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))