2016 REGULAR SESSION
ACTUARIAL NOTE H B 14
Page 1 of 3
House Bill 14 HLS 16RS-51
Original
Author: Representative J. Kevin
Pearson
Date: April 6, 2016
LLA Note H B 14.01
Organizations Affected:
All State and Statewide Retirement
Systems
OR NO IMPACT APV
This Note has been prepared by the Actuarial Services Department of the Office of
the Legislative Auditor. The attachment of this Note to H B 14 provides
compliance with the requirements of R.S. 24:52 1
Bill Header: RETIREMENT/BDS – COMMISSIONS: Replaces the chairmen of the House and Senate committees on retirement
with the speaker of the House of Representatives and the president of the Senate as trustees on each state and statewide retirement
system board.
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 $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 o r other fiscal concerns are not included in these values.
Change in the
Actuarial Cost to: 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 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 2016-17 2017-18 2018-19 2019-2020 2020-2021 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 2016-17 2017-18 2018-19 2019-2020 2020-2021 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
2016 REGULAR SESSION
ACTUARIAL NOTE H B 14
Page 2 of 3
Bill Information:
Current Law
Current law establishes the following state and statewide retirement systems, plans, and funds:
1. Louisiana State Employees’ Retirement System (LASERS)
2. Teachers’ Retirement System of Louisiana (TRSL)
3. Louisiana School Employees’ Retirement System (LSERS)
4. Louisiana State Police Retirement System (STPOL)
5. Louisiana Assessors’ Retirement Fund (ASSR)
6. Clerks of Court Retirement and Relief Fund (CCRS)
7. District Attorneys’ Retirement System (DARS)
8. Firefighters’ Retirement System (FRS)
9. Municipal Employees’ Retirement System (MERS)
10. Municipal Police Employees’ Retirement System (MPERS)
11. Parochial Employees’ Retirement System (PERS)
12. Registrars of Voters Employees’ Retirement System (RVRS)
13. Sheriffs’ Pension and Relief Fund (SPRF)
Under current law, the chairmen of the House and Senate retirement committees serve as trustees on each board of the state and
statewide retirement systems.
Current law also authorizes the legislative ex officio trustees for each system, except the State Police Retirement System , to
appoint designees.
Proposed Law
HB 14 removes the chairmen of the House and Senate retirement committees as trustees of each of the state and statewide boards
and provides that the speaker of the House of Representatives and the president of the Senate shall serve as ex officio members on
each state and statewide retirement system board of trustees.
HB 14 further authorizes the legislative ex officio trustees to appoint designees to serve on the State Police Retirement system
board.
Implications of the Proposed Changes
As a result of HB 14 the legislative ex officio trustee s on each board of the state and statewide retirement systems will be the
speaker of the House of Representatives and the president of the Senate , or their designees.
Cost Analysis:
Analysis of Actuarial Costs
Retirement Systems
There are no actuarial costs associated with HB 14.
Other Post-Employment Benefits
HB 14 has no effect on actuarial costs associated with post-employment benefits other than pensions.
Analysis of Fiscal Costs
HB 14 will have no effect on fiscal costs during the five year measurement period.
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. These assumptions and methods are in compliance with actuarial standards of practice. This data,
methods, and assumptions are being used to provide consistency with the actuary for the retirement system who may also be providing testimony to the Senate and House retirement committees.
Actuarial Caveat
There is nothing in H B 14 that will compromise the signing actuary’s ability to present an unbiased statement of actuarial opinion.
2016 REGULAR SESSION
ACTUARIAL NOTE H B 14
Page 3 of 3
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 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