§ 11:107.1 — Funding deposit account

Louisiana § 11:107.1

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

Text

§107.1. Funding deposit account
A. The provisions of this Section shall apply to the following statewide public
retirement systems or funds, hereinafter referred to in this Section as "systems":
(1) The Assessors' Retirement Fund.
(2) The Clerks' of Court Retirement and Relief Fund.
(3) The Municipal Employees' Retirement System of Louisiana.
(4) The Parochial Employees' Retirement System of Louisiana.
(5) The Registrars of Voters Employees' Retirement System.
(6) The Firefighters' Retirement System.
B.(1) There shall be established a funding deposit account for each system to which
this Section applies. Such account shall be credited and charged solely as provided in this
Section.
(2) The balance in the account shall be set equal to zero as of December thirty-first
of the year immediately preceding the date the account is established.
(3) Notwithstanding any provision of this Subpart to the contrary, for any fiscal year
ending on or after December 31, 2008, in which the board of trustees of a system elects or
previously elected to set the net direct employer contribution rate higher than the minimum
recommended rate pursuant to this Subpart, all surplus funds collected by the system shall
be credited to the system's funding deposit account.
C. The funds in the account shall earn interest annually at the board-approved
actuarial valuation interest rate, and such interest shall be credited to the account at least once
a year.
D. Notwithstanding any provisions of law to the contrary, the board of trustees of
each system may in any fiscal year direct that funds from the account be charged for the
following purposes:
(1) To reduce the unfunded accrued liability as prescribed in this Subpart.
(2) To reduce the present value of future normal costs for systems using an aggregate
funding method.
(3) To pay all or a portion of any future net direct employer contributions.
(4)(a) To provide for cost-of-living increases, in accordance with applicable law.
(b) Notwithstanding the provisions of R.S. 11:243(G)(1), in order to exercise the
authority to grant an increase pursuant to the provisions of Subparagraph (a) of this
Paragraph, an increase shall satisfy the requirements of R.S. 11:243(G)(3).
(c) Repealed by Acts 2025, No. 122, §2, eff. June 8, 2025.
E. In no event shall the funds charged from the account exceed the outstanding
account balance.
F. If the board of trustees of a system elects to charge funds from the funding deposit
account pursuant to Paragraph (D)(3) of this Section, the percent reduction in the minimum
recommended employer contribution rate otherwise applicable shall be determined by
dividing the interest-adjusted value of the charges from the funding deposit account by the
projected payroll for the fiscal year for which the contribution rate is to be reduced.
G. For funding purposes, any asset value utilized in the calculation of the actuarial
value of assets of a system shall exclude the funding deposit account balance as of the asset
determination date for such calculation.
H. For all purposes other than funding, the funds in the account shall be considered
assets of the system.

Legislative History

Acts 2009, No. 296, §1, eff. June 30, 2009; Acts 2015, No. 370, §1, eff. June 30, 2015; Acts 2016, No. 208, §1, eff. July 1, 2016; Acts 2025, No. 122, §§1, 2, eff. June 8, 2025.