HLS 16RS-3015 ORIGINAL
2016 Regular Session
HOUSE STUDY REQUEST NO. 6
BY REPRESENTATIVE IVEY
RETIREMENT BENEFITS: Requests a study of practices used in adopting actuarial
assumptions and reporting standards for the state and statewide retirement systems
and an investigation of potential legislative improvements for the increased
sustainability of the systems
1 A STUDY REQUEST
2To the House Committee on Retirement to study both the current and best practices in
3 retirement system reporting and in the selection and use of actuarial assumptions and
4 methods, and to report its findings to the House of Representatives prior to the
5 convening of the 2017 Regular Session of the Legislature of Louisiana.
6 WHEREAS, the Constitution of Louisiana holds the state responsible for payment
7of benefits to retirees and beneficiaries of the state retirement systems; and
8 WHEREAS, the state and local agencies, institutions of postsecondary education, and
9school districts, all of whom participate in the systems and are responsible for annual
10employer contributions, are mindful of the continued health and funding of the thirteen state
11and statewide retirement systems; and
12 WHEREAS, the members and retirees of the systems, and their beneficiaries, all of
13whom have accrued benefits to be paid by the systems now and in the future, are mindful of
14the continued health and funding of the state and statewide retirement systems; and
15 WHEREAS, to calculate the costs of system benefits, each state and statewide system
16selects its own actuarial assumptions, including mortality tables, inflation rates, discount
17rates, etc., which are included in their annual valuations and must be approved by the Public
18Retirement System Actuarial Committee; and
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HSR NO. 6
1 WHEREAS, the legislature has taken important steps in the past several years to
2control and limit benefit costs while paying its debts more quickly and the systems have
3made notable improvements as a result of these steps; and
4 WHEREAS, it is important for the legislature to regularly evaluate the current health
5and future sustainability of Louisiana's state and statewide retirement systems and analyze
6whether further legislative improvements, small or large, are needed in order to ensure that
7the state and its public entities can meet their retirement obligations to current and future
8employees, to ensure the health of the retirement systems, and to ensure accountability to
9the state and local taxpayer on a short- and long-term basis; and
10 WHEREAS, the nature of the actuarial assumptions, actuarial methods, and other
11variables necessary for the proper administration of the retirement systems is especially
12complex and nuanced, and the legislature may benefit from additional education on the
13various actuarial assumptions, methods, and variables utilized by each of the retirement
14systems and on the steps already taken by the legislature to improve the systems; and
15 WHEREAS, the legislature is interested in understanding best practices in selecting
16and implementing actuarial assumptions and methods; and
17 WHEREAS, the legislature is interested in exploring the benefits of uniform
18reporting standards for the systems.
19 THEREFORE, the House of Representatives of the Legislature of Louisiana requests
20the House Committee on Retirement to study both the current and best practices in
21retirement system reporting standards and in adoption of actuarial assumptions and methods,
22to investigate past legislative improvements and the need for further improvement relative
23to these systems, and to report its findings to the House of Representatives prior to the
24convening of the 2017 Regular Session of the Legislature of Louisiana.
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)]
HSR 6 Original 2016 Regular Session Ivey
Requests the House Committee on Retirement to study the best practices in retirement
system reporting standards and in adoption of actuarial assumptions and methods, to
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HSR NO. 6
investigate the need for further legislative reform relative to these systems, and to report its
findings to the House of Representatives prior to the 2017 R.S.
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