HLS 16RS-190 ORIGINAL
2016 Regular Session
HOUSE BILL NO. 16
BY REPRESENTATIVE PEARSON
RETIREMENT/SCHOOL EMPS: Provides for the funding of administrative expenses of
the La. School Employees' Retirement System
1 AN ACT
2To amend and reenact R.S. 11:102(B)(3)(a), relative to the payment of administrative
3 expenses of the Louisiana School Employees' Retirement System; to require
4 inclusion of such expenses in the annual employer contribution rate calculation; and
5 to provide for related matters.
6 Notice of intention to introduce this Act has been published
7 as provided by Article X, Section 29(C) of the Constitution
8 of Louisiana.
9Be it enacted by the Legislature of Louisiana:
10 Section 1. R.S. 11:102(B)(3)(a) is hereby amended and reenacted to read as follows:
11 ยง102. Employer contributions; determination; state systems
12 * * *
13 B.
14 * * *
15 (3) With respect to each state public retirement system, the actuarially
16 required employer contribution for each fiscal year, commencing with Fiscal Year
17 1989-1990, shall be that dollar amount equal to the sum of:
18 (a) The employer's normal cost for that fiscal year, computed as of the first
19 of the fiscal year using the system's actuarial funding method as specified in R.S.
20 11:22 and taking into account the value of future accumulated employee
21 contributions and interest thereon, such employer's normal cost rate multiplied by the
22 total projected payroll for all active members to the middle of that fiscal year. For
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 16RS-190 ORIGINAL
HB NO. 16
1 the Louisiana State Employees' Retirement System, effective for the June 30, 2010,
2 system valuation and beginning with Fiscal Year 2011-2012, the normal cost shall
3 be determined in accordance with Subsection C of this Section. For the Teachers'
4 Retirement System of Louisiana, effective for the June 30, 2011, system valuation
5 and beginning with Fiscal Year 2012-2013, the normal cost shall be determined in
6 accordance with Subsection D of this Section. For the Louisiana School Employees'
7 Retirement System, effective for the June 30, 2016 valuation and beginning with
8 Fiscal Year 2016-2017, the normal cost shall include the projected noninvestment-
9 related administrative expenses for the fiscal year.
10 * * *
11 Section 2. This Act shall become effective on June 30, 2016; if vetoed by the
12governor and subsequently approved by the legislature, this Act shall become effective on
13June 30, 2016, or on the day following such approval by the legislature, whichever is later.
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 16 Original 2016 Regular Session Pearson
Abstract: Requires the La. School Employees' Retirement System (LSERS) to fund
noninvestment-related administrative expenses by including them in the calculation
of the system's employer contribution rate.
Present law provides for the annual calculation of required employer contributions for each
state retirement system. This calculation generally contains two main components:
(1)The cost of the benefits being accrued (also known as the normal cost).
(2)The cost of debt service on system liabilities.
Proposed law retains present law.
Present law does not provide for how noninvestment-related administrative expenses for
state retirement systems are funded. Proposed law requires LSERS to fund its
noninvestment-related administrative expenses for a fiscal year by including them in the
normal cost calculation of the system's employer contribution rate.
Effective June 30, 2016.
(Amends R.S. 11:102(B)(3)(a))
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.