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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2014
SENATE BILL NO. 2
BY SENATOR MILLS
PAROCHIAL EMPLOYEES RET. Provides for the prospective termination of a hospital
district plan. (1/1/2015)
AN ACT1
To amend and reenact R.S. 11:1903(A)(2) and to enact R.S. 11:1903(F), relative to2
employer participation in the Parochial Employees' Retirement System; to provide3
relative to participating hospital districts; to provide for an effective date; and to4
provide 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. 11:1903(A)(2) is hereby amended and reenacted and R.S. 11:1903(F)8
is hereby enacted to read as follows:9
ยง1903. Admission of taxing districts; district indigent defender programs; soil and10
water conservation districts11
A. Any taxing district of a parish that qualifies as an employer pursuant to12
R.S. 11:1902(13) or any branch or section of a parish that qualifies as an employer13
pursuant to R.S. 11:1902(13) including a hospital district, water district, library,14
district indigent defender program in this state, or soil and water conservation district15
in this state is hereby authorized to submit for approval by the board of trustees a16
plan for extending the benefits of this Chapter to employees of such district. Each17 SB NO. 2
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
such plan or any amendment thereof shall be approved by the board of trustees if it1
finds that such plan, or such plan as amended, is in conformity with such2
requirements as are provided in regulations of the board of trustees, except that no3
such plan shall be approved unless:4
* * *5
(2) Except in the case of a prospective termination, (a) it provides that all6
services which are performed in the employ of the political subdivision or7
instrumentality, by any employees thereof, shall be covered by the plan; and8
(b) it extends benefits to all employees of the political subdivision or9
instrumentality;10
* * *11
F. (1) If any plan entered into by a hospital district under this Section is12
prospectively terminated, the hospital district which prospectively terminates13
its plan may not again begin participation for new employees in the system14
pursuant to this Section, unless approved by the board of trustees.15
(2) Prospective termination of a plan shall follow all notice and any other16
requirements of termination provided for in the plan agreement.17
(3) Notwithstanding any other provision of law to the contrary, if an18
employer prospectively terminates its agreement for coverage of its employees19
first hired after the effective date of the prospective termination, the employer20
shall remit to the system that portion of the unfunded actuarial accrued21
liability, if any, which is attributable to the employer's prospective termination.22
The amount required to be remitted pursuant to this Paragraph shall be23
determined as of the December thirty-first immediately prior to the date of24
termination. Such determination shall be made using the entry age normal25
actuarial funding method.26
(4) The amount due shall be determined by the actuary employed by the27
system and shall either be paid in a lump sum or amortized over ten years in28
equal monthly payments with interest at the system's actuarial valuation rate29 SB NO. 2
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
in the same manner as regular payroll payments to the system, at the option of1
the employer.2
(5) Should the employer fail to make payment timely, the amount due3
shall be collected in the same manner as authorized by Subsection D of this4
Section and R.S. 11:2014.5
Section 2. This Act shall become effective on January 1, 2015; if vetoed by the6
governor and subsequently approved by the legislature, this Act shall become effective on7
January 1, 2015, or on the day following such approval by the legislature, whichever is later.8
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Margaret M. Corley.
DIGEST
Proposed law provides for prospective termination of participation in the Parochial
Employees' Retirement System by a hospital service district.
Effective January 1, 2015.
(Amends R.S. 11:1903(A)(2); adds R.S. 11:1903(F))