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. 33
Abstract: Requires payment of a portion of the system's unfunded accrued liability by
employers that withdraw employees from the Teachers' Retirement System of La.
Present law does not provide for a mechanism for an employer to withdraw some or all of its
employees from the Teachers' Retirement System of La. (TRSL).
Proposed law relative to TRSL provides that if an employing agency is authorized by law to
terminate its participation in the retirement system and terminates its participation for some or all
of its employees, such employing agency shall remit to the retirement system its share of any
unfunded accrued liability (UAL) of the retirement system existing on the June 30
th
immediately
prior to the date of the employing agency's termination.
Proposed law provides that the amounts due shall be determined by the actuary employed by the
system and shall be paid in a lump sum or amortized over 10 years or less in equal monthly
payments with interest at the retirement system's actuarial valuation rate, at the option of the
employer.
Proposed law provides that should an employing agency fail to make payment, the amount due
shall be collected in the same manner as authorized by present law (R.S. 11:886 and 887) which
includes withholding of state funds.
Effective June 30, 2013.
(Adds R.S. 11:887.1)