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Regular Session, 2014
SENATE BILL NO. 16
BY SENATOR GUILLORY AND REPRESENTATIVE ROBIDEAUX AND SENATORS
CORTEZ, CROWE, KOSTELKA, LONG, PEACOCK, GARY SMITH,
JOHN SMITH AND WALSWORTH AND REPRESENTATIVES
HENRY BURNS, BURRELL, GUILLORY, HAZEL, HILL, PRICE
AND RICHARD
STATE POLICE RET FUND. Grants a permanent benefit increase to eligible retirees in
accordance with statutory procedure. (2/3 - CA10s29(F))(6/30/14)
AN ACT1
To grant a permanent benefit increase to retirees and beneficiaries of the Louisiana State2
Police Retirement System in conformity with the statutory provisions governing the3
system's experience account.4
Notice of intention to introduce this Act has been published.5
Be it enacted by the Legislature of Louisiana:6
Section 1. The legislature finds that the experience account of the Louisiana State7
Police Retirement System was created for the purpose of accumulating money sufficient to8
provide actuarial funding of permanent post-retirement benefit increases for certain retirees9
and beneficiaries of the system. The legislature further finds that the experience account is10
credited with a portion of the system's investment gain in excess of certain thresholds and11
with interest on funds in the account; provided, however, that the amount in the experience12
account shall in no event exceed the reserve necessary to grant two permanent benefit13
increases.14
Section 2. The legislature finds that permanent benefit increases funded by the15
experience account monies are payable to regular retirees who have been retired for at least16
one year and who have attained the age of sixty years; to disability retirees who have been17 SB NO. 16
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retired at least one year regardless of age; to beneficiaries of retirees who would have met1
the applicable criteria to receive the increase if they had survived; and to nonretiree2
beneficiaries who have been receiving benefits for at least a year and whose benefits are3
derived from service of deceased members who would have attained age sixty. The4
legislature further finds that any increase payable in 2014 shall be calculated on the first5
ninety-four thousand three hundred thirteen dollars of a retirement benefit only.6
Section 3. The legislature finds that, in accordance with the provisions of R.S.7
11:1332, the board of trustees of the Louisiana State Police Retirement System is expected8
to send a resolution recommending to the president of the Senate and the speaker of the9
House of Representatives that the legislature grant a permanent benefit increase to the10
eligible retirees and beneficiaries of the system in accordance with the provisions of R.S.11
11:1332 and Article X, Section 29(F) of the Constitution of Louisiana.12
Section 4. The legislature finds that the resolution presented to the presiding officers13
of this body is expected to contain a recitation of the statutorily-required conditions and14
specification of the satisfaction of each as follows:15
(A) For the plan year that ended June 30, 2013, the Louisiana State Police16
Retirement System earned an actuarial rate of return of sixteen and seventy-seven one-17
hundredths percent, which exceeded the board-approved actuarial valuation rate of seven18
percent.19
(B) For any year in which the system's rate of return is at least seven percent, R.S.20
11:1332(C) provides that a permanent benefit increase shall not exceed the lesser of three21
percent or the increase in the consumer price index, U.S. city average for all urban22
consumers, as prepared by the U.S. Department of Labor, Bureau of Labor Statistics, for the23
calendar year immediately preceding the increase.24
(C) The system actuary has determined that the actuarial liability created by25
providing a permanent base benefit increase of one percent is approximately three million26
one hundred thirty-one thousand dollars. The system actuary has determined that the27
actuarial liability created by providing a permanent supplemental benefit increase pursuant28
to R.S. 11:1332(F) is approximately three million eight hundred sixty-two thousand dollars.29 SB NO. 16
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The system actuary computed the balance in the experience account to be over eighteen1
million dollars, an amount sufficient to fund a base benefit increase up to three percent and2
a supplemental increase pursuant to R.S. 11:1332(F).3
Section 5. The legislative auditor has confirmed that the legislative auditor's actuary4
is in the process of determining whether he agrees with the determinations of the system5
actuary. 6
Section 6. The consumer price index, U.S. city average for all urban consumers, as7
prepared by the U.S. Department of Labor, Bureau of Labor Statistics, for the 2013 calendar8
year, released January 16, 2014, was determined to be one and one-half of one percent,9
which does not exceed three percent.10
Section 7. (A) Contingent upon satisfaction of all necessary conditions contained11
in R.S. 11:1332, the first ninety-four thousand three hundred thirteen dollars of the current12
benefit of each retiree and beneficiary of the Louisiana State Police Retirement System who13
meets the eligibility criteria contained in the statute and recited herein shall be increased by14
the applicable 2013 consumer price index of one and one-half of one percent effective July15
1, 2014.16
(B) Contingent upon satisfaction of all necessary conditions contained in R.S.17
11:1332(F), each retiree and beneficiary of the Louisiana State Police Retirement System18
who meets the eligibility criteria contained in the statute shall receive the supplemental19
increase pursuant to R.S. 11:1332(F).20
Section 8. If any of the instruments which originated as Senate Bill No. 18, Senate21
Bill No. 19, or Senate Bill No. 21 of the 2014 Regular Session of the Legislature does not22
become effective, this Act shall be null and void and of no effect.23
Section 9. This Act shall become effective on June 30, 2014; if vetoed by the24
governor and subsequently approved by the legislature, this Act shall become effective on25
June 30, 2014, or on the day following such approval by the legislature, whichever is later.26 SB NO. 16
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The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Margaret M. Corley.
DIGEST
Guillory (SB 16)
Present law, relative to the Louisiana State Police Retirement System (Troopers), provides
for the accumulation of certain system funds in an "experience account". Provides for
utilization of these funds for benefit increases, commonly called "cost-of-living adjustments"
(COLAs), for retirees, survivors, and beneficiaries of the system. Provides for determination
of eligibility for and the amount of an increase paid with these funds.
Present law provides for notification of the legislature by the Troopers' board of trustees that
the conditions for granting a COLA contained in present law have been met.
Present law requires the legislature to approve any COLA.
Proposed law retains present law and approves a COLA to be paid July 1, 2014, pursuant to
the provisions of present law.
Proposed law states that if any of the instruments which originated as Senate Bill No. 18,
Senate Bill No. 19, or Senate Bill No. 21 of the 2014 Regular Session of the Legislature does
not become effective, then proposed law shall be null and void and of no effect. These bills
are for the retirees of the Louisiana State Employees' Retirement System, Louisiana School
Employees' Retirement System, and Teachers' Retirement System of Louisiana.
Effective June 30, 2014.
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Retirement to the
original bill
1. Makes the COLA for the Troopers effective only if the COLA for the other
three state retirement systems are effective. The three other state retirement
systems are Louisiana State Employees' Retirement System, Teachers'
Retirement System of Louisiana, and School Employees' Retirement System
of Louisiana.