RÉSUMÉ DIGEST
ACT 586 (HB 771) 2018 Regular Session Bacala
Existing law provides that a participating employer in Municipal Police Employees'
Retirement System (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. New 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
Bd.
Existing law requires an employer to pay a pro rata portion of the UAL attributable to that
employer if there is a significant reduction in the employer's participation in the system
(partial dissolution).
Prior law required such UAL payments if salaries upon which contributions are made by the
employer are less than 70% of salaries from the prior fiscal year. New law requires such
payments if either of the following occurs during a one year period:
(1)A 30% or greater decrease in active members and DROP participants and the number
of participating employees either decreases by at least two or drops to zero.
(2)The number of participating employees decreases by at least 50.
Prior law provided that the employer could make payments either as a lump sum or equal
monthly payments amortized over 10 years. New law requires that payments be amortized
over 15 years in equal payments.
New 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 dissolution or partial dissolution of the department that occurs within 15 years
of such payment.
New 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)