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 15 Original 2016 Regular Session Pearson
Abstract: Requires administrative expenses of state retirement systems to be calculated on a
prospective basis and added into the employer contributions of each system instead of
assessed as a net loss each year and amortized as a debt over 30 years.
Present law is silent as to how administrative expenses for retirement systems are to be paid. The
state retirement systems generally amortize the prior year's administrative expenses as a debt over
a period of 30 years.
Proposed law requires that each state system fund noninvestment administrative expenses by
including the projected cost of such expenses as a piece of the annual required employer contribution
to the system.
Effective June 30, 2016.
(Amends R.S. 11:102(B)(3)(intro. para.); Adds R.S. 11:102(B)(3)(e))