§ 11:1733 — Agreement for coverage of employees of incorporated cities, towns, villages, and tax

§1733. Agreement for coverage of employees of incorporated cities, towns, villages, and tax
boards or commissions
A. Each incorporated city, town, or village or tax board or commission of a
municipality or parish is hereby authorized to submit for board approval an agreement for
extending the benefits of this Chapter to its employees. Each agreement or amendment
thereof shall be approved by the board if it finds that the agreement or amendment is in
conformity with the rules of the board, the requirements of this Chapter, and applicable state
laws. Each agreement shall:
(1) Specify the particular plan of the system in which the employer wishes to enroll.
(2) Designate the classes of employees to be enrolled and certify that such employees
meet the membership criteria of this Chapter.
(3) Specify that all eligible employees shall become members in this system on the
agreement date and all future employees shall become members as a condition of
employment.
(4) Certify all periods of employment for each employee and specify the extent to
which credit for such prior service shall be granted.
(5) Provide as an attachment to the agreement, and at the employer's expense, an
actuarial study of the total existing accrued liability.
(6) Provide for payment to the system at time of enrollment, of an amount to be
determined by the board in accordance with its funding philosophy, to offset the increase in
accrued liability to the system.
(7) Specify the source or sources from which the funds necessary to make the
payments required by this Chapter are expected to be derived, that such sources will be
adequate for such purpose, and that all contributions required by this Chapter shall be
collected and remitted to the system.
(8) Certify, if enrollment is to be in Plan A, that the employer has officially
terminated its agreement with the Department of Health, Education and Welfare for
employee coverage under the Social Security Act, except as noted in R.S. 11:1734, or agrees
not to apply for such coverage.
(9) Provide for the appointment of an authorized agent.
(10) Provide that the authorized agent will make such reports, in such form,
containing such information, as the board may from time to time require, and comply with
such provisions as the board may find necessary to assure the correctness and completeness
of such reports.
(11) Authorize the board to terminate the plan in its entirety if it finds a failure to
comply substantially with any provision contained in such plan, such termination to take
effect at the expiration of such notice and on such conditions as provided by the board.
B. The board shall not finally refuse to approve an agreement submitted under
Subsection A of this Section, and shall not terminate an agreement, without reasonable notice
and opportunity for hearing to each employer affected thereby.
C.(1) Each employer for which a plan has been approved under this Section shall pay
into the contribution fund, with respect to earnings, contributions in the amounts and at the
rates prescribed by the board as set forth in Parts III and IV of this Chapter at such time or
times as the board may by regulation prescribe.
(2) Except as provided in R.S. 11:143 and notwithstanding any other provision of
law to the contrary, employer contributions shall not be returned, refunded, transferred, or
rolled over to any employee or employer or to any retirement system, plan, or fund.
D. Every employer required to make payments pursuant to Subsection C of this
Section is authorized, in consideration of the employees' membership service, to impose
upon its employees, as to services which are covered by an agreement, a contribution with
respect to earnings as set forth in Parts III and IV of this Chapter and to deduct the amount
of the contribution from the earnings as and when paid. Contributions collected shall be paid
into the appropriate fund in partial discharge of the liability of the employer. Failure to
deduct the contribution shall not relieve the employee or employer of liability thereof.
E. Delinquent payments due pursuant to Subsection C or F of this Section may, with
interest at the system's actuarial valuation rate compounded annually, be recovered by action
in a court of competent jurisdiction against the employer liable therefor or shall, upon due
certification of delinquency and at the request of the board, be deducted from any other
monies payable to the employer by any department or agency of the state.
F.(1)(a) Notwithstanding any other provision of law, if an employer terminates its
agreement for coverage of its employees, the employer shall remit that portion of the
unfunded accrued liability existing on June thirtieth immediately prior to the date of
termination which is attributable to the employer's participation in the system.
(b) Notwithstanding any other provision of law, if an employer eliminates an
employee position or class of positions covered by this system by contracting with a private
entity for the work formerly done by employees in eliminated positions, the employer shall
remit that portion of the unfunded accrued liability existing on June thirtieth immediately
prior to the date of privatization which is attributable to the eliminated position or class of
positions.
(c)(i) Except as provided in Item (ii) of this Subparagraph and notwithstanding any
other provision of law to the contrary, if an employer eliminates any position from system
coverage, the employer shall remit that portion of the unfunded accrued liability existing on
the June thirtieth immediately prior to the date of elimination which is attributable to the
eliminated position.
(ii) If a position is eliminated from system coverage because the person occupying
the position is laid off or if a vacant position is eliminated from system coverage, no
payments pursuant to Item (i) of this Subparagraph shall be due; provided, however, that if
any new position is established or an eliminated position is reestablished and the person
employed to fill that position does not become a member of this system, the payments
required by Item (i) of this Subparagraph shall be calculated and remitted as though the
position had been eliminated from system coverage.
(2) When an employer terminates its agreement for coverage of its employees or
eliminates a position or class of positions from system coverage for any reason, this system
shall notify each other Louisiana state and statewide retirement system. If that employer
enrolls an employee or class of employees in a system that received notice of termination or
elimination from this system, that other system shall notify this system of the enrollment
within fifteen days.
(3) The amount due shall be determined by the actuary employed by the system using
the entry age normal funding method and shall be paid either in a lump sum or amortized
over ten years in equal monthly payments with interest at the system's actuarial valuation rate
in the same manner as regular payroll payments to the system, at the option of the employer.
Notwithstanding any other provisions in this Chapter, Lafayette City-Parish Consolidated
Government may elect either or both as follows:
(a) To have any remaining balance related to a certification performed in accordance
with this Paragraph prior to June 30, 2024, be reamortized over the period beginning July 1,
2024, and ending twenty years from the date from which payments were originally set to
commence.
(b) To have any certification performed in accordance with this Paragraph on or after
July 1, 2024, be amortized over twenty years in equal monthly payments with interest at the
system's actuarial valuation interest rate in place at the time that the certification is
performed, in the same manner as regular payroll payments to the system.
(4) Should the employer fail to make a payment timely, the amount due shall be
collected in the same manner as authorized by Subsection E of this Section and R.S. 11:1864.

Legislative History

Acts 1978, No. 788, §1; Redesignated from R.S. 33:7153 by Acts 1991, No. 74, §3, eff. June 25, 1991; Acts 2008, No. 397, §1, eff. June 30, 2008; Acts 2009, No. 68, §1, eff. July 1, 2009; Acts 2018, No. 110, §1, eff. May 11, 2018; Acts 2018, No. 112, §1, eff. July 1, 2018; Acts 2020, No. 298, §1; Acts 2024, No. 360, §1.