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words in boldface type and underscored are additions.
Regular Session, 2012
SENATE BILL NO. 6
BY SENATOR GUILLORY
SCHOOL EMPLOYEES RET. Provides for annual reporting to the La. School Employees'
Retirement System on privatized jobs. (6/30/12)
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
to provide for an effective date; and to provide for related matters.6
Notice of intention to introduce this Act has been published.7
Be it enacted by the Legislature of Louisiana:8
Section 1. R.S. 11:1195.1(B) and (C) and 1195.2(B) and (C) are hereby amended9
and reenacted and R.S. 11:1195.1(D) and 1195.2(D) are hereby enacted to read as follows:10
§1195.1. Unfunded accrued liability; payment by employer ; reporting11
* * *12
B. Each employer shall report to the retirement system on all employees13
whose positions have been eliminated as provided in Subsection A of this14
Section. Such reports shall be submitted by October fifteenth of each year on15
a form provided by the retirement system. In order to ensure compliance and16
accuracy of the report, the system shall have the right to audit the records of the17 SB NO. 6
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
employer upon reasonable notice.1
B.C. The amount due shall be determined by the actuary employed by the2
system and shall be amortized over ten years. The amount shall be paid in equal3
monthly payments, in the same manner as regular payroll payments to the system.4
C.D. Should the employer fail to make a payment timely, then the amount5
due shall be collected in the same manner as authorized by R.S. 11:1202.6
§1195.2. Unfunded accrued liability; payment by employer; any position; reporting7
* * *8
B. Each employer shall report to the retirement system on all positions9
that have been eliminated as provided in Subsection A of this Section. Such10
reports shall be submitted by October fifteenth of each year on a form provided11
by the retirement system. In order to ensure compliance and accuracy of the12
report, the system shall have the right to audit the records of the employer upon13
reasonable notice.14
B.C. The amount due shall be determined by the actuary employed by the15
system and shall be amortized over ten years. The amount may be paid in a lump16
sum or equal monthly payments with interest at the actuarial rate in the same manner17
as regular payroll payments to the system, at the option of the employer.18
C.D. Should the employer fail to make a payment timely, then the amount19
due shall be collected in the same manner as authorized by R.S. 11:1202.20
Section 2. This Act shall become effective on June 30, 2012; if vetoed by the21
governor and subsequently approved by the legislature, this Act shall become effective on22
June 30, 2012, or on the day following such approval by the legislature, whichever is later.23
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Laura Gail Sullivan.
DIGEST
Guillory (SB 6)
Present law relative to the La. School Employees' Retirement System (LSERS) 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 (UAL) existing
on June 30
th
immediately prior to the date of termination attributable to any employee or SB NO. 6
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words in boldface type and underscored are additions.
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.
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 October 15 of each year. Provides for forms for submission of the reports and
provides for audits to ensure compliance.
Effective June 30, 2012.
(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))