2014 REGULAR SESSION
ACTUARIAL NOTE HB 75
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House Bill 75 HLS 14RS-439
Reengrossed with House Floor
Legislative Bureau Amendment #1754
Author: Representative Jack
Montoucet
Date: April 9, 2014
LLA Note HB 75.03
Organizations Affected:
Firefighters’ Retirement System
RE NO IMPACT APV
The Note was prepared by the Actuarial Services Department of the Office of the
Legislative Auditor. The attachment of the Note to HB 75 provides compliance
with the requirements of R.S. 24:521.
Bill Header: RETIREMENT/FIREFIGHTERS: Requires court order be provided to the Firefighters' Retirement System before the
system can seize or garnish benefits of a member.
Cost Summary:
The estimated actuarial and fiscal impact of the proposed legislation is summarized below. Actuarial costs pertain to changes in the
actuarial present value of future benefit payments. A cost is denoted by “Increase” or a positive number. Savings are denoted by
“Decrease” or a negative number.
Actuarial Cost/(Savings) to Retirement Systems and OGB $0
Total Five Year Fiscal Cost
Expenditures $0
Revenues $0
Estimated Actuarial Impact:
The chart below shows the estimated change in the actuarial present value of future benefit payments, if any, attributable to the
proposed legislation. A cost is denoted by “Increase” or a positive number. Savings are denoted by “Decrease” or a negative number.
Present value costs associated with administration or other fiscal concerns are not included in these values.
Increase (Decrease) in
Actuarial Cost (Savings) to: The Actuarial Present Value
All Louisiana Public Retirement Systems $0
Other Post Retirement Benefits $0
Total $0
Estimated Fiscal Impact:
The chart below shows the estimated fiscal impact of the proposed legislation. This represents the effect on cash flows for
government entities including the retirement systems and the Office of Group Benefits. Fiscal costs include estimated administrative
costs and costs associated with other fiscal concerns. A fiscal cost is denoted by “Increase” or a positive number. F iscal savings are
denoted by “Decrease” or a negative number.
EXPENDITURES 2014-15 2015-16 2016-17 2017-2018 2018-2019 5 Year Total
State General Fund $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Agy Self Generated 0 0 0 0 0 0
Stat Deds/Other 0 0 0 0 0 0
Federal Funds 0 0 0 0 0 0
Local Funds 0 0 0 0 0 0
Annual Total $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
REVENUES 2014-15 2015-16 2016-17 2017-2018 2018-2019 5 Year Total
State General Fund $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Agy Self Generated 0 0 0 0 0 0
Stat Deds/Other 0 0 0 0 0 0
Federal Funds 0 0 0 0 0 0
Local Funds 0 0 0 0 0 0
Annual Total $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
2014 REGULAR SESSION
ACTUARIAL NOTE HB 75
Page 2 of 2
Bill Information:
Current Law
Present law provides that any current or former member or retiree's retirement allowance, benefit, or refund of accumulated
contributions or any portion thereof payable to a spouse or former spouse under present law regarding a community property
interest, is subject to garnishment or court-ordered assignment to pay child support.
Present law provides that any current or former member or retiree's retirement allowance, benefit, or refund of accumulated
contributions is subject to court- ordered garnishment to pay restitution or a fine for commission of a job-related felony offense
committed by an elected official or public employee.
Proposed Law
Proposed law provides that any funds payable from FRS are subject to present law only if a certified copy of a court order or
judgment is provided to FRS bearing the signature of the issuing court or administrative law judge.
Proposed law provides that where no certified copy of an order or judgment has been received by FRS, the system shall continue
to pay the entire amount of any funds due to the retiree, designated beneficiary, survivor benefit recipient, or the estate of a
deceased member, as applicable. Further provides that upon receipt of the certified order or judgment, the system is required to
enforce the garnishment only prospectively.
Implications of the Proposed Changes
HB 75 requires the FRS to have a certified copy of a court order or judgment, bearing the signature of the issuing court or
administrative law judge before it may garnish or seize any portion of a former member’s or retiree’s interest in the plan.
Cost Analysis:
Analysis of Actuarial Costs
Retirement Systems
There are no actuarial costs associated with HB 7 5.
The terms of the bill only deal with procedures that FRS should follow before benefits of a member are seized or garnished.
There is no change in benefit structure.
Other Post Retirement Benefits
There are no actuarial costs associated with HB 7 5 for post-retirement benefits.
Analysis of Fiscal Costs
There are no fiscal costs associated with HB 7 5.
Actuarial Data, Methods and Assumptions
This actuarial note was prepared using actuarial data, methods, and assumptions as disclosed in the most recent actuarial valuation
report approved by PRSAC. These assumptions and methods are in compliance with actuarial standards of practice. This data,
methods and assumptions are being used to provide consistency with the actuary for the retirement system who may also be
providing testimony to the Senate and House retirement committees.
Actuarial Caveat
There is nothing in HB 75 that will compromise the signing actuary’s ability to present an unbiased statement of actuarial opinion.
Actuarial Credentials:
Paul T. Richmond is the Manager of Actuarial Services for the Louisiana Legislative Auditor. He is an Enrolled Actuary, a
member of the American Academy of Actuaries, a member of the Society of Actuaries and has met the Qualification Standards of the American Academy of Actuaries to render the actuarial opinion contained herein.
Dual Referral:
Senate House
13.5.1: Annual Fiscal Cost ≥ $100,000 6.8(F)(1): Annual Fiscal Cost ≥ $100,000
13.5.2: Annual Tax or Fee Change ≥ $500,000 6.8(F)(2): Annual Revenue Reduction ≥ $100,000
6.8(G): Annual Tax or Fee Change ≥ $500,000