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))