2015 REGULAR SESSION
ACTUARIAL NOTE HB 46
Page 1 of 3
House Bill 46 HLS 15RS-385
Enrolled
Author: Representative Gene
Reynolds
Date: May 28, 2015
LLA Note HB 46.03
Organizations Affected:
Louisiana State Employees’
Retirement System
EN INCREASE APV
This Note has been prepared by the Actuarial Services Department of the Office of
the Legislative Auditor. The attachment of this Note to HB 46 provides
compliance with the requirements of R.S. 24:521
Bill Header: RETIREMENT/STATE EMPS: Provides relative to benefits for minor children of certain wildlife agents in the
enforcement division of the Department of Wildlife and Fisheries.
Cost Summary:
The estimated actuarial and fiscal impact of the proposed legislative 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 to Retirement Systems Increase
Total Five Year Fiscal Cost
Expenditures Increase
Revenues Increase
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.
Change in the
Actuarial Cost to: Actuarial Present Value
All Louisiana Public Retirement Systems Increase
Other Post Retirement Benefits $0
Total Increase
Estimated Fiscal Impact:
The chart below shows the estimated fiscal impact of the proposed legislation. This represents the effect on cash flows for the
retirement systems and other government entities.. Fiscal costs include estimated administrative costs and costs associated with other
fiscal concerns. A fiscal cost is denoted by “Increase” or a positive number. Actuarial or fiscal savings are denoted by “Decrease” or
a negative number.
EXPENDITURES 2015-16 2016-17 2017-18 2018-19 2019-2020 5 Year Total
State General Fund Increase Increase Increase Increase Increase Increase
Agy Self Generated Increase Increase Increase Increase Increase Increase
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 Increase Increase Increase Increase Increase Increase
REVENUES 2015-16 2016-17 2017-18 2018-19 2019-2020 5 Year Total
State General Fund $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Agy Self Generated Increase Increase Increase Increase Increase Increase
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 Increase Increase Increase Increase Increase Increase
2015 REGULAR SESSION
ACTUARIAL NOTE HB 46
Page 2 of 3
Bill Information:
Current Law
A child under 18 years of age of a deceased member of the Wildlife and Fisheries sub plan of the Louisiana State Employees
Retirement System (LASERS) is entitled to a survivor benefit under certain circumstances.
Survivor benefits payable to parents of the deceased member, the surviving spouse, and other surviving children under 18 years of
age also depend on the existence of the child under 18 years of age, or the second or third child also under 18 years of age.
Proposed Law
Under HB 46, the phrase “child under 18 years of age” has been replaced by “minor child”. A minor child is defined as an
unmarried child under the age of 18 or an unmarried student under the age of 23.
Implications of the Proposed Changes
Under HB 46, the number of children of decreased members of the Wildlife and Fisheries sub plan of LASERS who may be
entitled to survivor benefits has been expanded. The period of time for which survivor benefits may be to a child has been
extended.
Cost Analysis:
Analysis of Actuarial Costs
HB 46 contains benefit provisions having an actuarial cost.
Retirement Systems
Under current law, survivor benefits are paid to children of a deceased member who are under 18 years of age. Under HB 46,
more children will be entitled to survivor benefits and survivor benefits will be payable to a child until he is 23 years of age if
he is also a student.
LASERS had 94 minor children receiving survivor benefits on June 30, 2014. The average monthly benefit was $2,194. The
present value cost of providing benefits to one child for an additional 5 years from age 18 to 23 is about $100,000.
Currently no minor children are receiving survivor benefits under the Wildlife and Fisheries sub-plan. However, for each
child that would receive survivor benefits under HB 46 that would not have received survivor benefits under current law,
retirement plan costs are estimated to increase about $100,000.
Other Post-Employment Benefits
There are no actuarial costs associated with HB 46 for post-employment benefits other than pensions.
Analysis of Fiscal Costs
HB 46 will have the following effects on fiscal costs during the five year measurement period.
Expenditures:
1. Expenditures from the General Fund will increase to the extent that employer contributions increase to cover any costs
resulting from HB 46.
2. Expenditures from LASERS (Agy Self-Generated) will increase to the extent that qualifying minor children of certain
wildlife agents will receive survivor benefits for a longer period than they would have otherwise.
Revenues:
LASERS revenues (Agy Self-Generated) will increase to the extent that employer contributions will be larger to
accommodate the estimated increase in costs.
Fiscal expenditures are unlikely to exceed $100,000 for any of the three years immediately following the 2015 legislative session.
According to LASERS, administrative costs associated with HB 46 are expected to be $0.
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 adopted by PRSAC.
2015 REGULAR SESSION
ACTUARIAL NOTE HB 46
Page 3 of 3
Actuarial Caveat
There is nothing in HB 46 that will compromise the signing actuary’s ability to present an unbiased statement of actuarial opinion.
Actuarial Credentials:
Paul T. Richmond is the actuary 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 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