SLS 16RS-79 ORIGINAL
2016 Regular Session
SENATE BILL NO. 18
BY SENATOR PEACOCK
RETIREMENT SYSTEMS. Provides for actuarial determinations and application of funds.
(6/30/16)
1 AN ACT
2 To amend and reenact R.S. 11:102(B)(1), (2), (3)(introductory paragraph), (a), and (d)
3 (introductory paragraph), (i), (ii), (iii), and (iv), (4), and (5)(a) and (b), (C), and (D),
4 102.1(B)(4), (5), and (6) and (C)(2), (4), (5), and (6), 102.2(B)(4) and (5) and (C)(2),
5 (4), (5), and (6), 102.3, 542, 883.1(A), (B), (C), (E), (F), and (G),
6 927(B)(2)(a)(introductory paragraph) and (i) and (b)(i) and (3)(a), 1145.1, and 1332,
7 to enact R.S. 11:102(E) and (F), 102.1(A)(4), (B)(3)(a)(iv), (C)(3)(d), and (D),
8 102.2(A)(4), (B)(3)(a)(iv), (C)(3)(d), and (D), 102.4, 102.5, 102.6, and 883.1(D), and
9 to repeal R.S. 11:102(B)(3)(d)(v), (vi), (vii), and (viii) and 883.1(H), to provide for
10 actuarial determinations and application of retirement system funds without
11 allowing, authorizing, or granting benefit improvements; to provide for the
12 determination of required employer contributions and application of investment
13 earnings to certain debts and accounts; to prioritize excess return allocations; to
14 provide for an effective date; and to provide for related matters.
15 Notice of intention to introduce this Act has been published.
16 Be it enacted by the Legislature of Louisiana:
17 Section 1. R.S. 11:102(B)(1), (2), (3)(introductory paragraph), (a), and
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1 (d)(introductory paragraph), (i), (ii), (iii), and (iv), (4), and (5)(a) and (b), (C), and (D),
2 102.1(B)(4), (5), and (6) and (C)(2), (4), (5), and (6), 102.2(B)(4) and (5) and (C)(2), (4), (5),
3 and (6), 102.3, 542, 883.1(A), (B), (C), (E), (F), and (G), 927(B)(2)(a)(introductory
4 paragraph) and (i) and (b)(i) and (3)(a), 1145.1, and 1332 are hereby amended and reenacted
5 and R.S. 11:102(E) and (F), 102.1(A)(4), (B)(3)(a)(iv), (C)(3)(d), and (D), 102.2(A)(4),
6 (B)(3)(a)(iv), (C)(3)(d), and (D), 102.4, 102.5, 102.6, and 883.1(D) are hereby enacted to
7 read as follows:
8 §102. Employer contributions; determination; state systems
9 * * *
10 B.(1) Except as provided in Subsection C of this Section for the Louisiana
11 State Employees' Retirement System and Subsection D of this Section for the
12 Teachers' Retirement System of Louisiana and except as provided in R.S. 11:102.1,
13 102.2, 102.3, 102.4, and 102.5 and in Paragraph (5) of this Subsection, for each
14 fiscal year, commencing with Fiscal Year 1989-1990, for each of the public
15 retirement systems referenced in Subsection A of this Section, the legislature shall
16 set the required employer contribution rate for each system or plan equal to the
17 actuarially required actuarially-required employer contribution, as determined
18 under Paragraph (3) of this Subsection pursuant to the provisions of this Section,
19 divided by the total projected payroll of all active members of each particular system
20 or plan for the fiscal year. Each entity funding a portion of a member's salary shall
21 also fund the employer's contribution on that portion of the member's salary at the
22 employer contribution rate specified in this Subsection Section.
23 (2)(a) At the end of each fiscal year, the difference between the actuarially
24 required actuarially-required employer contribution for the fiscal year, as
25 determined under Paragraph (3) of this Subsection or pursuant to Subsection C of
26 this Section for the Louisiana State Employees' Retirement System or Subsection D
27 pursuant to the provisions of this Section for the Teachers' Retirement System of
28 Louisiana, and the amount of employer contributions actually received for the fiscal
29 year, excluding any amounts received for the extraordinary purchase of additional
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1 benefits or service, shall be determined.
2 (b) If the amount of employer contributions received for the fiscal year is less
3 than the actuarially required actuarially-required employer contribution for the
4 fiscal year, due to the failure of the legislature to appropriate funds at the required
5 employer contribution rate, the difference shall be paid by the state treasurer from
6 the state general fund upon warrant from the governing authority of the retirement
7 system.
8 (c) At the end of each fiscal year, the difference between the minimum
9 employer contribution, as required by the Constitution of Louisiana, and the
10 actuarially required actuarially-required employer contribution for the fiscal year,
11 as determined under Paragraph (3) of this Subsection or pursuant to Subsection C of
12 this Section for the Louisiana State Employees' Retirement System or Subsection D
13 pursuant to the provisions of this Section for the Teachers' Retirement System of
14 Louisiana, shall be determined and applied in accordance with the following
15 provisions:
16 (i) The amount, if any, by which the actuarially required
17 actuarially-required contribution for a system exceeds the constitutionally required
18 constitutionally-required minimum contribution for that system shall be
19 accumulated in an employer credit account which shall be adjusted annually to
20 reflect any gain or loss attributable to the balance in the account at the actuarial rate
21 of return earned by the system.
22 (ii) Except as provided in Paragraph (5) of this Subsection, annual
23 contributions required in accordance with this Subsection Section, or the
24 constitutional minimum if greater, may be funded in whole or in part from the
25 employer credit account, provided the employee contribution rate or rates for the
26 system as set forth in R.S. 11:62 has or have been reduced to an amount equal to or
27 less than fifty percent of the annual normal cost for the system or the plan as
28 provided in Subsection C or D of this Section, rounded to the nearest one-quarter
29 percent.
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1 (iii) For purposes of implementing Act No. 1331 of the 1999 Regular Session
2 of the Legislature, the balance of the Employer Credit Account applicable to the
3 Louisiana School Employees' Retirement System as of June 30, 1999, shall be fifty-
4 six million seven hundred fifty-four thousand four hundred five dollars.
5 (d) Except as provided in R.S. 11:102.1 and 102.2, differences occurring for
6 any other reason shall be added to or subtracted from the following fiscal year's
7 actuarially required actuarially-required employer contribution in accordance with
8 Subparagraph (3)(c) of this Subsection or with Subsection C of this Section for the
9 Louisiana State Employees' Retirement System or Subsection D the provisions of
10 this Section for the Teachers' Retirement System of Louisiana.
11 (3) With respect to each state public retirement system, the actuarially
12 required actuarially-required employer contribution for each fiscal year,
13 commencing with Fiscal Year 1989-1990, shall be that dollar amount equal to the
14 sum of:
15 (a) The employer's normal cost for that fiscal year, computed as of the first
16 of the fiscal year using the system's actuarial funding method as specified in R.S.
17 11:22 and taking into account the value of future accumulated employee
18 contributions and interest thereon, such employer's normal cost rate multiplied by the
19 total projected payroll for all active members to the middle of that fiscal year. For
20 the Louisiana State Employees' Retirement System, effective for the June 30, 2010,
21 2010 system valuation and beginning with Fiscal Year 2011-2012, the normal cost
22 shall be determined in accordance with Subsection C of this Section. For the
23 Teachers' Retirement System of Louisiana, effective for the June 30, 2011, 2011
24 system valuation and beginning with Fiscal Year 2012-2013, the normal cost shall
25 be determined in accordance with Subsection D of this Section.
26 * * *
27 (d) That fiscal year's payment, computed as of the first of that fiscal year and
28 projected to the middle of that fiscal year at the actuarially assumed
29 actuarially-assumed interest rate, necessary to amortize changes in actuarial
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1 liability due to:
2 (i) Except as provided in Items (v), (vi), (vii), and (viii) of this Subparagraph,
3 actuarial Actuarial gains and losses, if appropriate for the funding method used by
4 the system as specified in R.S. 11:22, for each fiscal year beginning after June 30,
5 1988, such payments to be computed as an amount forming an annuity increasing at
6 four and one-half percent annually over the later of a period of fifteen years from the
7 year of occurrence or by the year 2029, such gains and losses to include any
8 increases in actuarial liability due to governing authority granted cost-of-living
9 increases provided in Subsection C, D, E, or F of this Section.
10 (ii) Except as provided in Items (v), (vi), (vii), and (viii) of this
11 Subparagraph, changes Changes in the method of valuing of assets, such payments
12 to be computed as an amount forming an annuity increasing at four and one-half
13 percent annually over the later of a period of fifteen years from the year of
14 occurrence of the change or by the year 2029 provided in Subsection C, D, E, or
15 F of this Section.
16 (iii) Except as provided in Items (v), (vi), (vii), and (viii) of this
17 Subparagraph, changes Changes in actuarial assumptions or actuarial funding
18 methods, excluding changes in methods of valuing of assets, such payments to be
19 computed as an amount forming an annuity increasing at four and one-half percent
20 annually over the later of a period of thirty years from the year of occurrence of the
21 change or by the year 2029 provided in Subsection C, D, E, or F of this Section.
22 (iv) Except as provided in Items (v), (vi), (vii), and (viii) of this
23 Subparagraph, changes Changes in actuarial accrued liability, computed using the
24 actuarial funding method as specified in R.S. 11:22, due to legislation changing plan
25 provisions, such payments to be computed in the manner and over the time period
26 specified in the legislation creating the change or, if not specified in such legislation,
27 as an amount forming an annuity increasing at four and one-half percent annually
28 over the later of a period of fifteen years from the year of occurrence of the change
29 or by the year 2029 provided in Subsection C, D, E, or F of this Section.
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1 (4) At the end of the fiscal year during which the assets of a system,
2 excluding the outstanding balance due to Subparagraph (B)(3)(c) of this Section,
3 exceed the actuarial accrued liability of that system, the amortization schedules
4 contained in calculated pursuant to Subparagraphs (B)(3)(b) and (d) or in and
5 Subsection C, D, E, or F of this Section for the Louisiana State Employees'
6 Retirement System or Subsection D of this Section for the Teachers' Retirement
7 System of Louisiana shall be fully liquidated and assets in excess of the actuarial
8 accrued liability shall be amortized as a credit in accordance with the provisions of
9 Subparagraph (B)(3)(d) and Subsection C, D, E, or F of this Section.
10 (5)(a) Notwithstanding the provisions any other provision of this Section to
11 the contrary, the gross employer contribution rate for the Louisiana State
12 Employees' Retirement System and the Teachers' Retirement System of Louisiana
13 shall not be less than fifteen and one-half percent per year until such time as the
14 unfunded accrued liability that existed on June 30, 2004, is fully funded.
15 (b) At the end of each fiscal year, the difference, if any, by which the amount
16 of contributions received from payment of all employer contributions at the fixed
17 minimum employer contribution rate established pursuant to this Paragraph exceeds
18 the greater of the minimum employer contribution required by Article X, Section 29
19 of the Constitution of Louisiana or the statutory minimum employer contribution
20 calculated according to the methodology provided for in Items (3)(d)(i) through (iv)
21 Subparagraph (3)(d) of this Subsection or in Paragraph (C)(4) Subsection C or D
22 of this Section for the Louisiana State Employees' Retirement System or Paragraph
23 (D)(4) of this Section for the Teachers' Retirement System of Louisiana shall be
24 accumulated in an employer credit account for the respective system.
25 * * *
26 C.(1) This The provisions of this Subsection shall apply to the Louisiana
27 State Employees' Retirement System.
28 (2)(a) Except as provided in Subparagraph (b) of this Paragraph and in
29 R.S. 11:102.5, effective July 1, 2004, and beginning with Fiscal Year 1998-1999,
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1 the amortization period for the changes, gains, or losses of the system provided
2 in Items (B)(3)(d)(i) through (iv) of this Section shall be thirty years from the
3 year in which the change, gain, or loss occurred. The outstanding balances of
4 amortization bases established pursuant to Items (B)(3)(d)(i) through (iv) of this
5 Section before Fiscal Year 1998-1999, shall be amortized as a level dollar
6 amount from July 1, 2004, through June 30, 2029. Beginning with Fiscal Year
7 2003-2004, and for each fiscal year thereafter, the outstanding balances of
8 amortization bases established pursuant to Items (B)(3)(d)(i) through (iv) of this
9 Section shall be amortized as a level dollar amount. Effective for the June 30,
10 2010 system valuation and beginning with Fiscal Year 2011-2012, amortization
11 payments for changes in actuarial liability shall be determined in accordance
12 with this Subsection.
13 (b) Notwithstanding the provisions of Subparagraph (a) of this
14 Paragraph, the amortization period for the changes, gains, or losses of the
15 Louisiana State Employees' Retirement System provided in Items (B)(3)(d)(i)
16 through (iv) of this Section shall begin from the year in which the change, gain,
17 or loss occurred and shall be as follows:
18 (i) For the June 30, 2016 valuation, twenty-eight years.
19 (ii) For the June 30, 2017 valuation, twenty-six years.
20 (iii) For the June 30, 2018 valuation, twenty-four years.
21 (iv) For the June 30, 2019 valuation, twenty-two years.
22 (v) For the June 30, 2020 valuation and for every year thereafter, twenty
23 years from the year in which the change, gain, or loss occurred.
24 (c) Effective for the first system valuation following June 30, 2015, in
25 which an allocation is made to the system's experience account and for each
26 valuation thereafter, actuarial gains allocated to the experience account shall
27 be amortized as a loss with level payments over a ten-year period.
28 (3) The provisions of this Paragraph and Paragraphs (4) through (9) of
29 this Subsection shall be applicable to the Louisiana State Employees' Retirement
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1 System effective for the June 30, 2010, 2010 system valuation and beginning Fiscal
2 Year 2011-2012. For purposes of this Subsection, "plan" or "plans" shall mean a
3 subgroup within the system characterized by the following employee classifications:
4 (a) Rank-and-file members of the system.
5 (b) Full-time law enforcement personnel, supervisors, or administrators who
6 are employed with the Department of Revenue or office of alcohol and tobacco
7 control and who are P.O.S.T. certified, have the power to arrest, and hold a
8 commission from such office.
9 (c) Peace officers, as defined by R.S. 40:2402(3)(a), employed by the
10 Department of Public Safety and Corrections, office of state police, other than state
11 troopers.
12 (d) Judges and court officers to whom Subpart A of Part VII of Chapter 1 of
13 Subtitle II of this Title is applicable.
14 (e) Wildlife agents to whom Subpart B of Part VII of Chapter 1 of Subtitle
15 II of this Title is applicable.
16 (f) Wardens, correctional officers, probation and parole officers, and security
17 personnel employed by the Department of Public Safety and Corrections who are
18 members of the secondary component pursuant to Subpart C of Part VII of Chapter
19 1 of Subtitle II of this Title.
20 (g) Correctional officers, probation and parole officers, and security
21 personnel employed by the Department of Public Safety and Corrections who are
22 members of the primary component.
23 (h) Legislators, the governor, and the lieutenant governor.
24 (i) Employees of the bridge police section of the Crescent City Connection
25 Division of the Department of Transportation and Development.
26 (j) Hazardous duty plan members as provided pursuant to R.S. 11:611 et seq.
27 (k) Judges as provided pursuant to R.S. 11:62(5)(a)(iii) and 444(A)(1)(a)(ii).
28 (l) Harbor Police Retirement Plan members as provided pursuant to R.S.
29 11:631.
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1 (m) Any other specialty retirement plan provided for a subgroup of system
2 members. If the legislation enacting such a plan is silent as to the application of this
3 Subsection, the Public Retirement Systems' Actuarial Committee shall provide for
4 the application to such plan.
5 (2)(4) For the Louisiana State Employees' Retirement System, effective
6 Effective for the June 30, 2010, 2010 system valuation and beginning with Fiscal
7 Year 2011-2012, the normal cost calculated pursuant to Subparagraph (B)(3)(a) of
8 this Section, shall be calculated separately for each particular plan within the system.
9 An employer shall pay employer contributions for each employee at the rate
10 applicable to the plan of which that employee is a member.
11 (3)(5) For the Louisiana State Employees' Retirement System, effective
12 Effective for the June 30, 2010, 2010 system valuation and beginning with Fiscal
13 Year 2011-2012, changes in actuarial liability due to legislation, changes in
14 governmental organization, or reclassification of employees or positions shall be
15 calculated individually for each particular plan within the system based on each
16 plan's actuarial experience as further provided in Subparagraph (4)(c) (6)(c) of this
17 Subsection.
18 (4)(6) For each plan referenced in Paragraph (1) (3) of this Subsection, the
19 legislature shall set the required employer contribution rate equal to the sum of the
20 following:
21 (a) The particularized normal cost rate. The normal cost rate for each fiscal
22 year shall be the employer's normal cost for the plan computed by applying the
23 method specified in R.S. 11:102(B)(1) and (3)(a) to the plan.
24 (b) The shared unfunded accrued liability rate. (i) Except as provided in Item
25 (ii) of this Subparagraph, a single rate shall be computed for each fiscal year,
26 applicable to all plans for actuarial changes, gains, and losses existing on June 30,
27 2010, or occurring thereafter, including experience and investment gains and losses,
28 which are independent of the existence of the plans listed in Paragraph (1) (3) of this
29 Subsection, the payment and rate therefor shall be calculated as provided in this
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1 Subsection and Paragraphs (B)(1) and (3) of this Section.
2 (ii) The shared unfunded accrued liability rate applicable to the Harbor Police
3 Retirement System shall not include any unfunded accrued liability incurred on or
4 before July 1, 2015, until the earlier of:
5 (aa) July 1, 2022.
6 (bb) The date that all sums payable by the Port of New Orleans to the board
7 of trustees of the Louisiana State Employees' Retirement System pursuant to the
8 terms and conditions of a cooperative endeavor agreement between the board of
9 trustees of the Louisiana State Employees' Retirement System, the board of
10 commissioners of the Port of New Orleans, and the board of trustees of the Harbor
11 Police Retirement System regarding the merger of the Harbor Police Retirement
12 System into the Louisiana State Employees' Retirement System have been paid in
13 full.
14 (c) The particularized unfunded accrued liability rate. For actuarial changes,
15 gains, and losses, excluding experience and investment gains and losses, first
16 recognized in the June 30, 2010, 2010 valuation or in any later valuation, attributable
17 to one or more, but not all, plans listed in Paragraph (1) (3) of this Subsection or to
18 some new plan or plans, created, implemented, or enacted after July 1, 2010, a
19 particularized contribution rate shall be calculated as provided in this Subsection
20 and Paragraphs (B)(1) and (3) of this Section.
21 (d) The shared gross employer contribution rate difference. The gross
22 employer contribution rate difference shall be the difference between the minimum
23 gross employer contribution rate provided in Paragraph (B)(5) of this Section and the
24 aggregate employer contribution rate calculated pursuant to the provisions of
25 Subsection B of this Section.
26 (5)(7) Each entity funding a portion of the member's salary shall also fund the
27 employer's contribution on that portion of the member's salary at the employer
28 contribution rate specified in this Subsection.
29 (6)(8) For purposes of Paragraph (B)(2) of this Section the actuarially
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1 required actuarially-required employer contributions and the employer
2 contributions actually received for all plans shall be totaled and treated as a single
3 contribution.
4 (7)(9) If provisions of this Section cover matters not specifically addressed
5 by the provisions of this Subsection, then those provisions shall be applicable.
6 D.(1) This The provisions of this Subsection shall apply to the Teachers'
7 Retirement System of Louisiana.
8 (2)(a) Except as provided in Subparagraph (b) of this Paragraph and in
9 R.S. 11:102.5, effective July 1, 2004, and beginning with Fiscal Year 2000-2001,
10 the amortization period for the changes, gains, or losses of the system provided
11 in Items (B)(3)(d)(i) through (iv) of this Section shall be thirty years from the
12 year in which the change, gain, or loss occurred. The outstanding balances of
13 amortization bases established pursuant to Items (B)(3)(d)(i) through (iv) of this
14 Section before Fiscal Year 2000-2001, shall be amortized as a level dollar
15 amount from July 1, 2004, through June 30, 2029. Beginning with Fiscal Year
16 2003-2004, and for each fiscal year thereafter, the outstanding balances of
17 amortization bases established pursuant to Items (B)(3)(d)(i) through (iv) of this
18 Section shall be amortized as a level dollar amount. Effective for the June 30,
19 2011 system valuation and beginning with Fiscal Year 2012-2013, amortization
20 payments for changes in actuarial liability shall be determined in accordance
21 with this Subsection.
22 (b) Notwithstanding the provisions of Subparagraph (a) of this
23 Paragraph, the amortization period for the changes, gains, or losses of the
24 Teachers' Retirement System of Louisiana provided in Items (B)(3)(d)(i)
25 through (iv) of this Section shall begin from the year in which the change, gain,
26 or loss occurred and shall be as follows:
27 (i) For the June 30, 2016 valuation, twenty-eight years.
28 (ii) For the June 30, 2017 valuation, twenty-six years.
29 (iii) For the June 30, 2018 valuation, twenty-four years.
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1 (iv) For the June 30, 2019 valuation, twenty-two years.
2 (v) For the June 30, 2020 valuation and for every year thereafter, twenty
3 years from the year in which the change, gain, or loss occurred.
4 (c) Effective for the first system valuation following June 30, 2015, in
5 which an allocation is made to the system's experience account and for each
6 valuation thereafter, actuarial gains allocated to the experience account shall
7 be amortized as a loss with level payments over a ten-year period.
8 (3) The provisions of this Paragraph and Paragraphs (4) through (9) of
9 this Subsection shall be applicable to the Teachers' Retirement System of Louisiana
10 effective for the June 30, 2011, 2011 system valuation and beginning Fiscal Year
11 2012-2013. For purposes of this Subsection, "plan" or "plans" shall mean a subgroup
12 within the system characterized by the following employee classifications:
13 (a) School lunch Plan A.
14 (b) School lunch Plan B.
15 (c) Employees of an institution of postsecondary education, the Board of
16 Regents, or a postsecondary education management board who are not employed for
17 the sole purpose of providing instruction or administrative services at the primary or
18 secondary level, including at any lab school and the Louisiana School for Math,
19 Science, and the Arts.
20 (d)(b) Any other specialty retirement plan provided for a subgroup of system
21 members. If the legislation enacting such a plan is silent as to the application of this
22 Subsection, the Public Retirement Systems' Actuarial Committee shall provide for
23 the application to such plan.
24 (e)(c) All other teachers, as defined in R.S. 11:701(33), including members
25 paid from school food service funds as provided in R.S. 11:801 and 811.
26 (2)(4) For the Teachers' Retirement System of Louisiana, effective Effective
27 for the June 30, 2011, 2011 system valuation and beginning with Fiscal Year 2012-
28 2013, the normal cost calculated pursuant to Subparagraph (B)(3)(a) of this Section,
29 shall be calculated separately for each particular plan within the system. An
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1 employer shall pay employer contributions for each employee at the rate applicable
2 to the plan of which that employee is a member.
3 (3)(5) For the Teachers' Retirement System of Louisiana, effective Effective
4 for the June 30, 2011, 2011 system valuation and beginning with Fiscal Year
5 2012-2013, changes in actuarial liability due to legislation, changes in governmental
6 organization, or reclassification of employees or positions shall be calculated
7 individually for each particular plan within the system based on each plan's actuarial
8 experience as further provided in Subparagraph (4)(c) (6)(c) of this Subsection.
9 (4)(6) For each plan referenced in Paragraph (1) (3) of this Subsection, the
10 legislature shall set the required employer contribution rate equal to the sum of the
11 following:
12 (a) The particularized normal cost rate. The normal cost rate for each fiscal
13 year shall be the employer's normal cost for employees in the plan computed by
14 applying the method specified in Paragraph (B)(1) and Subparagraph (B)(3)(a) of
15 this Section to the plan.
16 (b) The shared unfunded accrued liability rate. A single rate shall be
17 computed for each fiscal year, applicable to all plans for actuarial changes, gains, and
18 losses existing on June 30, 2011, or occurring thereafter, including experience and
19 investment gains and losses, which are independent of the existence of the plans
20 listed in Paragraph (1) (3) of this Subsection, the payment and rate therefor shall be
21 calculated as provided in this Subsection and Paragraphs (B)(1) and (3) of this
22 Section.
23 (c) The particularized unfunded accrued liability rate. For actuarial changes,
24 gains, and losses, excluding experience and investment gains and losses, first
25 recognized in the June 30, 2011, 2011 valuation or in any later valuation, attributable
26 to one or more, but not all, plans listed in Paragraph (1) (3) of this Subsection or to
27 some new plan or plans, created, implemented, or enacted after July 1, 2011, a
28 particularized contribution rate shall be calculated as provided in this Subsection
29 and Paragraphs (B)(1) and (3) of this Section.
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1 (d) The shared gross employer contribution rate difference. The gross
2 employer contribution rate difference shall be the difference between the minimum
3 gross employer contribution rate provided in Paragraph (B)(5) of this Section and the
4 aggregate employer contribution rate calculated pursuant to the provisions of
5 Subsection B of this Section.
6 (5)(7) Each entity funding a portion of the member's salary shall also fund the
7 employer's contribution on that portion of the member's salary at the employer
8 contribution rate specified in this Subsection.
9 (6)(8) For purposes of Paragraph (B)(2) of this Section the actuarially
10 required actuarially-required employer contributions and the employer
11 contributions actually received for all plans shall be totaled and treated as a single
12 contribution.
13 (7)(9) If provisions of this Section cover matters not specifically addressed
14 by the provisions of this Subsection, then those provisions shall be applicable.
15 E.(1) Except as provided in Paragraphs (2) and (3) of this Subsection and
16 in R.S. 11:102.5, effective July 1, 2004, and beginning with Fiscal Year
17 2000-2001, the amortization period for the changes, gains, or losses of the
18 Louisiana School Employees' Retirement System provided in Items (B)(3)(d)(i)
19 through (iv) of this Section shall be thirty years from the year in which the
20 change, gain, or loss occurred. The outstanding balances of amortization bases
21 established pursuant to Items (B)(3)(d)(i) through (iv) of this Section before
22 Fiscal Year 2000-2001, shall be amortized as a level dollar amount from July 1,
23 2004, through June 30, 2029. Beginning with Fiscal Year 2003-2004, and for
24 each fiscal year thereafter, the outstanding balances of amortization bases
25 established pursuant to Items (B)(3)(d)(i) through (iv) of this Section shall be
26 amortized as a level dollar amount.
27 (2)(a) All outstanding amortization bases in existence on June 30, 2014,
28 including outstanding balances established pursuant to Subparagraph (B)(3)(c)
29 of this Section, shall be consolidated and reamortized over the period ending
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1 June 30, 2044, with level dollar payments, effective with the June 30, 2014
2 valuation. This Paragraph shall not apply to amortization bases established
3 after June 30, 2014.
4 (b) After payment of a permanent benefit increase pursuant to the
5 provisions of R.S. 11:1145.1, the unused portion of the June 30, 2013 experience
6 account balance shall be credited in an amortization conversion account from
7 which annual contributions required pursuant to Subparagraph (a) of this
8 Paragraph shall be funded in whole or in part for the years July 1, 2014,
9 through June 30, 2019. Effective June 30, 2019, all funds remaining in the
10 amortization conversion account shall be amortized as a gain in accordance
11 with the provisions of this Subsection.
12 (3) Notwithstanding the provisions of Paragraph (1) of this Subsection,
13 the amortization period for the changes, gains, or losses of the Louisiana School
14 Employees' Retirement System provided in Items (B)(3)(d)(i) through (iv) of
15 this Section shall begin from the year in which the change, gain, or loss occurred
16 and shall be as follows:
17 (a) For the June 30, 2016 valuation, twenty-eight years.
18 (b) For the June 30, 2017 valuation, twenty-six years.
19 (c) For the June 30, 2018 valuation, twenty-four years.
20 (d) For the June 30, 2019 valuation, twenty-two years.
21 (e) For the June 30, 2020 valuation and for every year thereafter, twenty
22 years from the year in which the change, gain, or loss occurred.
23 (4) Effective for the first system valuation following June 30, 2015, in
24 which an allocation is made to the system's experience account and for each
25 valuation thereafter, actuarial gains allocated to the experience account shall
26 be amortized as a loss with level payments over a ten-year period.
27 F.(1) Except as provided in Paragraph (2) of this Subsection and in R.S.
28 11:102.5, effective July 1, 2009, and beginning with Fiscal Year 1992-1993, the
29 amortization period for the changes, gains, or losses of the Louisiana State
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1 Police Retirement System provided in Items (B)(3)(d)(i) through (iv) of this
2 Section shall be thirty years from the year in which the change, gain, or loss
3 occurred. The outstanding balances of amortization bases established pursuant
4 to Items (B)(3)(d)(i) through (iv) of this Section before Fiscal Year 2008-2009
5 shall be amortized as a level dollar amount from July 1, 2009, through June 30,
6 2029. Beginning with Fiscal Year 2008-2009, and for each fiscal year thereafter,
7 the outstanding balances of amortization bases established pursuant to Items
8 (B)(3)(d)(i) through (iv) of this Section shall be amortized as a level dollar
9 amount.
10 (2) Notwithstanding the provisions of Paragraph (1) of this Subsection,
11 the amortization period for the changes, gains, or losses of the Louisiana State
12 Police Retirement System provided in Items (B)(3)(d)(i) through (iv) of this
13 Section shall begin from the year in which the change, gain, or loss occurred
14 and shall be as follows:
15 (a) For the June 30, 2016 valuation, twenty-eight years.
16 (b) For the June 30, 2017 valuation, twenty-six years.
17 (c) For the June 30, 2018 valuation, twenty-four years.
18 (d) For the June 30, 2019 valuation, twenty-two years.
19 (e) For the June 30, 2020 valuation and for every year thereafter, twenty
20 years from the year in which the change, gain, or loss occurred.
21 (3) Effective for the first system valuation following June 30, 2015, in
22 which an allocation is made to the system's experience account and for each
23 valuation thereafter, actuarial gains allocated to the experience account shall
24 be amortized as a loss with level payments over a ten-year period.
25 §102.1. Consolidation of amortization Amortization payment schedules; priority
26 excess return allocations; Louisiana State Employees' Retirement
27 System
28 A. * * *
29 (4) For purposes of this Section, the following shall apply:
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1 (a) "Primary priority amount" shall mean the maximum amount of
2 system returns in excess of the system's actuarially-assumed rate of return that
3 may be applied to the original amortization base, regardless of whether actual
4 returns that equal or exceed the maximum are available, and shall equal:
5 (i) For the June 30, 2015 valuation, fifty million dollars.
6 (ii) For each valuation thereafter, the prior year's primary priority
7 amount increased by the percentage increase in the system's actuarial value of
8 assets for the prior year, if any.
9 (b) "Primary allocation" shall mean the actual returns available for
10 application to the original amortization base.
11 (c) "Secondary priority amount" shall mean the maximum amount of
12 system returns in excess of the system's actuarially-assumed rate of return that
13 may be applied to the experience account amortization base, regardless of
14 whether actual returns that equal or exceed the maximum are available, and
15 shall equal:
16 (i) For the June 30, 2015 valuation, fifty million dollars.
17 (ii) For each valuation thereafter, before the original amortization base
18 is liquidated, the prior year's secondary priority amount increased by the
19 percentage increase in the system's actuarial value of assets for the prior year,
20 if any.
21 (iii) For the valuation in which the original amortization base is
22 liquidated, that year's secondary priority amount calculated pursuant to Item
23 (ii) of this Subparagraph plus any money from that year's primary priority
24 amount remaining after liquidation of the original amortization base.
25 (iv) For the first valuation after the original amortization base is
26 liquidated, the portion of the prior year's primary priority amount that was
27 necessary to liquidate the original amortization base plus the prior year's
28 secondary priority amount, both increased by the percentage increase in the
29 system's actuarial value of assets for the prior year, if any.
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1 (v) For the second valuation after the original amortization base is
2 liquidated and for each valuation thereafter, the prior year's secondary priority
3 amount increased by the percentage increase in the system's actuarial value of
4 assets for the prior year, if any.
5 (d) "Secondary allocation" shall mean the actual returns available for
6 application to the experience account amortization base.
7 (e) "Residual priority amount" shall mean the maximum amount of
8 system returns in excess of the system's actuarially-assumed rate of return that
9 may be applied to the oldest outstanding positive amortization base after
10 liquidation of the experience account amortization base, regardless of whether
11 actual returns that equal or exceed the maximum are available, and shall equal:
12 (i) For the valuation in which the experience account amortization base
13 is liquidated, the money from that year's secondary allocation remaining after
14 liquidation of the experience account amortization base, if any.
15 (ii) For the first valuation after the experience account amortization base
16 is liquidated, the prior year's secondary priority amount, increased by the
17 percentage increase in the system's actuarial value of assets for the prior year,
18 if any.
19 (iii) For the second valuation after the experience account amortization
20 base is liquidated and for each valuation thereafter, the prior year's residual
21 priority amount increased by the percentage increase in the system's actuarial
22 value of assets for the prior year, if any.
23 (f) "Residual allocation" shall mean the actual returns available for
24 application to the oldest outstanding positive amortization base after liquidation
25 of the experience account amortization base.
26 (g) In no event shall the total of one year's priority amounts be less than
27 the total of the previous year's priority amounts.
28 (h) Effective for the June thirtieth valuation following the fiscal year in
29 which the system first attains a funded percentage of eighty or more pursuant
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1 to R.S. 11:542 and for each valuation thereafter, the net remaining liability of
2 the amortization base to which the funds are applied shall be reamortized with
3 annual level dollar payments calculated as provided in R.S. 11:102 over the
4 remainder of the amortization period originally established for that
5 amortization base.
6 (i) For the June 30, 2016 valuation and for each valuation in which the
7 year is equal to 2016 plus a multiple of five, the remaining liability net of all
8 payments made since the last reamortization shall be reamortized over the
9 remainder of the amortization period originally established for that
10 amortization base with annual payments being calculated as provided for in this
11 Section.
12 (j) Except as provided in Subparagraphs (h) and (i) of this Paragraph
13 and in Item (B)(3)(a)(iv) and Subparagraph (C)(3)(d) of this Section, the net
14 remaining liability of the amortization base to which the funds are applied shall
15 not be reamortized after such application.
16 B. Original amortization base.
17 * * *
18 (3)(a) This consolidated amortization base shall be known as the "original
19 amortization base" and shall be amortized with annual payments calculated as
20 follows:
21 * * *
22 (iv) Notwithstanding any provision of this Section to the contrary, the net
23 remaining liability shall be reamortized over the remainder of the amortization
24 period ending in 2029 in the first valuation for which this reamortization results
25 in annual level dollar payments that do not exceed the payment otherwise
26 required for that year's valuation.
27 * * *
28 (4)(a) Except as provided in Paragraph (6) of this Subsection, in any year in
29 which the system exceeds its actuarially-assumed rate of return, the excess returns,
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1 up to the first fifty million for the June 30, 2015, valuation, the primary allocation
2 shall be applied to the remaining balance of the original amortization base
3 established in this Subsection. The maximum amount of excess returns to be applied
4 in any subsequent year pursuant to the provisions of this Subparagraph shall equal
5 the prior year's maximum amount increased by the percentage increase in the
6 system's actuarial value of assets for the preceding year, if any.
7 (b) For any payment made pursuant to the provisions of this Paragraph, if the
8 system is eighty-five percent funded or greater prior to the application of the funds,
9 the net remaining liability shall be reamortized over the remaining amortization
10 period with annual payments calculated as provided in this Subsection or as
11 otherwise provided by law; if the system is less than eighty-five percent funded prior
12 to application of the funds, the net remaining liability shall not be reamortized after
13 such application.
14 (5) Notwithstanding the provisions of R.S. 11:102(B)(3)(c) and (5) or any
15 other provision of law to the contrary, in any year through Fiscal Year 2016-2017 in
16 which the system receives an overpayment of employer contributions as determined
17 pursuant to R.S. 11:102(B)(2) and in any year through Fiscal Year 2016-2017 in
18 which the system receives additional contributions pursuant to R.S. 11:102(B)(5),
19 the amount of such overpayment or additional contribution shall be applied to the
20 remaining balance of the original amortization base established pursuant to this
21 Subsection. For any payment made pursuant to the provisions of this Paragraph, if
22 the system is eighty-five percent funded or greater prior to the application of the
23 funds, the net remaining liability shall be reamortized over the remaining
24 amortization period with annual payments calculated as provided in this Subsection
25 or as otherwise provided by law; if the system is less than eighty-five percent funded
26 prior to application of the funds, the net remaining liability shall not be reamortized
27 after such application.
28 (6) For the June 30, 2014, 2014 valuation, if the system exceeds its
29 actuarially-assumed rate of return, the excess returns, up to the first twenty-five
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1 million dollars, shall be applied to the remaining balance of the original amortization
2 base established in this Subsection, without reamortization of such base.
3 C. Experience account amortization base.
4 * * *
5 (2) To this shall be applied the balance in the experience account or the
6 balance in the subaccount of the Texaco Account created pursuant to R.S.
7 11:542(A)(1)(b)(iii).
8 (3) This consolidated amortization base shall be known as the "experience
9 account amortization base" and shall be amortized with annual payments over a
10 thirty-year period beginning in Fiscal Year 2010-2011 as follows:
11 * * *
12 (d) Notwithstanding any provision of this Section to the contrary, the net
13 remaining liability shall be reamortized over the remainder of the amortization
14 period ending in 2040 in the first valuation for which this reamortization results
15 in annual level dollar payments that do not exceed the payment otherwise
16 required for that valuation.
17 (4)(a) Except as provided in Paragraph (6) of this Subsection, in any year
18 before the liquidation of the original amortization base in which the excess
19 returns of the system exceed the primary priority amount applied to the Original
20 Amortization Base pursuant to Subparagraph (B)(4)(a) of this Section, the remaining
21 excess returns, up to the next fifty million dollars for the June 30, 2015, valuation,
22 the secondary allocation shall be applied to the experience account amortization
23 base established in this Subsection. The maximum amount of excess returns to be
24 applied in any subsequent year pursuant to the provisions of this Subparagraph shall
25 equal the prior year's maximum amount increased by the percentage increase in the
26 system's actuarial value of assets for the preceding year, if any. In the year in
27 which the original amortization base is liquidated and for each year thereafter
28 until the experience account amortization base is liquidated, the secondary
29 allocation shall be applied to the experience account amortization base.
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1 (b) For any payment made pursuant to the provisions of this Paragraph, if the
2 system is eighty-five percent funded or greater prior to the application of the funds,
3 the net remaining liability shall be reamortized over the remaining amortization
4 period with annual payments calculated as provided in this Subsection or as
5 otherwise provided by law; if the system is less than eighty-five percent funded prior
6 to application of the funds, the net remaining liability shall not be reamortized after
7 such application.
8 (5) Notwithstanding the provisions of R.S. 11:102(B)(3)(c) and (5) or any
9 other provision of law to the contrary, in any year from Fiscal Year 2017-2018
10 through Fiscal Year 2039-2040 in which the system receives an overpayment of
11 employer contributions as determined pursuant to R.S. 11:102(B)(2) and in any year
12 from Fiscal Year 2017-2018 through Fiscal Year 2039-2040 in which the system
13 receives additional contributions pursuant to R.S. 11:102(B)(5), the amount of such
14 overpayment or additional contribution shall be applied to the remaining balance of
15 the experience account amortization base established pursuant to this Subsection. For
16 any payment made pursuant to the provisions of this Paragraph, if the system is
17 eighty-five percent funded or greater prior to the application of the funds, the net
18 remaining liability shall be reamortized over the remaining amortization period with
19 annual payments calculated as provided in this Subsection or as otherwise provided
20 by law; if the system is less than eighty-five percent funded prior to application of
21 the funds, the net remaining liability shall not be reamortized after such application.
22 (6) For the June 30, 2014, 2014 valuation, if the excess returns of the system
23 exceed the amount applied to the original amortization base pursuant to
24 Subparagraph (B)(6) of this Section, the remaining excess returns, up to the next
25 twenty-five million dollars, shall be applied to the remaining balance of the
26 experience account amortization base established in this Subsection, without
27 reamortization of such base.
28 D.(1) If both the original amortization base and the experience account
29 amortization base have been liquidated, the residual allocation shall be applied
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1 to the system's oldest outstanding positive amortization base, excluding any
2 liability established pursuant to R.S. 11:102(B)(2)(a) or (3)(c) or (C)(6)(c) until
3 all such bases are completely liquidated. After the final base is completely
4 liquidated, the assets shall be treated as provided in R.S. 11:102(B)(4).
5 (2) If there are multiple positive bases of the same age and the same
6 duration, all such bases shall be collapsed into a single base for purposes of this
7 Subsection.
8 (3) If there are multiple positive bases of the same age but of different
9 durations, the oldest outstanding positive amortization base with the shortest
10 remaining amortization period shall be treated as the "oldest" for purposes of
11 this Subsection.
12 §102.2. Consolidation of amortization Amortization payment schedules; priority
13 excess return allocations; Teachers' Retirement System of Louisiana
14 A. * * *
15 (4) For purposes of this Section, the following shall apply:
16 (a) "Primary priority amount" shall mean the maximum amount of
17 system returns in excess of the system's actuarially-assumed rate of return that
18 may be applied to the original amortization base, regardless of whether actual
19 returns that equal or exceed the maximum are available, and shall equal:
20 (i) For the June 30, 2015 valuation, one hundred million dollars.
21 (ii) For each valuation thereafter, the prior year's primary priority
22 amount increased by the percentage increase in the system's actuarial value of
23 assets for the prior year, if any.
24 (b) "Primary allocation" shall mean the actual returns available for
25 application to the original amortization base.
26 (c) "Secondary priority amount" shall mean the maximum amount of
27 system returns in excess of the system's actuarially-assumed rate of return that
28 may be applied to the experience account amortization base, regardless of
29 whether actual returns that equal or exceed the maximum are available, and
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1 shall equal:
2 (i) For the June 30, 2015 valuation, one hundred million dollars.
3 (ii) For each valuation thereafter, before the original amortization base
4 is liquidated, the prior year's secondary priority amount increased by the
5 percentage increase in the system's actuarial value of assets for the prior year,
6 if any.
7 (iii) For the valuation in which the original amortization base is
8 liquidated, that year's secondary priority amount calculated pursuant to Item
9 (ii) of this Subparagraph plus any money from that year's primary priority
10 amount remaining after liquidation of the original amortization base.
11 (iv) For the first valuation after the original amortization base is
12 liquidated, the portion of the prior year's primary priority amount that was
13 necessary to liquidate the original amortization base plus the prior year's
14 secondary priority amount, both increased by the percentage increase in the
15 system's actuarial value of assets for the prior year, if any.
16 (v) For the second valuation after the original amortization base is
17 liquidated and for each valuation thereafter, the prior year's secondary priority
18 amount increased by the percentage increase in the system's actuarial value of
19 assets for the prior year, if any.
20 (d) "Secondary allocation" shall mean the actual returns available for
21 application to the experience account amortization base.
22 (e) "Residual priority amount" shall mean the maximum amount of
23 system returns in excess of the system's actuarially-assumed rate of return that
24 may be applied to the oldest outstanding positive amortization base after
25 liquidation of the experience account amortization base, regardless of whether
26 actual returns that equal or exceed the maximum are available, and shall equal:
27 (i) For the valuation in which the experience account amortization base
28 is liquidated, the money from that year's secondary allocation remaining after
29 liquidation of the experience account amortization base, if any.
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1 (ii) For the first valuation after the experience account amortization base
2 is liquidated, the prior year's secondary priority amount, increased by the
3 percentage increase in the system's actuarial value of assets for the prior year,
4 if any.
5 (iii) For the second valuation after the experience account amortization
6 base is liquidated and for each valuation thereafter, the prior year's residual
7 priority amount increased by the percentage increase in the system's actuarial
8 value of assets for the prior year, if any.
9 (f) "Residual allocation" shall mean the actual returns available for
10 application to the oldest outstanding positive amortization base after liquidation
11 of the experience account amortization base.
12 (g) In no event shall the total of one year's priority amounts be less than
13 the total of the previous year's priority amounts.
14 (h) Effective for the June thirtieth valuation following the fiscal year in
15 which the system first attains a funded percentage of eighty or more pursuant
16 to R.S. 11:883.1 and for each valuation thereafter, the net remaining liability of
17 the amortization base to which the funds are applied shall be reamortized with
18 annual level dollar payments calculated as provided in R.S. 11:102 over the
19 remainder of the amortization period originally established for that
20 amortization base.
21 (i) For the June 30, 2016 valuation and for each valuation in which the
22 year is equal to 2016 plus a multiple of five, the remaining liability net of all
23 payments made since the last reamortization shall be reamortized over the
24 remainder of the amortization period originally established for that
25 amortization base with annual payments being calculated as provided for in this
26 Section.
27 (j) Except as provided in Subparagraphs (h) and (i) of this Paragraph
28 and in Item (B)(3)(a)(iv) and Subparagraph (C)(3)(d) of this Section, the net
29 remaining liability of the amortization base to which the funds are applied shall
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1 not be reamortized after such application.
2 B. Original amortization base.
3 * * *
4 (3)(a) This consolidated amortization base shall be known as the "original
5 amortization base" and shall be amortized with annual payments calculated as
6 follows:
7 * * *
8 (iv) Notwithstanding any provision of this Section to the contrary, the net
9 remaining liability shall be reamortized over the remainder of the amortization
10 period ending in 2029 in the first valuation for which this reamortization results
11 in annual level dollar payments that do not exceed the payment otherwise
12 required for that valuation.
13 * * *
14 (4)(a) Except as provided in Paragraph (5) of this Subsection, in any year in
15 which the system exceeds its actuarially-assumed rate of return, the excess returns,
16 up to the first one hundred million dollars for the June 30, 2015, valuation, the
17 primary allocation shall be applied to the remaining balance of the original
18 amortization base established in this Subsection. The maximum amount of excess
19 returns to be applied in any subsequent year pursuant to the provisions of this
20 Subparagraph shall equal the prior year's maximum amount increased by the
21 percentage increase in the system's actuarial value of assets for the preceding year,
22 if any.
23 (b) For any payment made pursuant to the provisions of this Paragraph, if the
24 system is eighty-five percent funded or greater prior to the application of the funds,
25 the net remaining liability shall be reamortized over the remaining amortization
26 period with annual payments calculated as provided in this Subsection or as
27 otherwise provided by law; if the system is less than eighty-five percent funded prior
28 to application of the funds, the net remaining liability shall not be reamortized after
29 such application.
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1 (5) For the June 30, 2014, 2014 valuation, if the system exceeds its
2 actuarially-assumed rate of return, the excess returns, up to the first fifty million
3 dollars, shall be applied to the remaining balance of the original amortization base
4 established in this Subsection, without reamortization of such base.
5 C. Experience account amortization base.
6 * * *
7 (2) To this shall be applied the balance in the experience account or the
8 balance in the subaccount of the Texaco Account created pursuant to R.S.
9 11:883.1(A)(1)(b)(iii).
10 (3) This consolidated amortization base shall be known as the "experience
11 account amortization base" and shall be amortized with annual payments over a
12 thirty-year period beginning in Fiscal Year 2010-2011 calculated as follows:
13 * * *
14 (d) Notwithstanding any provision of this Section or any other law to the
15 contrary, the net remaining liability shall be reamortized over the remainder
16 of the amortization period ending in 2040 in the first valuation for which this
17 reamortization results in annual level dollar payments that do not exceed the
18 payment otherwise required for that valuation.
19 (4)(a) Except as provided in Paragraph (6) of this Subsection, in any year
20 before the liquidation of the original amortization base in which the excess
21 returns of the system exceed the primary priority amount applied to the Original
22 Amortization Base pursuant to Subparagraph (B)(4)(a) of this Section, the remaining
23 excess returns, up to the next one hundred million dollars for the June 30, 2015,
24 valuation, the secondary allocation shall be applied to the experience account
25 amortization base established in this Subsection. The maximum amount of excess
26 returns to be applied in any subsequent year pursuant to the provisions of this
27 Subparagraph shall equal the prior year's maximum amount increased by the
28 percentage increase in the system's actuarial value of assets for the preceding year,
29 if any. In the year in which the original amortization base is liquidated and for
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1 each year thereafter until the experience account amortization base is
2 liquidated, the secondary allocation shall be applied to the experience account
3 amortization base.
4 (b) For any payment made pursuant to the provisions of this Paragraph, if the
5 system is eighty-five percent funded or greater prior to the application of the funds,
6 the net remaining liability shall be reamortized over the remaining amortization
7 period with annual payments calculated as provided in this Subsection or as
8 otherwise provided by law; if the system is less than eighty-five percent funded prior
9 to application of the funds, the net remaining liability shall not be reamortized after
10 such application.
11 (5) Notwithstanding the provisions of R.S. 11:102(B)(3)(c) and (5) or any
12 other provision of law to the contrary, in any year from Fiscal Year 2009-2010
13 through Fiscal Year 2039-2040 in which the system receives an overpayment of
14 employer contributions as determined pursuant to R.S. 11:102(B)(2) and in any year
15 from Fiscal Year 2009-2010 through Fiscal Year 2039-2040 in which the system
16 receives additional contributions pursuant to R.S. 11:102(B)(5), the amount of such
17 overpayment or additional contribution shall be applied to the remaining balance of
18 the experience account amortization base established pursuant to this Subsection. For
19 any payment made pursuant to the provisions of this Paragraph, if the system is
20 eighty-five percent funded or greater prior to the application of the funds, the net
21 remaining liability shall be reamortized over the remaining amortization period with
22 annual payments calculated as provided in this Subsection or as otherwise provided
23 by law; if the system is less than eighty-five percent funded prior to application of
24 the funds, the net remaining liability shall not be reamortized after such application.
25 (6) For the June 30, 2014, 2014 valuation, if the excess returns of the system
26 exceed the amount applied to the original amortization base pursuant to
27 Subparagraph (B)(5) of this Section, the remaining excess returns, up to the next fifty
28 million dollars, shall be applied to the remaining balance of the experience account
29 amortization base established in this Subsection, without reamortization of such
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1 base.
2 D.(1) If both the original amortization base and the experience account
3 amortization base have been liquidated, the residual allocation shall be applied
4 to the system's oldest outstanding positive amortization base, excluding any
5 liability established pursuant to R.S. 11:102(B)(2)(a) or (3)(c) or (D)(6)(c), until
6 all such bases are completely liquidated. After the final base is completely
7 liquidated, the assets shall be treated as provided in R.S. 11:102(B)(4).
8 (2) If there are multiple positive bases of the same age and the same
9 duration, all such bases shall be collapsed into a single base for purposes of this
10 Subsection.
11 (3) If there are multiple positive bases of the same age but of different
12 durations, the oldest outstanding positive amortization base with the shortest
13 remaining amortization period shall be treated as the "oldest" for purposes of
14 this Subsection.
15 §102.3. Priority excess return allocations; Louisiana School Employees'
16 Retirement System
17 A. For purposes of this Section, the following shall apply:
18 (1) "Priority amount" shall mean the maximum amount of system
19 returns in excess of the system's actuarially-assumed rate of return that may be
20 applied to the oldest outstanding positive amortization base, regardless of
21 whether actual returns that equal or exceed the maximum are available, and
22 shall equal:
23 (a) For the June 30, 2015 valuation, fifteen million dollars.
24 (b) For each valuation thereafter, the prior year's priority amount
25 increased by the percentage increase in the system's actuarial value of assets for
26 the prior year, if any.
27 (2) "Priority allocation" shall mean the actual returns available for
28 application to the oldest outstanding positive amortization base.
29 (3) For any valuation in which the oldest outstanding positive
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1 amortization base is liquidated without using the full amount of the priority
2 allocation, the remaining amount from that year's priority allocation after
3 liquidation of the oldest base shall be applied to the next oldest base.
4 (4) In no event shall one year's priority amount be less than the previous
5 year's priority amount.
6 (5) Effective for the June thirtieth valuation following the fiscal year in
7 which the system first attains a funded percentage of eighty or more pursuant
8 to R.S. 11:1145.1 and for each valuation thereafter, the net remaining liability
9 of the amortization base to which the funds are applied shall be reamortized
10 with annual level dollar payments calculated as provided in R.S. 11:102 over the
11 remainder of the amortization period originally established for that
12 amortization base.
13 (6) For the June 30, 2016 valuation and for each valuation in which the
14 year is equal to 2016 plus a multiple of five, the remaining liability net of all
15 payments made since the last reamortization shall be reamortized over the
16 remainder of the amortization period originally established for that
17 amortization base with annual payments being calculated as provided for in this
18 Section.
19 (7) Except as provided in Paragraphs (5) and (6) of this Subsection, the
20 net remaining liability of the amortization base to which the funds are applied
21 shall not be reamortized after such application.
22 B.(1) Effective for the June 30, 2015 valuation and for each valuation
23 thereafter, if the system's investment experience for the fiscal year exceeds the
24 system's actuarially-assumed rate of return, the system shall apply the priority
25 allocation to the oldest outstanding positive amortization base of the system,
26 excluding any amortization base established to amortize a liability pursuant to
27 R.S. 11:102(B)(2)(a) or (3)(c) until all such bases are completely liquidated.
28 After the final base is completely liquidated, the assets shall be treated as
29 provided in R.S. 11:102(B)(4).
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1 (2) If there are multiple positive bases of the same age and the same
2 duration, all such bases shall be collapsed into a single base for purposes of this
3 Subsection.
4 (3) If there are multiple positive bases of the same age but of different
5 durations, the oldest outstanding positive amortization base with the shortest
6 remaining amortization period shall be treated as the "oldest" for purposes of
7 this Subsection.
8 C. Effective for the June 30, 2014 valuation, if the system's investment
9 experience for the fiscal year exceeds the system's actuarially-assumed rate of
10 return, the system shall apply the excess investment experience returns, up to
11 a maximum of the first seven and one-half million dollars, to the oldest
12 outstanding positive amortization base of the system, excluding any
13 amortization base established to amortize a liability pursuant to R.S.
14 11:102(B)(2)(a) or (3)(c) without reamortization of such base.
15 §102.4. Priority excess return allocations; State Police Retirement System
16 A. For purposes of this Section, the following shall apply:
17 (1) "Priority amount" shall mean the maximum amount of system
18 returns in excess of the system's actuarially-assumed rate of return that may be
19 applied to the oldest outstanding positive amortization base, regardless of
20 whether actual returns that equal or exceed the maximum are available, and
21 shall equal:
22 (a) For the June 30, 2015 valuation, five million dollars.
23 (b) For each valuation thereafter, the prior year's priority amount
24 increased by the percentage increase in the system's actuarial value of assets for
25 the prior year, if any.
26 (2) "Priority allocation" shall mean the actual returns available for
27 application to the oldest outstanding positive amortization base.
28 (3) For any valuation in which the oldest outstanding positive
29 amortization base is liquidated without using the full amount of the priority
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1 allocation, the remaining amount from that year's priority allocation after
2 liquidation of the oldest base shall be applied to the next oldest base.
3 (4) In no event shall one year's priority amount be less than the previous
4 year's priority amount.
5 (5) Effective for the June thirtieth valuation following the fiscal year in
6 which the system first attains a funded percentage of eighty or more pursuant
7 to R.S. 11:1332 and for each valuation thereafter, the net remaining liability of
8 the amortization base to which the funds are applied shall be reamortized with
9 annual level dollar payments calculated as provided in R.S. 11:102 over the
10 remainder of the amortization period originally established for that
11 amortization base.
12 (6) For the June 30, 2016 valuation and for each valuation in which the
13 year is equal to 2016 plus a multiple of five, the remaining liability net of all
14 payments made since the last reamortization shall be reamortized over the
15 remainder of the amortization period originally established for that
16 amortization base with annual payments being calculated as provided for in this
17 Section.
18 (7) Except as provided in Paragraphs (5) and (6) of this Subsection, the
19 net remaining liability of the amortization base to which the funds are applied
20 shall not be reamortized after such application.
21 B.(1) Effective for the June 30, 2015 valuation and for each valuation
22 thereafter, if the system's investment experience for the fiscal year exceeds the
23 system's actuarially-assumed rate of return, the system shall apply the priority
24 allocation to the oldest outstanding positive amortization base of the system,
25 excluding any amortization base established to amortize a liability pursuant to
26 R.S. 11:102(B)(2)(a) or (3)(c) until all such bases are completely liquidated.
27 After the final base is completely liquidated, the assets shall be treated as
28 provided in R.S. 11:102(B)(4).
29 (2) If there are multiple positive bases of the same age and the same
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1 duration, all such bases shall be collapsed into a single base for purposes of this
2 Subsection.
3 (3) If there are multiple positive bases of the same age but of different
4 durations, the oldest outstanding positive amortization base with the shortest
5 remaining amortization period shall be treated as the "oldest" for purposes of
6 this Subsection.
7 C. Effective for the June 30, 2014 valuation, if the system's investment
8 experience for the fiscal year exceeds the system's actuarially-assumed rate of
9 return, the system shall apply the excess investment experience returns, up to
10 a maximum of the first two and one-half million dollars, to the oldest
11 outstanding positive amortization base of the system, excluding any
12 amortization base established to amortize a liability pursuant to R.S.
13 11:102(B)(2)(a) or (3)(c), and without reamortization of such base.
14 §102.5. State systems' 2014 valuation amortization period
15 Notwithstanding any provision of R.S. 11:102 or any other law to the
16 contrary, for the June 30, 2014 valuation the amortization period for investment
17 gains of the Louisiana State Employees' Retirement System, the Teachers'
18 Retirement System of Louisiana, the Louisiana School Employees' Retirement
19 System, and the State Police Retirement System not allocated to an amortization
20 base pursuant to R.S. 11:102.1, 102.2, 102.3, or 102.4 and not credited to the
21 experience account shall be five years.
22 §102.3. §102.6. Review of volatility
23 Following the close of Fiscal Year 2018-2019 2016-2017, the future volatility
24 of the then-existing schedules of each state system shall be reexamined by staff of
25 each system and of the legislature, including actuaries for both. The results of this
26 reexamination, which may identify issues to be resolved and include
27 recommendations for plan amendments, shall be reported to the Public Retirement
28 Systems' Actuarial Committee by November 1, 2019 2017. The committee shall
29 review the results and determine what changes to the system plan provisions, if any,
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1 are advisable. If appropriate, the committee shall make a recommendation to the
2 legislature by December 15, 2017, on whether and what type of legislation is
3 warranted.
4 * * *
5 §542. Experience account
6 A.(1)(a) Effective July 1, 2004, the balance in the experience account shall
7 be zero.
8 (b)(2) Effective June 30, 2009, the balance in the experience account shall be
9 zero. Any funds in the experience account on June 29, 2009, shall be allocated in the
10 following order:
11 (i)(a) To provide for any net investment loss attributable to the balance in the
12 account as provided in Paragraph (B)(1) Subparagraph (B)(3)(a) of this Section.
13 (ii)(b) To fund any permanent benefit increase or minimum benefit pursuant
14 to the Act that originated as House Bill No. 586 Act 144 of the 2009 Regular Session
15 of the Legislature.
16 (iii)(c) To apply to the experience account amortization base as provided in
17 R.S. 11:102.1(C)(2); however, as of June 30, 2009, these funds shall be transferred
18 to the system's Texaco Account and retained in a subaccount of that account until
19 that account is applied as provided in R.S. 11:102.1. The subaccount shall continue
20 to be credited and debited as provided in Subparagraph (A)(2)(b) and Paragraph
21 (B)(1) of this Section until such application.
22 B.(1) Effective for the June 30, 2015 valuation, the system's funded
23 percentage for purposes of this Section shall be determined before any
24 allocation to the experience account.
25 (2) The In accordance with the provisions of Subsection G of this Section,
26 the experience account shall be credited as follows:
27 (a) To the extent permitted by Paragraph (3) of this Subsection
28 Subparagraph (c) of this Paragraph and after allocation to the amortization bases
29 as provided in R.S. 11:102(B)(3)(d)(v)(bb) and 102.1, as applicable 11:102.1, an
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1 amount not to exceed fifty percent of the remaining balance of the prior year's net
2 investment experience gain as determined by the system's actuary.
3 (b) To the extent permitted by Paragraph (3) of this Subsection
4 Subparagraph (c) of this Paragraph, an amount not to exceed that portion of the
5 system's net investment income attributable to the balance in the experience account
6 during the prior year.
7 (3)(a)(c) In no event shall a credit be made to the account that would cause
8 the balance in the experience account to exceed the reserve necessary to grant:
9 (i) Two permanent benefit increases determined pursuant to Subsection C D
10 of this Section if the system is at least eighty percent funded or greater.
11 (ii) One permanent benefit increase as determined pursuant to Subsection C
12 D of this Section if the system is less than eighty percent funded.
13 (b)(d) If the system is less than eighty percent funded and the account has
14 reserves in excess of the amounts provided for in Item (a)(ii) (c)(ii) of this Paragraph,
15 it shall not apply credits to the account pursuant to Subparagraph (2)(b) of this
16 Subsection no amount shall be credited to the account.
17 B.(3) The In accordance with the provisions of Subsection G of this
18 Section, the experience account shall be debited as follows:
19 (1)(a) An amount equal to that portion of the system's net investment loss
20 attributable to the balance in the experience account during the prior year.
21 (2)(b) An amount sufficient to fund a permanent benefit increase granted
22 pursuant to Subsection C the provisions of this Section.
23 (3)(c) In no event shall the amount in the experience account fall below zero.
24 C.(1) In accordance with the provisions of this Section, the board of trustees
25 may recommend to the president of the Senate and the speaker of the House of
26 Representatives that the system be permitted to grant a permanent benefit increase
27 to retirees, survivors, and beneficiaries whenever the conditions in this Section are
28 satisfied and the balance in the experience account is sufficient to fund such benefit
29 fully on an actuarial basis, as determined by the system's actuary. If the legislative
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1 auditor's actuary disagrees with the determination of the system's actuary, a
2 permanent benefit increase shall not be granted. The board of trustees shall not grant
3 a permanent benefit increase unless such permanent benefit increase has been
4 approved by the legislature. Any such permanent benefit increase granted on or
5 before June 30, 2015, shall be limited to and shall only be payable based on an
6 amount not to exceed seventy thousand dollars of the retiree's annual benefit. Any
7 such permanent benefit increase granted on or after July 1, 2015, shall be limited to
8 and shall only be payable based on an amount not to exceed sixty thousand dollars
9 of the retiree's annual benefit. Effective for years after July 1, 1999, and on or before
10 June 30, 2015, the seventy-thousand dollar limit shall be increased each year in an
11 amount equal to any increase in the consumer price index (U.S. city average for all
12 urban consumers (CPI-U)) for the preceding year, if any. Effective on or after July
13 1, 2015, the sixty-thousand dollar limit shall be increased each year in an amount
14 equal to any increase in the consumer price index, (U.S. city average for all urban
15 consumers (CPI-U)) for the twelve-month period ending on the system's valuation
16 date, if any.
17 D.(1) No increase shall be granted if one or more of the following apply:
18 (a) The system is less than fifty-five percent funded.
19 (b) The system is at least fifty-five percent funded but less than
20 eighty-five percent funded and the legislature granted a benefit increase in the
21 preceding fiscal year.
22 (c) The system is less than eighty percent funded and the system fails to
23 earn an actuarial rate of return which exceeds the board-approved actuarial
24 valuation rate.
25 (2) Any increase granted pursuant to the provisions of this Section shall begin
26 on the July first following legislative approval, shall be payable annually, and shall
27 equal the amount required pursuant to Subparagraph (a) or (b) of this
28 Paragraph. If the balance in the experience account is not sufficient to fully
29 fund that sum on an actuarial basis as determined by the system actuary in
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1 agreement with the legislative auditor's actuary, no increase shall be granted.
2 The increase shall be an amount equal to the lesser of:
3 (a) An amount as determined in Paragraph (2) of this Subsection.
4 (b) The increase in the consumer price index, U.S. city average for all urban
5 consumers (CPI-U), as prepared by the U.S. Department of Labor, Bureau of Labor
6 Statistics, for the twelve-month period ending on the system's valuation date if any.
7 If the balance in the experience account is not sufficient to fund that sum, no increase
8 shall be granted.
9 (2)(a)(b)(i) If Three percent, if the system is at least eighty percent funded
10 or greater, three percent and the system earns an actuarial rate of return of at
11 least eight and one-quarter percent interest on the investment of the system's
12 assets.
13 (ii) Two and one-half percent if all of the following apply:
14 (b)(aa) If the The system is at least seventy-five percent funded but less than
15 eighty percent funded and the.
16 (bb) The system earns an actuarial rate of return of at least eight and
17 one-quarter percent interest on the investment of the system's assets.
18 (cc) The legislature has not granted a benefit increase in the preceding fiscal
19 year, two and one-half percent.
20 (c)(iii) If the Two percent, if either of the following applies:
21 (aa) The system is at least sixty-five percent funded but less than
22 seventy-five percent funded and the legislature has not granted a benefit increase in
23 the preceding fiscal year, two percent.
24 (bb) The system is at least seventy-five percent funded and the system
25 does not earn an actuarial rate of return of at least eight and one-quarter
26 percent interest on the investment of the system's assets.
27 (d)(iv) If One and one-half percent if the system is at least fifty-five percent
28 funded but less than sixty-five percent funded and the legislature has not granted a
29 benefit increase in the preceding fiscal year, one and one-half percent.
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1 (e) If the system is less than fifty-five percent funded or if the system is less
2 than eighty-five percent funded but more than fifty-five percent funded and the
3 legislature granted a benefit increase in the preceding fiscal year, no increase shall
4 be granted.
5 (3) Subject to the limitations contained in Paragraph (1) of this Subsection,
6 The percentage of each recipient's permanent benefit increase shall be based on the
7 benefit being paid to the recipient on the effective date of the increase. increase;
8 however, any such permanent benefit increase granted on or before June 30,
9 2015, shall be limited to and shall be payable based only on an amount not to
10 exceed seventy thousand dollars of the retiree's annual benefit. Additionally,
11 any such permanent benefit increase granted on or after July 1, 2015, shall be
12 limited to and shall be payable based only on an amount not to exceed sixty
13 thousand dollars of the retiree's annual benefit. Effective for years after July 1,
14 1999, and on or before June 30, 2015, the seventy-thousand dollar limit shall be
15 increased each year in an amount equal to any increase in the consumer price
16 index, U.S. city average for all urban consumers (CPI-U) for the preceding year.
17 Effective on or after July 1, 2015, the sixty-thousand dollar limit shall be
18 increased each year in an amount equal to any increase in the consumer price
19 index, U.S. city average for all urban consumers (CPI-U) for the twelve-month
20 period ending on the system's valuation date.
21 (4)(a) Notwithstanding any provision of this Section to the contrary, in
22 a year in which the experience account balance is insufficient to fund the
23 amount required pursuant to Paragraph (2) of this Subsection, the board may
24 make the recommendation provided in Subsection C of this Section if all of the
25 following conditions are satisfied:
26 (i) No benefit increase was granted in the preceding fiscal year.
27 (ii) The experience account balance established in the system valuation
28 for the preceding fiscal year reached its maximum reserve permitted pursuant
29 to Paragraph (B)(2)(c) of this Section applicable to the system valuation for that
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1 valuation year.
2 (iii) The experience account balance established in the system valuation
3 for the current fiscal year is insufficient to fund the increase permitted pursuant
4 to Paragraph (2) of this Subsection applicable to the system valuation for the
5 preceding fiscal year.
6 (iv) All of the insufficiency in the account is attributable to the following:
7 (aa) The growth of the cost of the increase, but only if that growth was
8 produced solely by either or both of these events:
9 (I) Changes in the pool of the eligible recipients.
10 (II) The growth in the benefit amount to which the increase applies due
11 to the application of the CPI-U pursuant to the provisions of Paragraph (3) of
12 this Subsection.
13 (bb) The insufficiency of credits to the account, if any, to cover the
14 growth in the cost of the increase.
15 (b) The amount of the increase shall be equal to the amount that the
16 balance in the experience account will fully fund rounded to the nearest lower
17 one-tenth of one percent.
18 (4)(a)E. (1)(a) Except as provided in Subparagraph (c) of this Paragraph, in
19 order to be eligible for any permanent benefit increase payable on or before June 30,
20 2009, there must be the funds available in the experience account to pay for such an
21 increase, and a retiree:
22 (i) Shall have received a benefit for at least one year; and.
23 (ii) Shall have attained at least age fifty-five.
24 (b) Except as provided in Subparagraph (c) of this Paragraph, a nonretiree
25 beneficiary shall be eligible for the permanent benefit increase payable on or before
26 June 30, 2009:
27 (i) If benefits had been paid to the retiree or the beneficiary, or both
28 combined, for at least one year; and.
29 (ii) In no event before the retiree would have attained age fifty-five.
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1 (c)(i) The provisions of Items (a)(ii), (b)(ii), (d)(ii), and (e)(ii)(a)(ii) and
2 (b)(ii) of this Paragraph shall not apply to any person who receives disability benefits
3 from this system, or who receives benefits based on the death of a disability retiree
4 of this system.
5 (ii) The actuarial cost of implementing the provisions of Acts 2001, No.
6 1162, shall be paid by debiting the experience account which must have the funds
7 available in the experience account to pay for such an increase.
8 (d)(2)(a) Except as provided in Subparagraph (c) of this Paragraph, in order
9 to be eligible for any permanent benefit increase payable on or after July 1, 2009,
10 there shall be the funds available in the experience account to pay for such an
11 increase, and a retiree:
12 (i) Shall have received a benefit for at least one year; and.
13 (ii) Shall have attained at least age sixty.
14 (e)(b) Except as provided in Subparagraph (c) of this Paragraph, a nonretiree
15 beneficiary shall be eligible for the permanent benefit increase payable on or after
16 July 1, 2009:
17 (i) If benefits had been paid to the retiree or the beneficiary, or both
18 combined, for at least one year; and.
19 (ii) In no event before the retiree would have attained age sixty.
20 (c) The provisions of Items (a)(ii) and (b)(ii) of this Paragraph shall not
21 apply to any person who receives disability benefits from this system, or who
22 receives benefits based on the death of a disability retiree of this system.
23 (5)(a) F.(1) The first normal permanent benefit increase shall be effective
24 July 1, 1999.
25 (2) The actuarial cost of implementing the provisions of Act 1162 of the
26 2001 Regular Session of the Legislature shall be paid by debiting the experience
27 account which shall have the funds available in the experience account to pay
28 for such an increase.
29 (3) Effective September 1, 2001, any retiree receiving a retirement benefit
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1 shall be entitled to receive, as a permanent benefit increase, a minimum retirement
2 benefit amounting to not less than thirty dollars per month for each year of creditable
3 service of the retiree or the maximum benefit earned in accordance with the
4 applicable benefit formula selected by the retiree at the time of retirement, whichever
5 is greater.
6 (i)(a) For any retiree who selected or selects an early retirement, an initial
7 benefit option, or a retirement option allowing the payment of benefits to a
8 beneficiary, there shall be a comparison of both the minimum benefit provided for
9 in this Paragraph and the maximum benefit and both such benefits shall be
10 actuarially reduced based upon the option selected by the retiree and the current
11 board-approved actuarial assumptions prior to the comparison and for the purpose
12 of determining which of the two benefit amounts results in the greater amount and
13 the greater amount shall be paid to the retiree.
14 (ii)(b) In order for the minimum benefit provided for in this Paragraph to be
15 compared to the annuity being paid to a retiree's named beneficiary, the minimum
16 benefit shall be reduced based on the option in effect and the current board-approved
17 actuarial assumptions. After reducing the minimum benefit provided for in this Item,
18 the reduced minimum benefit shall be compared to the beneficiary's annuity, and the
19 beneficiary shall be paid the greater of the beneficiary's reduced minimum benefit
20 or the amount of the beneficiary's annuity being paid at the time of the comparison.
21 (b)(c) The minimum benefits provided for in this Paragraph shall apply to all
22 retired members and beneficiaries receiving annuity payments or benefits on
23 September 1, 2001, and to all members retiring on and after September 1, 2001, and
24 to all beneficiaries receiving annuity payments on and after September 1, 2001, and
25 all such payments shall be funded by debiting the experience account.
26 G.(1) Notwithstanding any provision of this Section to the contrary, in a year
27 in which the experience account balance is insufficient to fund the amount required
28 pursuant to Paragraph (C)(1) of this Section, the board may make the
29 recommendation provided in Paragraph (C)(1) of this Section if all of the following
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1 conditions are satisfied:
2 (a) No benefit increase was granted in the preceding fiscal year.
3 (b) The experience account balance established in the system valuation for
4 the preceding fiscal year reached its maximum reserve permitted pursuant to
5 Paragraph (A)(3) of this Section applicable to the system valuation for that valuation
6 year.
7 (c) The experience account balance established in the system valuation for
8 the current fiscal year is insufficient to fund the maximum increase permitted
9 pursuant to Paragraph (C)(2) of this Section applicable to the system valuation for
10 the preceding fiscal year.
11 (d) All of the insufficiency in the account is attributable to the following:
12 (i) The growth of the cost of the increase, but only if that growth was
13 produced solely by either or both of these events:
14 (aa) Changes in the pool of the eligible recipients.
15 (bb) The growth in the benefit amount to which the increase applies due to
16 the application of the CPI-U pursuant to the provisions of Paragraph (C)(1) of this
17 Section.
18 (ii) Credits to the account, if any, are insufficient to cover the growth in the
19 cost of the increase.
20 (2) The amount of the increase shall be equal to the amount the balance in the
21 experience account will fully fund rounded to the nearest lower one-tenth of one
22 percent. Beginning with the June 30, 2016 valuation, debits and credits to the
23 account shall occur in the following order:
24 (1) Credits in Subparagraph (B)(2)(b) of this Section, as limited by
25 Subparagraph (B)(2)(c) of this Section.
26 (2) Debits in Subparagraph (B)(3)(a) of this Section.
27 (3) Credits in Subparagraph (B)(2)(a) of this Section, as limited by
28 Subparagraph (B)(2)(c) of this Section.
29 (4) Debits in Subparagraph (B)(3)(b) of this Section.
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1 * * *
2 §883.1. Experience account
3 A.(1)(a) Effective July 1, 2004, the balance in the experience account shall
4 be zero.
5 (b)(2) Effective June 30, 2009, the balance in the experience account shall be
6 zero. Any funds in the account on June 29, 2009, shall be allocated in the following
7 order:
8 (i)(a) To provide for any net investment loss attributable to the balance in the
9 account as provided in Paragraph (B)(1) Subparagraph (B)(3)(a) of this Section.
10 (ii)(b) To fund any permanent benefit increase or minimum benefit pursuant
11 to the Act that originated as House Bill No. 586 Act 144 of the 2009 Regular Session
12 of the Legislature.
13 (iii)(c) To apply to the experience account amortization base as provided in
14 R.S. 11:102.2(C)(2); however, as of June 30, 2009, these funds shall be transferred
15 to the system's Texaco Account and retained in a subaccount of that account until
16 that account is applied as provided in R.S. 11:102.2. The subaccount shall continue
17 to be credited and debited as provided in Subparagraph (A)(2)(b) and Paragraph
18 (B)(1) of this Section until such application.
19 B.(1) Effective for the June 30, 2015 valuation, the system's funded
20 percentage for purposes of this Section shall be determined before any
21 allocation to the experience account.
22 (2) The In accordance with the provisions of Subsection G of this Section,
23 the experience account shall be credited as follows:
24 (a) To the extent permitted by Subparagraph (c) of this Paragraph (3) of this
25 Subsection and after allocation to the amortization bases as provided in R.S.
26 11:102(B)(3)(d)(vii)(bb) and 102.2, as applicable 11:102.2, an amount not to exceed
27 fifty percent of the remaining balance of the prior year's net investment experience
28 gain as determined by the system's actuary.
29 (b) To the extent permitted by Subparagraph (c) of this Paragraph (3) of
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1 this Subsection, an amount not to exceed that portion of the system's net investment
2 income attributable to the balance in the experience account during the prior year.
3 (3)(a)(c) In no event shall a credit be made to the account that would cause
4 the balance in the experience account to exceed the reserve necessary to grant either
5 of the following:
6 (i) Two permanent benefit increases determined pursuant to Subsection C D
7 of this Section if the system is at least eighty percent funded or greater.
8 (ii) One permanent benefit increase as determined pursuant to Subsection C
9 D of this Section if the system is less than eighty percent funded.
10 (b)(d) If the system is less than eighty percent funded and the account has
11 reserves in excess of the amounts provided for in Item (a)(ii) (c)(ii) of this Paragraph,
12 it shall not apply credits to the account pursuant to Subparagraph (2)(b) of this
13 Subsection no amount shall be credited to the account.
14 B.(3) The In accordance with the provisions of Subsection G of this
15 Section, the experience account shall be debited as follows:
16 (1)(a) An amount equal to that portion of the system's net investment loss
17 attributable to the balance in the experience account during the prior year.
18 (2)(b) An amount sufficient to fund a permanent benefit increase granted
19 pursuant to Subsection C the provisions of this Section.
20 (3)(c) In no event shall the amount in the experience account fall below zero.
21 C.(1) In accordance with the provisions of this Section, the board of trustees
22 may recommend to the president of the Senate and the speaker of the House of
23 Representatives that the system be permitted to grant a permanent benefit increase
24 to retirees and beneficiaries whenever the conditions in this Section are satisfied and
25 the balance in the experience account is sufficient to fund such benefit fully on an
26 actuarial basis, as determined by the system's actuary. If the legislative auditor's
27 actuary disagrees with the determination of the system's actuary, a permanent benefit
28 increase shall not be granted. The board of trustees shall not grant a permanent
29 benefit increase unless such permanent benefit increase has been approved by the
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1 legislature.
2 D.(1) No increase shall be granted if one or more of the following apply:
3 (a) The system is less than fifty-five percent funded.
4 (b) The system is at least fifty-five percent funded but less than
5 eighty-five percent funded and the legislature granted a benefit increase in the
6 preceding fiscal year.
7 (c) The system is less than eighty percent funded and the system fails to
8 earn an actuarial rate of return which exceeds the board-approved actuarial
9 valuation rate.
10 (2) Any increase granted pursuant to the provisions of this Section shall begin
11 on the July first following legislative approval, shall be payable annually, and shall
12 equal the amount required pursuant to Subparagraph (a) or (b) of this
13 Paragraph. If the balance in the experience account is not sufficient to fully
14 fund that sum on an actuarial basis as determined by the system actuary in
15 agreement with the legislative auditor's actuary, no increase shall be granted.
16 The increase shall be an amount equal to the lesser of:
17 (a) An amount as determined in Paragraph (2) of this Subsection.
18 (b) The increase in the consumer price index, U.S. city average for all urban
19 consumers (CPI-U), as prepared by the U.S. Department of Labor, Bureau of Labor
20 Statistics, for the twelve-month period ending on the system's valuation date, if any.
21 If the balance in the experience account is not sufficient to fund that sum, no increase
22 shall be granted.
23 (2)(a)(b)(i) If Three percent if the system is at least eighty percent funded
24 or greater, three percent and the system earns an actuarial rate of return of at
25 least eight and one-quarter percent interest on the investment of the system's
26 assets.
27 (b)(ii) If the Two and one-half percent, if all of the following apply:
28 (aa) The system is at least seventy-five percent funded but less than eighty
29 percent funded and the.
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1 (bb) The system earns an actuarial rate of return of at least eight and
2 one-quarter percent interest on the investment of the system's assets.
3 (cc) The legislature has not granted a benefit increase in the preceding fiscal
4 year, two and one-half percent.
5 (c)(iii) If the Two percent, if either of the following applies:
6 (aa) The system is at least sixty-five percent funded but less than
7 seventy-five percent funded and the legislature has not granted a benefit increase in
8 the preceding fiscal year, two percent.
9 (bb) The system is at least seventy-five percent funded and the system
10 does not earn an actuarial rate of return of at least eight and one-quarter
11 percent interest on the investment of the system's assets.
12 (d)(iv) If One and one-half percent, if the system is at least fifty-five
13 percent funded but less than sixty-five percent funded and the legislature has not
14 granted a benefit increase in the preceding fiscal year, one and one-half percent.
15 (e) If the system is less than fifty-five percent funded or if the system is less
16 than eighty-five percent funded but more than fifty-five percent funded and the
17 legislature granted a benefit increase in the preceding fiscal year, no increase shall
18 be granted.
19 (3) Subject to the limitations contained in Subsection F of this Section, the
20 The percentage of each recipient's permanent benefit increase shall be based on the
21 benefit being paid to the recipient on the effective date of the increase.
22 (a) Any such permanent benefit increase granted on or before June 30,
23 2015, shall be limited to and shall be payable based only on an amount not to
24 exceed seventy thousand dollars of the retiree's annual benefit. The seventy
25 thousand dollar limit shall be increased each year in an amount equal to any
26 increase in the consumer price index, U.S. city average for all urban consumers
27 (CPI-U) for the preceding year.
28 (b) Any such permanent benefit increase granted on or after July 1,
29 2015, shall be limited to and shall be payable based only on an amount not to
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1 exceed sixty thousand dollars of the retiree's annual benefit. Effective on or
2 after July 1, 2015, the sixty thousand dollar limit shall be increased each year
3 in an amount equal to any increase in the consumer price index, U.S. city
4 average for all urban consumers (CPI-U) for the twelve-month period ending
5 on the system's valuation date.
6 (4)(a) Notwithstanding any provision of this Section to the contrary, in
7 a year in which the experience account balance is insufficient to fund the
8 amount required pursuant to Paragraph (2) of this Subsection, the board may
9 make the recommendation provided in Subsection C of this Section if all of the
10 following conditions are satisfied:
11 (i) No benefit increase was granted in the preceding fiscal year.
12 (ii) The experience account balance established in the system valuation
13 for the preceding fiscal year reached its maximum reserve permitted pursuant
14 to Subparagraph (B)(2)(c) of this Section applicable to the system valuation for
15 that valuation year.
16 (iii) The experience account balance established in the system valuation
17 for the current fiscal year is insufficient to fund the increase permitted pursuant
18 to Paragraph (2) of this Subsection applicable to the system valuation for the
19 preceding fiscal year.
20 (iv) All of the insufficiency in the account is attributable to the following:
21 (aa) The growth of the cost of the increase, but only if that growth was
22 produced solely by either or both of these events:
23 (I) Changes in the pool of the eligible recipients.
24 (II) The growth in the benefit amount to which the increase applies due
25 to the application of the CPI-U pursuant to the provisions of Paragraph (3) of
26 this Subsection.
27 (bb) The insufficiency of credits to the account, if any, to cover the
28 growth in the cost of the increase.
29 (b) The amount of the increase shall be equal to the amount that the
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1 balance in the experience account will fully fund rounded to the nearest lower
2 one-tenth of one percent.
3 (4)(a) E.(1)(a) Except as provided in Subparagraph (c) of this Paragraph, in
4 order to be eligible for any permanent benefit increase payable on or before June 30,
5 2009, there must be the funds available in the experience account to pay for such an
6 increase, and a retiree:
7 (i) Shall have received a benefit for at least one year; and.
8 (ii) Shall have attained at least age fifty-five.
9 (b) Except as provided in Subparagraph (c) of this Paragraph, a nonretiree
10 beneficiary shall be eligible for the permanent benefit increase payable on or before
11 June 30, 2009:
12 (i) If benefits had been paid to the retiree or the beneficiary, or both
13 combined, for at least one year; and.
14 (ii) In no event before the retiree would have attained age fifty-five.
15 (c)(i) The provisions of Items (a)(ii), (b)(ii), (d)(ii), and (e)(ii) (a)(ii) and
16 (b)(ii) of this Paragraph shall not apply to any person who receives disability benefits
17 from this system, or who receives benefits based on the death of a disability retiree
18 of this system.
19 (ii) The actuarial cost of implementing the provisions of Acts 2001, No.
20 1162, shall be paid by debiting the experience account which must have the funds
21 available in the experience account to pay for such an increase.
22 (d)(2)(a) Except as provided in Subparagraph (c) of this Paragraph, in order
23 to be eligible for any permanent benefit increase payable on or after July 1, 2009,
24 there shall be the funds available in the experience account to pay for such an
25 increase, and a retiree:
26 (i) Shall have received a benefit for at least one year; and.
27 (ii) Shall have attained at least age sixty.
28 (e)(b) Except as provided in Subparagraph (c) of this Paragraph, a nonretiree
29 beneficiary shall be eligible for the permanent benefit increase payable on or after
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1 July 1, 2009:
2 (i) If benefits had been paid to the retiree or the beneficiary, or both
3 combined, for at least one year; and.
4 (ii) In no event before the retiree would have attained age sixty.
5 (c) The provisions of Items (a)(ii) and (b)(ii) of this Paragraph shall not
6 apply to any person who receives disability benefits from this system, or who
7 receives benefits based on the death of a disability retiree of this system.
8 F.(1) The first normal permanent benefit increase shall be effective July
9 1, 1999.
10 (2) The actuarial cost of implementing the provisions of Act 1162 of the
11 2001 Regular Session of the Legislature shall be paid by debiting the experience
12 account which shall have the funds available in the experience account to pay
13 for such an increase.
14 (5)(a)(3) On December 1, 2001, the board of trustees shall grant a one-time
15 cost-of-living adjustment to:
16 (i)(a) Each retiree who had twenty-five years of service credit, exclusive of
17 unused leave, or a disability retiree regardless of the number of years of service
18 credit, and had been receiving a benefit for at least fifteen years on December 1,
19 2001; and.
20 (ii)(b) Each nonretiree beneficiary receiving a benefit on December 1, 2001,
21 if the deceased member had twenty-five years of service credit exclusive of unused
22 leave, or was a disability retiree regardless of the number of years of service credit,
23 and the retiree and nonretiree beneficiary, or both combined, had received a benefit
24 for at least fifteen years.
25 (b)(c) The one-time adjustment payable to each recipient shall equal an
26 amount up to but not exceeding two hundred dollars a month, but the total monthly
27 benefit of any such recipient resulting from this adjustment shall not exceed one
28 thousand dollars.
29 G.(1) The permanent benefit increase which is authorized by Subsection C
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1 of this Section shall be limited to the lesser of either two percent or an amount as
2 determined in Subsection C of this Section in or for any year in which the system
3 does not earn an actuarial rate of return of at least eight and one-quarter percent
4 interest on the investment of the system's assets.
5 (2) No permanent benefit increase shall be authorized based on any actuarial
6 valuation in which both of the following apply:
7 (a) The system fails to earn an actuarial rate of return which exceeds the
8 board-approved actuarial valuation rate.
9 (b) The system is less than eighty percent funded. Beginning with the June
10 30, 2016 valuation, debits and credits to the account shall occur in the following
11 order:
12 (1) Credits in Subparagraph (B)(2)(b) of this Section, as limited by
13 Subparagraph (B)(2)(c) of this Section.
14 (2) Debits in Subparagraph (B)(3)(a) of this Section.
15 (3) Credits in Subparagraph (B)(2)(a) of this Section, as limited by
16 Subparagraph (B)(2)(c) of this Section.
17 (4) Debits in Subparagraph (B)(3)(b) of this Section.
18 * * *
19 §927. Contributions
20 * * *
21 B. * * *
22 (2)(a) Beginning July 1, 2014, and continuing through fiscal year Fiscal Year
23 2017-2018, each higher education board created by Article VIII of the Constitution
24 of Louisiana and each employer institution and agency under its supervision and
25 control shall contribute to the Teachers' Retirement System of Louisiana on behalf
26 of each participant in the optional retirement plan the sum of:
27 (i) The amounts calculated pursuant to R.S. 11:102(D)(4)(b),
28 11:102(D)(6)(b), (c), and (d).
29 * * *
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1 (b) Beginning July 1, 2018, each higher education board created by Article
2 VIII of the Constitution of Louisiana and each employer institution and agency under
3 its supervision and control shall contribute to the Teachers' Retirement System of
4 Louisiana on behalf of each participant in the optional retirement plan the sum of:
5 (i) The amounts calculated pursuant to R.S. 11:102(D)(4)(b),
6 11:102(D)(6)(b), (c), and (d).
7 * * *
8 (3)(a) Beginning July 1, 2014, for all employers each employer that are is
9 not a higher education board created by Article VIII of the Constitution of Louisiana
10 or an employer institution under the supervision and control of such a board, each
11 such employer institution and board shall contribute to the Teachers' Retirement
12 System of Louisiana on behalf of each participant in the optional retirement plan the
13 greater of:
14 (i) The amount it would have contributed if the participant were a member
15 of the regular retirement plan of the Teachers' Retirement System of Louisiana
16 pursuant to R.S. 11:102(D)(1) 11:102(D)(3).
17 (ii) The sum of the amounts calculated pursuant to R.S. 11:102(D)(4)(b),
18 11:102(D)(6)(b), (c), and (d) plus six and two-tenths percent of pay.
19 * * *
20 §1145.1. Employee Experience Account Experience account
21 A.(1) The Employee Experience Account In accordance with the
22 provisions of Subsection F of this Section, the experience account shall be
23 credited as follows:
24 (a) To the extent permitted by Subparagraph (c) of this Paragraph (2) of this
25 Subsection and after allocation to the amortization bases as provided in R.S.
26 11:102(B)(3)(d)(vi)(bb) 11:102.3, an amount not to exceed fifty percent of the
27 remaining balance of the prior year's net investment experience gain as determined
28 by the system's actuary.
29 (b) To the extent permitted by Subparagraph (c) of this Paragraph (2) of
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1 this Subsection, an amount not to exceed that portion of the system's net investment
2 income attributable to the balance in the Employee Experience Account experience
3 account during the prior year.
4 (2)(a)(c) In no event shall a credit be made to the account that would cause
5 the balance in the Employee Experience Account experience account to exceed the
6 reserve necessary to grant:
7 (i) Two cost-of-living adjustments permanent benefit increases determined
8 pursuant to Subsection C of this Section if the system is at least eighty percent
9 funded or greater.
10 (ii) One permanent benefit increase as determined pursuant to Subsection C
11 of this Section if the system is less than eighty percent funded.
12 (b)(d) If the system is less than eighty percent funded and the account has
13 reserves in excess of the amounts provided for in Item (a)(ii) (c)(ii) of this Paragraph,
14 it shall not apply credits to the account pursuant to Subparagraph (1)(b) of this
15 Subsection no amount shall be credited to the account.
16 B.(2) The Employee Experience Account In accordance with the provisions
17 of Subsection F of this Section, the experience account shall be debited as follows:
18 (1)(a) An amount equal to that portion of the system's net investment loss
19 attributable to the balance in the Employee Experience Account experience account
20 during the prior year.
21 (2)(b) An amount sufficient to fund a cost-of-living adjustment permanent
22 benefit increase granted pursuant to Subsection C the provisions of this Section.
23 (3)(c) In no event shall the amount in the Employee Experience Account
24 experience account fall below zero.
25 (3) Effective for the June 30, 2015 valuation, the system's funded
26 percentage for purposes of this Section shall be determined before any
27 allocation to the experience account.
28 C.(1)B. In accordance with the provisions of this Section, the board of
29 trustees may recommend to the president of the Senate and the speaker of the House
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1 of Representatives that the system be permitted to grant a cost-of-living adjustment
2 permanent benefit increase to retirees and beneficiaries whenever the conditions
3 in this Section are satisfied and the balance in the Employee Experience Account is
4 sufficient to fully fund such benefit on an actuarial basis, as determined by the
5 system's actuary. If the legislative actuary disagrees with the determination of the
6 system's actuary, a cost-of-living adjustment shall not be granted. The board of
7 trustees shall not grant a cost-of-living adjustment permanent benefit increase
8 unless such cost-of-living adjustment permanent benefit increase has been
9 approved by the legislature. Any such cost-of-living adjustment granted on or before
10 June 30, 2015, shall be limited to and shall only be payable based on an amount not
11 to exceed eighty-five thousand dollars of the retiree's annual benefit. Any such cost-
12 of-living adjustment granted on or after July 1, 2015, shall be limited to and shall
13 only be payable based on an amount not to exceed sixty thousand dollars of the
14 retiree's annual benefit. Effective for years after July 1, 2007, and on or before June
15 30, 2015, the eighty-five thousand dollar limit shall be increased each year in an
16 amount equal to the increase in the Consumer Price Index (United States city average
17 for all urban consumers (CPI-U)), as prepared by the United States Department of
18 Labor, Bureau of Labor Statistics, for the preceding calendar year, if any. Effective
19 on or after July 1, 2015, the sixty-thousand dollar limit shall be increased each year
20 in an amount equal to any increase in the consumer price index (U.S. city average
21 for all urban consumers (CPI-U)) for the twelve-month period ending on the system's
22 valuation date, if any.
23 C.(1) No increase shall be granted if either of the following applies:
24 (a) The system is less than fifty-five percent funded.
25 (b) The system is at least fifty-five percent funded but less than
26 eighty-five percent funded and the legislature granted a benefit increase in the
27 preceding fiscal year.
28 (2) Any cost-of-living adjustment increase granted pursuant to the provisions
29 of this Section shall begin on the July first following legislative approval, shall be
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1 payable annually, and shall equal the amount required pursuant to Subparagraph
2 (a) or (b) of this Paragraph. If the balance in the experience account is not
3 sufficient to fully fund that sum on an actuarial basis as determined by the
4 system actuary in agreement with the legislative auditor's actuary, no increase
5 shall be granted. The increase shall be an amount equal to the lesser of:
6 (a) An amount as determined in Paragraph (2) of this Subsection.
7 (b) The increase in the Consumer Price Index (United States city average for
8 all urban consumers (CPI-U)) consumer price index, U.S. city average for all
9 urban consumers (CPI-U), as prepared by the United States Department of Labor,
10 Bureau of Labor Statistics, for the twelve-month period ending on the system's
11 valuation date, if any. If the balance in the experience account is not sufficient to
12 fund that sum, no increase shall be granted.
13 (2)(a)(b)(i) If Three percent if the system is at least eighty percent funded
14 or greater, three percent and the system earns an actuarial rate of return of at
15 least seven and one-quarter percent interest on the investment of the system's
16 assets.
17 (b)(ii) If the Two and one-half percent, if all the following apply:
18 (aa) The system is at least seventy-five percent funded but less than eighty
19 percent funded and the system earns an actuarial rate of return of at least seven
20 and one-quarter percent interest on the investment of the system's assets.
21 (bb) The legislature has not granted a benefit increase in the preceding fiscal
22 year, two and one-half percent.
23 (c)(iii) If the Two percent, if either of the following applies:
24 (aa) The system is at least sixty-five percent funded but less than
25 seventy-five percent funded and the legislature has not granted a benefit increase in
26 the preceding fiscal year, two percent.
27 (bb) The system is at least seventy-five percent funded and the system
28 does not earn an actuarial rate of return of at least seven and one-quarter
29 percent interest on the investment of the system's assets.
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1 (d)(iv) If One and one-half percent, if the system is at least fifty-five
2 percent funded but less than sixty-five percent funded and the legislature has not
3 granted a benefit increase in the preceding fiscal year, one and one-half percent.
4 (e) If the system is less than fifty-five percent funded or if the system is less
5 than eighty-five percent funded but more than fifty-five percent funded and the
6 legislature granted a benefit increase in the preceding fiscal year, no increase shall
7 be granted.
8 (3) Subject to the limitations contained in Paragraph (1) of this Subsection,
9 the The percentage of each recipient's cost-of-living adjustment permanent benefit
10 increase shall be based on the benefit being paid to the recipient on the effective date
11 of the increase. increase; however, any such permanent benefit increase granted
12 on or before June 30, 2015, shall be limited to and shall be payable based only
13 on an amount not to exceed eighty-five thousand dollars of the retiree's annual
14 benefit. Additionally, any such permanent benefit increase granted on or after
15 July 1, 2015, shall be limited to and shall be payable based only on an amount
16 not to exceed sixty thousand dollars of the retiree's annual benefit. Effective for
17 years after July 1, 2007, and on or before June 30, 2015, the eighty-five
18 thousand dollar limit shall be increased each year in an amount equal to any
19 increase in the consumer price index, U.S. city average for all urban consumers
20 (CPI-U) for the preceding year. Effective on or after July 1, 2015, the sixty
21 thousand dollar limit shall be increased each year in an amount equal to any
22 increase in the consumer price index, U.S. city average for all urban consumers
23 (CPI-U) for the twelve-month period ending on the system's valuation date.
24 (4)(a) Notwithstanding any provision of this Section to the contrary, in
25 a year in which the experience account balance is insufficient to fund the
26 amount required pursuant to Paragraph (2) of this Subsection, the board may
27 make the recommendation provided in Subsection B of this Section if all of the
28 following conditions are satisfied:
29 (i) No benefit increase was granted in the preceding fiscal year.
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1 (ii) The experience account balance established in the system valuation
2 for the preceding fiscal year reached its maximum reserve permitted pursuant
3 to Subparagraph (A)(1)(c) of this Section applicable to the system valuation for
4 that valuation year.
5 (iii) The experience account balance established in the system valuation
6 for the current fiscal year is insufficient to fund the increase permitted pursuant
7 to Paragraph (2) of this Subsection applicable to the system valuation for the
8 preceding fiscal year.
9 (iv) All of the insufficiency in the account is attributable to the following:
10 (aa) The growth of the cost of the increase, but only if that growth was
11 produced solely by either or both of these events:
12 (I) Changes in the pool of the eligible recipients.
13 (II) The growth in the benefit amount to which the increase applies due
14 to the application of the CPI-U pursuant to the provisions of Paragraph (3) of
15 this Subsection.
16 (bb) The insufficiency of credits to the account, if any, to cover the
17 growth in the cost of the increase.
18 (b) The amount of the increase shall be equal to the amount that the
19 balance in the experience account will fully fund rounded to the nearest lower
20 one-tenth of one percent.
21 (4)(a)D.(1)(a) Except as provided in Subparagraph (c) of this Paragraph, in
22 order to be eligible for the cost-of-living adjustment permanent benefit increase,
23 there shall be the funds available in the Employee Experience Account experience
24 account to pay for such an adjustment, and a retiree:
25 (i) Shall have received a benefit for at least one year; and.
26 (ii) Shall have attained at least age sixty.
27 (b) Except as provided in Subparagraph (c) of this Paragraph, a non-retiree
28 nonretiree beneficiary shall be eligible for the cost-of-living adjustment permanent
29 benefit increase:
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1 (i) If benefits had been paid to the retiree, or the beneficiary, or both
2 combined, for at least one year; and.
3 (ii) In no event before the retiree would have attained age sixty.
4 (c) The provisions of Items (a)(ii) and (b)(ii) of this Paragraph shall not apply
5 to any person who receives disability benefits from this system or who receives
6 benefits based on the death of a disability retiree of this system.
7 D. The cost-of-living increase which is authorized by Subsection C of this
8 Section shall be limited to the lesser of either two percent or an amount determined
9 as provided in Subsection C of this Section in or for any year in which the system
10 does not earn an actuarial rate of return of at least seven and one-quarter percent
11 interest on the investment of the system's assets.
12 E. Effective July 1, 2007, the balance in the Employee Experience Account
13 experience account shall be zero.
14 F.(1) Notwithstanding any provision of this Section to the contrary, in a year
15 in which the experience account balance is insufficient to fund the amount required
16 pursuant to Paragraph (C)(1) of this Section, the board may make the
17 recommendation provided in Paragraph (C)(1) of this Section if all of the following
18 conditions are satisfied:
19 (a) No benefit increase was granted in the preceding fiscal year.
20 (b) The experience account balance established in the system valuation for
21 the preceding fiscal year reached its maximum reserve permitted pursuant to
22 Paragraph (A)(3) of this Section applicable to the system valuation for that valuation
23 year.
24 (c) The experience account balance established in the system valuation for
25 the current fiscal year is insufficient to fund the maximum increase permitted
26 pursuant to Paragraph (C)(2) of this Section applicable to the system valuation for
27 the preceding fiscal year.
28 (d) All of the insufficiency in the account is attributable to the following:
29 (i) The growth of the cost of the increase, but only if that growth was
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1 produced solely by either or both of these events:
2 (aa) Changes in the pool of the eligible recipients.
3 (bb) The growth in the benefit amount to which the increase applies due to
4 the application of the CPI-U pursuant to the provisions of Paragraph (C)(1) of this
5 Section.
6 (ii) Credits to the account, if any, are insufficient to cover the growth in the
7 cost of the increase.
8 (2) The amount of the increase shall be equal to the amount the balance in the
9 experience account will fully fund rounded to the nearest lower one-tenth of one
10 percent. Beginning with the June 30, 2016 valuation, debits and credits to the
11 account shall occur in the following order:
12 (1) Credits in Subparagraph (A)(1)(b) of this Section, as limited by
13 Subparagraph (A)(1)(c) of this Section.
14 (2) Debits in Subparagraph (A)(2)(a) of this Section.
15 (3) Credits in Subparagraph (A)(1)(a) of this Section, as limited by
16 Subparagraph (A)(1)(c) of this Section.
17 (4) Debits in Subparagraph (A)(2)(b) of this Section.
18 * * *
19 §1332. Employee Experience Account Experience account
20 A.(1) The Employee Experience Account In accordance with the
21 provisions of Subsection G of this Section, the experience account shall be
22 credited as follows:
23 (a) To the extent permitted by Subparagraph (c) of this Paragraph (2) of this
24 Subsection and after the allocation to the amortization bases as provided in R.S.
25 11:102(B)(3)(d)(viii)(bb) 11:102.4, an amount not to exceed fifty percent of the
26 remaining balance of the prior year's net investment experience gain as determined
27 by the system's actuary.
28 (b) To the extent permitted by Subparagraph (c) of this Paragraph (2) of
29 this Subsection, an amount not to exceed that portion of the system's net investment
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1 income attributable to the balance in the Employee Experience Account experience
2 account during the prior year.
3 (2)(a)(c) In no event shall a credit be made to the account that would cause
4 the balance in the Employee Experience Account experience account to exceed the
5 reserve necessary to grant:
6 (i) Two cost-of-living adjustments permanent benefit increases as
7 determined pursuant to Subsection C of this Section if the system is at least eighty
8 percent funded or greater.
9 (ii) One permanent benefit increase as determined pursuant to Subsection C
10 of this Section if the system is less than eighty percent funded.
11 (b)(d) If the system is less than eighty percent funded and the account has
12 reserves in excess of the amounts provided for in Item (a)(ii) (c)(ii) of this Paragraph,
13 it shall not apply credits to the account pursuant to Subparagraph (1)(b) of this
14 Subsection no amount shall be credited to the account.
15 B.(2) The Employee Experience Account In accordance with the provisions
16 of Subsection G of this Section, the experience account shall be debited as
17 follows:
18 (1)(a) An amount equal to that portion of the system's net investment loss
19 attributable to the balance in the Employee Experience Account experience account
20 during the prior year.
21 (2)(b) An amount sufficient to fund a cost-of-living adjustment permanent
22 benefit increase granted pursuant to Subsection C or F the provisions of this
23 Section.
24 (3)(c) In no event shall the amount in the Employee Experience Account
25 experience account fall below zero.
26 (3) Effective for the June 30, 2015 valuation, the system's funded
27 percentage for purposes of this Section shall be determined before any
28 allocation to the experience account.
29 C.(1)B. In accordance with the provisions of this Section, the board of
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1 trustees may recommend to the president of the Senate and the speaker of the House
2 of Representatives that the system be permitted to grant a cost-of-living adjustment
3 permanent benefit increase to retirees and beneficiaries whenever the conditions
4 in this Section are satisfied and the balance in the Employee Experience Account is
5 sufficient to fully fund such benefit on an actuarial basis, as determined by the
6 system's actuary. If the legislative actuary disagrees with the determination of the
7 system's actuary, a cost-of-living adjustment shall not be granted. The board of
8 trustees shall not grant a cost-of-living adjustment permanent benefit increase
9 unless such cost-of-living adjustment permanent benefit increase has been
10 approved by the legislature. Any such cost-of-living adjustment granted on or before
11 June 30, 2015, shall be limited to and shall only be payable based on an amount not
12 to exceed eighty-five thousand dollars of the retiree's annual benefit. Any such cost-
13 of-living adjustment granted on or after July 1, 2015, shall be limited to and shall
14 only be payable based on an amount not to exceed sixty thousand dollars of the
15 retiree's annual benefit. Effective for years after July 1, 2007, and on or before June
16 30, 2015, the eighty-five thousand dollar limit shall be increased each year in an
17 amount equal to the increase in the consumer price index (United States city average
18 for all urban consumers (CPI-U)), as prepared by the United States Department of
19 Labor, Bureau of Labor Statistics, for the preceding calendar year, if any. Effective
20 on or after July 1, 2015, the sixty-thousand dollar limit shall be increased each year
21 in an amount equal to any increase in the consumer price index (U.S. city average
22 for all urban consumers (CPI-U)) for the twelve-month period ending on the system's
23 valuation date, if any.
24 C.(1) No increase shall be granted if either of the following applies:
25 (a) The system is less than fifty-five percent funded.
26 (b) The system is at least fifty-five percent funded but less than
27 eighty-five percent funded and the legislature granted a benefit increase in the
28 preceding fiscal year.
29 (2) Any adjustment increase granted pursuant to the provisions of this
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1 Section shall begin on the July first following legislative approval, shall be payable
2 annually, and shall be an amount equal to the lesser of:
3 (a) An amount as determined in Paragraph (2) of this Subsection.
4 (b) The increase in the consumer price index, (United States city average for
5 all urban consumers (CPI-U)) U.S. city average for all urban consumers (CPI-U),
6 as prepared by the United States Department of Labor, Bureau of Labor Statistics,
7 for the twelve-month period ending on the system's valuation date, if any. If the
8 balance in the experience account is not sufficient to fund that sum, no increase shall
9 be granted.
10 (2)(a)(b)(i) If Three percent, if the system is at least eighty percent funded
11 or greater, three percent and the system earns an actuarial rate of return of at
12 least seven percent interest on the investment of the system's assets.
13 (b)(ii) If the Two and one-half percent, if all of the following apply:
14 (aa) The system is at least seventy-five percent funded but less than eighty
15 percent funded and the system earns an actuarial rate of return of at least seven
16 percent interest on the investment of the system's assets.
17 (bb) The legislature has not granted a benefit increase in the preceding fiscal
18 year, two and one-half percent.
19 (c)(iii) If the Two percent, if either of the following applies:
20 (aa) The system is at least sixty-five percent funded but less than
21 seventy-five percent funded and the legislature has not granted a benefit increase in
22 the preceding fiscal year, two percent.
23 (bb) The system is at least seventy-five percent funded and the system
24 does not earn an actuarial rate of return of at least seven percent interest on the
25 investment of the system's assets.
26 (d)(iv) If One and one-half percent, if the system is at least fifty-five
27 percent funded but less than sixty-five percent funded and the legislature has not
28 granted a benefit increase in the preceding fiscal year, one and one-half percent.
29 (e) If the system is less than fifty-five percent funded or if the system is less
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1 than eighty-five percent funded but more than fifty-five percent funded and the
2 legislature granted a benefit increase in the preceding fiscal year, no increase shall
3 be granted.
4 (3) Subject to the limitations contained in Paragraph (1) of this Subsection,
5 the The percentage of each recipient's cost-of-living adjustment permanent benefit
6 increase shall be based on the benefit being paid to the recipient on the effective date
7 of the increase. increase; however, any such permanent benefit increase granted
8 on or before June 30, 2015, shall be limited to and shall be payable based only
9 on an amount not to exceed eighty-five thousand dollars of the retiree's annual
10 benefit. Additionally, any such permanent benefit increase granted on or after
11 July 1, 2015, shall be limited to and shall be payable based only on an amount
12 not to exceed sixty thousand dollars of the retiree's annual benefit. Effective for
13 years after July 1, 2007, and on or before June 30, 2015, the eighty-five
14 thousand dollar limit shall be increased each year in an amount equal to any
15 increase in the consumer price index, U.S. city average for all urban consumers
16 (CPI-U) for the preceding year. Effective on or after July 1, 2015, the sixty
17 thousand dollar limit shall be increased each year in an amount equal to any
18 increase in the consumer price index, U.S. city average for all urban consumers
19 (CPI-U) for the twelve-month period ending on the system's valuation date.
20 (4)(a) Notwithstanding any provision of this Section to the contrary, in
21 a year in which the experience account balance is insufficient to fund the
22 amount required pursuant to Paragraph (2) of this Subsection, the board may
23 make the recommendation provided in Subsection B of this Section if all of the
24 following conditions are satisfied:
25 (i) No benefit increase was granted in the preceding fiscal year.
26 (ii) The experience account balance established in the system valuation
27 for the preceding fiscal year reached its maximum reserve permitted pursuant
28 to Subparagraph (A)(1)(c) of this Section applicable to the system valuation for
29 that valuation year.
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1 (iii) The experience account balance established in the system valuation
2 for the current fiscal year is insufficient to fund the increase permitted pursuant
3 to Paragraph (2) of this Subsection applicable to the system valuation for the
4 preceding fiscal year.
5 (iv) All of the insufficiency in the account is attributable to the following:
6 (aa) The growth of the cost of the increase, but only if that growth was
7 produced solely by either or both of these events:
8 (I) Changes in the pool of the eligible recipients.
9 (II) The growth in the benefit amount to which the increase applies due
10 to the application of the CPI-U pursuant to the provisions of Paragraph (3) of
11 this Subsection.
12 (bb) The insufficiency of credits to the account, if any, to cover the
13 growth in the cost of the increase.
14 (b) The amount of the increase shall be equal to the amount that the
15 balance in the experience account will fully fund rounded to the nearest lower
16 one-tenth of one percent.
17 (4)(a) D.(1)(a)Except as provided in Subparagraph (c) of this Paragraph, in
18 order to be eligible for the cost-of-living adjustment permanent benefit increase,
19 there shall be the funds available in the experience account to pay for such an
20 adjustment, and a retiree:
21 (i) Shall have received a benefit for at least one year; and.
22 (ii) Shall have attained at least age sixty.
23 (b) Except as provided in Subparagraph (c) of this Paragraph, a non-retiree
24 nonretiree beneficiary shall be eligible for the cost-of-living adjustment permanent
25 benefit increase:
26 (i) If benefits had been paid to the retiree, or the beneficiary, or both
27 combined, for at least one year; and.
28 (ii) In no event before the retiree would have attained age sixty.
29 (c) The provisions of Items (a)(ii) and (b)(ii) of this Paragraph shall not apply
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1 to any person who receives disability benefits from this system or who receives
2 benefits based on the death of a disability retiree of this system.
3 D. The cost-of-living increase which is authorized by Subsection C of this
4 Section shall be limited to the lesser of either two percent or an amount determined
5 as provided in Subsection C of this Section in or for any year in which the system
6 does not earn an actuarial rate of return of at least seven percent interest on the
7 investment of the system's assets.
8 E. Effective July 1, 2007, the balance in the Employee Experience Account
9 experience account shall be zero.
10 F. In addition to the cost-of-living adjustment permanent benefit increase
11 authorized by Subsection C B of this Section, the board of trustees may grant a
12 supplemental cost-of-living adjustment permanent benefit increase to all retirees
13 and beneficiaries who are at least age sixty-five, which shall consist of an amount
14 equal to two percent of the benefit being received on the date of the adjustment
15 increase. In order to grant such supplemental cost-of-living adjustment permanent
16 benefit increase, the board of trustees shall recommend to the president of the
17 Senate and the speaker of the House of Representatives that the system be permitted
18 to grant such supplemental cost-of-living adjustment permanent benefit increase
19 to retirees and beneficiaries whenever the balance in the Employee Experience
20 Account experience account is sufficient to fully fund such benefit on an actuarial
21 basis, as determined by the system's actuary. If the legislative actuary disagrees with
22 the determination of the system's actuary, such supplemental cost-of-living
23 adjustment permanent benefit increase shall not be granted. The board of trustees
24 shall not grant such supplemental cost-of-living adjustment permanent benefit
25 increase unless such supplemental cost-of-living adjustment permanent benefit
26 increase has been approved by the legislature. Any such supplemental cost-of-living
27 adjustment permanent benefit increase paid on or before June 30, 2015, shall be
28 limited to and shall only be payable based only on an amount not to exceed
29 eighty-five thousand dollars of the retiree's annual benefit. Any such supplemental
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1 cost-of-living adjustment permanent benefit increase paid on or after July 1, 2015,
2 shall be limited to and shall only be payable based only on an amount not to exceed
3 sixty thousand dollars of the retiree's annual benefit. Effective on and after July 1,
4 2007, and on or before June 30, 2015, the eighty-five thousand dollar limit shall be
5 increased each year in an amount equal to the increase in the consumer price index,
6 (United States city average for all urban consumers (CPI-U)) U.S. city average for
7 all urban consumers (CPI-U), as prepared by the United States Department of
8 Labor, Bureau of Labor Statistics, for the preceding calendar year, if any. Effective
9 on and after July 1, 2015, the sixty-thousand sixty thousand dollar limit shall be
10 increased each year in an amount equal to the increase in the consumer price index,
11 (United States city average for all urban consumers (CPI-U)) U.S. city average for
12 all urban consumers (CPI-U), as prepared by the United States Department of
13 Labor, Bureau of Labor Statistics, for the twelve-month period ending on the
14 system's valuation date, if any. Any cost-of-living adjustment permanent benefit
15 increase granted pursuant to the provisions of this Subsection shall begin on the July
16 first following legislative approval and shall be payable annually.
17 G.(1) Notwithstanding any provision of this Section to the contrary, in a year
18 in which the experience account balance is insufficient to fund the amount required
19 pursuant to Paragraph (C)(1) of this Section, the board may make the
20 recommendation provided in Paragraph (C)(1) of this Section if all of the following
21 conditions are satisfied:
22 (a) No benefit increase was granted in the preceding fiscal year.
23 (b) The experience account balance established in the system valuation for
24 the preceding fiscal year reached its maximum reserve permitted pursuant to
25 Paragraph (A)(3) of this Section applicable to the system valuation for that valuation
26 year.
27 (c) The experience account balance established in the system valuation for
28 the current fiscal year is insufficient to fund the maximum increase permitted
29 pursuant to Paragraph (C)(2) of this Section applicable to the system valuation for
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1 the preceding fiscal year.
2 (d) All of the insufficiency in the account is attributable to the following:
3 (i) The growth of the cost of the increase, but only if that growth was
4 produced solely by either or both of these events:
5 (aa) Changes in the pool of the eligible recipients.
6 (bb) The growth in the benefit amount to which the increase applies due to
7 the application of the CPI-U pursuant to the provisions of Paragraph (C)(1) of this
8 Section.
9 (ii) Credits to the account, if any, are insufficient to cover the growth in the
10 cost of the increase.
11 (2) The amount of the increase shall be equal to the amount the balance in the
12 experience account will fully fund rounded to the nearest lower one-tenth of one
13 percent. Beginning with the June 30, 2016 valuation, debits and credits to the
14 account shall occur in the following order:
15 (1) Credits in Subparagraph (A)(1)(b) of this Section, as limited by
16 Subparagraph (A)(1)(c) of this Section.
17 (2) Debits in Subparagraph (A)(2)(a) of this Section.
18 (3) Credits in Subparagraph (A)(1)(a) of this Section, as limited by
19 Subparagraph (A)(1)(c) of this Section.
20 (4) Debits in Subparagraph (A)(2)(b) of this Section.
21 Section 2. R.S. 11:102(B)(3)(d)(v), (vi), (vii), and (viii) and 883.1 (H) are hereby
22 repealed.
23 Section 3. In case of any conflict between the provisions of this Act and the
24 provisions of any other Act of the 2016 Regular Session of the Legislature, the provisions
25 of this Act shall supersede and control regardless of the order of passage.
26 Section 4. This Act shall become effective on June 30, 2016; if vetoed by the
27 governor and subsequently approved by the legislature, this Act shall become effective on
28 June 30, 2016, or on the day following such approval by the legislature, whichever is later.
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The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Margaret M. Corley.
DIGEST
SB 18 Original 2016 Regular Session Peacock
Proposed law generally rearranges the content of present law to provide for ease of
administration and clarification of certain actuarial concepts.
Proposed law contains a few substantive changes, as further detailed in this digest.
Unless otherwise indicated, the provisions of present law and proposed law apply to all four
state retirement systems:
(1)La. State Employees' Retirement System (LASERS)
(2)Teachers' Retirement System of La. (Teachers' or TRSL)
(3)La. School Employees' Retirement System (LSERS)
(4)State Police Retirement System (Troopers)
OVERVIEW
Present law, relative to state retirement systems, generally provides for determination of
actuarial liabilities and calculations of payments to liquidate those liabilities. Provides for
application of certain actuarial gains to help reduce the payments necessary to liquidate a
system's liabilities, to reduce specific amortization bases of system debt, and for allocation
to a side account (the experience account) designed to accumulate monies to fund benefit
increases for retirees.
Proposed law retains present law.
Present law provides for determination of the amount and timing of permanent benefit
increases (PBIs) for retirees, sometimes called cost-of-living adjustments or COLAs.
Proposed law retains present law.
SUBSTANTIVE CHANGES
Present law, subject to certain caveats, provides for a schedule of maximum PBI amounts
based on a system's funded level. The schedule ranges from a minimum of 1.5% for a
system that is at least 55% funded but less than 65% funded to a maximum of 3.0% for a
system that is at least 80% funded.
Proposed law retains present law.
Proposed law, for purposes of determining the maximum PBI within the schedule in present
law, specifies that the funding level shall be determined before any allocation to the
experience account.
Proposed law provides that effective for the June 30, 2016 system valuation the amortization
period for most actuarial changes, gains, and losses shall be reduced from 30 years to 20
years in two-year increments over the next five years. Further provides that in the first
system valuation following June 30, 2015, in which an allocation is made to the system's
experience account and for each valuation thereafter, actuarial gains allocated to the
experience account shall be amortized as a loss with level payments over a 10-year period.
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Present law provides for multiple employer contribution rates at LASERS and Teachers' for
the various specialty plans within each system.
Proposed law retains present law and consolidates all K-12 employee groups at Teachers'
into a single plan for rate purposes.
Present law, relative to LASERS and Teachers', provides for special amortization bases
called the original amortization base (OAB) and the experience account amortization base
(EAAB). Provides for increasing payment schedules for these debts. Provides for application
of annual "hurdle" payments, from investment earnings above a certain target, to extinguish
these debts.
Proposed law retains present law and provides for reamortization of the debt payments when
moving to level-dollar payments results in annual payments that are not more than the next
annual payment otherwise required under present law without extending the payment period.
Proposed law further provides for reamortization of the debt payments in the June 30, 2016
valuation and in every valuation in which the year is equal to 2016 plus a multiple of five.
Proposed law prescribes the order in which credits and debits are to be made to the
experience account. Requires credits (or debits) related to the net investment gain (or loss)
attributable to the balance in the experience account during the prior year be made first. Next
any credits pursuant to present law allocation of investment experience gains are applied.
Lastly, if a COLA is paid, the debit for such COLA cost shall be made to the account.
NONSUBSTANTIVE CHANGES
Present law provides for the following for each system:
(A)A 30-year amortization period for certain changes, gains, and losses with level dollar
amounts.
(B)Application of annual "hurdle" payments, from investment earnings above a certain
target, to extinguish certain debts.
(C)Indexing of hurdle payments by increasing them as the system's assets increase.
(D) Reamortization of debts subject to the hurdle payments under certain circumstances
after a system attains a designated funding level.
(E)Five-year amortization of certain gains recognized in the 2014 valuation.
Proposed law retains present law.
Present law, relative to LSERS, provides for:
(H)The application of residual experience account funds on June 30, 2014, as a part of:
(I)The consolidation of existing amortization bases.
Proposed law retains present law.
Present law, relative to LASERS and Teachers', provides that:
(J)After the OAB is liquidated, the payments that had been applied to the OAB shall be
added to the hurdle payments to the EAAB.
(K)After the EAAB is liquidated, the payments that had been applied to the EAAB shall
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be applied to the next oldest outstanding amortization base of debt.
Proposed law retains present law.
Present law provides for (L) a volatility review of future payment schedules for each system.
Proposed law retains present law.
Proposed law relative to the experience account at each system provides for:
(M)Credits and debits to the account.
(N)A schedule of maximum PBIs based on funded status.
(O)Payment of "partial" PBIs in certain circumstances when funds are not available for
a "full" PBI.
(P)PBIs only every other year until a threshold of funding is attained.
Proposed law retains present law.
A table of the major present law provisions that were relocated is below.
PROVISION SYSTEM PRESENT LAW PROPOSED LAW
A LASERS R.S. 11:102(B)(3)(d)(v)(aa)(I) R.S. 11:102(C)(2)(a)
TRSL R.S. 11:102(B)(3)(d)(vii)(aa)(I) R.S. 11:102(D)(2)(a)
LSERS R.S. 11:102(B)(3)(d)(vi)(aa)(I) R.S. 11:102(E)(1)
TroopersR.S. 11:102(B)(3)(d)(viii)(aa)(I) R.S. 11:102(F)(1)
B LASERS R.S. 11:102(B)(3)(d)(v)(aa)(II) R.S. 11:102(C)(2)(b)
TRSL R.S. 11:102(B)(3)(d)(vii)(aa)(II) R.S. 11:102(D)(2)(b)
LSERS R.S. 11:102(B)(3)(d)(vi)(aa)(II) R.S. 11:102(E)(3)
TroopersR.S. 11:102(B)(3)(d)(viii)(aa)(II) R.S. 11:102(F)(2)
C LASERS R.S. 11:102(B)(3)(d)(v)(bb)(I)&(II) R.S. 11:102.1
TRSL R.S. 11:102(B)(3)(d)(vii)(bb)(I) R.S. 11:102.2
LSERS R.S. 11:102(B)(3)(d)(vi)(bb)(I)&(II) R.S. 11:102.3
TroopersR.S. 11:102(B)(3)(d)(viii)(bb)(I)&(II)R.S. 11:102.4
D LASERS R.S. 11:102(B)(3)(d)(v)(bb)(I)&(II) R.S. 11:102.1(A)(4)
TRSL R.S. 11:102(B)(3)(d)(vii)(bb)(I)&(II) R.S. 11:102.2(A)(4)
LSERS R.S. 11:102(B)(3)(d)(vi)(bb)(II) R.S. 11:102.3(A)(1)(b)
TroopersR.S. 11:102(B)(3)(d)(viii)(bb)(II) R.S. 11:102.4(A)(1)(b)
E LASERS R.S. 11:102(B)(3)(d)(v)(bb)(I)&(II) R.S. 11:102.1(A)(4)(h)
TRSL R.S. 11:102(B)(3)(d)(vii)(bb)(I)&(II) R.S. 11:102.2(A)(4)(h)
LSERS R.S. 11:102(B)(3)(d)(vi)(bb)(II) R.S. 11:102.3(A)(5)
TroopersR.S. 11:102(B)(3)(d)(viii)(bb)(II) R.S. 11:102.4(A)(5)
F LASERS R.S. 11:102(B)(3)(d)(v)(cc) R.S. 11:102(C)(2)(c)
TRSL R.S. 11:102(B)(3)(d)(vii)(cc) R.S. 11:102(D)(2)(c)
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PROVISION SYSTEM PRESENT LAW PROPOSED LAW
LSERS R.S. 11:102(B)(3)(d)(vi)(cc) R.S. 11:102(E)(4)
TroopersR.S. 11:102(B)(3)(d)(viii)(cc) R.S. 11:103(F)(3)
G LASERS R.S. 11:102(B)(3)(d)(v)(dd) R.S. 11:102.5
TRSL R.S. 11:102(B)(3)(d)(vii)(dd) R.S. 11:102.5
LSERS R.S. 11:102(B)(3)(d)(vi)(dd) R.S. 11:102.5
TroopersR.S. 11:102(B)(3)(d)(viii)(dd) R.S. 11:102.5
H LSERS R.S. 11:102(B)(3)(d)(vi)(ee)(I) R.S. 11:102(E)(2)(b)
I LSERS R.S. 11:102(B)(3)(d)(vi)(ee)(II) R.S. 11:102(E)(2)(a)
J LASERS R.S. 11:102(B)(3)(d)(v)(bb)(I) R.S. 11:102.1(A)(4)(c)(iii),(iv)&(v)
TRSL R.S. 11:102(B)(3)(d)(vii)(bb)(II) R.S. 11:102.2(A)(4)(c)(iii),(iv)&(v)
K LASERS R.S. 11:102(B)(3)(d)(v)(bb)(II) R.S. 11:102.1(D)
TRSL R.S. 11:102(B)(3)(d)(vii)(bb)(II) R.S. 11:102.2(A)(4)(e)&(D)
L all R.S. 11:102.3 R.S. 11:102.6
M LASERS R.S. 11:542(A)(2)&(B) R.S. 11:542(B)(2)&(3)
TRSL R.S. 11:883.1(A)(2)&(B) R.S. 11:883.1(B)(2)&(3)
LSERS R.S. 11:1145.1(A)(1) R.S. 11:1145.1(A)(1)&(2)
TroopersR.S. 11:1332(A)(1) R.S. 11:1332(A)(1)&(2)
N LASERS R.S. 11:542(C)(2) R.S. 11:542(D)
TRSL R.S. 11:883.1(C)(2) R.S. 11:883.1(D)
LSERS R.S. 11:1145.1(C)(2) R.S. 11:1145.1(C)
TroopersR.S. 11:1332(C)(2) R.S. 11:1332(C)
O LASERS R.S. 11:542(G) R.S. 11:542(D)(4)
TRSL R.S. 11:883.1(H) R.S. 11:883.1(D)(4)
LSERS R.S. 11:1145.1(F) R.S. 11:1145.1(C)(4)
TroopersR.S. 11:1332(G) R.S. 11:1332(C)(4)
P LASERS R.S. 11:542(C)(2)(e) R.S. 11:542(D)(1)(b)
TRSL R.S. 11:883.1(C)(2)(e) R.S. 11:883.1(D)(1)(b)
LSERS R.S. 11:1145.1(C)(2)(e) R.S. 11:1145.1(C)(1)(b)
TroopersR.S. 11:1332(C)(2)(e) R.S. 11:1332(C)(1)(b)
Proposed law specifies that if the provisions of proposed law conflict with the provisions of
any other Act of the 2016 Regular Session, the provisions of proposed law shall supersede
and control regardless of the order of passage.
Effective June 30, 2016.
(Amends R.S. 11:102(B)(1), (2), (3)(intro para), (a), and (d)(intro para), (i), (ii), (iii), and
(iv), (4), and (5)(a) and (b), (C), and (D), 102.1(B)(4), (5), and (6) and (C)(2), (4), (5), and
(6), 102.2(B)(4) and (5) and (C)(2), (4), (5), and (6), 102.3, 542, 883.1(A), (B), (C), (E), (F)
and (G), 927(B)(2)(a)(intro para) and (i) and (b)(i) and (3)(a), 1145.1, and 1332; adds R.S.
11:102(E) and (F), 102.1(A)(4), (B)(3)(a)(iv), (C)(3)(d), and (D), 102.2(A)(4), (B)(3)(a)(iv),
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 18
SLS 16RS-79 ORIGINAL
(C)(3)(d), and (D), 102.4, 102.5, 102.6, and 883.1(D); repeals R.S. 11:102(B)(3)(d)(v), (vi),
(vii), and (viii) and 883.1(H))
Page 71 of 71
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.