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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2013
SENATE BILL NO. 13
BY SENATOR LONG
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
STATE POLICE RET FUND. Provides for powers and duties of the board of trustees.
(6/30/13)
AN ACT1
To enact R.S. 11:1302.2, relative to the Louisiana State Police Retirement System; to2
provide for powers and duties of the board of trustees; to provide for coordination3
with federal tax qualification provisions; to provide for an effective date; and to4
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. 11:1302.2 is hereby enacted to read as follows: 8
ยง1302.2. Actuary; appointment; duties and powers; actuarial assumptions9
A.(1) The board of trustees shall designate an actuary who shall be a10
technical advisor of the board of trustees on matters regarding the operation of11
the retirement system created by the provisions of this Chapter, and shall12
perform such other duties as are required by law or by the board of trustees.13
(2) Beginning with the 2012-2013 fiscal year, and at least once in each14
five-year period thereafter, the actuary shall make an actuarial investigation15
into the mortality, service, and compensation experience of the members and16
beneficiaries of the retirement system, and shall make a valuation of the assets17 SB NO. 13
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
and liabilities of the system, and taking into account the result of such1
investigation and valuation, the board of trustees shall:2
(a) Adopt for the retirement system such mortality, service, and other3
tables as shall be deemed necessary.4
(b) Certify the rates of contribution payable by the state of Louisiana on5
account of new entrants at various ages.6
(3) On the basis of such tables as the board of trustees shall adopt, the7
actuary shall make an annual valuation of the assets and liabilities of the system8
created by this Chapter.9
(4) Any new tables and interest assumptions adopted in accordance with10
Subparagraph (2)(a) of this Subsection shall be applicable only with respect to11
persons who are members on the date of adoption. Tables in effect on the date12
of retirement shall remain applicable with respect to persons who retire prior13
to the adoption of new tables.14
B. (1) Effective June 30, 2013, unless different actuarial assumptions are15
formally adopted and disclosed, as provided in Paragraph (2) of this Subsection,16
the following assumptions shall determine the actuarial equivalents to be used17
in this retirement system:18
(a) Interest shall be compounded at the rate of seven and one-half19
percent per annum.20
(b) Annuity rates shall be determined on the basis of the RP-2000 Sex21
Distinct Mortality Table.22
(2) The board of trustees may authorize the use of interest and mortality23
rates in determining the actuarial equivalents which are different from the24
actuarial assumptions specified in Paragraph (1) of this Subsection. Any change25
in such actuarial assumptions shall be considered a part of the plan provisions26
of this retirement system and shall be considered an amendment to the plan27
provisions contained in this Section. In order to be effective, such change shall28
be formally adopted by the board of trustees as a rule or rules promulgated29 SB NO. 13
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
pursuant to the Administrative Procedure Act and disclosed to members of the1
retirement system.2
(3) No change in actuarial assumptions shall reduce a member's accrued3
benefit.4
Section 2. This Act shall become effective on June 30, 2013; if vetoed by the5
governor and subsequently approved by the legislature, this act shall become effective on6
June 30, 2013, or on the day following such approval by the legislature, whichever is later.7
The original instrument was prepared by Margaret M. Corley. The following
digest, which does not constitute a part of the legislative instrument, was
prepared by Jerry J. Guillot.
DIGEST
Long (SB 13)
Proposed law provides for the appointment of an actuary by the Louisiana State Police
Retirement System board of trustees.
Proposed law provides that the appointed actuary shall be a technical advisor to the board
of trustees regarding the operation of the plan and shall make a report to the board at least
once every five years as to the mortality, service, and compensation experience of the
members and beneficiaries of the retirement system.
Proposed law provides for the adoption of necessary tables and assumptions by the board of
trustees.
Proposed law provides that, unless otherwise stated, the interest shall be compounded at the
rate of 7.5% per annum and the annuity rates shall be determined on the basis of the RP-
2000 Sex Distinct Mortality Table.
Requires the board to promulgate rules pursuant to the APA and to disclose to members any
changes in interest and mortality rates contained in proposed law.
Provides that no change in actuarial assumptions shall reduce a member's accrued benefit.
Effective June 30, 2013.
(Adds R.S. 11:1302.2)
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Retirement to the
original bill
1. Provides that no change in actuarial assumptions shall reduce a member's
accrued benefit.