GREEN SHEET REDIGEST
HB 771 2018 Regular Session Bacala
RETIREMENT/MUNICIP AL POL: Provides for payment of unfunded accrued
liability by an employer participating in the Municipal Police Employees' Retirement
System
DIGEST
Present law provides that a participating employer in the system that dissolves its police
department shall pay the portion of the system's UAL attributable to that employer existing
on the June 30 prior to the dissolution, with interest. Proposed law requires that the
employer's UAL portion be calculated using the allocation percentage included in the prior
fiscal year's employer pension report produced according to requirements established by the
Governmental Accounting Standards Board.
Present law provides that if a participating employer does not dissolve its police department,
but salaries upon which contributions are made by the employer are less than 70% of salaries
from the prior fiscal year, the employer shall pay the portion of the UAL attributable to that
employer equal to the percentage decrease of salaries, with interest. Proposed law changes
the qualification for payment of UAL from a 30% or greater decrease in salaries to a 30% or
greater decrease in active members and DROP participants, with at least a reduction of two
participating employees, or a decrease to zero participating employees. Further requires
payment of UAL if the number of participating employees decreases by at least 50.
Present law provides that the employer shall choose to make payments either as a lump sum
or equal monthly payments amortized over 10 years. Proposed law provides that payments
shall instead be amortized over 15 years in equal payments and shall be payable beginning
July 1 of the fiscal year following the withdrawal.
Proposed law provides that if the number of participating employees of an employer whose
department was partially dissolved returns to or exceeds the number of participating
employees prior to the partial dissolution, payments shall cease on the July 1 following the
increase. Any payments made will be credited as an offset of any amounts due for any
subsequent withdrawal that occurs within 15 years of such payment.
Proposed law prohibits the board from collecting any payments as a result of a partial
dissolution that occurred prior to July 1, 2018.
Effective July 1, 2018.
(Amends R.S. 11:2225.4)
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Retirement to the
reengrossed bill
1. Makes technical changes.
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Prepared by Margaret M. Corley.