HLS 20RS-67 ORIGINAL
2020 Regular Session
HOUSE BILL NO. 17
BY REPRESENTATIVE BACALA
RETIREMENT/PAROCHIAL EMP: Provides relative to entities that are employers
covered by the Parochial Employees' Retirement System of Louisiana
1 AN ACT
2To amend and reenact R.S. 11:1902(12)(c) and (d) and (13) and 1903 and to enact R.S.
3 11:1902(12)(f) and (g), relative to employers covered by the Parochial Employees'
4 Retirement System; to provide relative to certain employers that choose such
5 coverage; and to provide for related matters.
6 Notice of intention to introduce this Act has been published
7 as provided by Article X, Section 29(C) of the Constitution
8 of Louisiana.
9Be it enacted by the Legislature of Louisiana:
10 Section 1. R.S. 11:1902(12)(c) and (d) and (13) and 1903 are hereby amended and
11reenacted and R.S. 11:1902(12)(f) and (g) are hereby enacted to read as follows:
12 §1902. Definitions
13 As used in this Chapter, the following words and phrases shall have the
14 following meanings, unless a different meaning is plainly required by context:
15 * * *
16 (12)
17 * * *
18 (c) "Employee" shall also mean a person employed by a district indigent
19 defender program in this state, without regard to the source of funds for such districts
20 or programs, provided the employee works at least twenty-eight hours a week. week
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1 and the program is an employer as defined in this Section. No person employed by
2 an indigent defender program shall be entitled to receive credit for service rendered
3 prior to becoming eligible for membership in the system.
4 (d) "Employee" shall also mean a person employed by a soil and water
5 conservation district in this state that is an employer as defined in this Section,
6 without regard to the source of funds for such districts.
7 * * *
8 (f) "Employee" shall also mean a person employed by a taxing district that
9 is an employer as defined in this Section.
10 (g) "Employee" shall also mean a person employed by a branch or section
11 of a parish if the branch or section is an employer as defined in this Section.
12 * * *
13 (13) "Employer" means any parish in the state of Louisiana, excepting except
14 Orleans and East Baton Rouge Parishes, or the police jury or any other governing
15 body of a parish which employs and pays persons serving the parish. "Employer"
16 means also the Police Jury Association of Louisiana, the Louisiana School Boards
17 Association, and this retirement system. system, and any entity with an approved
18 plan pursuant to R.S. 11:1903. "Employer" shall not mean a parish or city school
19 board.
20 * * *
21 §1903. Admission of taxing districts; district indigent defender programs; soil and
22 water conservation districts; certain public corporations certain entities as
23 employers
24 A. Any taxing district of a parish that qualifies as an employer pursuant to
25 R.S. 11:1902; any branch or section of a parish that qualifies as an employer
26 pursuant to R.S. 11:1902; including a hospital district, water district, library, district
27 indigent defender program in this state, or soil and water conservation district in this
28 state; and any public corporation created pursuant to R.S. 9:2341 et seq. whose sole
29 beneficiary is a parish in the state may submit for approval by the board of trustees
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1 a plan for extending the benefits of this Chapter to employees of such
2 instrumentality. The following entities may submit, for approval by the board of
3 trustees, a plan for extending the benefits of this Chapter to employees of the entity:
4 (1) Any taxing district in or any branch or section of a parish that qualifies
5 as an employer pursuant to R.S. 11:1902, including but not limited to any hospital
6 district, water district, or library.
7 (2) A district indigent defender program in this state.
8 (3) A soil and water conservation district in this state.
9 (4) Any public corporation created pursuant to R.S. 9:2341 et seq. whose
10 sole beneficiary is a parish in the state.
11 B. Each such plan or any amendment thereof shall be approved by the board
12 of trustees if it finds that such plan, or such plan as amended, is in conformity with
13 such requirements as are provided in regulations of the board of trustees, except that
14 no such plan shall be approved unless:
15 (1) It is in conformity with the requirements of this Chapter and applicable
16 state law;.
17 (2)(a) It provides that covers all services which are performed in the employ
18 of the political subdivision or instrumentality entity, by any employees thereof, shall
19 be covered by the plan; and (b) It it extends benefits to all employees of the political
20 subdivision or instrumentality; entity.
21 (3) It specifies the source or sources from which the funds necessary to make
22 the payments required by Paragraph (C) (D)(1) and by Subsection D E of this
23 Section are expected to be derived and contains reasonable assurance that such
24 sources will be adequate for such purpose;.
25 (4) It provides for such methods of administration of the plan by the district
26 entity as are found by the board of trustees to be finds necessary for the proper and
27 efficient administration thereof;.
28 (5) It provides that the political subdivision or instrumentality entity will
29 make such reports, in such form and containing such information, as the board of
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1 trustees may from time to time require and comply with such provisions as the board
2 of trustees may from time to time find necessary to assure the correctness and
3 verification of such reports;.
4 (6) It authorizes the system to terminate the plan in its entirety, in the
5 discretion of the board of trustees, if it finds that there has been a failure to comply
6 substantially with any provision contained in such plan, such termination to take
7 effect at the expiration of such notice and on such conditions as may be provided by
8 regulations of the board of trustees; and.
9 (7) None of the employees of the political subdivision or instrumentality
10 entity are eligible to participate in another Louisiana public retirement or pension
11 system, plan, or fund based on the employee's employment with the political
12 subdivision or instrumentality entity.
13 B. C. The board of trustees shall not finally refuse to approve a plan
14 submitted under Subsection A of this Section, and shall not terminate an approved
15 plan, without reasonable notice and opportunity for hearing to each district entity
16 affected thereby. The board of trustees' decision in any such case shall be final,
17 conclusive, and binding unless an appeal be taken by the political subdivision or
18 instrumentality entity aggrieved thereby appeals to the district court in accordance
19 with the provisions of law with respect to review of civil causes by certiorari.
20 C.(1). D.(1) Each district entity for as to which a plan has been approved
21 under this Section shall pay into the system contributions, with respect to earnings
22 as defined in R.S. 11:1902, at such time or times as the board of trustees may by
23 regulation prescribe, in the amounts and at the rates prescribed by the board of
24 trustees as set forth in Part VII of this Chapter.
25 (2) Every political subdivision or instrumentality entity required to make
26 payments under Paragraph (1) of this Subsection is authorized, in consideration of
27 the employee's retention in, or entry upon, employment after enactment of this
28 Chapter, to impose upon its employees, as to services which are covered by an
29 approved plan, a contribution with respect to earnings as may be provided in Parts
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1 III and IV of this Chapter, and to deduct the amount of such contribution from the
2 earnings as and when paid. Contributions so collected shall be paid into the
3 contribution fund in partial discharge of the liability of such political subdivision or
4 instrumentality entity under Paragraph (1) of this Subsection. Failure to deduct such
5 contribution shall not relieve the employee or employer of liability therefor.
6 (3) Except as provided in R.S. 11:143 and notwithstanding any other
7 provision of law to the contrary, employer contributions shall not be returned,
8 refunded, transferred, or rolled over to any employee or employer or to any
9 retirement system, plan, or fund.
10 D. E. Delinquent payments due under Paragraph (C)(1)(D)(1) of this Section,
11 may, with interest at the system's actuarial valuation rate compounded annually, be
12 recovered by action in a court of competent jurisdiction against the district
13 subdivision or instrumentality entity liable therefor or may, upon due certification
14 of delinquency and at the request of the board of trustees, be deducted from any other
15 monies payable to such district the entity by any department or agency of the state.
16 E.(1) F.(1) If any plan entered into under this Section is terminated, the
17 taxing district, branch, or section of a parish entity which terminates its plan may not
18 again participate in the system pursuant to this Section, unless approved by the board
19 of trustees.
20 (2) Notwithstanding any other provision of law, if an employer terminates
21 its agreement for coverage of its employees, the employer shall remit to the system
22 that portion of the unfunded actuarial accrued liability, if any, which is attributable
23 to the employer's participation in the system. The amount required to be remitted
24 pursuant to this Paragraph shall be determined as of the December thirty-first
25 immediately prior to the date of termination. Such determination shall be made
26 using the entry age normal actuarial funding method.
27 (3) The amount due shall be determined by the actuary employed by the
28 system and shall either be paid in a lump sum or amortized over ten years in equal
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1 monthly payments with interest at the system's actuarial valuation rate in the same
2 manner as regular payroll payments to the system, at the option of the employer.
3 (4) Should If the employer fail fails to make payment timely, the amount due
4 shall be collected in the same manner as authorized by Subsection D E of this
5 Section and R.S. 11:2014.
6 F. G. Notwithstanding any provision of this Chapter to the contrary, a
7 hospital service district located in a parish with a total population between seventy
8 thousand and eighty thousand persons as of the latest federal decennial census may
9 terminate coverage for employees of the district first hired on or after January 1,
10 2015, as further provided in this Subsection.
11 (1) If any plan entered into by a hospital district under this Section is
12 prospectively terminated, the hospital district which prospectively terminates its plan
13 may not again begin participation for new employees in the system pursuant to this
14 Section, unless approved by the board of trustees.
15 (2) Prospective termination of a plan shall follow all notice and any other
16 requirements of termination provided for in the plan agreement.
17 (3) If, pursuant to this Subsection, an employer terminates its agreement for
18 coverage of its employees first hired after the effective date of the termination, the
19 employer shall remit to the system that portion of the unfunded actuarial accrued
20 liability, if any, which is attributable to the employer's termination. The amount
21 required to be remitted pursuant to this Paragraph shall be determined as of the
22 December thirty-first immediately prior to the date of termination. Such
23 determination shall be made using the entry age normal actuarial funding method.
24 (4) The amount due shall be determined by the actuary employed by the
25 system and shall either be paid in a lump sum or amortized over ten years in equal
26 monthly payments with interest at the system's actuarial valuation rate in the same
27 manner as regular payroll payments to the system, at the option of the employer.
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1 (5) If the employer fails to make payment timely, the amount due shall be
2 collected in the same manner as authorized by Subsection D E of this Section and
3 R.S. 11:2014.
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 17 Original 2020 Regular Session Bacala
Abstract: Modifies provisions applicable to entities that may become employers covered
by the Parochial Employees' Retirement System of La. (PERS).
Present law applicable to PERS defines employer as any parish in the state of La., except
Orleans and East Baton Rouge, the governing body of a parish which employs and pays
persons serving the parish, the Police Jury Assoc. of La., the La. School Boards Assoc., and
this retirement system.
Present law further authorizes certain taxing districts and other entities to request PERS to
approve their inclusion as employers.
Proposed law makes technical corrections to coordinate the definitions of employee and
employer.
(Amends R.S. 11:1902(12)(c) and (d) and (13) and 1903; Adds R.S. 11:1902(12)(f) and (g))
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