2020 REGULAR SESSION
ACTUARIAL NOTE SB 484
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Senate Bill 484 SLS 20RS-879
Original
Author: Senator Robert Mills
Date: April 6, 2020
LLA Note SB 484.01
Organizations Affected:
Teachers' Retirement System of
Louisiana
OR INCREASE APV
This Note has been prepared by the Actuarial Services Department of the
Louisiana Legislative Auditor (LLA) with assistance from either the Fiscal Notes
staff of the Legislative Auditor or staff of the Legislative Fiscal Office (LFO). The
attachment of this Note provides compliance with the requirements of R.S. 24:521
as amended by Act 353 of the 2016 Regular Session.
Lowell P. Good, ASA, EA, MAAA
Actuarial Services Manager
James J. Rizzo, ASA, EA, MAAA
Senior Consultant & Actuary
Gabriel, Roeder, Smith & Company
Bill Header: TEACHERS RETIREMENT: Provides for the reemployment of retired teachers. (2/3 - CA10s29(F)) (gov sig)
Cost Summary:
The estimated net actuarial and fiscal impact of this proposed legislation on the retirement systems and their plan sponsors is
summarized below. Net actuarial costs pertain to estimated changes in the net actuarial present value of future benefit payments and
administrative expenses incurred by the retirement system. Net fiscal costs or savings pertain to changes to all cash flows over the
next five year period including retirement system cash flows, OPEB cash flows, or cash flows related to local and state government
entities.
An increase in actuarial costs is denoted throughout the actuarial note by “Increase” or a positive number. Actuarial savings are
denoted by “Decrease” or a negative number. An increase in expenditures or revenues (fiscal impact) is denoted by “Increase” or a
positive number. A decrease in expenditures or revenues is denoted by “Decrease” or a negative number.
Estimated Actuarial Impact:
The top part of the following chart shows the estimated change in the net actuarial present value of future benefit payments and
expenses, if any, attributable to the proposed legislation. The bottom part shows the effect on cash flows (i.e., contributions, benefit
payments, and administrative expenses).
Net Actuarial Costs (Liabilities) Pertaining to: Net Actuarial Cost
The Retirement Systems Increase
Other Post-employment Benefits (OPEB) Decrease
Total Increase
Five Year Net Fiscal Cost Pertaining to: Expenditures Revenues
The Retirement Systems Increase Increase
Other Post-employment Benefits (OPEB) Decrease 0
Local Government Entities Increase 0
State Government Entities 0 0
Total Increase Increase
This bill complies with the Louisiana Constitution which requires unfunded liabilities created by an improvement in retirement
benefits to be amortized over a period not to exceed ten years.
Bill Information
Current Law
Current law suspends the benefits of a reemployed retired member of the Teachers’ Retirement System of Louisiana (TRSL).
There are exceptions for retirees who are reemployed in Reemployment-Eligible Critical Shortage Positions which are defined as:
1. A position for a full-time or part-time classroom teacher who teaches any student in pre-kindergarten through twelfth grade in
a school where a critical shortage exists;
2. A position for a full-time certified speech therapist, speech pathologist, audiologist, educational diagnostician, school social
worker, school counselor, school psychologist, interpreter, educational transliterator, or educator of the deaf or hard of
hearing whose position of employment requires a valid Louisiana ancillary certificate approved and issued by the state
Department of Education in a school district where a critical shortage exists.
Pension benefits payable to a retiree reemployed in a Reemployment-Eligible Critical Shortage Position are subject to the
following suspension of benefit rules.
1. If a retiree is reemployed in a Reemployment-Eligible Critical Shortage Position before the first anniversary (third
anniversary if he retired with a reduced benefit) of his original date of retirement, the retiree’s benefit will be suspended until
the earlier of the date he terminates reemployment and the first anniversary date (third anniversary date if he retired with a
reduced benefit) of his original retirement. The retiree’s income from reemployment is unlimited.
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ACTUARIAL NOTE SB 484
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2. If a retiree is reemployed in a Critical Shortage Position thereafter, the retiree may continue to work in the Reemployment-
Eligible Critical Shortage Position and earn an unlimited income from employment. He will also receive his full pension
benefit as long as the Board of Elementary and Secondary Education and the board of trustees of TRSL have received
certification that a critical shortage exists.
The employing school board must recertify annually to the Board of Elementary and Secondary Education and the TRSL board of
trustees that a critical shortage continues to exist.
Proposed Law
SB 484 adds the following “designated position” to the list of Reemployment-Eligible Critical Shortage Positions.
1. A position for a full-time or part-time classroom teacher who teaches any student in a school identified pursuant to the
Every Student Succeeds Act (ESSA) for comprehensive intervention or as having 75% or more economically
disadvantaged students where a critical shortage exists.
A reemployed retiree must satisfy the following conditions to avoid a suspension of his pension benefit under SB 484.
a. The reemployed retiree must qualify and be reemployed in the designated position, and
b. The employer must have a certified critical shortage of personnel able and willing to fill the designated position.
Implications of the Proposed Changes
Pension benefits of a person reemployed in the designated position are suspended because the designated position is not included
in the list of Reemployment-Eligible Positions under current law. Under this proposed law a retired member of TRSL may be
reemployed in the designated position and, under certain circumstances, continue to receive his pension benefit.
Proposed law does not change current law with regard to reemployment before the first anniversary (third anniversary if he retired
with a reduced benefit) of his original date of retirement. The reemployed retiree’s pension benefit will be suspended until the
earlier of the date he terminates reemployment and the first anniversary date (third anniversary date if he retired with a reduce
benefit) of his original retirement.
Thereafter, he may receive his annual pension benefit (assuming the critical shortage position is certified on an annual basis) in
addition to his employment earnings.
I. ACTUARIAL IMPACT ON RETIREMENT SYSTEMS AND OPEB [Completed by LLA]
A. Analysis of Net Actuarial Costs
(Prepared by LLA)
This section of the actuarial note pertains to net actuarial costs or savings associated with the retirement systems and with OPEB.
1. Retirement Systems
The actuarial present value of future benefits for TRSL associated with the proposed law is expected to increase. Our
analysis is summarized below with the use of two examples and the following assumptions:
a. Assumptions:
1). A retired teacher has been retired for at least one year.
2). He is reemployed into a position for a full-time or part-time classroom teacher who teaches any student in a school
identified pursuant to ESSA for comprehensive intervention or as having 75% or more economically disadvantaged
students. That position may at times be referred to hereinafter as a designated position.
3). His annual salary is $48,000 a year.
4). His pension benefit from TRSL is $30,000 a year.
b. Examples:
1). Example 1: A retired teacher who is more than one year past his original retirement date has been reemployed into a
position for a full-time or part-time classroom teacher who teaches any student in a school identified pursuant to
ESSA for comprehensive intervention or as having 75% or more economically disadvantaged students by a school
district with a critical shortage.
a). Benefit Payable by TRSL under Current Law
If SB 484 is not enacted the designated position is irrelevant. The retired teacher will not be serving in a
Reemployment-Eligible Critical Shortage Position. If the retiree continues to be reemployed, the retired teacher
will continue to receive an annual salary of $48,000 from his employer. His pension benefit will be suspended
and he would continue to receive nothing from TRSL for as long as he is reemployed. Neither the reemployed 2020 REGULAR SESSION
ACTUARIAL NOTE SB 484
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retiree nor his employer will contribute to TRSL and the reemployed retiree will not accrue any additional
pension benefits.
b). Benefit Payable by TRSL under SB 484
If SB 484 is enacted and the reemployed retiree has been serving in the designated position, then the
reemployed retiree will begin to serve in a Reemployment-Eligible Critical Shortage Position with the
enactment of SB 484. The reemployed retiree will continue to receive a $48,000 annual salary from his
employer. His pension benefit will not be suspended; after the enactment of SB 484, TRSL will begin to pay
$30,000 a year to the reemployed retiree.
Because he is considered to be a “retired teacher” as defined in the law, the reemployed retiree and his employer
will contribute to TRSL. However, the reemployed retiree will not accrue any additional pension benefit. Upon
subsequent termination of employment, the reemployed retiree’s contributions will be refunded to him without
interest. TRSL will retain contributions made by the employer.
c). Conclusions
(1). TRSL’s expenditures for pension benefits will increase $30,000 with the enactment of SB 484.
(2). TRSL’s annual revenue will increase $16,128 ($12,288 from the employer and $3,840 from the reemployed
retiree).
(3). TRSL’s expenditures will increase by $3,840 (the amount of employee contributions refunded) for the
fiscal year in which the reemployed retiree terminates his employment.
2). Example 2: A retired teacher who is more than one year past his original retirement date continues to be retired.
However, he misses employment in the K-12 environment. He does not become reemployed primarily because his
pension from TRSL will be completely suspended. However, if SB 484 is enacted, the combination of his salary
from reemployment ($48,000) plus his pension from TRSL ($30,000) may be enough to entice him to be
reemployed.
a). Benefits Payable from TRSL under Current Law
If SB 484 is not enacted, the designated position is irrelevant. The retired teacher will not be serving in a
Reemployment-Eligible Critical Shortage Position. He will remain retired rather than becoming reemployed.
He will receive no reemployment income. He will continue to collect a pension of $30,000 per year from
TRSL. Obviously, no employee or employer contributions are payable to TRSL and the retiree does not accrue
any additional benefits.
b). Benefits Payable from TRSL under SB 484
If SB 484 is enacted and the retiree becomes reemployed on a full-time basis in the designated position in a
critical shortage situation, his annual income from employment will be $48,000. TRSL will pay the reemployed
retiree $30,000 a year in pension benefits. This amount will be paid to the reemployed retiree for as long as the
critical shortage is certified annually.
With the enactment of SB 484, the reemployed retiree becomes a “retired teacher”. The reemployed retiree and
his employer will contribute to the system; however, the retiree will not accrue additional retirement benefits
and his contributions will be refunded without interest when he terminates active service. Employer
contributions will remain in the system.
c). Conclusion
TRSL’s pension expenditures will remain at $30,000 a year with the enactment of SB 484. The system will
collect contributions from both the school and the reemployed retiree under SB 484, with employee
contributions being refunded when the reemployed retiree leaves active employment.
2. Other Post-employment Benefits (OPEB)
The actuarial costs of SB 484 associated with the state OPEB, including retiree health insurance premiums, are expected to
decrease slightly. Our analysis is summarized below.
The total claims expected to be incurred by members insured through the Office of Group Benefits (OGB) covering the
affected teachers remains approximately the same regardless of whether a TRSL retiree is reemployed into active status or
remains in retired status.
When a retired TRSL member returns to active employment with coverage for health insurance, he is no longer receiving
retiree health subsidies, but is covered as an active employee again. Therefore, the OPEB costs and liabilities are decreased
to reflect the time he will be expected to remain employed until his subsequent second retirement. This has a decreasing
effect on the OPEB costs and liabilities. Many such retirees may not work enough hours to be re-classified as active
employees again. For these employees, there would be no impact of SB 484 on the OPEB liability.
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ACTUARIAL NOTE SB 484
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However, the portion of the expected claims or premiums paid by the employer on behalf of a retiree is eliminated, in
exchange for the employer-share borne by the employer on behalf of the substitute teacher as an active employee for those
who work enough hours to be covered as such. There is no difference between the employer share for retirees with a full
career of service as compared to an active employee. But for shorter service retirees, the employer subsidy for an active
employee is larger than for a retiree, resulting in an increase in current costs to the employer. Although most of OGB retirees
are long service retirees receiving the full subsidy, it is not known with certainty if greater or lesser subsidies are provided
toward the payment of such claims or premiums to retirees as compared to active employees.
On balance, SB 484 is expected to have a slight decreasing effect on OPEB costs and liabilities. But the increase in net
actuarial costs for the retirement benefits is larger than the decrease in OPEB costs, resulting in an overall net increase.
B. Actuarial Data, Methods and Assumptions
(Prepared by LLA)
Unless indicated otherwise, the actuarial note for the proposed legislation was prepared using actuarial data, methods, and
assumptions as disclosed in the most recent actuarial valuation report adopted by the Public Retirement Systems’ Actuarial
Committee (PRSAC). The data, methods and assumptions are being used to provide consistency with the actuary for the
retirement system who may also be providing testimony to the Senate and House retirement committees. With certain exceptions,
the actuary for the LLA finds the assumptions used by the retirement systems and PRSAC to be reasonable.
C. Actuarial Caveat
(Prepared by LLA)
There is nothing in the proposed legislation that will compromise the signing actuary’s ability to present an unbiased statement of
actuarial opinion.
II. FISCAL IMPACT ON RETIREMENT SYSTEMS AND OPEB [Completed by LLA]
This section of the actuarial note pertains to fiscal (annual) costs or savings associated with the retirement systems (Table A) and with
OPEB (Table B). Fiscal costs or savings in Table A include benefit-related actuarial costs and administrative costs incurred by the
retirement systems.
A. Estimated Fiscal Impact – Retirement Systems
(Prepared by LLA)
1. Narrative
Table A shows the estimated fiscal impact of the proposed legislation on the retirement systems and the government entities
that sponsor them. A fiscal cost is denoted by “Increase” or a positive number. Fiscal savings are denoted by “Decrease” or
a negative number. A revenue increase is denoted by “Increase” or a positive number. A revenue decrease is denoted by
“Decrease” or a negative number.
Retirement System Fiscal Cost: Table A EXPENDITURES 2020-21 2021-22 2022-23 2023-24 2024-25 5 Year Total
State General Fund $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Agy Self Generated Increase Increase Increase Increase Increase Increase
Stat Deds/Other 0 0 0 0 0 0
Federal Funds 0 0 0 0 0 0
Local Funds 0 Increase Increase Increase Increase Increase
Annual Total Increase Increase Increase Increase Increase Increase
REVENUES 2020-21 2021-22 2022-23 2023-24 2024-25 5 Year Total
State General Fund $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Agy Self Generated 0 Increase Increase Increase Increase Increase
Stat Deds/Other 0 0 0 0 0 0
Federal Funds 0 0 0 0 0 0
Local Funds 0 0 0 0 0 0
Annual Total $ 0 Increase Increase Increase Increase Increase
All expenditures for employer contributions are reflected on a single line in the table above. The actual sources of funding
(e.g., Federal Funds, State General Fund) may vary by employer and are not differentiated on the table.
The proposed legislation will have the following effects on retirement related fiscal costs and revenues during the five year
measurement period.
2. Expenditures:
a. TRSL expenditures (Agy Self Generated) will increase under SB 484 because TRSL will distribute more in benefits each
year under SB 484 than it will under current law. 2020 REGULAR SESSION
ACTUARIAL NOTE SB 484
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b. TRSL may incur administrative costs to make minor software modifications to existing computer programs to identify
members that are rehired under this measure. These costs are negligible and are anticipated to be absorbed through the
agency’s existing budget.
c. Expenditures from Local Funds will increase under SB 484 because school districts will contribute more per year, on
average, to TRSL with the enactment of SB 484 than would have been contributed under current law.
3. Revenues:
TRSL revenues (Agy Self Generated) will increase each year if SB 484 is enacted because school districts and reemployed
retirees will contribute more per year to TRSL under SB 484 than they would have contributed under current law.
B. Estimated Fiscal Impact – OPEB
(Prepared by LLA)
1. Narrative
Table B shows the estimated fiscal impact of the proposed legislation on actuarial benefit and administrative costs or savings
associated with OPEB and the government entities that sponsor these benefit programs. A fiscal cost is denoted by
“Increase” or a positive number. Fiscal savings are denoted by “Decrease” or a negative number. A revenue increase is
denoted by “Increase” or a positive number. A revenue decrease is denoted by “Decrease” or a negative number.
OPEB Fiscal Cost: Table B EXPENDITURES 2020-21 2021-22 2022-23 2023-24 2024-25 5 Year Total
State General Fund $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Agy Self Generated 0 0 0 0 0 0
Stat Deds/Other 0 0 0 0 0 0
Federal Funds 0 0 0 0 0 0
Local Funds Decrease Decrease Decrease Decrease Decrease Decrease
Annual Total Decrease Decrease Decrease Decrease Decrease Decrease
REVENUES 2020-21 2021-22 2022-23 2023-24 2024-25 5 Year Total
State General Fund $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Agy Self Generated 0 0 0 0 0 0
Stat Deds/Other 0 0 0 0 0 0
Federal Funds 0 0 0 0 0 0
Local Funds 0 0 0 0 0 0
Annual Total $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
All expenditures for employer contributions are reflected on a single line in the table above. The actual sources of funding
(e.g., Federal Funds, State General Fund) may vary by employer and are not differentiated on the table.
The proposed legislation will have the following effects on OPEB related fiscal costs and revenues during the five year
measurement period.
2. Expenditures:
When the TRSL retirees return to work, the retiree medical subsidies would be eliminated, having a decreasing effect on
OPEB.
3. Revenues:
No measurable effects.
III. FISCAL IMPACT ON LOCAL GOVERNMENT ENTITIES [Completed by LLA]
This section of the actuarial note pertains to annual fiscal costs, cost savings, and revenue impacts incurred by local government
entities other than those included in Tables A and B. See Table C.
Estimated Fiscal Impact - Local Government Entities (other than the impact included in Tables A and B)
(Prepared by Bradley Cryer, Director of Local Government Services)
1. Narrative
From time to time, legislation is proposed that has an indirect effect on expenditures and revenues associated with local
government entities (other than the impact included in Tables A and B). Table C shows the estimated fiscal impact of the
proposed legislation on such local government entities. A fiscal cost is denoted by “Increase” or a positive number. Fiscal 2020 REGULAR SESSION
ACTUARIAL NOTE SB 484
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savings are denoted by “Decrease” or a negative number. A revenue increase is denoted by “Increase” or a positive number.
A revenue decrease is denoted by “Decrease” or a negative number.
Fiscal Costs for Local Government Entities: Table C EXPENDITURES 2020-21 2021-22 2022-23 2023-24 2024-25 5 Year Total
State General Fund $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Agy Self Generated 0 0 0 0 0 0
Stat Deds/Other 0 0 0 0 0 0
Federal Funds 0 0 0 0 0 0
Local Funds 0 0 0 0 0 0
Annual Total $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
REVENUES 2020-21 2021-22 2022-23 2023-24 2024-25 5 Year Total
State General Fund $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Agy Self Generated 0 0 0 0 0 0
Stat Deds/Other 0 0 0 0 0 0
Federal Funds 0 0 0 0 0 0
Local Funds 0 0 0 0 0 0
Annual Total $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
The proposed legislation will have the following effects on fiscal costs and revenues related to local government entities
during the five year measurement period.
2. Expenditures:
No measurable effects.
3. Revenues:
No measurable effects.
IV. FISCAL IMPACT ON STATE GOVERNMENT ENTITIES [Completed by LFO]
This section of the actuarial note pertains to annual fiscal costs, cost savings, and revenue impacts incurred by state government
entities other than those included in Tables A and B. See Table D.
Estimated Fiscal Impact − State Government Entities (other than the impact included in Tables A and B)
(Prepared by John Carpenter, Legislative Fiscal Officer)
1. Narrative
Legislation may be proposed that has an indirect effect on expenditures and revenues associated with state government
entities (other than the impact included in Tables A and B). Table D shows the estimated fiscal impact of the proposed
legislation on such state government entities. A fiscal cost is denoted by “Increase” or a positive number. Fiscal savings are
denoted by “Decrease” or a negative number. A revenue increase is denoted by “Increase” or a positive number. A revenue
decrease is denoted by “Decrease” or a negative number.
Fiscal Costs for State Government Entities: Table D EXPENDITURES 2020-21 2021-22 2022-23 2023-24 2024-25 5 Year Total
State General Fund $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Agy Self Generated 0 0 0 0 0 0
Stat Deds/Other 0 0 0 0 0 0
Federal Funds 0 0 0 0 0 0
Local Funds 0 0 0 0 0 0
Annual Total $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
REVENUES 2020-21 2021-22 2022-23 2023-24 2024-25 5 Year Total
State General Fund $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Agy Self Generated 0 0 0 0 0 0
Stat Deds/Other 0 0 0 0 0 0
Federal Funds 0 0 0 0 0 0
Local Funds 0 0 0 0 0 0
Annual Total $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
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ACTUARIAL NOTE SB 484
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The proposed legislation will have the following effects on fiscal costs and revenues related to state government entities
during the five year measurement period.
2. Expenditures:
Other than the impact on employer contribution rates which is already reflected in Table A above, there is no anticipated
direct material effect on governmental expenditures as a result of this measure.
3. Revenues:
There is no anticipated direct material effect on governmental revenues as a result of this measure.
Credentials of the Signatory Staff:
Lowell P. Good is the Actuary for the Louisiana Legislative Auditor. He is an Enrolled Actuary, a member of the American Academy
of Actuaries, an Associate of the Society of Actuaries and has met the Qualification Standards of the American Academy of Actuaries
necessary to render the actuarial opinion contained herein.
James J. Rizzo is a Senior Consultant and Actuary with Gabriel, Roeder, Smith & Company, which currently serves as staff for the
Actuarial Services Department of the Louisiana Legislative Auditor. He is an Enrolled Actuary, a member of the American Academy
of Actuaries, an Associate of the Society of Actuaries and has met the Qualification Standards of the American Academy of Actuaries
necessary to render the actuarial opinion contained herein.
Actuarial Disclosure: Risks Associated with Measuring Costs
This Actuarial Note is an actuarial communication, and is required to include certain disclosures in compliance with Actuarial
Standards of Practice (ASOP) No. 51.
A full actuarial determination of the retirement system’s costs, actuarially determined contributions and accrued liability require the
use of assumptions regarding future economic and demographic events. The assumptions used to determine the retirement system’s
contribution requirement and accrued liability are summarized in the system’s most recent Actuarial Valuation Report accepted by the
respective retirement board and by the Public Retirement Systems’ Actuarial Committee (PRSAC).
The actual emerging future experience, such as a retirement fund’s future investment returns, may differ from the assumptions. To the
extent that emerging future experience differs from the assumptions, the resulting shortfalls (or gains) must be recognized in future
years by future taxpayers. Future actuarial measurements may also differ significantly from the current measurements due to other
factors: changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the
methodology used for these measurements (such as the end of an amortization period; or additional cost or contribution requirements
based on the system’s funded status); and changes in plan provisions or applicable law.
Examples of risk that may reasonably be anticipated to significantly affect the plan’s future financial condition include:
1. Investment risk – actual investment returns may differ from the expected returns (assumptions);
2. Contribution risk – actual contributions may differ from expected future contributions. For example, actual contributions
may not be made in accordance with the plan’s funding policy or material changes may occur in the anticipated number of
covered employees, covered payroll, or other relevant contribution base;
3. Salary and Payroll risk – actual salaries and total payroll may differ from expected, resulting in actual future accrued liability
and contributions differing from expected;
4. Longevity and life expectancy risk – members may live longer or shorter than expected and receive pensions for a period of
time other than assumed;
5. Other demographic risks – members may terminate, retire or become disabled at times or with benefits other than assumed,
resulting in actual future accrued liability and contributions differing from expected.
The scope of an Actuarial Note prepared for the Louisiana Legislature does not include an analysis of the potential range of such
future measurements or a quantitative measurement of the future risks of not achieving the assumptions. In certain circumstances,
detailed or quantitative assessments of one or more of these risks as well as various plan maturity measures and historical actuarial
measurements may be requested from the actuary. Additional risk assessments are generally outside the scope of an Actuarial
Note. Additional assessments may include stress tests, scenario tests, sensitivity tests, stochastic modeling, and a comparison of the
present value of accrued benefits at low-risk discount rates with the actuarial accrued liability.
However, the general cost-effects of emerging experience deviating from assumptions can be known. For example, the investment
return since the most recent actuarial valuation may be less (or more) than the assumed rate, or a cost-of-living adjustment may be
more (or less) than the assumed rate, or life expectancy may be improving (or worsening) compared to what is assumed. In each of
these situations, the cost of the plan can be expected to increase (or decrease).
The use of reasonable assumptions and the timely receipt of the actuarially determined contributions are critical to support the
financial health of the plan. However, employer contributions made at the actuarially determined rate do not necessarily guarantee
benefit security.
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ACTUARIAL NOTE SB 484
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Information Pertaining to Article (10)(29(F) of the Louisiana Constitution
X
SB 484 contains a retirement system benefit provision having an actuarial cost.
Some members of the Teachers’ Retirement System of Louisiana could receive a larger benefit with the enactment of SB 484
than what they would have received without SB 484.
Dual Referral Relative to Total Fiscal Costs or Total Cash Flows:
The information presented below is based on information contained in Tables A, B, C, and D for the first three years following the
2020 regular session.
Senate House
13.5.1 Applies to Senate or House Instruments. 6.8F Applies to Senate or House Instruments.
If an annual fiscal cost ≥ $100,000, then bill is
dual referred to:
If an annual General Fund fiscal cost ≥
$100,000, then the bill is dual referred to:
Dual Referral: Senate Finance Dual Referral to Appropriations
13.5.2 Applies to Senate or House Instruments. 6.8G Applies to Senate Instruments only.
If an annual tax or fee change ≥ $500,000,
then the bill is dual referred to:
If a net fee decrease occurs or if an increase in
annual fees and taxes ≥ $500,000, then the bill is
dual referred to:
Dual Referral: Revenue and Fiscal Affairs
Dual Referral: Ways and Means