HLS 14RS-384 ORIGINAL
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2014
HOUSE BILL NO. 41
BY REPRESENTATIVE PEARSON
RETIREMENT/STATE POLICE: Provides for application of remaining funds in the State
Police Retirement System's 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(E), relative to the liabilities of the State Police Retirement System; to2
provide for application of funds from certain accounts to certain such liabilities; to3
provide restrictions relative to the financing of such debt; to provide an effective4
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(E) is hereby enacted to read as follows: 10
ยง102. Employer contributions; determination; state systems11
* * *12
E. Notwithstanding any provision of this Section to the contrary, effective13
for the June 30, 2014, valuation, any funds remaining in the State Police Retirement14
System experience account from the July 1, 2013, account balance after payment of15
a permanent benefit increase pursuant to the provisions of R.S. 11:1332, shall be16
applied to the oldest outstanding positive amortization base of the State Police17
Retirement System, without reamortization of the base.18 HLS 14RS-384 ORIGINAL
HB NO. 41
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Section 2. This Act shall become effective on June 27, 2014; if vetoed by the1
governor and subsequently approved by the legislature, this Act shall become effective on2
June 27, 2014, or on the day following such approval by the legislature, whichever is later.3
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. 41
Abstract: Provides for application of funds remaining in the State Police Retirement
System (STPOL) experience account, after payment of a permanent benefit increase
to eligible retirees and beneficiaries, to the oldest outstanding debt of the system.
Present law (R.S. 11:1332) provides for funds to be deposited into the experience account
at the end of each fiscal year if the system attains certain funding targets. Proposed law
applies the residue of experience account funds remaining from the July 1, 2013, account
balance to the oldest outstanding debt of the system. Proposed law does not affect any funds
that may enter the account after July 1, 2013.
Present law (R.S. 11:1332) further authorizes a permanent benefit increase to be paid to
certain retirees and beneficiaries of STPOL 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.
Further authorizes a supplemental permanent benefit increase of 2% to retired members who
are age 65 or older.
The CPI-U, as calculated by the U.S. Dept. of Labor, Bureau of Labor Statistics, for last year
was 1.5%.
Present law (R.S.11:102) provides the formula for establishing the employer contribution
rate for STPOL. Part of the employer contribution rate is an amount to cover the
amortization payment due on outstanding debts of the system. Proposed law retains present
law.
Proposed law applies toward the oldest outstanding debt of STPOL any remaining funds left
in the system's experience account after payment of a permanent benefit increase to eligible
retirees and beneficiaries. Proposed law prohibits reamortization of the debt after
application of the funds pursuant to proposed law.
According to the latest system valuation prepared by STPOL's actuary, the amount of the
oldest outstanding positive amortization base of the system is $19,248,610.
Effective June 27, 2014.
(Adds R.S. 11:102(E))