2016 REGULAR SESSION
ACTUARIAL NOTE H B 23
Page 1 of 2
House Bill 23 HLS 16RS-299
Engrossed
Author: Representative Gene
Reynolds
Date: March 28, 2016
LLA Note H B 23.02
Organizations Affected:
Municipal Employees’ Retirement
System
EG NO IMPACT APV
This Note has been prepared by the Actuarial Services Department of the Office of
the Legislative Auditor. The attachment of this Note to H B 23 provides
compliance with the requirements of R.S. 24:52 1
Bill Header: RETIREMENT/MUNICIPAL EMP: Requires the Municipal Employees’ Retirement System to establish rules and
regulations governing certain procedures relative to the election of trustees to the system board.
Cost Summary:
The estimated actuarial and fiscal impact of the proposed legislative is summarized below. Actuarial costs pertain to changes in the
actuarial present value of future benefit payments. A cost is denoted by “Increase” or a positive number. Savings are denoted by
“Decrease” or a negative number.
Actuarial Cost to Retirement Systems $0
Total Five Year Fiscal Cost
Expenditures $0
Revenues $0
Estimated Actuarial Impact:
The chart below shows the estimated change in the actuarial present value of future benefit payments, if any, attributable to the
proposed legislation. A cost is denoted by “Increase” or a positive number. Savings are denoted by “Decrease” or a negative number.
Present value costs associated with administration or other fiscal concerns are not included in these values.
Change in the
Actuarial Cost to: Actuarial Present Value
All Louisiana Public Retirement Systems $0
Other Post Retirement Benefits $0
Total $0
Estimated Fiscal Impact:
The chart below shows the estimated fiscal impact of the proposed legislation. This represents the effect on cash flows for the
retirement systems and other government entities. Fiscal costs include estimated administrative costs and costs associated with other
fiscal concerns. A fiscal cost is denoted by “Increase” or a positive number. Actuarial or fiscal savings are denoted by “Decrease” or
a negative number.
EXPENDITURES 2016-17 2017-18 2018-19 2019-2020 2020-2021 5 Year Total
State General Fund $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Agy Self Generated 0 0 0 0 0 0
Stat Deds/Other 0 0 0 0 0 0
Federal Funds 0 0 0 0 0 0
Local Funds 0 0 0 0 0 0
Annual Total $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
REVENUES 2016-17 2017-18 2018-19 2019-2020 2020-2021 5 Year Total
State General Fund $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Agy Self Generated 0 0 0 0 0 0
Stat Deds/Other 0 0 0 0 0 0
Federal Funds 0 0 0 0 0 0
Local Funds 0 0 0 0 0 0
Annual Total $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
2016 REGULAR SESSION
ACTUARIAL NOTE H B 23
Page 2 of 2
Bill Information:
Current Law
Current law establishes an eleven member board of trustees for the Municipal Employees’ Retirement System (MERS) and
provides procedures relative to the election of such trustees to the board.
Each ballot received by the system must be stored and kept in a secure location within the system office with access being limited
only to the director or his designee. Only the director or his designee may certify the date of receipt of each ballot cast in an
election and safeguard procedures related to an election .
Proposed Law
HB 23 repeals the rules relative to trustee elections set forth under the second paragraph above under Current Law . Instead,
HB 23 requires the MERS board to establish rules and regulations for the retention and certification of ballots received by the
system during such elections
Implications of the Proposed Changes
As a result of HB 23 the MERS board of trustees will be responsible for safeguarding the trustee election process instead o f the
director for the system.
Cost Analysis:
Analysis of Actuarial Costs
Retirement Systems
HB 23 contains no benefit provisions having an actuarial cost.
There are no actuarial costs associated with HB 23.
Other Post-Employment Benefits
HB 23 has no effect on actuarial costs associated with post-employment benefits other than pensions.
Analysis of Fiscal Costs
HB 23 will have no effect on fiscal costs during the five year measurement period.
Actuarial Data, Methods and Assumptions
This actuarial note was prepared using actuarial data, methods, and assumptions as disclosed in the most recent actuarial valuation report adopted by PRSAC. These assumptions and methods are in compliance with actuarial standards of practice. This data,
methods, and assumptions are being used to provide consistency with the actuary for the retirement system who may also be
providing testimony to the Senate and House retirement committees.
Actuarial Caveat
There is nothing in H B 23 that will compromise the signing actuary’s ability to present an unbiased statement of actuarial opinion.
Actuarial Credentials:
Paul T. Richmond is the Manager of Actuarial Services for the Louisiana Legislative Auditor. He is an Enrolled Actuary, a
member of the American Academy of Actuaries, a member of the Society of Actuaries and has met the Qualification Standards of
the American Academy of Actuaries necessary to render the actuarial opinion contained herein.
Dual Referral:
Senate House
13.5.1: Annual Fiscal Cost ≥ $100,000 6.8(F)(1): Annual Fiscal Cost ≥ $100,000
13.5.2: Annual Tax or Fee Change ≥ $500,000 6.8(F)(2): Annual Revenue Reduction ≥ $100,000
6.8(G): Annual Tax or Fee Change ≥ $500,000