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 48 Engrossed 2015 Regular Session Thibaut
Abstract: Authorizes certain statewide retirement systems to fund cost-of-living increases from
amounts accumulated in the system's Funding Deposit Account.
Present law (R.S. 11:105 - 107) authorizes certain statewide retirement systems to modify employer
contribution rates in certain circumstances. While specific authorizations differ by system, generally
the systems are given the authority to:
(1)Hold employer contribution rates at last year's higher level.
(2)Set the employer contribution rate up to 3% above the recommended rate.
(3)Set the employer contribution rate somewhere between the new lower rate and last year's
higher rate.
Further requires that any monies collected from such increase be used in the following order:
(1)Pay down system UAL.
(2)Decrease employer contribution rates.
Proposed law retains present law.
Present law (R.S. 11:107.1) establishes a funding deposit account within each of the following
retirement systems:
(1)Assessors' Retirement
(2)Clerks' of Court
(3)Municipal Employees'
(4)Parochial Employees'
(5)Registrars of Voters'
Funds collected through exercise of present law authority to increase employer contribution rates are deposited into these funding deposit accounts. Present law authorizes the named systems to use
funds in their account to pay system UAL or decrease employer contribution rates. Proposed law
retains present law.
Proposed law further authorizes such systems to use account balances to pay cost-of-living
adjustments (COLAs). Requires payments made pursuant to proposed law to comply with present
law requirements and restrictions on payment of COLAs.
Effective June 30, 2015.
(Adds R.S. 11:107.1(D)(4))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Retirement to the original bill:
1. Authorize each statewide retirement system with a funding deposit account rather than
just the Assessors' Retirement Fund to use account funds to pay cost-of-living
adjustments.