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Regular Session, 2013 ENROLLED
SENATE BILL NO. 10
BY SENATOR GUILLORY
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
AN ACT1
To amend and reenact R.S. 11:2178(M)(1)(a)(ii) and to enact R.S. 11:242(F), 243, and2
2178(M)(1)(d), relative to statewide retirement systems; to provide for cost-of-living3
adjustments and permanent benefit increases; to provide for an effective date; and4
to provide for related matters.5
Notice of intention to introduce this Act has been published.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 11:2178(M)(1)(a)(ii) is hereby amended and reenacted and R.S.8
11:242(F), 243, and 2178(M)(1)(d) are hereby enacted to read as follows:9
§242. Cost-of-living adjustments; permanent benefit increases; restrictions10
* * *11
F. The power of the governing authority of a system listed in Subsection12
B of this Section to grant benefit increases pursuant to the provisions of this13
Section shall cease when the governing authority makes an irrevocable election14
pursuant to R.S. 11:243(B)(1) to have future benefit increases for retirees,15
survivors, and beneficiaries governed by R.S. 11:243.16
* * *17
§243. Cost-of-living adjustments; permanent benefit increases; restrictions;18
funding criteria19
A. The provisions of this Section shall apply to the following retirement20
systems:21
(1) The Assessors' Retirement Fund.22 SB NO. 10 ENROLLED
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(2) The Clerks' of Court Retirement and Relief Fund.1
(3) The District Attorneys' Retirement System.2
(4) The Municipal Employees' Retirement System of Louisiana.3
(5) The Parochial Employees' Retirement System of Louisiana.4
(6) The Registrars of Voters Employees' Retirement System.5
(7) The Sheriffs' Pension and Relief Fund.6
(8) The Municipal Police Employees' Retirement System.7
(9) The Firefighters' Retirement System.8
B.(1) On or before December 31, 2013, the governing authority of each9
of the retirement systems listed in Subsection A shall in a public meeting make10
an irrevocable election to have future benefit increases for retirees, survivors,11
and beneficiaries governed by R.S. 11:242 or this Section. In the event that the12
governing authority takes no action by the specified date, the provisions of this13
Section shall not apply and the benefit increases of that system shall continue14
to be subject to the provisions of R.S. 11:242.15
(2) After the governing authority has made its election, the board of16
trustees shall inform the speaker of the House of Representatives, the president17
of the Senate, and the Louisiana State Law Institute of its election in writing.18
C. The provisions of this Section do not repeal provisions relative to19
cost-of-living adjustments or permanent benefit increases contained within the20
individual laws governing the systems listed in Subsection A of this Section.21
However, the provisions of this Section are to be controlling in case of any22
conflict with the individual laws.23
D. The power of the governing authority of a system covered by this24
Section to provide a cost-of-living adjustment or permanent benefit increase25
shall be effective in a particular calendar year only if the legislature fails to26
enact legislation granting a cost-of-living adjustment, unless in the legislation27
granting the cost-of-living adjustment, the legislature specifically authorized the28
governing authority to provide an additional cost-of-living adjustment to29
retirees, beneficiaries, or survivors of retired public employees of that system.30 SB NO. 10 ENROLLED
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E. No governing authority to which this Section applies shall provide a1
cost-of-living adjustment or permanent benefit increase to any retiree,2
beneficiary, or survivor during any calendar year prior to the final3
adjournment of the regular session of the legislature and shall not do so during4
the same year within which the legislature has granted an increase, unless in the5
legislation granting the increase, the legislature specifically authorizes the6
governing body to provide an additional increase to retirees, beneficiaries, and7
survivors of that system. The restrictions contained in this Subsection shall be8
inapplicable with respect to any system for which the legislature has failed to9
grant an increase.10
F. Disability retirees and surviving children or surviving spouses shall11
not be subject to the restrictions set forth in this Section.12
G.(1) Notwithstanding any other provision of law to the contrary, no13
system covered by this Section shall provide a cost-of-living adjustment or14
permanent benefit increase during any fiscal year until the lapse of at least15
one-half of the fiscal year, and unless either the funds for such increase are16
provided as authorized from a credit balance in that system's funding deposit17
account or the actuary for the system and the legislative auditor certify that the18
funded ratio of the system meets the requirements of one or more of the19
Subparagraphs in Paragraph (3) of this Subsection. If the legislative auditor20
disagrees with the determination of the system's actuary, the matter shall be21
determined by majority vote of the Public Retirement Systems' Actuarial22
Committee.23
(2) For purposes of this Subsection, a system's "funded ratio" as of any24
fiscal year end shall be the ratio of the actuarial value of assets to the actuarial25
accrued liability under the funding method prescribed by the office of the26
legislative auditor. The actuarial value of assets and actuarial accrued liability27
for a system shall be those amounts reported to the office of the legislative28
auditor in the Annual Report for Public Retirement Systems.29
(3) The governing authority of a system covered by this Subsection may30 SB NO. 10 ENROLLED
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grant a benefit increase to retirees, survivors, and beneficiaries if any of the1
following apply:2
(a) The system has a funded ratio of ninety percent or more and has not3
granted a benefit increase to retirees, survivors, and beneficiaries in the most4
recent fiscal year.5
(b) The system has a funded ratio of eighty percent or more and has not6
granted a benefit increase to retirees, survivors, and beneficiaries in either of7
the two most recent fiscal years.8
(c) The system has a funded ratio of seventy percent or more and has not9
granted a benefit increase to retirees, survivors, and beneficiaries in any of the10
three most recent fiscal years.11
* * *12
§2178. Disability benefits; retirement benefits; death benefits13
* * *14
M.(1)(a)(i) * * *15
(ii) The cost-of-living adjustment shall be payable in a monthly amount not16
to exceed three two and one-half percent of the normal monthly benefit payable to17
the retiree, disability recipient, or survivor on the date the increase is granted, as18
provided in Subsection K of this Section, but shall not be less than twenty dollars per19
month. The dollar amount of such adjustment for any recipient shall not exceed20
five percent of the average monthly benefit in payment to service retirees as of21
the end of the preceding fiscal year.22
* * *23
(d) The board, in any one fiscal year, may provide a cost-of-living24
adjustment pursuant to either Subparagraph (a) or (b) of this Paragraph;25
however, it shall not grant cost-of-living adjustments pursuant to both of these26
Subparagraphs within the same fiscal year.27
* * *28
Section 2. The provisions of this Act shall become effective on June 30, 2013; if29
vetoed by the governor and subsequently approved by the legislature, this Act shall become30 SB NO. 10 ENROLLED
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effective on June 30, 2013, or on the day following such approval by the legislature,1
whichever is later.2
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: