HLS 16RS-187 ENGROSSED
2016 Regular Session
HOUSE BILL NO. 22
BY REPRESENTATIVES MONTOUCET AND REYNOL DS
RETIREMENT/FIREFIGHTERS: Establishes a funding deposit account for the
Firefighters' Retirement System and authorizes the board of trustees of the system
to modify required employer contribution rates in certain circumstances and within
certain limits in order to fund the account
1 AN ACT
2To amend and reenact R.S. 11:107.1(B)(2) and 107.2(A) and (B)(introductory paragraph)
3 and to enact R.S. 11:105(A)(7), 107(A)(6), and 107.1(A)(6), relative to the
4 Firefighters' Retirement System; to provide relative to the authority of the board of
5 trustees of the system to modify employer contribution rates in certain
6 circumstances; to establish a funding deposit account within the system; and to
7 provide for related matters.
8 Notice of intention to introduce this Act has been published
9 as provided by Article X, Section 29(C) of the Constitution
10 of Louisiana.
11Be it enacted by the Legislature of Louisiana:
12 Section 1. R.S. 11:107.1(B)(2) and 107.2(A) and (B)(introductory paragraph) are
13hereby amended and reenacted and R.S. 11:105(A)(7), 107(A)(6), and 107.1(A)(6) are
14hereby enacted to read as follows:
15 §105. Employer contributions; maintaining rates
16 A. The provisions of this Section shall apply to the following statewide
17 public retirement systems or funds, hereinafter referred to in this Section as
18 "systems":
19 * * *
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HB NO. 22
1 (7) The Firefighters' Retirement System.
2 * * *
3 §107. Additional employer contributions; reducing rate decreases
4 A. The provisions of this Section shall apply to the following statewide
5 public retirement systems or funds:
6 * * *
7 (6) The Firefighters' Retirement System.
8 * * *
9 §107.1. Funding deposit account
10 A. The provisions of this Section shall apply to the following statewide
11 public retirement systems or funds, hereinafter referred to in this Section as
12 "systems":
13 * * *
14 (6) The Firefighters' Retirement System.
15 B.
16 * * *
17 (2) The balance in the account shall be set equal to zero as of December 31
18 ,2008 thirty-first of the year immediately preceding the date the account is
19 established.
20 * * *
21 §107.2. Employer contributions; maintaining rates; reducing rate decreases;
22 Firefighters' Retirement System; Municipal Police Employees' Retirement
23 System
24 A. The provisions of this Section apply to the following statewide public
25 retirement systems or funds, hereinafter referred to in this Section as "systems":
26 (1) The Firefighters' Retirement System.
27 (2) The the Municipal Police Employees' Retirement System, hereafter
28 referred to in this Section as "system".
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HB NO. 22
1 B. Notwithstanding the provisions of R.S. 11:103 and 104, in any fiscal year
2 during which the recommended net direct employer contribution rate would
3 otherwise be decreased for any the system, the board of trustees of the system is
4 hereby authorized to either:
5 * * *
6 Section 2. This Act shall become effective on July 1, 2016; if vetoed by the governor
7and subsequently approved by the legislature, this Act shall become effective on July 1,
82016, 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 22 Engrossed 2016 Regular Session Montoucet
Abstract: Authorizes the Firefighters' Retirement System (FRS) to increase required
employer contribution rates in certain circumstances and establishes a funding
deposit account within the system for collection of contribution remittances above
the actuarially required amount.
Present law (R.S. 11:105 and 107) grants certain statewide retirement systems the authority
to increase required employer contribution rates in certain circumstances. Generally, in a
year in which the required contribution rate would otherwise decrease, the systems are
authorized to (a) hold the rate at the previous year's level or (b) set the contribution rate
anywhere between the new lower rate and the previous year's higher rate.
Proposed law retains present law.
Systems with authority to modify employer contribution rates under present law include the
Assessors' Retirement Fund, Clerks' of Court Retirement and Relief Fund, Municipal
Employees' Retirement System, and the Registrars of Voters Employees' Retirement System.
Proposed law would grant FRS the same authority.
Present law (R.S. 11:107.1) establishes a "funding deposit account" in certain statewide
systems, such as Assessors', Clerks of Court, Municipal Employees', and Registrars of
Voters. Funds collected pursuant to present law in excess of minimum required employer
contribution rates are credited to this account and may be used by the board of trustees of
the system for the following purposes:
(1)Reduce system unfunded accrued liabilities.
(2)Reduce future employer contribution rates.
(3)Pay cost-of-living adjustments.
Proposed law establishes a funding deposit account within FRS and grants it the same
authority as the other systems with such accounts.
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HB NO. 22
Present law (R.S. 11:107.2) grants FRS and the Municipal Police Employees' Retirement
System the authority to increase required employer contribution rates in certain
circumstances and requires that funds collected in excess of minimum required employer
contribution rates shall be applied to one of the following:
(1)Reduce system initial unfunded accrued liabilities.
(2)Reduce certain outstanding amortization charges.
Proposed law removes FRS from present law (R.S. 11:107.2).
Effective July 1, 2016.
(Amends R.S. 11:107.1(B)(2) and 107.2(A) and (B)(intro. para.); Adds R.S. 11:105(A)(7),
107(A)(6), and 107.1(A)(6))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Retirement to the
original bill:
1. Relieve FRS of present law restrictions on its authority to use funds collected in
excess of minimum required employer contribution rates to reduce liabilities.
2. Make technical changes.
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