HLS 14RS-387 ORIGINAL Page 1 of 14 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Regular Session, 2014 HOUSE BILL NO. 79 BY REPRESENTATIVE PEARSON RETIREMENT/STATE EMPS: Provides for enrollment of new hires of the Harbor Police Department of the Port of New Orleans in the Hazardous Duty Services Plan in the La. State Employees' Retirement System and for administration of the Harbor Police Retirement System by the La. State Employees' Retirement System AN ACT1 To amend and reenact R.S.11:102(C)(1)(introductory paragraph), (2), (3), and (4)(b), 511(5)2 and (6), 3682(7) and (16), 3683(1), 3688(E), 3688.1(B), and 3690(B)(1) and (C), to3 enact R.S. 11:612(2.1), 620.1, Subpart E of Part VII of Chapter 1 of Subtitle II of4 Title 11 of the Louisiana Revised Statues of 1950, comprised of R.S. 11:631, and5 3688(A)(13), and to repeal R.S. 11:3688(B), relative to retirement for employees of6 the Harbor Police Department of the Port of New Orleans; to provide relative to the7 administration of the Harbor Police Retirement System by the Louisiana State8 Employees' Retirement System; to authorize a cooperative endeavor agreement9 relative to such administration; to provide relative to the assets of the Harbor Police10 Retirement System; to provide relative to retirement benefits for new hires of the11 Harbor Police Department of the Port of New Orleans; to provide relative to benefits12 for members of the Harbor Police Retirement System; to provide relative to the13 boards of trustees of the Louisiana State Employees' Retirement System and the14 Harbor Police Retirement System; to provide an effective date; and to provide for15 related matters.16 Notice of intention to introduce this Act has been published17 as provided by Article III, Section 13 and Article X, Section18 29(C) of the Constitution of Louisiana.19 HLS 14RS-387 ORIGINAL HB NO. 79 Page 2 of 14 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Be it enacted by the Legislature of Louisiana:1 Section 1. R.S. 11:3682(7) and (16), 3683(1), 3688(E), and 3688.1(B) are hereby2 amended and reenacted and R.S. 11:612(2.1) and 3688(A)(13) are hereby enacted to read3 as follows:4 §612. Application; definitions5 Terms not specifically defined in this Section but defined in R.S. 11:403 shall6 have the meanings provided in R.S. 11:403 unless a different meaning is clearly7 required by the context. For purposes of this Subpart:8 * * *9 (2.1) In addition to the definition provided in Paragraph (2) of this Section,10 the term "member" shall also include any commissioned employee of the Harbor11 Police Department of the Port of New Orleans first hired on or after July 1, 2014.12 * * *13 §3682. Definitions14 The following words and phrases, as used in this Subpart, unless expressly15 indicated to the contrary or unless a different meaning is plainly required by context,16 shall have the following meanings:17 * * *18 (7) "Board of trustees" means the board provided for in R.S. 11:3688 to19 administer the retirement system and the board of trustees of any other retirement20 system which assumes administration of this retirement system.21 * * *22 (16) "Employee" means any commissioned member or employee of the23 Harbor Police Department of the Port of New Orleans prior to July 1, 2004, or any24 commissioned member of the Harbor Police Department of the Port of New Orleans25 hired on or after July 1, 2004 , and on or before June 30, 2014.26 * * *27 §3683. Membership28 The membership of the retirement system shall be composed as follows:29 HLS 14RS-387 ORIGINAL HB NO. 79 Page 3 of 14 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (1) All persons who shall become employees as defined in R.S. 11:3682(16)1 after August 1, 1971, and on or before June 30, 2014, except those specifically2 excluded under Paragraph (3) of this Section, shall become members as a condition3 of their employment, provided they are under fifty years of age at the date of4 employment.5 * * *6 §3688. Administration7 A. Board of Trustees.8 * * *9 (13) If the board of trustees of the Louisiana State Employees' Retirement10 System, the board of commissioners of the Port of New Orleans, and the board of11 trustees of this system execute a cooperative endeavor agreement for the12 administration of this system by the board of trustees of the Louisiana State13 Employees' Retirement System, then the board of trustees created pursuant to the14 provisions of this Section shall be dissolved effective January 1, 2016, and this15 Subsection shall cease to be effective.16 * * *17 E. All Until administration of the system is assumed by the board of another18 retirement system, all service providers including the certified public accountant,19 actuary, legal consultant, bank custodian, investment advisor, and plan administrator20 shall be selected jointly by the Board of Trustees and the Board of Commissioners21 of the Port of New Orleans. Notwithstanding any provision of law to the contrary,22 after administration of this system is assumed by the board of trustees of another23 retirement system, the administering board shall select all service providers for the24 system.25 * * *26 §3688.1. Amendments27 * * *28 HLS 14RS-387 ORIGINAL HB NO. 79 Page 4 of 14 CODING: Words in struck through type are deletions from existing law; words underscored are additions. B.(1) No amendment to this retirement system shall operate to deprive any1 member of a benefit to which he is already entitled. In the case of any merger or2 consolidation with, or transfer of assets or liabilities to, any other retirement system,3 each member in the retirement system will, if the retirement system is then4 terminated, receive a benefit immediately after the merger, consolidation, or transfer5 equal to or greater than the benefit he would have been entitled to receive6 immediately before the merger, consolidation, or transfer, if the retirement system7 had then terminated.8 (2) Notwithstanding any provision of law to the contrary, if the9 administration of this retirement system is transferred to the board of trustees of any10 other retirement system, eligibility for and calculation of permanent benefit increases11 for members of this retirement system shall be determined in accordance with the12 laws governing the retirement system that assumed administration of this retirement13 system. However, nothing in this Paragraph shall be construed to authorize the14 funding of such permanent benefit increases for members of this system with funds15 attributable to the administering system.16 * * *17 Section 2. R.S. 11:102(C)(1)(introductory paragraph), (2), (3), and (4)(b), 511(5) and18 (6), 3690(B)(1) and (C) are hereby amended and reenacted and R.S. 11:620.1 and Subpart19 E of Part VII of Chapter 1 of Subtitle II of Title 11 of the Louisiana Revised Statues of 1950,20 to be comprised of R.S. 11:631, are hereby enacted to read as follows:21 §102. Employer contributions; determination; state systems22 * * *23 C.(1) This Subsection shall be applicable to the Louisiana State Employees'24 Retirement System effective for the June 30, 2010, system valuation and beginning25 Fiscal Year 2011-2012. For purposes of this Subsection, "plan" or "plans" shall26 mean the Harbor Police Retirement System and a subgroup within the system27 characterized by the following employee classifications:28 * * *29 HLS 14RS-387 ORIGINAL HB NO. 79 Page 5 of 14 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (2) For the Louisiana State Employees' Retirement System, effective for the1 June 30, 2010, system valuation and beginning with Fiscal Year 2011-2012, the2 normal cost calculated pursuant to Subparagraph (B)(3)(a) of this Section, shall be3 calculated separately for each particular plan within the system. An employer shall4 pay employer contributions for each employee at the rate applicable to the plan of5 which that employee is a member.6 (3) For the Louisiana State Employees' Retirement System, effective for the7 June 30, 2010, system valuation and beginning with Fiscal Year 2011-2012, changes8 in actuarial liability due to legislation, changes in governmental organization, or9 reclassification of employees or positions shall be calculated individually for each10 particular plan within the system based on each plan's actuarial experience as further11 provided in Subparagraph (4)(c) of this Subsection.12 (4) For each plan referenced in Paragraph (1) of this Subsection, the13 legislature shall set the required employer contribution rate equal to the sum of the14 following:15 * * *16 (b)(i) The shared unfunded accrued liability rate. Except as provided in Item17 (ii) of this Subparagraph, a A single rate shall be computed for each fiscal year,18 applicable to all plans for actuarial changes, gains, and losses existing on June 30,19 2010, or occurring thereafter, including experience and investment gains and losses,20 which are independent of the existence of the plans listed in Paragraph (1) of this21 Subsection, the payment and rate therefor shall be calculated as provided in22 Paragraphs (B)(1) and (3) of this Section.23 (ii) The shared unfunded accrued liability rate applicable to the Harbor24 Police Retirement System shall not include any unfunded accrued liability incurred25 on or before July 1, 2015, until the earlier of:26 (aa) July 1, 2022.27 (bb) The date that all sums payable by the Port of New Orleans to the board28 of trustees of the Louisiana State Employees' Retirement System pursuant to the29 HLS 14RS-387 ORIGINAL HB NO. 79 Page 6 of 14 CODING: Words in struck through type are deletions from existing law; words underscored are additions. terms and conditions of a cooperative endeavor agreement between the board of1 trustees of the Louisiana State Employees' Retirement System, the board of2 commissioners of the Port of New Orleans, and the board of trustees of the Harbor3 Police Retirement System regarding the administration of the Harbor Police4 Retirement System by the board of trustees of the Louisiana State Employees'5 Retirement System have been paid in full.6 * * *7 §511. Composition of board of trustees8 The board of trustees shall consist of the following members:9 * * *10 (5) Six trustees who shall be active employees and members of the this11 system or the Harbor Police Retirement System, who each have with at least ten12 years of creditable service and who shall be elected by the members of the this13 system and the Harbor Police Retirement System for a term of four years to succeed14 members whose terms expire under rules and regulations adopted by the board to15 govern the elections. However, those trustees whose terms begin on or after January16 1, 1998, shall be eligible to serve only three consecutive four-year terms, to include17 any term served as an active or retired member. Upon the completion of the third18 consecutive four-year term, the trustee shall be ineligible for a fourth consecutive19 term of office. An active member trustee who retires while serving on the board20 shall be allowed to remain on the board for the remainder of the term for which21 elected. The director, assistant directors, chief investment officer, and other22 employees of the staff of the system shall be ineligible for membership on the board,23 and no member of the board elected under this Section shall be eligible for one of24 these positions for a period of two years after the termination of their service on the25 board. No department in the executive branch of state government, as more26 particularly described in Title 36 of the Louisiana Revised Statutes of 1950, as27 amended and revised, may have more than two trustees serving on the board at the28 same time. The candidate or candidates who have received the highest and next29 HLS 14RS-387 ORIGINAL HB NO. 79 Page 7 of 14 CODING: Words in struck through type are deletions from existing law; words underscored are additions. highest vote tallies, and who do not violate the prohibition against more than two1 trustees serving from the same department, shall be declared the elected trustee or2 trustees.3 (6) Three trustees who are retired members of the either this system or the4 Harbor Police Retirement System and who shall represent the retired members of the5 system both systems. The retired trustees shall be elected by the retired members of6 the this system and the Harbor Police Retirement System for a term of four years.7 However, those trustees whose terms begin on or after January 1, 1998, shall be8 eligible to serve only three consecutive four-year terms, to include any term served9 as an active or retired member. Upon the completion of the third consecutive10 four-year term, the trustee shall be ineligible for a fourth consecutive term of office.11 The election shall be held in accordance with the rules adopted by the board to12 govern the elections of trustees. Vacancies shall be filled in accordance with R.S.13 11:512.14 * * *15 §620.1. Transfer of other service credit; Harbor Police Retirement System16 employees17 A. Any member of the Harbor Police Retirement System who would18 otherwise be eligible for benefits under the Hazardous Duty Services Plan except that19 his first employment making him eligible for membership in the Harbor Police20 System occurred on or before June 30, 2014, and who has not participated in the21 Deferred Retirement Option Plan in the system of which he is a member shall have22 the right to irrevocably elect to become a member of the plan by submitting an23 application to the board of trustees to become effective on or after July 1, 2015.24 B. Any eligible member who elects to transfer to the Hazardous Duty25 Services Plan from the Harbor Police Retirement System shall have the option of:26 (1)(a) Maintaining prior service credit in the Harbor Police Retirement27 System pursuant to the provisions of that system and accruing service credit and28 benefits in the Hazardous Duty Services Plan after the date he joins the plan. If such29 HLS 14RS-387 ORIGINAL HB NO. 79 Page 8 of 14 CODING: Words in struck through type are deletions from existing law; words underscored are additions. election results in an actuarial cost to this system, then the member shall pay the1 system the amount of such actuarial cost prior to his retirement.2 (2)(a) An actuarial transfer from the Harbor Police Retirement System to this3 plan in accordance with the provisions of R.S. 11:143(C) and (D) in which the4 member transfers all of his service credit from the Harbor Police Retirement System5 and maintains prior service credit at the accrual rate at which it was earned in such6 system prior to joining the Hazardous Duty Services Plan. If the amount of funds7 transferred is less than the actuarial cost of the service transferred to the plan, the8 member transferring, except as otherwise provided in this Section, shall pay the9 deficit or difference, including the interest thereon at the board-approved actuarial10 valuation rate of the system.11 (b) In lieu of paying the deficit or difference plus interest, the member may12 at his option, but only at the time of transfer, be granted an amount of credit in the13 plan which is based on the amount of funds actually transferred plus any additional14 funds less than the deficit paid by the member.15 (c) A member who completes a transfer under the provisions of this Section16 shall have his retirement benefit calculated using the accrual rate of the system from17 which he transferred based on the number of years transferred.18 C. A member whose first employment making him eligible for membership19 in the Harbor Police Retirement System occurred on or before June 30, 2015, who20 elects to join this plan shall thereafter for purposes of all state retirement systems be21 treated as an employee whose first eligibility for membership occurred on or after22 July 1, 2015.23 * * *24 SUBPART E. HARBOR POLICE EMPLOYED BY THE PORT OF NEW ORLEANS25 §631. Administration of the Harbor Police Retirement System26 A. The board of trustees of the Louisiana State Employees’ Retirement27 System, the board of commissioners of the Port of New Orleans, and the board of28 trustees of the Harbor Police Retirement System may execute a cooperative endeavor29 HLS 14RS-387 ORIGINAL HB NO. 79 Page 9 of 14 CODING: Words in struck through type are deletions from existing law; words underscored are additions. agreement for the administration of the Harbor Police Retirement System by the1 board of trustees of the Louisiana State Employees’ Retirement System, as may be2 deemed appropriate under such terms and conditions as it may be agreed to by the3 parties.4 B. Any cooperative endeavor agreement executed pursuant to this Section5 shall include provisions regarding the following:6 (1) Rights of current participants in the Harbor Police Retirement System:7 (a) Current participants in the Harbor Police Retirement System, including8 retirees and active members, shall retain all accrued benefits and continue to accrue9 benefits under the terms of the Harbor Police Retirement System plan, as specified10 in R.S. 11:3681 through 3698, except as provided as in this Paragraph.11 (b) Active members the Harbor Police Retirement System who have not12 participated in the Deferred Retirement Option Plan shall have the option to join the13 Louisiana State Employees’ Retirement System Hazardous Duty Services Plan and14 the option to transfer prior service credit using the procedures set out in R.S.15 11:620.1.16 (c) Effective July 1, 2016, the calculation and granting of permanent benefit17 increases for members of the Harbor Police Retirement System shall be in18 accordance with R.S. 11:542, consistent with the eligibility for permanent benefit19 increases for members of the Louisiana State Employees’ Retirement System. Funds20 attributable to the Louisiana State Employees' Retirement System shall not be used21 to grant such increases to members of the Harbor Police Retirement System.22 (2) Liabilities of the Harbor Police Retirement System:23 (a) The Port of New Orleans shall agree to pay to the board of trustees of the24 Louisiana State Employees’ Retirement System sums sufficient to fund all of the25 accrued liability of the Harbor Police Retirement System determined using the26 Louisiana State Employees’ Retirement System actuarial assumptions.27 (b) The liabilities shall be paid under such terms and conditions as agreed to28 by the parties and shall include interest at the Louisiana State Employees’29 HLS 14RS-387 ORIGINAL HB NO. 79 Page 10 of 14 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Retirement System actuarially assumed rate of return as approved by the Public1 Retirement Systems' Actuarial Committee.2 C. In the administration of the Harbor Police Retirement System by the3 board of trustees of the Louisiana State Employees’ Retirement System pursuant to4 a cooperative endeavor agreement entered into pursuant to this Section, the board of5 trustees of the Louisiana State Employees’ Retirement System shall have all of the6 powers and duties of the board of trustees of the Harbor Police Retirement System7 as set forth in R.S. 11:3681 through 3698.8 D. Notwithstanding the provisions of R.S. 11:3690 or any other provision9 of law to the contrary, upon the transfer of the assets of the Harbor Police Retirement10 System to the board of trustees of the Louisiana State Employees’ Retirement11 System, the assets of the Harbor Police Retirement System shall become part of the12 Louisiana State Employees’ Retirement System trust and shall be maintained in a13 notional account. Such assets shall be managed in accordance with the laws14 governing the Louisiana State Employees’ Retirement System. The account shall be15 credited with interest at the actuarial rate of return earned by the Louisiana State16 Employees' Retirement System, and the account shall not be reduced pursuant to any17 allocation required by R.S. 11:102.1 nor by diversion to the system's experience18 account.19 * * *20 §3690. Method of financing21 * * *22 B. Employer contributions.23 (1)(a) Except as provided in Subparagraph (b) of this Paragraph, the The24 port commission shall annually contribute an amount equal to the rate per centum25 determined herein in accordance with Paragraphs (2) and (3) of this Subsection.26 Contributions shall be made monthly based on the same salary or wages used to27 calculate the members' contributions.28 HLS 14RS-387 ORIGINAL HB NO. 79 Page 11 of 14 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (b) Notwithstanding any provision of law to the contrary, upon assumption1 of the administration of this system by the board of trustees of the Louisiana State2 Employees' Retirement System, employer contributions shall be determined in3 accordance with the provisions of R.S. 11:102. The contribution rate limitation4 contained in Paragraph (3) of this Subsection shall not apply to any employer5 contribution rate determined pursuant to this Subparagraph.6 * * *7 C. Court fines.8 All fines collected by any court, official or agency from violators of9 ordinances of the City of New Orleans applicable to the wharves, landings and river10 front of the city or ordinances of the Board of Commissioners of the Port of New11 Orleans, as provided for in R.S. 34:25, shall be transmitted to the board of12 commissioners of the Port of New Orleans. of trustees of this system. Such funds13 shall be used by the board solely for the payment of the retirement allowances, and14 such funds shall be supplemented by such other funds as are now or may be hereafter15 paid into the system on account of members of the harbor police department of the16 Port of New Orleans.17 * * *18 Section 3. R.S. 11:3688(B) is hereby repealed in its entirety.19 Section 4. The cost of future accruals under the provisions of this Act, if any, shall20 be funded with additional employer contributions in compliance with Article X, Section21 29(F) of the Constitution of Louisiana.22 Section 5. Until such time as the Public Retirement Systems' Actuarial Committee23 adopts an official valuation of the Louisiana State Employees' Retirement System which24 includes an employer contribution rate for the Harbor Police Retirement System calculated25 in accordance with the provisions of R.S. 11:102, the employer contribution rate to be paid26 by the Port of New Orleans for members of the Harbor Police Retirement System shall be27 the employer contribution rate in effect for the Harbor Police Retirement System as of June28 30, 2015.29 HLS 14RS-387 ORIGINAL HB NO. 79 Page 12 of 14 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Section 6. The terms of elected active or retired members serving on the board of1 trustees of the Louisiana State Employees' Retirement System on the effective date of this2 are not affected by this Act. Any vacancy in an active or retired member trustee position3 occurring on or after the effective date of this Act shall be filled in accordance with the4 provisions of this Act.5 Section 7.(A) The provisions of Section 2, 3, 5, and 6 of this Act shall become6 effective on June 30, 2015.7 (B) The provisions of this Section and Sections 1 and 4 of this Act shall become8 effective on July 1, 2014; if vetoed by the governor and subsequently approved by the9 legislature, the provisions of this Section and Sections 1, 4, and 7 of this Act shall become10 effective on July 1, 2014, or on the day following such approval by the legislature,11 whichever is later.12 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. 79 Abstract: Provides for administration of the Harbor Police Retirement System (HBPOL) by the board of trustees of the La. State Employees' Retirement System (LASERS). Further provides for harbor police employees hired on an after July 1, 2014 to be enrolled in the Hazardous Duty Services Plan in LASERS. NEW EMPLOYEES OF THE HARBOR POLICE DEPARTMENT OF THE PORT OF NEW ORLEANS Present law establishes the Hazardous Duty Services Plan in LASERS. Such members receive a 3.33% accrual rate, have an employee contribution rate of 9.5%, and have the following retirement eligibilities: (1)Twenty-five years or more of service, at any age. (2)Twelve years or more of service, at age fifty-five or thereafter. (3)Twenty years of service credit at any age, actuarially reduced from age 55. Proposed law retains present law. Present law provides that any commissioned member of the Harbor Police Department of the Port of New Orleans on or after July 1, 2004, shall be a member of HBPOL. Proposed law retains present law for all commissioned members hired on or before June 30, 2014. Proposed law places any commissioned employee of the Harbor Police Department of the Port of New Orleans first hired on or after July 1, 2014, in the Hazardous Duty Services Plan in LASERS. HLS 14RS-387 ORIGINAL HB NO. 79 Page 13 of 14 CODING: Words in struck through type are deletions from existing law; words underscored are additions. MEMBERS OF THE HARBOR POLICE RETIREMENT SYSTEM AS OF JUNE 30, 2014 Present law establishes HBPOL as a local retirement system to provide for the retirement of commissioned members and employees of the Harbor Police Department of the Port of New Orleans prior to July 1, 2004, and for the retirement of commissioned members of the police department after July 1, 2004. Proposed law retains present law for all such persons hired on or before June 30, 2014. Proposed law authorizes the boards of trustees of LASERS and HBPOL and the board of commissioners of the Port of New Orleans to enter into a cooperative endeavor agreement for LASERS to administer HBPOL. Provides requirements relative to the rights of HBPOL members and the liabilities of the system that shall be contained in such cooperative endeavor agreement. Present law provides for the administration of HBPOL by a board of trustees comprised of active, retired, and ex officio members. Proposed law provides that if a cooperative endeavor agreement is entered into for LASERS to administer HBPOL, then the HBPOL board as established in present law shall be dissolved effective Jan. 1, 2016. Proposed law further provides that beginning July 1, 2015, the board of LASERS shall be modified to provide for representation of HBPOL members. Future vacancies in the active member and retired member trustee positions on the LASERS board shall be elected from the LASERS membership and the HBPOL membership. Such elected trustees shall represent the constituents of both systems. Proposed law authorizes members of HBPOL to transfer service credit to the Hazardous Duty Services Plan of LASERS. Requires the member to pay any actuarial cost, calculated in accordance with present law, for such service transfers. Present law authorizes the board of HBPOL to provide cost-of-living adjustments (COLAs) to retirees whenever the system experiences excess returns above what is actuarially required. Proposed law provides that future COLAs for HBPOL retirees shall be calculated and granted in the same manner as COLAs for LASERS retirees and beneficiaries. Further provides that only funds attributable to HBPOL shall be used to pay COLAs to HBPOL retirees and beneficiaries after the funds of the two systems are combined. EMPLOYER CONTRIBUTION RATES Present law provides that employer contribution rates for HBPOL are capped at 20% of the earned compensation of the members in any one year. Provides that no further sums must be transferred to the retirement system in the event the payment from the employer is not sufficient to provide the retirement allowances and other benefits payable from the fund. Proposed law provides that after LASERS assumes administration of HBPOL, the employer contribution rate shall be calculated pursuant to the laws governing LASERS employer contribution rates. Further removes the 20% employer contribution cap. Present law, relative to LASERS employer contribution rates, provides for particularized contribution rates for plans within LASERS, such as the Hazardous Duty Services Plan. Proposed law provides for particularized contribution rates for HBPOL and for plans within LASERS. Present law for LASERS provides that part of the employer contribution rate is an amount to cover "shared" unfunded liabilities of the system. Such "shared" liability is comprised of two elements: (1) the unfunded liabilities of the system existing as of June 30, 2010, and (2) the unfunded liabilities system accrued after June 30, 2010, that are independent of the existence of the plans within LASERS (for example, losses incurred if the system does not achieve its actuarially assumed rate of return). HLS 14RS-387 ORIGINAL HB NO. 79 Page 14 of 14 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Proposed law provides that the HBPOL contribution rate shall not include any shared UAL incurred on or before July 1, 2015 until the earlier of: (1)July 1, 2022. (2)The date all sums owed to LASERS by the Port of New Orleans pursuant to the terms and conditions of the cooperative endeavor agreement provided for in proposed law are paid in full. FUNDS OF THE SYSTEM Present law provides for the maintenance of HBPOL funds by the system. Proposed law provides that after the cooperative endeavor agreement provided for in proposed law is executed, the assets of HBPOL shall be transferred to LASERS and shall become a part of the LASERS trust to be managed in accordance with LASERS law. Requires such funds to be kept in a notional account. Prohibits debiting of the account to pay allocations to LASERS debt required by present law (R.S. 11:102.1) and further prohibits debiting of the account to divert funds to the LASERS experience account. Provides that the notional account shall be credited with interest each year at the actuarial rate of return earned by LASERS. Provisions relating to the assumption of administration of HBPOL by LASERS become effective June 30, 2015. All other provisions, including enrollment of new hires in the Hazardous Duty Plan of LASERS, become effective July 1, 2014. (Amends R.S.11:102(C)(1)(intro. para.), (2), (3), and (4)(b), 511(5) and (6), 3682(7) and (16), 3683(1), 3688(E), 3688.1(B), and 3690(B)(1) and (C); Adds R.S. 11:612(2.1), 620.1, 631, and 3688(A)(13); Repeals R.S. 11:3688(B))