After that term, R.S. 11:62(5)(a) as amended by this Act shall apply to a member holding14
that office.15
Section 3. As soon as practicable after the effective date of this Act, the Public16
Retirement Systems' Actuarial Committee shall meet to adopt a revised valuation for the17
system prepared as provided in R.S. 11:102, applying the provisions of this Act. This18
valuation shall include a revised employer contribution rate for each plan within the system19
to be utilized in the fiscal year which begins on July 1, 2012.20
Section 4. If a final judgment declares the provisions of this Act unconstitutional as21
they relate to a particular group of employees, the provisions of this Act shall remain in22
effect and applicable to employees unrelated to the judgment.23
Section 5. This Act shall become effective on July 1, 2012; if vetoed by the governor24
and subsequently approved by the legislature, this Act shall become effective on July 1,25
2012, or on the day following such approval by the legislature, whichever is later.26 SB NO. 52
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The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Laura Gail Sullivan.
DIGEST
Present law establishes the rates at which members of retirement systems contribute to their
retirement plans. Proposed law increases the contribution rates for many members of
LASERS and TRSL by 3 percentage points as follows:
LASERS
(1)Rank-and-file employees first employed on or before June 30, 2006, who are not
members of the optional retirement plan: 7.5% to 10.5%.
(2)Rank-and-file employees first employed on or after July 1, 2006: 8% to 11%.
(3)Judges first employed on or before Dec. 31, 2010: 11.5% to 14.5%.
(4)Judges first employed on or after Jan.1, 2011: 13% to 16%.
(5)Legislators, governor, and lieutenant governor first employed on or before Dec. 31,
2010: 11.5% to 14.5%.
(6)Governor and lieutenant governor first employed on or after Jan. 1, 2011 (legislators
are no longer eligible for membership): 8% to 11%
(7)Certain unelected court officers first employed on or before Dec. 31, 2010: 11.5%
to 14.5%
(8)Certain unelected court officers first employed on or after Jan. 1, 2011: 8% to 11%.
(9)Clerk of the House, secretary of the Senate, and sergeant at arms of the House and
Senate first employed on or before Dec. 31, 2010: 9.5% to 12.5%.
(10)Clerk of the House, secretary of the Senate, and sergeant at arms of the House and
Senate first employed on or after Jan. 1, 2011: 8% to 11%.
Proposed law retains present law by not increasing contribution rates for the following
LASERS employees: certain public safety service employees and peace officers, wildlife
agents, bridge police, members of the Hazardous Duty Services Plan, and members of the
optional retirement plan.
TRSL
(11)TRSL members who are employees of an institution of postsecondary education, the
Board of Regents, or a postsecondary education management board who are not
members of the optional retirement plan from 8% to 11%.
Proposed law, with respect to both LASERS and TRSL, also provides that the proposed
increases in the employee contribution rates do not apply to elected officials in office on the
effective date of proposed law for the remainder of the term being served on that date.
Proposed law provides that if proposed law is declared unconstitutional as it relates to a
particular group of employees, the provisions of proposed law remain in effect and
applicable to employees unrelated to the judgment. Proposed law requires the Public
Retirement Systems' Actuarial Committee (PRSAC) to meet as soon as practicable to adopt
a revised actuarial valuation for LASERS and to adopt a revised employer contribution rate SB NO. 52
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taking into account the provisions of proposed law.
Effective July 1, 2012.
(Amends R.S. 11:62(5)(a), (c), and (e) and (11)(c); adds R.S. 11:62(11)(d) and 331)