OFFICE OF LEGISLATIVE AUDITOR
2024 REGULAR SESSION
ACTUARIAL NOTE
This Note has been prepared by the Actuary for 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.
Kenneth J. “Kenny” Herbold, ASA, EA, MAAA
Director of Actuarial Services
Louisiana Legislative Auditor
Page 1 of 4
Bill Header: GAMING: Provides relative to deadlines for financial disclosures required of members and certain employees of the
Gaming Control Board and of the gaming enforcement division.
Purpose of Bill: This bill 1) changes the filing deadline for certain disclosures members and certain employees of the Gaming Control
Board must file with the Board of Ethics from prior to confirmation to no later than fifteen days after confirmation; 2) provides the
chairman of the Gaming Control Board shall receive the same compensation (present law), expenses, benefits, and emoluments as a
judge of the courts of appeal of this state, including any supplemental pay and eligibility for membership in the Louisiana State
Employees’ Retirement System (LASERS) (proposed law); and 3) provides clarifying language regarding who must receive human
trafficking awareness and prevention training.
Cost Summary
1
: The estimated net actuarial and fiscal impact of the proposed legislation is summarized below.
The expected change in the net actuarial present value of expected future benefits and administrative expenses incurred by the
retirement systems from the proposed law is estimated to increase. A more detailed explanation can be found in Section I: Actuarial
Impact on Retirement Systems.
This bill is subject to 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.
Net Fiscal Costs pertain to changes to all cash flows over the next five-year period including retirement system cash flows or cash flows
related to local and state government entities.
In the following table, expenditures and revenues include cash flows to or from the affected retirement system (e.g. administrative
expenses incurred by, benefit payments from, or contributions to the retirement system) and do not include administrative expenditures
and revenues specifically incurred by the state or local government entities associated with implementing the legislation. A more detailed
explanation can be found in Section II: Fiscal Impact on Retirement Systems.
Five Year Net Fiscal Costs Pertaining to: Expenditures Revenues
The Retirement Systems $ 0 $ 437,665
Local Government Entities 0 0
State Government Entities 340,225 0
Total $ 340,225 $ 437,665
In the following table, expenditures and revenues include administrative expenditures and revenues specifically incurred by the state or
local government entities associated with implementing the legislation and do not include cash flows to or from the affected retirement
system (i.e. contribution changes included in the above table). This information is provided by the LLA Local Government Services or
the Legislative Fiscal Office. A more detailed explanation can be found in Sections III: Fiscal Impact on Local Government Entities and
Section IV: Fiscal Impact on State Government Entities.
Five Year Net Fiscal Costs Pertaining to: Expenditures Revenues
Local Government Entities $ 0 $ 0
State Government Entities See Section IV 0
Total See Section IV $ 0
1
This is a different assessment from the actuarial cost requiring a 2/3
rd
vote (refer to the section near the end of this Actuarial Note “Information
Pertaining to La. Const. Art. X, §29(F)”).
House Bill 316 HLS 24RS-715 Date: June 2, 2024
Reengrossed w/SCA #3124 Organizations Affected: Gaming Control
Author: Larvadain Board & LASERS
LLA Note HB 316.01 RE1 +87,533 FC SG RV 2024 REGULAR SESSION
ACTUARIAL NOTE HB 316
Page 2 of 4
I. ACTUARIAL IMPACT ON RETIREMENT SYSTEMS
This section of the actuarial note is intended to provide a brief outline of the changes in plan provisions and actuarial effect on key
aspects of the affected retirement systems.
Proposed law adds the chairman of the Gaming Control Board as a position eligible for participation in LASERS with the same benefits
as a judge of the courts of appeal. Given this position has not historically been eligible for participation in LASERS, expected future
benefits will necessarily increase. However, because the current chairman is expected to retire prior to the effective date of the bill, there
is not expected to be a change in the unfunded actuarial accrued liability as a result of proposed law. If the current chairman does not
retire, and becomes eligible to receive LASERS benefits for service prior to the effective date of the bill, this analysis would change and
an unfunded accrued liability could be expected to accrue.
Both employee and employer contributions are expected to increase. The amount will depend on the individual who becomes chairman
and their original LASERS eligibility date. For FY 2024-25, the employer contribution will range from 38.31% for someone first eligible
to participate in LASERS on or after January 1, 2011 to 40.17% of pay for someone first eligible prior to January 1, 2011. The employee
contribution will range from 11.50% for someone first eligible prior to January 1, 2011 to 13.00% for someone first eligible on or after
January 1, 2011.
II. FISCAL IMPACT ON RETIREMENT SYSTEMS
This section of the actuarial note pertains to annual fiscal costs (savings) associated with the retirement systems.
Fiscal costs or savings include only cash flows to or from the affected retirement system (e.g. administrative expenses incurred by,
benefit payments from, or contributions to the retirement system) and do not include administrative expenditures and revenues
specifically incurred by the state or local government entities associated with implementing the legislation. 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.
Table A: Retirement System Fiscal Cost
Expenditures 2024-25 2025-26 2026-27 2027-28 2028-29 5-Year Total
State General Fund $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Agy Self-Generated 68,051 68,051 68,051 68,051 68,051 340,255
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 $ 68,051 $ 68,051 $ 68,051 $ 68,051 $ 68,051 $ 340,255
Revenues 2024-25 2025-26 2026-27 2027-28 2028-29 5-Year Total
State General Fund $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Agy Self-Generated 87,533 87,533 87,533 87,533 87,533 437,665
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 $ 87,533 $ 87,533 $ 87,533 $ 87,533 $ 87,533 $ 437,665
Changes in employer contributions are reflected in the State General Fund and/or Local Fund expenditure lines above. The actual
sources of funding (e.g., Federal Funds, State General Fund, etc.) may vary by employer and are not differentiated in the table.
The proposed legislation is expected to have the following effects on retirement related fiscal costs and revenues during the five-
year measurement period.
1. Expenditures:
Employer contributions (Agy Self-Generated expenditures) will increase to reflect the required contribution to LASERS. Per the
Gaming Control Board, the FY 2023-24 annual salary for a judge of the court of appeals, other than the chief justice, was
$169,407.32. Assuming no increases in compensation during the measurement period and based on the LASERS required
contributions for judges as reported in the June 30, 2023 valuation for FY 2024-25, actual employer contributions would be $68,051
(40.17% of pay) for those first eligible to participate prior to January 1, 2011 or $64,900 (38.31% of pay) for someone first eligible
to participate on or after January 1, 2011.
2. Revenues:
Agy Self-Generated revenue will increase to reflect both employee and employer contributions. Based on the same information as
above, the total employee and employer contributions would be $87,533 (51.67% of pay) for someone first eligible prior to
January 1, 2011 or $86,923 (51.31% of pay) for those first eligible on or after January 1, 2011.
III. FISCAL IMPACT ON LOCAL GOVERNMENT ENTITIES
(Prepared by LLA Local Government Services)
This section of the actuarial note pertains to annual fiscal costs (savings) related to administrative expenditures and revenue impacts
incurred by local government entities other than those included in Table A.
N/A – This bill only impacts state government, and therefore, has no local government impact. The Local Government Services section
of the LLA does not review state government bills.
2024 REGULAR SESSION
ACTUARIAL NOTE HB 316
Page 3 of 4
IV. FISCAL IMPACT ON STATE GOVERNMENT ENTITIES
(Prepared by Legislative Fiscal Office)
This section of the actuarial note pertains to annual fiscal costs (savings) related to administrative expenditures and revenue impacts
incurred by state government entities other than those included in Table A.
The Gaming Control Board may experience a marginal increase in workload as a result of ensuring that each owner, officer, director,
manager, security guard of a licensee, and any employee as determined by the board is certified as having participated in and completed
human trafficking awareness and prevention training annually. The LFO presumes that the board can absorb the workload with existing
staff and resources.
V. ACTUARIAL DISCLOSURES
Intended Use
This actuarial note is based on our understanding of the bill as of the date shown above. It is intended to be used by the legislature during
the current legislative session only and assumes no other legislative changes affecting the funding or benefits of the affected systems,
other than those identified, will be adopted. Other readers of this actuarial note are advised to seek professional guidance as to its content
and interpretation, and not to rely upon this communication without such guidance. The actuarial note, and any referenced documents,
should be read as a whole. Distribution of, or reliance on, only parts of this actuarial note could result in its misuse and may mislead
others. The summary of the impact of the bill included in this actuarial note is for the purposes of an actuarial analysis only, as required
by La. R.S. 24:521, and is not a legal interpretation of the provisions of the bill.
Actuarial Data, Methods and Assumptions
Unless indicated otherwise, this actuarial note 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 assumptions and
methods are reasonable for the purpose of this analysis.
For certain calculations that may be presented herein, we have utilized commercially available valuation software and/or are relying on
proprietary valuation models and related software developed by our actuarial contractor. We made a reasonable attempt to understand the
intended purpose of, general operation of, major sensitivities and dependencies within, and key strengths and limitations of these models.
In our professional judgment, the models have the capability to provide results that are consistent with the purposes of the analysis and have
no material limitations or known weaknesses. Tests were performed to ensure that the model reasonably represents that which is intended
to be modeled.
To the extent that this actuarial note relies on calculations performed by the retirement systems’ actuaries, to the best of our knowledge, no
material biases exist with respect to the data, methods or assumptions used to develop the analysis other than those specifically identified.
We did not audit the information provided, but have reviewed the information for reasonableness and consistency with other information
provided by or for the affected retirement systems.
Conflict of Interest
There is nothing in the proposed legislation that will compromise the signing actuary’s ability to present an unbiased statement of
actuarial opinion.
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. Risk disclosures otherwise required by ASOP No. 51 do not apply to this actuarial note because the proposed
bill does not significantly change the types or levels of risks of the retirement system.
Certification
Kenneth J. Herbold is an Associate of the Society of Actuaries (ASA), a Member of the American Academy of Actuaries (MAAA), and
an Enrolled Actuary (EA) under the Employees Retirement Income Security Act of 1974. Mr. Herbold meets the US Qualification
Standards necessary to render the actuarial opinion contained herein.
2024 REGULAR SESSION
ACTUARIAL NOTE HB 316
Page 4 of 4
VI. LEGISLATIVE PROCEDURAL ITEMS
Information Pertaining to La. Const. Art. X, §29(F)
☒ This bill contains a retirement system benefit provision having an actuarial cost.
Some members of a retirement system would receive a larger benefit with the enactment of this bill than what they would have
received without this bill.
Dual Referral Relative to Total Fiscal Costs or Total Cash Flows:
The information presented below is based on information contained in Sections II, III, and IV for the first three years following the 2024
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 If an annual General Fund fiscal cost ≥ $100,000, then
dual referred to: bill is dual referred to:
Dual Referral: Senate Finance Dual Referral: 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 If a net fee decrease occurs or is an increase in annual
bill is dual referred to: fees and taxes ≥ $500,000, then bill is dual referred to:
Dual Referral: Revenue and Fiscal Affairs Dual Referral: Ways and Means