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Regular Session, 2014 ENROLLED
SENATE BILL NO. 16
BY SENATOR GUILLORY AND REPRESENTATIVE ROBIDEAUX AND SENATORS
ALARIO, APPEL, BROOME, BROWN, BUFFINGTON, CHABERT,
CORTEZ, CROWE, DONAHUE, DORSEY-COLOMB, HEITMEIER,
JOHNS, KOSTELKA, LONG, MILLS, MURRAY, NEVERS,
PEACOCK, RISER, GARY SMITH, JOHN SMITH, WALSWORTH
AND WHITE AND REPRESENTATIVES ARMES, BADON,
BARROW, BERTHELOT, BILLIOT, WESLEY BISHOP,
BROADWATER, BROWN, HENRY BURNS, TIM BURNS,
BURRELL, CARMODY, CHANEY, COX, DOVE, EDWARDS,
GAINES, GISCLAIR, GREENE, GUILLORY, HARRIS, HARRISON,
HAVARD, HAZEL, HILL, HOFFMANN, HUNTER, HUVAL,
KATRINA JACKSON, JEFFERSON, JONES, KLECKLEY, NANCY
LANDRY, LEBAS, LOPINTO, MACK, MILLER, MONTOUCET, JAY
MORRIS, JIM MORRIS, ORTEGO, POPE, PRICE, RICHARD,
RITCHIE, SCHEXNAYDER, SEABAUGH, SHADOI N, ST.
GERMAIN, THIBAUT, THIERRY, THOMPSON, WHI TNEY,
PATRICK WILLIAMS AND WILLMOTT
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
retired at least one year regardless of age; to beneficiaries of retirees who would have met18
the applicable criteria to receive the increase if they had survived; and to nonretiree19
beneficiaries who have been receiving benefits for at least a year and whose benefits are20
ACT No. 101 SB NO. 16 ENROLLED
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derived from service of deceased members who would have attained age sixty. The1
legislature further finds that any increase payable in 2014 shall be calculated on the first2
ninety-four thousand three hundred thirteen dollars of a retirement benefit only.3
Section 3. The legislature finds that, in accordance with the provisions of R.S.4
11:1332, the board of trustees of the Louisiana State Police Retirement System is expected5
to send a resolution recommending to the president of the Senate and the speaker of the6
House of Representatives that the legislature grant a permanent benefit increase to the7
eligible retirees and beneficiaries of the system in accordance with the provisions of R.S.8
11:1332 and Article X, Section 29(F) of the Constitution of Louisiana.9
Section 4. The legislature finds that the resolution presented to the presiding officers10
of this body is expected to contain a recitation of the statutorily-required conditions and11
specification of the satisfaction of each as follows:12
(A) For the plan year that ended June 30, 2013, the Louisiana State Police13
Retirement System earned an actuarial rate of return of sixteen and seventy-seven one-14
hundredths percent, which exceeded the board-approved actuarial valuation rate of seven15
percent.16
(B) For any year in which the system's rate of return is at least seven percent, R.S.17
11:1332(C) provides that a permanent benefit increase shall not exceed the lesser of three18
percent or the increase in the consumer price index, U.S. city average for all urban19
consumers, as prepared by the U.S. Department of Labor, Bureau of Labor Statistics, for the20
calendar year immediately preceding the increase.21
(C) The system actuary has determined that the actuarial liability created by22
providing a permanent base benefit increase of one percent is approximately three million23
one hundred thirty-one thousand dollars. The system actuary has determined that the24
actuarial liability created by providing a permanent supplemental benefit increase pursuant25
to R.S. 11:1332(F) is approximately three million eight hundred sixty-two thousand dollars.26
The system actuary computed the balance in the experience account to be over eighteen27
million dollars, an amount sufficient to fund a base benefit increase up to three percent and28
a supplemental increase pursuant to R.S. 11:1332(F).29
Section 5. The legislative auditor has confirmed that the legislative auditor's actuary30 SB NO. 16 ENROLLED
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is in the process of determining whether he agrees with the determinations of the system1
actuary. 2
Section 6. The consumer price index, U.S. city average for all urban consumers, as3
prepared by the U.S. Department of Labor, Bureau of Labor Statistics, for the 2013 calendar4
year, released January 16, 2014, was determined to be one and one-half of one percent,5
which does not exceed three percent.6
Section 7.(A) Contingent upon satisfaction of all necessary conditions contained in7
R.S. 11:1332, the first ninety-four thousand three hundred thirteen dollars of the current8
benefit of each retiree and beneficiary of the Louisiana State Police Retirement System who9
meets the eligibility criteria contained in the statute and recited herein shall be increased by10
the applicable 2013 consumer price index of one and one-half of one percent effective July11
1, 2014.12
(B) Contingent upon satisfaction of all necessary conditions contained in R.S.13
11:1332(F), each retiree and beneficiary of the Louisiana State Police Retirement System14
who meets the eligibility criteria contained in the statute shall receive the supplemental15
increase pursuant to R.S. 11:1332(F).16
Section 8. If any of the instruments which originated as Senate Bill No. 18, Senate17
Bill No. 19, Senate Bill No. 21, or House Bill No. 1225 of the 2014 Regular Session of the18
Legislature does not become effective, this Act shall be null and void and of no effect.19
Section 9. This Act shall become effective on June 30, 2014; if vetoed by the20
governor and subsequently approved by the legislature, this Act shall become effective on21
June 30, 2014, or on the day following such approval by the legislature, whichever is later.
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: