§ 11:102 — Employer contributions; determination; state systems

Louisiana § 11:102

• Jurisdiction: Louisiana
• Title 11: Consolidated Public Retirement Systems

Text

§102. Employer contributions; determination; state systems
A. The provisions of this Section are applicable with respect to the state public
retirement systems, whose benefits are guaranteed by Article X, Section 29(A) and (B) of the
Constitution of Louisiana.
B.(1)(a) Except as provided in R.S. 11:102.1, 102.2, 102.3, 102.4, and 102.5 and in
Paragraph (5) of this Subsection, for each fiscal year, commencing with Fiscal Year
1989-1990, for each of the public retirement systems referenced in Subsection A of this
Section, the legislature shall set the required employer contribution rate for each system or
plan equal to the sum of the following:
(i) The actuarially required employer contribution, as determined pursuant to the
provisions of this Section, divided by the total projected payroll of all active members of
each particular system or plan for the fiscal year. When calculated for a system as a whole,
without regard for particularized rates for separate plans within the system, this rate shall be
known as the "aggregate employer contribution rate".
(ii) Any account funding contribution rate determined pursuant to the provisions of
this Section.
(b) Each entity funding a portion of a member's salary shall also fund the employer's
contribution on that portion of the member's salary at the employer contribution rate
specified in this Section.
(2)(a) At the end of each fiscal year, the difference between the actuarially required
employer contribution for the fiscal year, as determined pursuant to the provisions of this
Section, 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 and any amount attributable to an account funding contribution rate, shall be
determined.
(b) If the amount of employer contributions received for the fiscal year is less than
the actuarially required employer contribution for the fiscal year due to the failure of the
legislature to appropriate funds at the required employer contribution rate, the difference
shall be paid by the state treasurer from the state general fund upon warrant from the
governing authority of the retirement system.
(c) At the end of each fiscal year, the difference between the minimum employer
contribution, as required by the Constitution of Louisiana, and the actuarially required
employer contribution for the fiscal year, as determined pursuant to the provisions of this
Section, shall be determined and applied in accordance with the following provisions:
(i) The amount, if any, by which the actuarially required contribution for a system
exceeds the constitutionally required minimum contribution for that system shall be
accumulated in an employer credit account which shall be adjusted annually to reflect any
gain or loss attributable to the balance in the account at the actuarial rate of return earned by
the system.
(ii) Except as provided in Paragraph (5) of this Subsection, annual contributions
required in accordance with this Section, or the constitutional minimum if greater, may be
funded in whole or in part from the employer credit account, provided the employee
contribution rate or rates for the system as set forth in R.S. 11:62 has or have been reduced
to an amount equal to or less than fifty percent of the annual normal cost for the system or
the plan rounded to the nearest one-quarter percent.
(d) Except as provided in R.S. 11:102.1 and 102.2, differences occurring for any
other reason shall be added to or subtracted from the following fiscal year's actuarially
required employer contribution in accordance with the provisions of this Section.
(3) With respect to each state public retirement system, the actuarially required
employer contribution for each fiscal year, commencing with Fiscal Year 1989-1990, 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 future accumulated employee contributions and interest thereon,
such employer's normal cost rate multiplied by the total projected payroll for all active
members to the middle of that fiscal year. For the Louisiana State Employees' Retirement
System, effective for the June 30, 2010, system valuation and beginning with Fiscal Year
2011-2012, the normal cost shall be determined in accordance with Subsection C of this
Section. For the Teachers' Retirement System of Louisiana, effective for the June 30, 2011,
system valuation and beginning with Fiscal Year 2012-2013, the normal cost shall be
determined in accordance with Subsection D of this Section.
(b) That fiscal year's payment, computed as of the first of that fiscal year and
projected to the middle of that fiscal year at the actuarially assumed interest rate, taking into
account consolidation with other amortization bases, if any, as provided in R.S. 11:42, 102.1,
and 102.2, and using the system's amortization method specified in R.S. 11:42, necessary to
amortize the unfunded accrued liability as of June 30, 1988, such unfunded accrued liability
computed using the system's actuarial funding method as specified in R.S. 11:22.
(c) Except as provided in R.S. 11:102.1 and 102.2, that fiscal year's payment,
computed 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 the prior year's over or
underpayment as a level dollar amount over a period of five years.
(d) That fiscal year's payment, computed 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) 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 beginning after June 30, 1988, such
payments to be computed as provided in Subsection C, D, E, or F of this Section.
(ii) Changes in the method of valuing of assets, such payments to be computed as
provided in Subsection C, D, E, or F of this Section.
(iii) Changes in actuarial assumptions or actuarial funding methods, excluding
changes in methods of valuing of assets, such payments to be computed as provided in
Subsection C, D, E, or F of this Section.
(iv) 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 provided in Subsection C, D,
E, or F of this Section.
(v) - (viii) Repealed by Acts 2016, No. 95, §2, eff. June 30, 2016.
(e) The projected noninvestment-related administrative expenses for the fiscal year.
(4) At the end of the fiscal year during which the assets of a system, excluding the
outstanding balance due to Subparagraph (B)(3)(c) of this Section, exceed the actuarial
accrued liability of that system, the amortization schedules calculated pursuant to
Subparagraphs (B)(3)(b) and (d) and Subsection C, D, E, or F 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)(d) and Subsection C, D, E, or F
of this Section.
(5)(a) Notwithstanding any other provision of this Section to the contrary, the gross
employer contribution rate for the Louisiana State Employees' Retirement System and the
Teachers' Retirement System of Louisiana shall not be less than fifteen and one-half percent
per year until such time as the unfunded accrued liability that existed on June 30, 2004, is
fully funded.
(b) At the end of each fiscal year, the difference, if any, by which the amount of
contributions received from payment of all employer contributions at the fixed minimum
employer contribution rate established pursuant to this Paragraph exceeds the greater of the
minimum employer contribution required by Article X, Section 29 of the Constitution of
Louisiana or the statutory minimum employer contribution calculated according to the
methodology provided for in Subparagraph (3)(d) of this Subsection or in Subsection C or
D of this Section shall be accumulated in an employer credit account for the respective
system.
(c) The employer credit account shall be adjusted annually to reflect any gain or loss
attributable to the balance in the account at the actuarial rate of return earned by the system.
(d)(i) Except as provided in R.S. 11:102.1 and 102.2, the employer credit account
of a system shall be used exclusively to reduce any unfunded accrued liability of that system
created before July 1, 2004, and shall not be debited for any other purpose.
(ii) Effective for the June 30, 2009, system valuation and beginning July 1, 2010, any
funds in the system's employer credit account shall be applied to the remaining balance of
the original amortization base or the experience account amortization base established in
accordance with and as further provided by R.S. 11:102.1 or 102.2.
C.(1) The provisions of this Subsection shall apply to the Louisiana State Employees'
Retirement System.
(2)(a) Except as provided in Subparagraph (b) of this Paragraph and in R.S.
11:102.5, effective July 1, 2004, and beginning with Fiscal Year 1998-1999, the amortization
period for the changes, gains, or losses of the system provided in Items (B)(3)(d)(i) through
(iv) of this Section shall be thirty years from the year in which the change, gain, or loss
occurred. The outstanding balances of amortization bases established pursuant to Items
(B)(3)(d)(i) through (iv) of this Section before Fiscal Year 1998-1999, shall be amortized as
a level-dollar amount from July 1, 2004, through June 30, 2029. Beginning with Fiscal Year
2003-2004, and for each fiscal year thereafter, the outstanding balances of amortization bases
established pursuant to Items (B)(3)(d)(i) through (iv) of this Section shall be amortized as
a level-dollar amount. Effective for the June 30, 2010, system valuation and beginning with
Fiscal Year 2011-2012, amortization payments for changes in actuarial liability shall be
determined in accordance with this Subsection.
(b) Notwithstanding the provisions of Subparagraph (a) of this Paragraph, effective
for the June thirtieth valuation following the fiscal year in which the system first attains a
funded percentage of seventy or more pursuant to R.S. 11:542 and for every year thereafter,
the amortization period for the changes, gains, or losses of the system provided in Items
(B)(3)(d)(i) through (iv) of this Section occurring in that year or thereafter shall be twenty
years from the year in which the change, gain, or loss occurred.
(c) Effective for the first system valuation following June 30, 2015, in which an
allocation is made to the system's experience account and for each valuation thereafter,
actuarial gains allocated to the experience account shall be amortized as a loss with level
payments over a ten-year period.
(3) The provisions of this Paragraph and Paragraphs (4) through (9) of this
Subsection shall be effective for the June 30, 2010, system valuation and beginning Fiscal
Year 2011-2012. For purposes of this Subsection, "plan" or "plans" shall mean a subgroup
within the system characterized by the following employee classifications:
(a) Rank-and-file members of the system.
(b) Full-time law enforcement personnel, supervisors, or administrators who are
employed with the Department of Revenue or office of alcohol and tobacco control and who
are P.O.S.T. certified, have the power to arrest, and hold a commission from such office.
(c) Peace officers, as defined by R.S. 40:2402(3)(a), employed by the Department
of Public Safety and Corrections, office of state police, other than state troopers.
(d) Judges and court officers to whom Subpart A of Part VII of Chapter 1 of Subtitle
II of this Title is applicable.
(e) Wildlife agents to whom Subpart B of Part VII of Chapter 1 of Subtitle II of this
Title is applicable.
(f) Wardens, correctional officers, probation and parole officers, and security
personnel employed by the Department of Public Safety and Corrections who are members
of the secondary component pursuant to Subpart C of Part VII of Chapter 1 of Subtitle II of
this Title.
(g) Correctional officers, probation and parole officers, and security personnel
employed by the Department of Public Safety and Corrections who are members of the
primary component.
(h) Legislators, the governor, and the lieutenant governor.
(i) Employees of the bridge police section of the Crescent City Connection Division
of the Department of Transportation and Development.
(j) Hazardous duty plan members as provided pursuant to R.S. 11:611 et seq.
(k) Judges as provided pursuant to R.S. 11:62(5)(a)(iii) and 444(A)(1)(a)(ii).
(l) Harbor Police Retirement Plan members as provided pursuant to R.S. 11:631.
(m) Any other specialty retirement plan provided for a subgroup of system members.
If the legislation enacting such a plan is silent as to the application of this Subsection, the
Public Retirement Systems' Actuarial Committee shall provide for the application to such
plan.
(4) Effective for the June 30, 2010, system valuation and beginning with Fiscal Year
2011-2012, the normal cost calculated pursuant to Subparagraph (B)(3)(a) of this Section,
shall be calculated separately for each particular plan within the system. An employer shall
pay employer contributions for each employee at the rate applicable to the plan of which that
employee is a member.
(5) Effective for the June 30, 2010, system valuation and beginning with Fiscal Year
2011-2012, changes in actuarial liability due to legislation, changes in governmental
organization, or reclassification of employees or positions shall be calculated individually
for each particular plan within the system based on each plan's actuarial experience as further
provided in Subparagraph (6)(c) of this Subsection.
(6) For each plan referenced in Paragraph (3) of this Subsection, the legislature shall
set the required employer contribution rate equal to the sum of the following:
(a) The particularized normal cost rate. The normal cost rate for each fiscal year shall
be the employer's normal cost for the plan computed by applying the method specified in
R.S. 11:102(B)(1) and (3)(a) to the plan.
(b) The shared unfunded accrued liability rate. (i) Except as provided in Item (ii) of
this Subparagraph, a single rate shall be computed for each fiscal year, applicable to all plans
for actuarial changes, gains, and losses existing on June 30, 2010, or occurring thereafter,
including experience and investment gains and losses, which are independent of the existence
of the plans listed in Paragraph (3) of this Subsection, the payment and rate therefor shall
be calculated as provided in this Subsection and Paragraphs (B)(1) and (3) of this Section.
(ii) The shared unfunded accrued liability rate applicable to the Harbor Police
Retirement System shall not include any unfunded accrued liability incurred on or before
July 1, 2015, until the earlier of:
(aa) July 1, 2022.
(bb) The date that all sums payable by the Port of New Orleans to the board of
trustees of the Louisiana State Employees' Retirement System pursuant to the terms and
conditions of a cooperative endeavor agreement between the board of trustees of the
Louisiana State Employees' Retirement System, the board of commissioners of the Port of
New Orleans, and the board of trustees of the Harbor Police Retirement System regarding
the merger of the Harbor Police Retirement System into the Louisiana State Employees'
Retirement System have been paid in full.
(c) The particularized unfunded accrued liability rate. For actuarial changes, gains,
and losses, excluding experience and investment gains and losses, first recognized in the
June 30, 2010, valuation or in any later valuation, attributable to one or more, but not all,
plans listed in Paragraph (3) of this Subsection or to some new plan or plans, created,
implemented, or enacted after July 1, 2010, a particularized contribution rate shall be
calculated as provided in this Subsection and Paragraphs (B)(1) and (3) of this Section.
(d) The shared gross employer contribution rate difference. The gross employer
contribution rate difference shall be the difference between the minimum gross employer
contribution rate provided in Paragraph (B)(5) of this Section and the aggregate employer
contribution rate calculated pursuant to the provisions of Subsection B of this Section.
(e) The cost-of-living adjustment account funding contribution rate.
(i) Effective July 1, 2023, the rate provided for in this Subparagraph, referred to in
this Subsection as the "AFC rate", shall be zero.
(ii) Notwithstanding any other provision of this Section to the contrary, except the
provisions of Item (iv) of this Subparagraph, effective for the June 30, 2023, system
valuation and beginning July 1, 2024, for any fiscal year in which the projected aggregate
employer contribution rate decreases, the maximum AFC rate shall increase by the lesser of
one-half of the amount of the decrease in the projected aggregate employer contribution rate
determined under this Section or the amount necessary for the maximum AFC rate to equal
two and one-half percent. Any increase in the maximum AFC rate shall be permanent. The
maximum AFC rate shall not exceed two and one-half percent.
(iii)(aa)(I) Notwithstanding any other provision of this Subparagraph to the contrary,
through Fiscal Year 2038-2039, the sum of the AFC rate and the projected aggregate
employer contribution rate for any given fiscal year shall not exceed the projected aggregate
employer contribution rate determined for Fiscal Year 2023-2024 in the June 30, 2022,
system valuation. If the sum of the maximum AFC rate and the projected aggregate employer
contribution rate exceeds the projected aggregate employer contribution rate determined for
Fiscal Year 2023-2024, the AFC rate to be applied shall be reduced from the maximum, for
that fiscal year only, by the lesser of the amount by which the sum of the maximum AFC rate
and the projected aggregate employer contribution rate exceeds the projected aggregate
employer contribution rate determined for Fiscal Year 2023-2024 or the amount of the
maximum AFC rate.
(II) Notwithstanding any other provision of this Subparagraph to the contrary, for
fiscal years 2024-2025 through 2027-2028, if the projected aggregate employer contribution
rate for Fiscal Year 2024-2025 is more than three percentage points lower than the projected
aggregate employer contribution rate determined for Fiscal Year 2023-2024 in the June 30,
2022, system valuation, then the AFC rate to be applied for a particular year will be the lesser
of the rate determined under Subsubitem (I) of this Subitem or the corresponding rate for that
year in the following table:
Fiscal Year AFC Rate
2024-2025 1.50%
2025-2026 1.75%
2026-2027 2.00%
2027-2028 2.25%
(bb) Notwithstanding any other provision of this Subparagraph to the contrary,
beginning in Fiscal Year 2039-2040, the sum of the AFC rate and the projected aggregate
employer contribution rate for any given fiscal year shall not exceed twenty-two percent. If
the sum of the maximum AFC rate and the projected aggregate employer contribution rate
exceeds twenty-two percent, the AFC rate to be applied shall be reduced from the maximum,
for that fiscal year only, by the lesser of the amount by which the sum of the maximum AFC
rate and the projected aggregate employer contribution rate exceeds twenty-two percent or
the amount of the maximum AFC rate.
(iv) Notwithstanding any other provision of this Subparagraph to the contrary, if the
original amortization base established in R.S. 11:102.1 is liquidated in Fiscal Year 2022-2023, the provisions of this Item shall apply.
(aa) The maximum AFC rate shall be equal to the following:
Fiscal Year Maximum AFC Rate
2024-2025 1.50%
2025-2026 1.75%
2026-2027 2.00%
2027-2028 2.25%
2028-2029 and thereafter 2.50%
(bb) Through Fiscal Year 2038-2039, the sum of the AFC rate and the projected
aggregate employer contribution rate for any given fiscal year shall not exceed the projected
aggregate employer contribution rate determined for Fiscal Year 2022-2023 in the June 30,
2021, system valuation. If the sum of the maximum AFC rate and the projected aggregate
employer contribution rate exceeds the projected aggregate employer contribution rate
determined for Fiscal Year 2022-2023, the AFC rate to be applied shall be reduced from the
maximum, for that fiscal year only, by the lesser of the amount by which the sum of the
maximum AFC rate and the projected aggregate employer contribution rate exceeds the
projected aggregate employer contribution rate determined for Fiscal Year 2022-2023 or the
amount of the maximum AFC rate.
(cc) Notwithstanding any other provision of this Subparagraph to the contrary,
beginning in Fiscal Year 2039-2040, the sum of the AFC rate and the projected aggregate
employer contribution rate for any given fiscal year shall not exceed twenty-two percent. If
the sum of the maximum AFC rate and the projected aggregate employer contribution rate
exceeds twenty-two percent, the AFC rate to be applied shall be reduced from the maximum,
for that fiscal year only, by the lesser of the amount by which the sum of the maximum AFC
rate and the projected aggregate employer contribution rate exceeds twenty-two percent or
the amount of the maximum AFC rate.
(v) Notwithstanding any other provision of law to the contrary, the contributions
required by this Subparagraph shall not be considered actuarially required contributions for
the purposes of Paragraph (B)(3) of this Section or Article X, Section 29(E) of the
Constitution of Louisiana.
(7) Each entity funding a portion of the member's salary shall also fund the
employer's contribution on that portion of the member's salary at the employer contribution
rate specified in this Subsection.
(8) For purposes of Paragraph (B)(2) of this Section the actuarially required
employer contributions and the employer contributions actually received for all plans shall
be totaled and treated as a single contribution.
(9) If provisions of this Section cover matters not specifically addressed by the
provisions of this Subsection, then those provisions shall be applicable.
D.(1) The provisions of this Subsection shall apply to the Teachers' Retirement
System of Louisiana.
(2)(a) Except as provided in Subparagraph (b) of this Paragraph and in R.S.
11:102.5, effective July 1, 2004, and beginning with Fiscal Year 2000-2001, the amortization
period for the changes, gains, or losses of the system provided in Items (B)(3)(d)(i) through
(iv) of this Section shall be thirty years from the year in which the change, gain, or loss
occurred. The outstanding balances of amortization bases established pursuant to Items
(B)(3)(d)(i) through (iv) of this Section before Fiscal Year 2000-2001, shall be amortized as
a level-dollar amount from July 1, 2004, through June 30, 2029. Beginning with Fiscal Year
2003-2004, and for each fiscal year thereafter, the outstanding balances of amortization bases
established pursuant to Items (B)(3)(d)(i) through (iv) of this Section shall be amortized as
a level-dollar amount. Effective for the June 30, 2011, system valuation and beginning with
Fiscal Year 2012-2013, amortization payments for changes in actuarial liability shall be
determined in accordance with this Subsection.
(b) Notwithstanding the provisions of Subparagraph (a) of this Paragraph, effective
for the June thirtieth valuation following the fiscal year in which the system first attains a
funded percentage of seventy or more pursuant to R.S. 11:883.1 and for every year thereafter,
the amortization period for the changes, gains, or losses of the system provided in Items
(B)(3)(d)(i) through (iv) of this Section occurring in that year or thereafter shall be twenty
years from the year in which the change, gain, or loss occurred.
(c) Effective for the first system valuation following June 30, 2015, in which an
allocation is made to the system's experience account and for each valuation thereafter,
actuarial gains allocated to the experience account shall be amortized as a loss with level
payments over a ten-year period.
(3) The provisions of this Paragraph and Paragraphs (4) through (9) of this
Subsection shall be effective for the June 30, 2011, system valuation and beginning Fiscal
Year 2012-2013. For purposes of this Subsection, "plan" or "plans" shall mean a subgroup
within the system characterized by the following employee classifications:
(a) Employees of an institution of postsecondary education, the Board of Regents,
or a postsecondary education management board who are not employed for the sole purpose
of providing instruction or administrative services at the primary or secondary level,
including at any lab school and the Jimmy D. Long, Sr. Louisiana School for Math, Science,
and the Arts.
(b) Any other specialty retirement plan provided for a subgroup of system members.
If the legislation enacting such a plan is silent as to the application of this Subsection, the
Public Retirement Systems' Actuarial Committee shall provide for the application to such
plan.
(c) All other teachers, as defined in R.S. 11:701(33), including members paid from
school food service funds as provided in R.S. 11:801 and 811.
(4) Effective for the June 30, 2011, system valuation and beginning with Fiscal Year
2012-2013, the normal cost calculated pursuant to Subparagraph (B)(3)(a) of this Section,
shall be calculated separately for each particular plan within the system. An employer shall
pay employer contributions for each employee at the rate applicable to the plan of which that
employee is a member.
(5) Effective for the June 30, 2011, system valuation and beginning with Fiscal Year
2012-2013, changes in actuarial liability due to legislation, changes in governmental
organization, or reclassification of employees or positions shall be calculated individually
for each particular plan within the system based on each plan's actuarial experience as further
provided in Subparagraph (6)(c) of this Subsection.
(6) For each plan referenced in Paragraph (3) of this Subsection, the legislature shall
set the required employer contribution rate equal to the sum of the following:
(a) The particularized normal cost rate. The normal cost rate for each fiscal year shall
be the employer's normal cost for employees in the plan computed by applying the method
specified in Paragraph (B)(1) and Subparagraph (B)(3)(a) of this Section to the plan.
(b) The shared unfunded accrued liability rate. A single rate shall be computed for
each fiscal year, applicable to all plans for actuarial changes, gains, and losses existing on
June 30, 2011, or occurring thereafter, including experience and investment gains and losses,
which are independent of the existence of the plans listed in Paragraph (3) of this Subsection,
the payment and rate therefor shall be calculated as provided in this Subsection and
Paragraphs (B)(1) and (3) of this Section.
(c) The particularized unfunded accrued liability rate. For actuarial changes, gains,
and losses, excluding experience and investment gains and losses, first recognized in the
June 30, 2011, valuation or in any later valuation, attributable to one or more, but not all,
plans listed in Paragraph (3) of this Subsection or to some new plan or plans, created,
implemented, or enacted after July 1, 2011, a particularized contribution rate shall be
calculated as provided in this Subsection and Paragraphs (B)(1) and (3) of this Section.
(d) The shared gross employer contribution rate difference. The gross employer
contribution rate difference shall be the difference between the minimum gross employer
contribution rate provided in Paragraph (B)(5) of this Section and the aggregate employer
contribution rate calculated pursuant to the provisions of Subsection B of this Section.
(e) The permanent benefit increase account funding contribution rate.
(i) Effective July 1, 2023, the rate provided for in this Subparagraph, referred to in
this Subsection as the "AFC rate", shall be zero.
(ii) Notwithstanding any other provision of this Section to the contrary, except the
provisions of Item (iv) of this Subparagraph, effective for the June 30, 2023, system
valuation and beginning July 1, 2024, for any fiscal year in which the projected aggregate
employer contribution rate decreases, the maximum AFC rate shall increase by the lesser of
one-half of the amount of the decrease in the projected aggregate employer contribution rate
determined under this Section or the amount necessary for the maximum AFC rate to equal
two and one-half percent. Any increase in the maximum AFC rate shall be permanent. The
maximum AFC rate shall not exceed two and one-half percent.
(iii)(aa)(I) Notwithstanding any other provision of this Subparagraph to the contrary,
through Fiscal Year 2038-2039, the sum of the AFC rate and the projected aggregate
employer contribution rate for any given fiscal year shall not exceed the projected aggregate
employer contribution rate determined for Fiscal Year 2023-2024 in the June 30, 2022,
system valuation. If the sum of the maximum AFC rate and the projected aggregate
employer contribution rate exceeds the projected aggregate employer contribution rate
determined for Fiscal Year 2023-2024, the AFC rate to be applied shall be reduced from the
maximum, for that fiscal year only, by the lesser of the amount by which the sum of the
maximum AFC rate and the projected aggregate employer contribution rate exceeds the
projected aggregate employer contribution rate determined for Fiscal Year 2023-2024 or the
amount of the maximum AFC rate.
(II) Notwithstanding any other provision of this Subparagraph to the contrary, for
fiscal years 2024-2025 through 2027-2028, if the projected aggregate employer contribution
rate for Fiscal Year 2024-2025 is more than three percentage points lower than the projected
aggregate employer contribution rate determined for Fiscal Year 2023-2024 in the June 30,
2022, system valuation, then the AFC rate to be applied for a particular year will be the lesser
of the rate determined under Subsubitem (I) of this Subitem or the corresponding rate for that
year in the following table:
Fiscal Year AFC Rate
2024-2025 1.50%
2025-2026 1.75%
2026-2027 2.00%
2027-2028 2.25%
(bb) Notwithstanding any other provision of this Subparagraph to the contrary,
beginning in Fiscal Year 2039-2040, the sum of the AFC rate and the projected aggregate
employer contribution rate for any given fiscal year shall not exceed sixteen percent. If the
sum of the maximum AFC rate and the projected aggregate employer contribution rate
exceeds sixteen percent, the AFC rate to be applied shall be reduced from the maximum, for
that fiscal year only, by the lesser of the amount by which the sum of the maximum AFC rate
and the projected aggregate employer contribution rate exceeds sixteen percent or the amount
of the maximum AFC rate.
(iv) Notwithstanding any other provision of this Subparagraph to the contrary, if the
original amortization base established in R.S. 11:102.2 is liquidated in Fiscal Year 2022-2023, the provisions of this Item shall apply.
(aa) The maximum AFC rate shall be equal to the following:
Fiscal Year Maximum AFC Rate
2024-2025 1.50%
2025-2026 1.75%
2026-2027 2.00%
2027-2028 2.25%
2028-2029 and thereafter 2.50%
(bb) Through Fiscal Year 2038-2039, the sum of the AFC rate and the projected
aggregate employer contribution rate for any given fiscal year shall not exceed the projected
aggregate employer contribution rate determined for Fiscal Year 2022-2023, in the June 30,
2021, system valuation. If the sum of the maximum AFC rate and the projected aggregate
employer contribution rate exceeds the projected aggregate employer contribution rate
determined for Fiscal Year 2022-2023, the AFC rate to be applied shall be reduced from the
maximum, for that fiscal year only, by the lesser of the amount by which the sum of the
maximum AFC rate and the projected aggregate employer contribution rate exceeds the
projected aggregate employer contribution rate determined for Fiscal Year 2022-2023 or the
amount of the maximum AFC rate.
(cc) Notwithstanding any other provision of this Subparagraph to the contrary,
beginning in Fiscal Year 2039-2040, the sum of the AFC rate and the projected aggregate
employer contribution rate for any given fiscal year shall not exceed sixteen percent. If the
sum of the maximum AFC rate and the projected aggregate employer contribution rate
exceeds sixteen percent, the AFC rate to be applied shall be reduced from the maximum, for
that fiscal year only, by the lesser of the amount by which the sum of the maximum AFC rate
and the projected aggregate employer contribution rate exceeds sixteen percent or the amount
of the maximum AFC rate.
(v) Notwithstanding any other provision of law to the contrary, the contributions
required by this Subparagraph shall not be considered actuarially required contributions for
the purposes of Paragraph (B)(3) of this Section or Article X, Section 29(E) of the
Constitution of Louisiana.
(7) Each entity funding a portion of the member's salary shall also fund the
employer's contribution on that portion of the member's salary at the employer contribution
rate specified in this Subsection.
(8) For purposes of Paragraph (B)(2) of this Section the actuarially required
employer contributions and the employer contributions actually received for all plans shall
be totaled and treated as a single contribution.
(9) If provisions of this Section cover matters not specifically addressed by the
provisions of this Subsection, then those provisions shall be applicable.
E.(1) Except as provided in Paragraphs (2) and (3) of this Subsection and in R.S.
11:102.5, effective July 1, 2004, and beginning with Fiscal Year 2000-2001, the amortization
period for the changes, gains, or losses of the Louisiana School Employees' Retirement
System provided in Items (B)(3)(d)(i) through (iv) of this Section shall be thirty years from
the year in which the change, gain, or loss occurred. The outstanding balances of
amortization bases established pursuant to Items (B)(3)(d)(i) through (iv) of this Section
before Fiscal Year 2000-2001, shall be amortized as a level-dollar amount from July 1, 2004,
through June 30, 2029. Beginning with Fiscal Year 2003-2004, and for each fiscal year
thereafter, the outstanding balances of amortization bases established pursuant to Items
(B)(3)(d)(i) through (iv) of this Section shall be amortized as a level-dollar amount.
(2)(a) All outstanding amortization bases in existence on June 30, 2014, including
outstanding balances established pursuant to Subparagraph (B)(3)(c) of this Section, shall
be consolidated and reamortized over the period ending June 30, 2044, with level-dollar
payments, effective with the June 30, 2014, valuation. This Paragraph shall not apply to
amortization bases established after June 30, 2014.
(b) After payment of a permanent benefit increase pursuant to the provisions of R.S.
11:1145.1, the unused portion of the June 30, 2013 experience account balance shall be
credited in an amortization conversion account from which annual contributions required
pursuant to Subparagraph (a) of this Paragraph shall be funded in whole or in part for the
years July 1, 2014, through June 30, 2019. Effective June 30, 2019, all funds remaining in
the amortization conversion account shall be amortized as a gain in accordance with the
provisions of this Subsection.
(3) Notwithstanding the provisions of Paragraph (1) of this Subsection, effective for
the June thirtieth valuation following the fiscal year in which the system first attains a funded
percentage of seventy-two or more pursuant to R.S. 11:1145.1 and for every year thereafter,
the amortization period for the changes, gains, or losses of the system provided in Items
(B)(3)(d)(i) through (iv) of this Section occurring in that year or thereafter shall be twenty
years from the year in which the change, gain, or loss occurred.
(4) Effective for the first system valuation following June 30, 2015, in which an
allocation is made to the system's experience account and for each valuation thereafter,
actuarial gains allocated to the experience account shall be amortized as a loss with level
payments over a ten-year period.
(5) In addition to the actuarially required employer contribution rate determined
pursuant to Subsection B of this Section, the legislature shall set the permanent benefit
increase account funding contribution rate as provided in this Paragraph.
(a) Effective July 1, 2023, the rate provided for in this Paragraph, referred to in this
Subsection as the "AFC rate", shall be zero.
(b) Notwithstanding any other provision of this Section to the contrary, effective for
the June 30, 2023, system valuation and beginning July 1, 2024, for any fiscal year in which
the projected aggregate employer contribution rate decreases, the maximum AFC rate shall
increase by the lesser of one-half of the amount of the decrease in the projected aggregate
employer contribution rate determined under this Section or the amount necessary for the
maximum AFC rate to equal two and one-half percent. Any increase in the maximum AFC
rate shall be permanent. The maximum AFC rate shall not exceed two and one-half percent.
(c) Notwithstanding any other provision of this Paragraph to the contrary, the sum
of the AFC rate and the projected aggregate employer contribution rate for any given fiscal
year shall not exceed the projected aggregate employer contribution rate determined for
Fiscal Year 2023-2024 in the June 30, 2022, system valuation. If the sum of the maximum
AFC rate and the projected aggregate employer contribution rate exceeds the projected
aggregate employer contribution rate determined for Fiscal Year 2023-2024, the AFC rate
to be applied shall be reduced from the maximum, for that fiscal year only, by the lesser of
the amount by which the sum of the maximum AFC rate and the projected aggregate
employer contribution rate exceeds the projected aggregate employer contribution rate
determined for Fiscal Year 2023-2024 or the amount of the maximum AFC rate.
(d) Notwithstanding any other provision of law to the contrary, the contributions
required by this Paragraph shall not be considered actuarially required contributions for the
purposes of Paragraph (B)(3) of this Section or Article X, Section 29(E) of the Constitution
of Louisiana.
F.(1) Except as provided in Paragraph (2) of this Subsection and in R.S. 11:102.5,
effective July 1, 2009, and beginning with Fiscal Year 1992-1993, the amortization period
for the changes, gains, or losses of the Louisiana State Police Retirement System provided
in Items (B)(3)(d)(i) through (iv) of this Section shall be thirty years from the year in which
the change, gain, or loss occurred. The outstanding balances of amortization bases
established pursuant to Items (B)(3)(d)(i) through (iv) of this Section before Fiscal Year
2008-2009 shall be amortized as a level-dollar amount from July 1, 2009, through June 30,
2029. Beginning with Fiscal Year 2008-2009, and for each fiscal year thereafter, the
outstanding balances of amortization bases established pursuant to Items (B)(3)(d)(i) through
(iv) of this Section shall be amortized as a level-dollar amount.
(2) Notwithstanding the provisions of Paragraph (1) of this Subsection, effective for
the June thirtieth valuation following the fiscal year in which the system first attains a funded
percentage of seventy or more pursuant to R.S. 11:1332 and for every year thereafter, the
amortization period for the changes, gains, or losses of the system provided in Items
(B)(3)(d)(i) through (iv) of this Section occurring in that year or thereafter shall be twenty
years from the year in which the change, gain, or loss occurred.
(3) Effective for the first system valuation following June 30, 2015, in which an
allocation is made to the system's experience account and for each valuation thereafter,
actuarial gains allocated to the experience account shall be amortized as a loss with level
payments over a ten-year period.
(4) In addition to the actuarially required employer contribution rate determined
pursuant to Subsection B of this Section, the legislature shall set the permanent benefit
increase account funding contribution rate as provided in this Paragraph.
(a) Effective July 1, 2023, the rate provided for in this Paragraph, referred to in this
Subsection as the "AFC rate", shall be zero.
(b) Notwithstanding any other provision of this Section to the contrary, effective for
the June 30, 2023, system valuation and beginning July 1, 2024, for any fiscal year in which
the projected aggregate employer contribution rate decreases, the AFC rate shall increase by
the lesser of one-half of the amount of the decrease in the projected aggregate employer
contribution rate determined under this Section or the amount necessary for the AFC rate to
equal two and one-half percent. Any increase in the AFC rate shall be permanent. The AFC
rate shall not exceed two and one-half percent.
(c) Notwithstanding any other provision of law to the contrary, the contributions
required by this Paragraph shall not be considered actuarially required contributions for the
purposes of Paragraph (B)(3) of this Section or Article X, Section 29(E) of the Constitution
of Louisiana.
Acts 1988, No. 81, §2, eff. July 1, 1989; Acts 1989 1st Ex. Sess., No. 4, §1, eff. July
1, 1989; Acts 1990, No. 470, §1, eff. July 1, 1990; Acts 1992, No. 257, §1, eff. July 1, 1992;
Acts 1993, No. 734, §1, eff. July 1, 1993; Acts 1999, No. 1331, §1; Acts 2000, 1st Ex. Sess.,
No. 14, §1, eff. April 14, 2000; Acts 2004, No. 588, §1, eff. June 30, 2004; Acts 2008, No.
852, §1, eff. July 1, 2008; Acts 2009, No. 497, §1, eff. June 30, 2009; Acts 2010, No. 1026,
§1, eff. July 1, 2010; Acts 2010, No. 861, §4, eff. August 15, 2010; Acts 2012, No. 483, §1,
declared unconstitutional by La. Supreme Court; Acts 2012, No. 716, §1, eff. June 11, 2012;
Acts 2012, No. 227, §1, eff. August 1, 2012; HCR 2 of the 2013 R.S., eff. May 23, 2013;
Acts 2014, No. 23, §1, eff. June 30, 2014; Acts 2014, No. 399, §1, eff. June 30, 2014; Acts
2014, No. 478, §1, eff. June 30, 2014; Acts 2014, No. 648, §2, see Act for effective date;
Acts 2016, No. 94, §1, eff. June 10, 2016; Acts 2016, No. 95, §§1, 2, eff. June 30, 2016; Acts
2017, No. 374, §1, eff. June 23, 2017; Acts 2023, No. 184, §1, eff. June 8, 2023.
NOTE: See Acts 2004, No. 588, §2, relative to balances in the Employee
Experience Account of the La. State Employees' Retirement System and the
Teachers' Retirement System of La. on June 30, 2004.
NOTE: See Acts 2009, No. 497, §2, eff. June 30, 2009, relative to conflicts
with previous Acts and §4 relative to effect on contribution rates.
NOTE: See Acts 2014, No. 399, §2, relative to the determination of excess
returns for the June 30, 2014, system valuations.
NOTE: See Acts 2014, No. 852, relative to calculation and payment of UAL
for probation and parole officers in LASERS.
NOTE: See Acts 2014, No. 648, §6(B), regarding contingent effective date.