The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Margaret M. Corley
DIGEST
Guillory (SB 10)
Present law, applicable to statewide retirement systems, provides the authority to grant retirees of
a system a cost-of-living adjustment (COLA) based on the funded status of that system in 1986,
and its progress towards 100% funding by 2016.
Present law provides that the statewide retirement systems are:
(1)Assessors' Retirement Fund
(2)Clerks' of Court Retirement and Relief Fund
(3)District Attorneys' Retirement System
(4)Firefighters' Retirement System
(5)Municipal Employees' Retirement System of Louisiana
(6)Municipal Police Employees' Retirement System of Louisiana
(7)Parochial Employees' Retirement System of Louisiana
(8)Registrar of Voters Employees' Retirement System, and
(9)Sheriffs' Pension and Relief Fund.
Proposed law retains present law; however, proposed law allows the board of a statewide
retirement system to make an irrevocable decision by December 31, 2013, to be governed by the
provisions of proposed law rather than present law.
Proposed law provides authority for the boards of those systems which opt into proposed law to
grant a COLA according to the following criteria: (1)The system has a funded ratio of 90% or more and has not granted a benefit increase to
retirees, survivors, and beneficiaries in the most recent fiscal year.
(2)The system has a funded ratio of 80% or more and has not granted a benefit increase to
retirees, survivors, and beneficiaries in either of the two most recent fiscal years.
(3)The system has a funded ratio of 70% or more and has not granted a benefit increase to
retirees, survivors, and beneficiaries in any of the three most recent fiscal years.
Present law provides the Sheriffs' Pension and Relief Fund the authority to grant a COLA not to
exceed 3% of the monthly benefit. Proposed law allows the Fund to grant a COLA not to exceed
2½% of the monthly benefit. Proposed law also provides that the dollar amount of such
adjustment for any recipient shall not exceed 5% of the average monthly benefit in payment to
service retirees as of the end of the preceding fiscal year.
Effective June 30, 2013.
(Amends R.S. 11:2178(M)(1)(a)(ii); adds R.S. 11:242(F), 243, and 2178(M)(1)(d))