HLS 14RS-383 ORIGINAL
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are additions.
Regular Session, 2014
HOUSE BILL NO. 40
BY REPRESENTATIVE PEARSON
RETIREME NT/STATE EMPS: Provides for application of remaining funds in the La.
State Employees' Retirement System experience account, after payment of a
permanent benefit increase to eligible retirees and beneficiaries, to specified debt of
the system
AN ACT1
To enact R.S. 11:102.1(B)(6), relative to liabilities of the Louisiana State Employees'2
Retirement System; to provide for application of funds from certain accounts to3
certain such liabilities; to provide restrictions relative to the financing of such debt;4
to provide an effective date; and to provide for related matters.5
Notice of intention to introduce this Act has been published6
as provided by Article X, Section 29(C) of the Constitution7
of Louisiana.8
Be it enacted by the Legislature of Louisiana:9
Section 1. R.S. 11:102.1(B)(6) is hereby enacted to read as follows: 10
ยง102.1. Consolidation of amortization payment schedules; Louisiana State11
Employees' Retirement System12
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B.14
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(6) Effective for the June 30, 2014, valuation, to this base shall be applied16
any funds remaining in the experience account from the July 1, 2013, account17 HLS 14RS-383 ORIGINAL
HB NO. 40
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balance after payment of a permanent benefit increase pursuant to the provisions of1
R.S. 11:542, without reamortization of the base.2
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Section 2. This Act shall become effective on June 27, 2014; if vetoed by the4
governor and subsequently approved by the legislature, this Act shall become effective on5
June 27, 2014, or on the day following such approval by the legislature, whichever is later.6
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. 40
Abstract: Provides for application of remaining experience account funds to the initial
unfunded accrued liability (IUAL) of the La. State Employees' Retirement System
(LASERS), after the system pays a permanent benefit increase to eligible retirees and
beneficiaries pursuant to present law.
Present law (R.S. 11:542) provides for LASERS system funds to be deposited into the
experience account at the end of each fiscal year if the system attains certain funding targets.
Present law authorizes a permanent benefit increase to be granted to certain retirees and
beneficiaries of LASERS if there is sufficient money in the experience account. Authorizes
such an increase at the rate of the lesser of:
(1)3%.
(2)The CPI-U for the last year.
The CPI-U, as calculated by the U.S. Dept. of Labor, Bureau of Labor Statistics, for the last
year was 1.5%.
Present law (R.S. 11:102.1) provides for the Original Amortization Base (OAB) and the
Experience Account Amortization Base (EAAB) for debts of LASERS. Generally, the OAB
is the consolidated amortization base for the initial unfunded accrued liability of the system
that existed as of June 30, 1988. Generally, the EAAB is the consolidated amortization base
for the actuarial losses of the system between 1988 and 2009. Proposed law retains present
law.
Proposed law applies to the LASERS OAB any remaining funds in the LASERS experience
account after payment of a permanent benefit increase to eligible retirees and beneficiaries
effective July 1, 2014. Proposed law prohibits reamortization of the OAB after application
of funds pursuant to proposed law.
Effective June 27, 2014.
(Adds R.S. 11:102.1(B)(6))