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Chapter 3. Public Retirement Systems' Actuarial Committee

§121.  Creation; purpose
A.  The Public Retirement Systems' Actuarial Committee is hereby created within the Department of the Treasury, effective July 1, 1988. 
B.  The legislature recognizes that the fiscal integrity of the state and statewide retirement systems and pension plans or funds is a priority and is necessitated by the current financial condition of the systems, plans, or funds.  This actuarial committee is created with the intent that a plan can be developed to insure orderly and consistent strategies for continuing development and growth that will attain and maintain the soundness of the systems, plans, or funds.  The purpose of this Chapter is to provide an entity to advise and coordinate this ongoing process and to advise the Joint Legislative Retirement Committee of all findings and recommendations. 
Acts 1988, No. 81, §2, eff. July 1, 1988.

§122.  Committee; membership
The actuarial committee shall consist of the following voting members:
(1)  The state treasurer, ex officio, or his designee, as a voting member.
(2)  The commissioner of administration, ex officio, or his designee, as a voting member.
(3)  The legislative actuary, ex officio, if any, or the designee of the legislative auditor, as a voting member.
(4)  An actuary who represents the state retirement systems, selected by a majority of the directors of the state retirement systems, as a voting member. 
(5)  An actuary who represents the statewide retirement systems, selected by a majority of the directors of the statewide retirement systems, as a voting member.
(6)  Repealed by Acts 2001, No. 154, §2, eff. July 1, 2001.
(7)  The president of the Senate, ex officio, or his designee, as a voting member.
(8)  The speaker of the House of Representatives, ex officio, or his designee, as a voting member.
Acts 1988, No. 81, §2, eff. July 1, 1988; Acts 1989, No. 145, §1, eff. July 1, 1989; Acts 1991, No. 1038, §1; Acts 1993, No. 342, §1; Acts 2001, No. 154, §§1 and 2, eff. July 1, 2001.
NOTE:  See Acts 2001, No. 154, §2 relative to contract with actuary pursuant to R.S. 11:122(6) which is repealed by the Act.

§123.  Compensation and expenses
The members of the committee shall serve without compensation, except for the legislative members, who shall receive their per diem as for attendance at any other legislative meeting, and from the same source.
Acts 1988, No. 81, §2, eff. July 1, 1988; Acts 1991, No. 1038, §1; Acts 1997, No. 1435, §1; Acts 2001, No. 154, §1, eff. July 1, 2001.

§124.  Quorum
Six voting members of the committee shall constitute a quorum for the transaction of official business.  All official actions of the committee shall require the approval of a majority of the members present and voting.
Acts 1988, No. 81, §2, eff. July 1, 1988; Acts 1991, No. 1038, §1; Acts 1993, No. 342, §1; Acts 2001, No. 154, §1, eff. July 1, 2001; Acts 2003, No. 953, §1, eff. July 1, 2003.

§125.  Meetings 
The committee shall meet quarterly and may meet more frequently as necessary, and shall assist and report to the Joint Legislative Retirement Committee. 
Acts 1988, No. 81, §2, eff. July 1, 1988; Acts 1991, No. 1038, §1.

§126.  Officers
The members shall elect biannually, from their membership, a chairperson and a vice-chairperson, and such other officers as the committee may deem advisable.  No member shall serve as chairman for more than four consecutive years. 
Acts 1988, No. 81, §2, eff. July 1, 1988.

§127.  Duties
A.  The committee shall review and study, on a continuing basis, actuarial assumptions, funding methods, the unfunded liability determined by those methods, the amortization methods to reduce such unfunded liability, and such other matters as the committee deems appropriate.  It shall make recommendations, subject to the unanimous approval of the committee, to the retirement systems, plans, or funds and to the Joint Legislative Retirement Committee.
B.  The committee shall adopt, each year, an official valuation of each State and Statewide public retirement system which shall be derived and revised only as provided in this Section.
C.  The actuaries for the public retirement systems, plans, or funds and the legislative actuary shall submit annual actuarial valuations to the committee.  The committee shall review and analyze all the assumptions and valuations submitted.  The committee shall, with the consent of a majority of members present and voting, approve a single valuation for each public retirement system, plan, or fund.  Once consent of the members is obtained, the actuarial valuations in the form of the official valuations adopted by the committee shall be submitted to the Joint Legislative Retirement Committee and the Joint Legislative Committee on the Budget.
Acts 1988, No. 81, §2, eff. July 1, 1988; Acts 1991, No. 1038, §1; Acts 1993, No. 342, §1; Acts 2001, No. 154, §1, eff. July 1, 2001.

R.S. 11:104


§104.  Employer contributions; determination date; notification
A.  The employer contribution rate as referred to in this Subpart shall be determined by the Public Retirement Systems' Actuarial Committee by the fifteenth day of January of each year for those systems that have a fiscal year ending on the thirtieth day of June. 
B.  Within ten business days thereafter, the chairman of the Public Retirement Systems' Actuarial Committee shall notify each employer or retirement system that the referenced rate will be recommended to the legislature for approval, or that the given rate shall be used by the employer or retirement system, whichever is appropriate under the provisions contained in R.S. 11:102 and 103. 
Acts 1991, No. 1038, §1; Acts 1992, No. 958, §1.

 

R.S. 11:103


§103.  Employer contributions; determination; statewide systems
A.  The provisions of this Section are applicable with respect to the statewide public retirement systems, whose benefits are not guaranteed by Article X, Section 29(A) and (B) of the Louisiana Constitution.
B.(1)  Except as provided in Subsection C of this Section, for each fiscal year beginning with the fiscal year ending 1990, for each statewide retirement system, the employer contribution rate shall equal the actuarially required employer contribution as determined under Paragraph (3) of this Subsection, divided by the total projected payroll of all active members of the particular system for the fiscal year.  Active member payroll shall include participants in the Deferred Retirement Option Plan, but only if direct employer contributions are made based on salaries for such participants.
(2)  At the end of each fiscal year, the difference between the actuarially required employer contribution for the fiscal year, as determined under Paragraph (3) of this Subsection by the most recent actuarial valuation, and the amount of employer contributions actually received for the fiscal year, excluding any amounts received for the extraordinary purchase of additional benefits or service, shall be determined to be that fiscal year's short fall amount.
(3)  The actuarially required employer contribution for each fiscal year shall be that dollar amount equal to the sum of:
(a)  The employer's normal cost for that fiscal year, computed as of the first of the fiscal year using the system's actuarial funding method as specified in R.S. 11:22 and taking into account the value of employee contributions, including interest thereon, such employer's normal cost projected to the middle of the fiscal year at the assumed actuarial interest rate.
(b)  The projected noninvestment related administrative expenses for the fiscal year.
(c)  That fiscal year's payment, computed at the first of that fiscal year and projected to the middle of that fiscal year, at the actuarially assumed interest rate necessary to amortize previous years' shortfall amounts, if any, in the same manner as provided in Subsection (B)(3)(e)(i) of this Section if an immediate gain funding method is used; otherwise, amortized over the future working lifetime of current participants.
(d)  That fiscal year's payment, computed as of the first of that fiscal year using that system's amortization method specified in R.S. 11:42, necessary to amortize the unfunded accrued liability as of the end of the fiscal year ending 1989, such unfunded accrued liability computed using the system's actuarial funding method as specified in R.S. 11:22, such payment projected to the middle of that fiscal year at the actuarially assumed interest rate.
(e)  That fiscal year's payment, calculated as of the first of that fiscal year and projected to the middle of that fiscal year at the actuarially assumed interest rate, necessary to amortize changes in actuarial liability due to:
(i)(aa)  Except as otherwise provided by this Item, actuarial gains and losses, if appropriate for the funding method used by the system as specified in R.S. 11:22, for each fiscal year such payments to be calculated as level dollar amounts over a period of fifteen years from the fiscal year of occurrence of each such actuarial gain or loss, such gains and losses to include any increases in actuarial liability due to governing authority granted cost-of-living increases.
(bb)  For the Municipal Police Employees' Retirement System, actuarial gains and losses, if appropriate for the funding method used by the system as specified in R.S. 11:22, for each fiscal year commencing with the fiscal year ending June 30, 2002, such payments to be computed as level dollar amounts over a period of thirty years from the year of occurrence of each such actuarial gain or loss, such gains and losses to include any increases in actuarial liability due to governing authority granted cost-of-living increases.
(cc)  With regard to the Firefighters' Retirement System, for each fiscal year commencing July 1, 2009, or thereafter, the payments required by this Subparagraph are to be calculated as level dollar amounts over a period of twenty years from the fiscal year of occurrence of each such actuarial gain or loss.  For actuarial gains and losses accruing on or after July 1, 2010, the amortization period shall decrease by one numerical year each fiscal year thereafter until attaining a fifteen year amortization period.  Such gains and losses shall include any increases in actuarial liability resulting from the governing authority granting any cost-of-living increases.
(ii)(aa)  Except as provided in Subitem (bb), changes in actuarial assumptions or the method of valuing of assets, such payments to be computed as level dollar amounts over a period of fifteen years from the year of occurrence of the change.
(bb)  For the Municipal Police Employees' Retirement System, changes in actuarial assumptions or the method of valuing of assets, such payments to be computed as level dollar amounts over a period of thirty years from the year of occurrence of the change.
(iii)  Changes in actuarial funding methods, excluding changes in methods of valuing of assets, such payments to be computed as level dollar amounts over a period of thirty years from the year of occurrence of the change.
(iv)(aa)  Except as provided in Subitem (bb), changes in actuarial accrued liability, computed using the actuarial funding method as specified in R.S. 11:22, due to legislation changing plan provisions, such payments to be computed in the manner and over the time period specified in the legislation creating the change or, if not specified in such legislation, as level dollar amounts over a period of fifteen years from the year of occurrence of the change.
(bb)  For the Municipal Police Employees' Retirement System, changes in actuarial accrued liability, computed using the actuarial funding method as specified in R.S. 11:22, due to legislation changing plan provisions, such payments to be computed in the manner and over the time period specified in the legislation creating the change or, if not specified in such legislation, as level dollar amounts over a period of thirty years from the year of occurrence of the change.
(4)  At the end of the fiscal year during which the assets, excluding the outstanding balance due to Subparagraph (B)(3)(c) of this Section, exceed the actuarial accrued liability, the amortization schedules contained in Subparagraphs (B)(3)(d) and (e) of this Section shall be fully liquidated and assets in excess of the actuarial accrued liability shall be amortized as a credit in accordance with the provisions of Subparagraph (B)(3)(e) of this Section.
C.  The net direct actuarially required employer contribution for each fiscal year, beginning with fiscal year ending 1997, shall be that dollar amount equal to the contribution rate specified in Subparagraph (2)(b) of this Subsection, if any, increased by the cost itemized in Paragraph (1) of this Subsection, reduced by the contributions itemized in Paragraph (2) of this Subsection, rounded to the nearest one-quarter percent:
(1)  The gross required employer contribution as provided in Paragraph (B)(1) of this Section.
(2)  Elements of the gross employer contributions:
(a)  Dedicated ad valorem taxes and revenue sharing funds.
(b)  Targeted portion of the net direct employer's contributions, which shall be treated as a fixed rate unless a higher or lower rate results from application of the provisions of this Section in its entirety:
(i)  Firefighters' Retirement System -- 9%
(ii)  Municipal Police Employees' Retirement System -- 9%
(iii)  Sheriffs' Pension and Relief Fund -- 7%
(c)  Dedicated assessments against insurers.  Such amounts, excluding amounts paid for funding of mergers, to be the lesser of available funds or cost stated in Paragraph (1) of this Subsection reduced by contributions stated in Subparagraphs (a) and (b) of this Paragraph but in no event shall be less than zero.
D.  For the Firefighters' Retirement System of Louisiana, effective with the June 30, 2002, valuation, all outstanding amortization bases in existence on June 30, 2002, exclusive of merger bases, shall be combined, offset, and reamortized over the period ending June 30, 2029, with level dollar payments.  This Subsection shall not apply to amortization bases established after June 30, 2002.
E.(1)  The boards of trustees of the Municipal Police Employees' Retirement System and the Firefighters' Retirement System shall consider increasing the actuarially assumed rates of return for their respective systems.  Each board shall meet on or before July 31, 2005, to consider this issue.  Each board shall report in writing to the House and Senate Committees on Retirement and to the Public Retirement Systems' Actuarial Committee the results of its consideration and the recommendations of the board, if any.
(2)  If either or both boards make recommendations, the Public Retirement Systems' Actuarial Committee shall meet on or before August 31, 2005, to discuss and take action on such recommendations.

Acts 1988, No. 81, §2, eff. July 1, 1989; Acts 1990, No. 470, §1, eff. July 1, 1990; Acts 1991, No. 397, §1, eff. July 1, 1991; Acts 1993, No. 734, §1, eff. July 1, 1993; Acts 1995, No. 1117, §1, eff. June 30, 1995; Acts 1997, No. 792, §1, eff. July 1, 1997; Acts 1997, No. 1293, §1, eff. July 15, 1997; Acts 2001, No. 911, §1, eff. July 1, 2001; Acts 2003, No. 620, §1, eff. June 27, 2003; Acts 2003, No. 1079, §1, eff. July 2, 2003; Acts 2005, No. 448, §1, eff. July 1, 2005; Acts 2009, No. 422, §1, eff. July 1, 2009.