2014 REGULAR SESSION
ACTUARIAL NOTE S CR 5
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Senate Concurrent Resolution 5
SLS 14RS-200
Enrolled
Author: Senator Elbert L. Guillory
Date: May 28, 2014
LLA Note S CR 5.02
Organizations Affected:
Congress of the United States
EN 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 SCR 5 provides compliance
with the requirements of R.S. 24:521.
Bill Header: CONGRESS. Memorializes Congress to reduce or eliminate the reductions in federal law applicable to social security
benefits for those receiving public retirement system benefits.
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 CR 5
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Bill Information:
Current Law
The Congress of the United States of America established the Government Pension Offset (GPO) and the Windfall Elimination
Provision (WEP) which reduce Social Security benefits for any person who also receives a public pension benefit.
The GPO formula reduces the spousal or survivor Social Security benefit by two-thirds of the amount of the federal, state, or local
government retirement or pension benefit received by the spouse or survivor.
The WEP reduces the earned Social Security benefit using an averaged indexed monthly earnings formula and may reduce Social
Security benefits for affected persons by as much as one-half of the retirement benefit earned as a public servant in employment
not covered under Social Security.
Proposed Law
SCR 5 requests the Congress of the United States of America to review the Government Pension Offset and the Windfall
Elimination Provision Social Security benefit reductions and to consider eliminating or reducing them by enacting the Social
Security Fairness Act of 2013.
Implications of the Proposed Changes
SCR 5 memorializes Congress to reduce or eliminate the reductions in federal law applicable to social security benefits, such as
the GPO and WEP, for those receiving public retirement system benefits.
Cost Analysis:
Analysis of Actuarial Costs
Retirement Systems
There are no actuarial costs associated with SCR 5.
Other Post Retirement Benefits
There are no actuarial costs associated with SCR 5 for post-employment benefits other than pensions.
Analysis of Fiscal Costs
SCR 5 will have no effect on fiscal costs during the five year measurement period.
Actuarial Data, Methods and Assumptions
Not applicable.
Actuarial Caveat
There is nothing in S CR 5 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.
Dual Referral:
Senate House
13.5.1: Annual Fiscal Cost ≥ $100,000 6.8(F)(1): Annual State Fiscal Cost ≥ $100,000
13.5.2: Annual Tax or Fee Change ≥ $500,000 6.8(F)(2): Annual State Revenue Reduction ≥ $500,000
6.8(G): Annual Tax or Fee Change ≥ $500,000