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Regular Session, 2014
SENATE BILL NO. 14
BY SENATOR GUILLORY
SCHOOL EMPLOYEES RET. Provides for the determination of system liabilities and the
payment therefor. (6/30/14)
AN ACT1
To amend and reenact R.S. 11:102(B)(3)(d)(vi), relative to the liabilities of the Louisiana2
School Employees' Retirement System; to provide for payment of such liabilities; to3
provide for employer contributions; to provide for an effective date; and to provide4
for related matters.5
Notice of intention to introduce this Act has been published.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 11:102(B)(3)(d)(vi) is hereby amended and reenacted to read as8
follows: 9
ยง102. Employer contributions; determination; state systems10
* * *11
B.(1) * * *12
(3) With respect to each state public retirement system, the actuarially13
required employer contribution for each fiscal year, commencing with Fiscal Year14
1989-1990, shall be that dollar amount equal to the sum of:15
* * *16
(d) That fiscal year's payment, computed as of the first of that fiscal year and17 SB NO. 14
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projected to the middle of that fiscal year at the actuarially assumed interest rate,1
necessary to amortize changes in actuarial liability due to:2
* * *3
(vi) (aa) Except as provided in Subitem (bb) of this Item, Effective4
effective July 1, 2004, and beginning with Fiscal Year 2000-2001, the amortization5
period for the changes, gains, or losses of the Louisiana School Employees'6
Retirement System provided in Items (i) through (iv) of this Subparagraph and for7
any changes, gains, or losses attributable to the cash balance plan shall be thirty8
years, or in accordance with standards promulgated by the Governmental Accounting9
Standards Board, from the year in which the change, gain, or loss occurred. The10
outstanding balances of amortization bases established pursuant to Items (i) through11
(iv) of this Subparagraph before Fiscal Year 2000-2001, shall be amortized as a level12
dollar amount from July 1, 2004, through June 30, 2029. Beginning with Fiscal Year13
2003-2004, and for each fiscal year thereafter, the outstanding balances of14
amortization bases established pursuant to Items (i) through (iv) of this Subparagraph15
shall be amortized as a level dollar amount.16
(bb) All outstanding amortization bases in existence on June 30, 2014,17
including outstanding balances established pursuant to Subparagraph (c) of this18
Paragraph, shall be consolidated and reamortized over the period ending June19
30, 2044, with level dollar payments, effective with the June 30, 2014, valuation.20
This Subsection shall not apply to amortization bases established after June 30,21
2014.22
* * *23
Section 2. This Act shall take effect and become operative if and when the Act24
which originated as House Bill No. 42 of this 2014 Regular Session of the Legislature is25
enacted and becomes effective.26
Section 3. This Act shall become effective on June 30, 2014; if vetoed by the27
governor and subsequently approved by the legislature, this Act shall become effective on28
June 30, 2014, or on the day following such approval by the legislature, whichever is later.29 SB NO. 14
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
The original instrument was prepared by Margaret M. Corley. The following
digest, which does not constitute a part of the legislative instrument, was
prepared by Martha Hess.
DIGEST
Guillory (SB 14)
Present law, relative to the Louisiana School Employees' Retirement System (LSERS),
provides for payments for liabilities of the system to be amortized over a 30-year period
from the year in which the liability occurred.
Present law provides for level dollar payments for all amortization bases except those for
fiscal years 2000-2001, 2001-2002, and 2002-2003. Provides for increasing payments for
the bases created in the three listed fiscal years.
Proposed law provides for all outstanding amortization bases of LSERS to be consolidated
and reamortized over a 30-year period with level dollar payments.
Effective if and when HB 42 of the 2014 RS is enacted and becomes effective.
Effective June 30, 2014.
(Amends R.S. 11:102(B)(3)(d)(vi))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Finance to the
engrossed bill
1. Technical amendments.
2. Effective if and when HB 42 of 2014 RS is enacted and becomes effective.