This text of Louisiana § 11:2262.1 (Dissolution of fire department; unfunded accrued liability; payment by employer) is published on Counsel Stack Legal Research, covering Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
§2262.1. Dissolution of fire department; unfunded accrued liability; payment by employer
A.
(1)If an employer fully dissolves its fire department, the employer shall remit to
the system, beginning the first July immediately following the date of dissolution, that
portion of the unfunded accrued liability existing on the thirtieth of June immediately prior
to the date of dissolution of the fire department that is attributable to such employer and
calculated using the allocation percentage included in the prior fiscal year's employer pension
report produced according to requirements established by the Governmental Accounting
Standards Board. The amount due pursuant to the provisions of this Paragraph shall include
interest at the system's valuation interest rate.
(2)(a) If an employer partia
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§2262.1. Dissolution of fire department; unfunded accrued liability; payment by employer
A.(1) If an employer fully dissolves its fire department, the employer shall remit to
the system, beginning the first July immediately following the date of dissolution, that
portion of the unfunded accrued liability existing on the thirtieth of June immediately prior
to the date of dissolution of the fire department that is attributable to such employer and
calculated using the allocation percentage included in the prior fiscal year's employer pension
report produced according to requirements established by the Governmental Accounting
Standards Board. The amount due pursuant to the provisions of this Paragraph shall include
interest at the system's valuation interest rate.
(2)(a) If an employer partially dissolves its fire department, the employer shall be
liable for a pro rata portion of the system's unfunded accrued liability. The portion shall be
calculated by applying the percentage decrease in the salaries paid to participating employees
by the employer on the thirtieth of June and salaries paid to participating employees by the
employer as of the thirtieth of June of the prior year to the total payment that would have
been required pursuant to the provisions of Paragraph (1) of this Subsection if the employer
had fully dissolved its fire department. Payments required pursuant to the provisions of this
Paragraph shall include interest at the system's valuation interest rate.
(b) An employer shall be deemed to have partially dissolved its fire department if
either of the following occurs:
(i) The number of participating employees of the employer as of the thirtieth of June
is less than seventy percent of the number of participating employees of the employer on the
thirtieth of June of the prior year and either the number of participating employees decreases
by at least three or the number of participating employees is zero.
(ii) The number of participating employees of the employer as of the thirtieth of June
is at least fifty fewer than the number of participating employees of the employer as of the
thirtieth of June of the prior year.
B.(1) Any amount due pursuant to Subsection A of this Section shall be determined
by the actuary employed by the system and shall be amortized over fifteen years in equal
payments with interest at the system's valuation rate. Payments for withdrawals that occur
on or after July 1, 2021, shall be payable beginning the first of July of the second fiscal year
following the determination by the actuary and in the same manner as regular payroll
payments to the system. Beginning on the first of July of the fiscal year following
withdrawal, interest shall accrue at the system's actuarial valuation rate, compounded
annually.
(2) If the number of participating employees of an employer subject to Paragraph
(A)(2) of this Section returns to at least the number of participating employees as of the
thirtieth of June immediately preceding the withdrawal, the payments required by this
Section shall cease on the first of July following the determination by the actuary that a
sufficient increase in participating employees has occurred, and no further payments shall be
due with respect to the withdrawal. Any payments made pursuant to this Section shall be
credited as an offset of any amounts due by the employer attributable to any subsequent
withdrawal that occurs within fifteen years of the payments.
C. If an employer fails to make a payment timely, the amount due shall be collected
in any of the following manners:
(1) By action in a court of competent jurisdiction against the delinquent employer.
The amount due shall include interest calculated by the system's actuarial valuation rate,
compounded annually. The employer shall also be liable for any legal and actuarial fees
incurred by the system in the collection of amounts pursuant to this Section.
(2) The board may certify to the state treasurer all amounts attributable to the
delinquent employer. In support of such certification, the board shall submit to the treasurer
a resolution certifying the name of the delinquent employer, its failure to pay, and the amount
owed and shall name a designee or designees to act on the board's behalf. Upon receipt of
such certification, the treasurer shall deduct from monies payable to the certified delinquent
party the certified amount due and shall remit such deducted amounts directly to the
Firefighters' Retirement System.
D. For the purposes of this Section, the following terms shall mean:
(1) "Participating employee" shall mean an active member or participant in the
Deferred Retirement Option Plan.
(2) "Withdrawal" shall mean the dissolution or partial dissolution of a fire
department as described in Subsection A of this Section.