Louisiana House Bill HB37

Louisiana 2013 Regular Session

• Introduced: 4/8/13
• Refer: 4/8/13
• Report Pass: 4/22/13
• Engrossed: 4/25/13
• Refer: 4/29/13
• Report Pass: 5/13/13
• Enrolled: 5/23/13
• Chaptered: 5/30/13
• Passed: 5/30/13

Caption

Requires promulgation of actuarial assumptions by the board of trustees for the Registrars of Voters Employees' Retirement System (EN NO IMPACT APV)

Impact

The bill's adoption would improve the oversight of the retirement system by placing a clear framework around actuarial investigations and valuations. It emphasizes regular evaluations to adjust contributions and ensure the system's solvency. Furthermore, the bill entails that changes in actuarial assumptions adopted by the board shall only apply to members as of the adoption date, protecting the accrued benefits of current retirees. This aspect aims to enhance member confidence in the system's sustainability and management.

Summary

House Bill 37 focuses on the Registrars of Voters Employees' Retirement System, specifically addressing the powers and duties of the board of trustees concerning actuarial assumptions. The bill mandates that the board designate an actuary as a technical advisor on the operation of the retirement funds and sets forth procedures for the actuary to conduct investigations into the mortality, service, and compensation experiences of system members. By requiring regular valuations of the system's assets and liabilities, the bill aims to ensure the financial stability of the retirement funds.

Sentiment

The sentiment surrounding HB 37 appears to be generally positive among legislative members as it establishes a more structured approach to retirement fund management. The requirement for regular actuarial reviews is viewed favorably as it enhances accountability of the trustees and assures members of the financial soundness of their retirement benefits. However, there may be critical perspectives regarding the potential financial implications for employers required to adjust their contribution rates based on new actuarial tables.

Contention

Notable points of contention might arise from the potential fiscal impacts on employers if contribution rates change significantly following actuarial evaluations. While the bill promotes rigorous financial management, it could be argued that adjustments required by increased contributions might place a burden on those entities. Additionally, discussions may surface regarding the extent to which the board should have discretion over changing actuarial assumptions, balancing the need for sound financial practices with member rights and expectation stability.