2016 REGULAR SESSION
ACTUARIAL NOTE H B 39
Page 1 of 2
House Bill 39 HLS 16RS-305
Original
Author: Representative J. Kevin
Pearson
Date: April 6, 2016
LLA Note H B 39.01
Organizations Affected:
Registrars of Voters Employees’
Retirement System
OR 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 39 provides
compliance with the requirements of R.S. 24:52 1
Bill Header: RETIREMENT/REGISTR VOTER: Provides relative to the maximum benefits for members of the Registrars of
Voters Employees’ Retirement System hired on or before December 31, 2012.
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 39
Page 2 of 2
Bill Information:
Current Law
Act 719 of the 2012 regular session of the legislature established a new tier of benefits for members of the Registrar of Voters
Employees’ Retirement System (RVRS) first employed on or after January 1, 2013. Act 526 of the 2012 regular session , which
applied to members of RVRS first employed on or before December 31, 2012, change d the law to make the formula s for
calculating retirement and disability benefits more concise. Prior to Act 526, retirement benefits for those first employed on or
before December 31, 2013 were limited to 100% of a retiring member’s final average compensation. Act 526 removed this
limitation.
RVRS has continued to administer the retirement system as if the 100% limitation had not been repealed.
Proposed Law
HB 39 pertains to members first employed prior to January 1, 2013. It provides that retirement benefits for such members will be
limited to 100% of a retiring member’s final average compensation.
Implications of the Proposed Changes
HB 39 restores a benefit limitation that was in effect prior to January 1, 2013.
Cost Analysis:
Analysis of Actuarial Costs
Retirement Systems
There are no actuarial costs associated with HB 39. HB 39 amends current law to be consistent with administrative practices.
Other Post-Employment Benefits
There are no actuarial costs associated with HB 39 for post-employment benefits other than pensions.
Analysis of Fiscal Costs
HB 39 will have no effect on fiscal costs during the five year fiscal 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 39 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