Page 1 of 3
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2014 ENROLLED
SENATE BILL NO. 19
BY SENATOR GUILLORY AND REPRESENTATIVE ROBIDEAUX AND SENATORS
ADLEY, ALARIO, ALLAIN, APPEL, BROOME, BROWN,
BUFFINGTON, CHABERT, CORTEZ, CROWE, DONAHUE,
DORSEY-COLOMB, ERDEY, HEITMEIER, JOHNS, KOSTELKA,
LAFLEUR, LONG, MARTINY, MILLS, MURRAY, NEVERS,
PEACOCK, PERRY, RISER, GARY SMITH, JOHN SMITH, TARVER,
THOMPSON, WAL SWORTH, WARD AND WHI TE AND
REPRESENTATIVES ARMES, ARNOLD, BADON, BARROW,
BERTHELOT, BILLIOT, WESLEY BISHOP, BROADWATER,
BROWN, BURFORD, HENRY BURNS, TIM BURNS, BURRELL,
CARMODY, CHANEY, CONNICK, COX, DOVE, EDWARDS,
GAINES, GISCLAIR, GREENE, GUILLORY, HARRIS, HARRISON,
HAVARD, HAZEL, HILL, HODGES, HOFFMANN, HONORE,
HOWARD, HUNTER, HUVAL, IVEY, JEFFERSON, JOHNSON,
JONES, KLECKLEY, LAMBERT, NANCY LANDRY, TERRY
LANDRY, MACK, MILLER, MONTOUCET, JAY MORRI S, JIM
MORRIS, NORTON, ORTEGO, PEARSON, PIERRE, POPE, PRICE,
RICHARD, RITCHIE, SCHEXNAYDER, SEABAUGH, SHADOI N,
ST. GERMAIN, STOKES, THIBAUT, THIERRY, WHITNEY,
PATRICK WILLIAMS, WILLMOTT AND WOODRUFF
AN ACT1
To grant a permanent benefit increase to retirees and beneficiaries of the Louisiana School2
Employees' Retirement System in conformity with the statutory provisions governing3
the 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 School7
Employees' Retirement System was created for the purpose of accumulating money8
sufficient to provide actuarial funding of permanent post-retirement benefit increases for9
certain retirees and beneficiaries of the system. The legislature further finds that the10
experience account is credited with a portion of the system's investment gain in excess of11
certain thresholds and with interest on funds in the account; provided, however, that the12
amount in the experience account shall in no event exceed the reserve necessary to grant two13
permanent benefit increases.14
ACT No. 103 SB NO. 19 ENROLLED
Page 2 of 3
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Section 2. The legislature finds that permanent benefit increases funded by the1
experience account monies are payable to regular retirees who have been retired for at least2
one year and who have attained the age of sixty years; to disability retirees who have been3
retired at least one year regardless of age; to beneficiaries of retirees who would have met4
the applicable criteria to receive the increase if they had survived; and to non-retiree5
beneficiaries who have been receiving benefits for at least a year and whose benefits are6
derived from service of deceased members who would have attained age sixty. The7
legislature further finds that any increase payable in 2014 shall be calculated on the first8
ninety-four thousand three hundred thirteen dollars of a retirement benefit only.9
Section 3. The legislature finds that, in accordance with the provisions of R.S.10
11:1145.1, the board of trustees of the Louisiana School Employees' Retirement System has11
recommended to the president of the Senate and the speaker of the House of Representatives12
that the legislature grant a permanent benefit increase to the eligible retirees and13
beneficiaries of the system in accordance with the provisions of R.S. 11:1145.1 and Article14
X, Section 29(F) of the Constitution of Louisiana.15
Section 4. The legislature finds that the recommendation presented to the presiding16
officers of this body contained a recitation of the statutorily-required conditions and17
specification of the satisfaction of each as follows:18
(A) The Louisiana School Employees' Retirement System earned an actuarial rate19
of return of twelve and four one-hundredths percent which exceeded the board-approved20
actuarial valuation rate of seven and one-half percent on June 30, 2013.21
(B) For any year in which the system's rate of return is at least seven and one-half22
percent, R.S. 11:1145.1(C) provides that a permanent benefit increase shall not exceed the23
lesser of three percent or the increase in the consumer price index, U.S. city average for all24
urban consumers, as prepared by the U.S. Department of Labor, Bureau of Labor Statistics,25
for the calendar year immediately preceding the increase.26
(C) The system actuary has determined that the actuarial liability created by27
providing a permanent benefit increase of one percent is approximately ten million six28
hundred forty thousand dollars. The system actuary computed the balance in the experience29
account to be over thirty-one million dollars, an amount sufficient to fund a benefit increase30 SB NO. 19 ENROLLED
Page 3 of 3
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
up to two and nine-tenths percent on an actuarial basis.1
Section 5. The legislative auditor has confirmed that the legislative auditor's actuary2
is in the process of determining whether he agrees with the determinations of the system3
actuary. 4
Section 6. The consumer price index, U.S. city average for all urban consumers, as5
prepared by the U.S. Department of Labor, Bureau of Labor Statistics, for the 2013 calendar6
year, released January 16, 2014, was determined to be one and one-half of one percent.7
Section 7. Contingent upon satisfaction of all necessary conditions contained in R.S.8
1145.1, the first ninety-four thousand three hundred thirteen dollars of the current benefit of9
each retiree and beneficiary of the Louisiana School Employees' Retirement System who10
meets the eligibility criteria contained in the statute and recited herein shall be increased by11
the applicable 2013 consumer price index of one and one-half of one percent effective July12
1, 2014.13
Section 8. If any of the instruments which originated as Senate Bill No. 16, Senate14
Bill No. 18, Senate Bill No. 21, or House Bill No. 1225 of the 2014 Regular Session of the15
Legislature does not become effective, this Act shall be null and void and of no effect.16
Section 9. This Act shall become effective on June 30, 2014; if vetoed by the17
governor and subsequently approved by the legislature, this Act shall become effective on18
June 30, 2014, or on the day following such approval by the legislature, whichever is later.19
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: