2014 REGULAR SESSION
ACTUARIAL NOTE S B 24
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Senate Bill 24 SLS 14RS-121
Original
Author: Senator Elbert L. Guillory
Date: March 16, 2014
LLA Note S B 24.01
Organizations Affected:
Sheriffs’ Pension and Relief Fund
OR NO IMPACT APV
The Note was prepared by the Actuarial Services Department of the Office of the
Legislative Auditor. The attachment of the Note to S B 24 provides compliance
with the requirements of R.S. 24:521.
Bill Header: SHERIFFS PEN/RELIEF FUND. Provides designations and terms of office for members of the board of trustees.
(6/30/14)
Cost Summary:
The estimated actuarial and fiscal impact of the proposed legislation is summarized below. Actuarial costs pertain to changes in the
actuarial present value of future benefit payments. A cost is denoted by “Increase” or a positive number. Savings are denoted by
“Decrease” or a negative number.
Actuarial Cost/(Savings) to Retirement Systems and OGB $0
Total Five Year Fiscal Cost
Expenditures $0
Revenues $0
Estimated Actuarial Impact:
The chart below shows the estimated change in the actuarial present value of future benefit payments, if any, attributable to the
proposed legislation. A cost is denoted by “Increase” or a positive number. Savings are denoted by “Decrease” or a negative number.
Present value costs associated with administration or other fiscal concerns are not included in these values.
Increase (Decrease) in
Actuarial Cost (Savings) to: The Actuarial Present Value
All Louisiana Public Retirement Systems $0
Other Post Retirement Benefits $0
Total $0
Estimated Fiscal Impact:
The chart below shows the estimated fiscal impact of the proposed legislation. This represents the effect on cash flows for
government entities including the retirement systems and the Office of Group Benefits. Fiscal costs include estimated administrati ve
costs and costs associated with other fiscal concerns. A fiscal cost is denoted by “Increase” or a positive number. F iscal savings are
denoted by “Decrease” or a negative number.
EXPENDITURES 2014-15 2015-16 2016-17 2017-2018 2018-2019 5 Year Total
State General Fund $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Agy Self Generated 0 0 0 0 0 0
Stat Deds/Other 0 0 0 0 0 0
Federal Funds 0 0 0 0 0 0
Local Funds 0 0 0 0 0 0
Annual Total $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
REVENUES 2014-15 2015-16 2016-17 2017-2018 2018-2019 5 Year Total
State General Fund $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Agy Self Generated 0 0 0 0 0 0
Stat Deds/Other 0 0 0 0 0 0
Federal Funds 0 0 0 0 0 0
Local Funds 0 0 0 0 0 0
Annual Total $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
2014 REGULAR SESSION
ACTUARIAL NOTE S B 24
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Dual Referral:
Senate House
13.5.1: Annual Fiscal Cost ≥ $100,000 6.8(F)(1): Annual Fiscal Cost ≥ $100,000
13.5.2: Annual Tax or Fee Change ≥ $500,000 6.8(F)(2): Annual Revenue Reduction ≥ $100,000
6.8(G): Annual Tax or Fee Change ≥ $500,000
Bill Information:
Current Law
Current law states that the board of trustees for the Sheriffs’ Pension and Relief Fund (SPRF) consists of fourteen members
determined in the following manner.
1. One member, who is an active or retired sheriff and elected by the members of the Louisiana Sheriffs’ Association as
president, for a term of two years from the date of taking office.
2. Three members, who are active participating sheriff members of the fund and elected by the Louisiana Sheriffs’
Association at the annual general membership meetings, for a term of three years. One member elected at each meeting.
3. Three members, who are former sheriffs who are recipients of either a service or disability retirement benefit from the
fund and elected by the Louisiana Sheriffs’ Association at the annual general membership meeting, for a term of three
years. One member elected at each meeting.
4. Three members who are active full-time deputy sheriffs and are participating members of the fund.
5. Three members who are retired deputy sheriffs and are recipients of either a service or disability retirement benefit from
the fund.
6. One member, who is an active sheriff and is a participating member of the fund or a former sheriff who is retired and is a
recipient of the fund, elected by the members of the Louisiana Sheriffs’ Association. This member shall be designated as
secretary-treasurer with a term of one year.
Proposed Law
Under SB 24, the member who is elected as the secretary-treasurer will be designated as the vice president.
SB 24 specifies a term of three years for the president and vice president of the board of trustees.
Implications of the Proposed Changes
As a result of SB 24, the term secretary-treasurer will be changed to vice president, and the term of office for the president and
vice president will be changed to three years.
Cost Analysis:
Analysis of Actuarial Costs
Retirement Systems
There are no actuarial costs associated with SB 24.
Other Post-Employment Benefits
SB 24 has no effect on actuarial costs associated with post-employment benefits other than pensions.
Analysis of Fiscal Costs
There are no fiscal costs associated with SB 24.
Actuarial Data, Methods and Assumptions
This actuarial note was prepared using actuarial data, methods, and assumptions as disclosed in the most recent actuarial valuation
report approved by PRSAC. The actuary signing this note may or may not agree with or endorse these assumptions. He is using
this data, methods and assumptions to provide consistency with the actuary for the retirement systems who also may be providing
testimony to the Senate and House retirement committees.
2014 REGULAR SESSION
ACTUARIAL NOTE S B 24
Page 3 of 3
Actuarial Caveat
There is nothing in S B 24 that will compromise the signing actuary’s ability to present an unbiased statement of actuarial opinion.
Actuarial Credentials:
Paul T. Richmond is the Manager of Actuarial Services for the Louisiana Legislative Auditor. He is an Enrolled Actuary, a
member of the American Academy of Actuaries, a member of the Society of Actuaries and has met the Qualification Standards of
the American Academy of Actuaries necessary to render the actuarial opinion contained herein.