HLS 16RS-322 ORIGINAL
2016 Regular Session
HOUSE BILL NO. 54
BY REPRESENTATIVE FOIL
RETIREMENT/CLERKS COURT: Reamortizes the initial unfunded accrued liability
(IUAL) of the Clerks of Court Retirement and Relief Fund as a level-dollar payment
over the remaining life of the original IUAL amortization schedule
1 AN ACT
2To amend and reenact R.S. 11:42(B)(introductory paragraph) and (2), relative to certain
3 unfunded accrued liabilities of the Clerks of Court Retirement and Relief Fund; to
4 provide with respect to payments on such debt; and to provide for related matters.
5 Notice of intention to introduce this Act has been published
6 as provided by Article X, Section 29(C) of the Constitution
7 of Louisiana.
8Be it enacted by the Legislature of Louisiana:
9 Section 1. R.S. 11:42(B)(introductory paragraph) and (2) is hereby amended and
10reenacted to read as follows:
11 ยง42. Unfunded accrued liabilities; amortization
12 * * *
13 B. The provisions of this Subsection shall be implemented and accomplished
14 by the governing authorities of the state and statewide public retirement systems as
15 set forth herein follows.
16 * * *
17 (2) Clerks' of Court Retirement and Relief Fund. The unfunded accrued
18 liability, as of June 30, 1989, determined under the funding method specified in R.S.
19 11:22(B)(2), shall be amortized over a forty-year period, commencing with fiscal
20 year Fiscal Year 1989-1990, with payments forming an annuity increasing at four
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 16RS-322 ORIGINAL
HB NO. 54
1 and three-quarters percent annually. However, effective for the June 30, 2016,
2 valuation and beginning July 1, 2016, the outstanding balance of this unfunded
3 accrued liability shall be amortized over the remaining thirteen-year period,
4 commencing with Fiscal Year 2016-2017, with level-dollar payments annually.
5 * * *
6 Section 2. This Act shall become effective upon signature by the governor or, if not
7signed by the governor, upon expiration of the time for bills to become law without signature
8by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
9vetoed by the governor and subsequently approved by the legislature, this Act shall become
10effective on the day following such approval.
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 54 Original 2016 Regular Session Foil
Abstract: Reamortizes the initial unfunded accrued liability (IUAL) of the Clerks of Court
Retirement and Relief Fund as a level-dollar payment over the remaining life of the
original IUAL amortization schedule.
Present law establishes an amortization schedule for certain statewide retirement systems for
their unfunded accrued liability existing as of the end of the system's fiscal year in 1989
(IUAL). Proposed law retains present law.
Present law for the Clerks of Court system establishes a 40-year amortization schedule for
its IUAL debt. Proposed law retains present law.
Present law for the Clerks of Court system establishes an increasing payment schedule for
the IUAL debt (4.75% annual increase). Proposed law eliminates the increasing payment
schedule. Proposed law reamortizes the remaining balance of the original IUAL schedule
as a level-dollar payment over the remainder of the original 40-year payment period.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 11:42(B)(intro. para.) and (2))
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.