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 2
Bill Header: CIVIL/VENUE: Provides relative to venue for certain legal actions instituted by the Municipal Police Employees'
Retirement System
Purpose of Bill: This bill changes the venue for any action taken by the Municipal Police Employees' Retirement System (MPERS)
from the parish of East Baton Rouge to the judicial district in which the employer is located.
I. ACTUARIAL IMPACT ON RETIREMENT SYSTEMS
1
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.
The net change in actuarial present value of expected future benefits and administrative expenses incurred by the retirement systems
from the proposed legislation is estimated to be $0.
II. FISCAL IMPACT ON RETIREMENT SYSTEMS AND LOCAL GOVERNMENT ENTITIES
This section of the actuarial note pertains to annual fiscal costs (savings) associated with the retirement systems and local government
entities.
The exact effect on fiscal administrative costs and revenues is indeterminable at this time because the overall impact relies heavily on
the details of individual cases involving MPERS and local governments across the state. However, we have presented general
information regarding potential impacts below:
1. According to MPERS, based on 9 outstanding lawsuits, at least 25 other potential cases yet to be filed, and an average of 5
attorney general collection cases, additional expenses resulting from this bill could total approximately $345,000 annually.
Expenses are comprised of mileage, hotels and meals for staff, attorneys, and the system actuary.
2. According to the Louisiana Municipal Association (LMA), the towns and villages who are getting sued by MPERS are currently
incurring expenses similar to those presented above. These expenses are associated with hiring attorneys and associated travel
to litigate in Baton Rouge. Therefore, any increase in expenditures incurred by MPERS would have an offsetting reduction in
expenditures by municipalities, according to LMA.
3. According to the 19
th
Judicial District Court (JDC), proposed legislation will have very little, if any, fiscal impact on revenues
and expenditures. Any decrease in revenues to the 19
th
JDC would also have an offsetting increase in revenues to local
jurisdictions where the cases are litigated.
III. 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 Section II.
N/A - This bill only impacts local government, and therefore, has no state impact. The LFO does not review local government bills.]
IV. 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.
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)”).
Senate Bill 329 HLS 24RS-266 Date: April 16, 2024
Original Organizations Affected: MPERS
Author: Seabaugh
LLA Note HB 329.01 OR SEE ACTUARIAL NOTE FC 2024 REGULAR SESSION
ACTUARIAL NOTE SB 329
Page 2 of 2
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.
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.
V. LEGISLATIVE PROCEDURAL ITEMS
Information Pertaining to La. Const. Art. X, §29(F)
☐ This bill contains a retirement system benefit provision having an actuarial cost.
No member/Some members of a retirement system would/could 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