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 21 Original 2016 Regular Session Jones
Abstract: Relative to liabilities of state retirement systems, moves up the implementation of 20-
year amortization periods for such liabilities and authorizes reamortization of such liabilities
once every five years.
Present law establishes the four state retirement systems—the La. State Employees' Retirement
System (LASERS), the Teachers' Retirement System of La. (TRSL), the La. School Employees'
Retirement System (LSERS), and the State Police Retirement System (STPOL)—and provides for
the accounting of and funding for the liabilities of such systems. Proposed law retains present law.
Present law for each state system provides that once the system is 85% funded, new amortization
schedules for certain credits and debits shall be reduced from 30 years to 20 years. Proposed law
requires immediate reduction of amortization schedule length, phasing-in the 20-year schedules over
a five-year period, beginning with the June 30, 2016 valuation.
Present law for each state system provides that once the system is 85% funded, certain liabilities may
be reamortized each year. Further prohibits reamortization of such debts prior to attaining an 85%
funded ratio. Proposed law changes the threshold for annual reamortization from 85% funded to
80% funded. Further authorizes reamortization of certain debts, net of payments made since the last
reamortization, once every five year period prior to attaining an 80% funded ratio.
Present law for each state system requires a 10-year amortization schedule for actuarial gains
allocated to the experience account, starting with the June 30, 2019 valuation. Proposed law requires
immediate implementation of the 10-year amortization schedule for any gains allocated to the
account, starting with the first valuation in which any credit is made to such account.
Proposed law requires that any cost of proposed law be funded with additional employer
contributions in compliance with Art. X, Sec. 29(F) of the state constitution.
Effective June 30, 2016.
(Amends R.S. 11:102(B)(3)(d)(v)(aa)(II), (bb), and (cc), (vi)(aa)(II), (bb)(II), and (cc), (vii)(aa)(II),
(bb), and (cc), (viii)(aa)(II), (bb)(II), and (cc), 102.1(B)(4)(b) and (5) and (C)(4)(b) and (5), and 102.2
(B)(4)(b) and (C)(4)(b) and (5); Adds R.S. 11:102.1(B)(7) and (C)(7) and 102.2(B)(6) and (C)(7))