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ACT No. 202026 Regular Session
HOUSE BILL NO. 13
BY REPRESENTATIVES MCMAKIN, BAYHAM, BILLINGS, WILFORD CARTER,
ILLG, JACOB LANDRY, OWEN, SCHAMERHORN, AND THOMPSON
1 AN ACT
2 To amend and reenact R.S. 11:102(B)(3)(c) and (F) and 1332.1(B)(1)(b) and (d), relative to
3 the Louisiana State Police Retirement System; to provide relative to employer
4 contributions; to provide for determination of the employer contribution rate; to
5 provide relative to amortization periods for certain changes, gains, and losses; to
6 provide for an effective date; and to provide for related matters.
7 Notice of intention to introduce this Act has been published
8 as provided by Article X, Section 29(C) of the Constitution
9 of Louisiana.
10 Be it enacted by the Legislature of Louisiana:
11 Section 1. R.S. 11:102(B)(3)(c) and (F) and 1332.1(B)(1)(b) and (d) are hereby
12 amended and reenacted to read as follows:
13 §102. Employer contributions; determination; state systems
14 * * *
15 B.
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17 (3) With respect to each state public retirement system, the actuarially
18 required employer contribution for each fiscal year, commencing with Fiscal Year
19 1989-1990, shall be that dollar amount equal to the sum of:
20 * * *
21 (c) Except as provided in R.S. 11:102.1 and 102.2 and Paragraph (F)(2) of
22 this Section, that fiscal year's payment, computed as of the first of that fiscal year and
23 projected to the middle of that fiscal year at the actuarially assumed interest rate,
24 necessary to amortize the prior year's over or underpayment as a level dollar amount
25 over a period of five years.
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1 F.(1)(a) Except as provided in Paragraph (2) of this Subsection and in R.S.
2 11:102.5, effective July 1, 2009, and beginning with Fiscal Year 1992-1993, the
3 amortization period for the changes, gains, or losses of the Louisiana State Police
4 Retirement System provided in Items (B)(3)(d)(i) through (iv) of this Section shall
5 be thirty years from the year in which the change, gain, or loss occurred. The
6 outstanding balances of amortization bases established pursuant to Items (B)(3)(d)(i)
7 through (iv) of this Section before Fiscal Year 2008-2009 shall be amortized as a
8 level-dollar amount from July 1, 2009, through June 30, 2029. Beginning with Fiscal
9 Year 2008-2009, and for each fiscal year thereafter, the outstanding balances of
10 amortization bases established pursuant to Items (B)(3)(d)(i) through (iv) of this
11 Section shall be amortized as a level-dollar amount.
12 (b) All outstanding amortization bases in existence on June 30, 2029,
13 including balances established pursuant to Subparagraph (B)(3)(c) of this Section,
14 shall be consolidated and reamortized over the period ending June 30, 2049, with
15 level-dollar payments, beginning July 1, 2029. Amortization bases established after
16 June 30, 2029, shall be amortized as provided in Subparagraph (2)(b) of this
17 Subsection.
18 (2)(a)(i) Notwithstanding the provisions of Paragraph (1) of this Subsection,
19 effective for the June thirtieth valuation following the fiscal year in which the system
20 first attains a funded percentage of seventy or more pursuant to R.S. 11:1332 and for
21 every year thereafter, the amortization period for the changes, gains, or losses of the
22 system provided in Items (B)(3)(d)(i) through (iv) of this Section occurring in that
23 year or thereafter shall be twenty years from the year in which the change, gain, or
24 loss occurred.
25 (ii) Notwithstanding the provisions of Subparagraph (B)(3)(c) of this Section
26 to the contrary, the amortization period for the prior year's over or under payment for
27 the June 30, 2027, 2028, and 2029, valuations shall be twenty years.
28 (b) Notwithstanding the provisions of Paragraph (1) of this Subsection or
29 Subparagraph (a) of this Paragraph to the contrary, the amortization period for the
30 changes, gains, or losses of the system provided in Subparagraphs (B)(3)(c) and (d)
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1 of this Section with payments beginning July 1, 2030, or thereafter shall be fifteen
2 years from the year in which the change, gain, or loss occurred.
3 (3) Effective for the first system valuation following June 30, 2015, in which
4 an allocation is made to the system's experience account and for each valuation
5 thereafter, actuarial gains allocated to the experience account shall be amortized as
6 a loss with level payments over a ten-year period.
7 (4) In addition to the actuarially required employer contribution rate
8 determined pursuant to Subsection B of this Section, the legislature shall set the
9 permanent benefit increase account funding contribution rate as provided in this
10 Paragraph.
11 (a) Effective July 1, 2023, the rate provided for in this Paragraph, referred
12 to in this Subsection as the "AFC rate", shall be zero.
13 (b) Notwithstanding any other provision of this Section to the contrary,
14 effective for the June 30, 2023, system valuation and beginning July 1, 2024, for any
15 fiscal year in which the projected aggregate employer contribution rate decreases,
16 the AFC rate shall increase by the lesser of one-half of the amount of the decrease
17 in the projected aggregate employer contribution rate determined under this Section
18 or the amount necessary for the AFC rate to equal two and one-half percent. Any
19 increase in the AFC rate shall be permanent. The AFC rate shall not exceed two and
20 one-half percent.
21 (c) Notwithstanding any other provision of law to the contrary, the
22 contributions required by this Paragraph shall not be considered actuarially required
23 contributions for the purposes of Paragraph (B)(3) of this Section or Article X,
24 Section 29(E) of the Constitution of Louisiana.
25 (4) Notwithstanding any other provision of this Section to the contrary,
26 beginning with Fiscal Year 2027-2028, the required employer contribution rate for
27 a given year shall not be less than the projected employer normal cost divided by the
28 projected payroll of the active members of the system for the fiscal year plus the
29 AFC rate for that year.
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1 §1332.1. Permanent benefit increase funding account
2 * * *
3 B.(1) The PBI account shall be credited as follows:
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5 (b) To the extent permitted by Subparagraph (d) of this Paragraph, all
6 employer contributions paid pursuant to R.S. 11:102(F)(4) R.S. 11:102(F)(3).
7 * * *
8 (d) In no event shall a credit be made to the PBI account that would cause
9 the balance in the account to exceed the reserve necessary to grant two permanent
10 benefit increases of two percent and two supplemental permanent benefit increases
11 of two percent in accordance with the provisions of this Section. Any contributions
12 received from payment of the account funding contribution rate in compliance with
13 R.S. 11:102(F)(4) R.S. 11:102(F)(3) that would cause the account balance to exceed
14 this reserve if deposited in the account shall be applied as provided in R.S. 11:102.4.
15 * * *
16 Section 2. The cost of this Act, if any, shall be funded with additional employer
17 contributions in compliance with Article X, Section 29(F) of the Constitution of Louisiana.
18 Section 3. This Act shall become effective upon signature by the governor or, if not
19 signed by the governor, upon expiration of the time for bills to become law without signature
20 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
21 vetoed by the governor and subsequently approved by the legislature, this Act shall become
22 effective on the day following such approval.
SPEAKER OF THE HOUSE OF REPRESENTATIVES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED:
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