DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of the
legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law
or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 44 Engrossed 2015 Regular Session Miller
Abstract: Requires an employer in the Municipal Police Employees' Retirement System (MPERS)
that terminates participation in the system by dissolving its police department, either fully
or partially, to remit to the system any portion of UAL attributable to its prior participation.
Present law (R.S. 11:2211 et seq.) establishes MPERS to provide pension benefits for retirees and
beneficiaries of full-time municipal police officers and chiefs of police.
Proposed law requires any municipality who fully or partially terminates participation in MPERS,
through complete dissolution of its police force or though salary cuts of more than 30% to its
existing police force, to pay to the system any UAL attributable to its prior participation. In the event
of full termination, proposed law requires payment of the employer's portion of the UAL existing
on the June 30th immediately prior to the date of termination, including interest at the system's
valuation rate. Proposed law defines partial termination as a fiscal-year over fiscal-year decrease of
more than 30% in the salaries upon which contributions are made to the system. In such event, the
employer is liable for a pro rata portion of the system's UAL, calculated by applying the percentage
decrease in fiscal-year over fiscal-year salaries upon which contributions are made to the total
payment that would be required in the event of a full termination.
Proposed law requires the system actuary to determine amounts due. Further authorizes the
terminating employer to pay the amount due in a lump sum or over a 10 year period in equal monthly
payments with interest at the system's actuarial valuation rate.
Proposed law authorizes the system to collect delinquent amounts due pursuant to proposed law in
one of two ways:
(1)By filing an action against the delinquent employer in a court of competent jurisdiction.
Provides that the amount due shall be collected with interest at the system's actuarial
valuation rate, compounded annually.
(2)By certifying to the state treasurer the name of the delinquent employer and the amount due.
Upon receipt of such certification, the treasurer shall deduct from monies payable to the
delinquent party the delinquent amount and remit such amount directly to MPERS.
Present law (R.S. 11:2231) defines "employer" for the purposes of MPERS law as "any municipality
in the state which employs a full-time police officer, empowered to make arrests, or which has an
elected chief of police whose salary is at least $180 per month, and the Municipal Police Employees' Retirement System." Proposed law provides that for the purposes of proposed law only, the term
"employer" shall have the same meaning as in present law and include any municipality that
terminates participation pursuant to proposed law.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Adds R.S. 11:2225.4)