§ 11:42 — Unfunded accrued liabilities; amortization

§42. Unfunded accrued liabilities; amortization
A. The provisions of this Section govern the amortization of unfunded accrued
liabilities of the state and statewide public retirement systems referenced in Subsection B of
this Section, as provided by Subsection B of this Section.
B. The provisions of this Subsection shall be implemented and accomplished by the
governing authorities of the state and statewide public retirement systems as follows:
(1) Assessors' Retirement Fund. The unfunded accrued liability, as of September 30,
1989, determined under the funding method specified in R.S. 11:22(B)(1), shall be amortized
over a forty-year period, commencing with fiscal year 1989-1990, with payments forming
an annuity increasing at three and one-half percent annually.
(2) Clerks' of Court Retirement and Relief Fund. The unfunded accrued liability, as
of June 30, 1989, determined under the funding method specified in R.S. 11:22(B)(2), shall
be amortized over a forty-year period, commencing with Fiscal Year 1989-1990, with
payments forming an annuity increasing at four and three-quarters percent annually.
However, effective for the June 30, 2016 valuation and beginning July 1, 2016, the
outstanding balance of this unfunded accrued liability shall be amortized over the remaining
thirteen-year period, commencing with Fiscal Year 2016-2017, with annual level-dollar
payments.
(3) Firefighters' Retirement System. Effective beginning with the 2019 valuation,
the outstanding balance of the unfunded accrued liability, except unamortized merger bases,
shall be frozen, combined, and reamortized over fifteen years with payments decreasing by
one percent per year. All future actuarial experience gains and losses, contribution gains and
losses, gains and losses arising from changes in benefits, and gains and losses arising from
changes in assumptions shall be included in the calculation of the normal cost through frozen
initial liability funding method.
(4) Louisiana School Employees' Retirement System. The unfunded accrued liability
or surplus, as of June 30, 1988, determined under the funding method specified in R.S.
11:22(B)(5), shall be amortized over a forty-year period, commencing with Fiscal Year
1989-1990, with level dollar payments annually.
(5)(a) Louisiana State Employees' Retirement System. The unfunded accrued
liability, as of June 30, 1988, determined under the funding method specified in R.S.
11:22(B)(6), shall be amortized over a forty-year period, commencing with Fiscal Year
1989-1990. The outstanding balance of the unfunded accrued liability as of July 1, 1992,
shall be amortized over the remaining thirty-seven-year period with payments forming an
annuity increasing at four and one-half percent annually.
(b) Effective for the June 30, 2009, valuation and beginning July 1, 2010, the
outstanding balance of this unfunded accrued liability shall be consolidated with other
amortization bases and credits as provided in R.S. 11:102.1, and that consolidated total shall
be amortized over the remaining constitutionally-mandated period with annual payments
beginning in Fiscal Year 2010-2011. The final payment shall be made in Fiscal Year 2028-2029.
(6) Municipal Police Employees' Retirement System. The unfunded accrued liability
or surplus, as of June 30, 1989, determined under the funding method specified in R.S.
11:22(B)(7), shall be amortized over a forty-year period, commencing with fiscal year 1989-1990, with level dollar payments annually.
(7) Municipal Employees' Retirement System of Louisiana.
(a) Plan A. The unfunded accrued liability, as of June 30, 1989, determined under
the funding method specified in R.S. 11:22(B)(8)(a), shall be amortized over a forty-year
period, commencing with fiscal year 1989-1990, with payments forming an annuity
increasing at four and one-quarter percent annually.
(b) Plan B. The unfunded accrued liability, as of June 30, 1989, determined under
the funding method specified in R.S. 11:22(B)(8)(b), shall be amortized over a forty-year
period, commencing with fiscal year 1989-1990, with payments forming an annuity
decreasing at two percent annually.
(8) Parochial Employees' Retirement System of Louisiana.
(a) Plan A. The unfunded accrued liability, as of December 31, 1989, determined
under the funding method specified in R.S. 11:22(B)(9)(a), shall be amortized over a forty-year period, commencing with fiscal year 1989-1990, with payments forming an annuity
increasing at four percent annually.
(b) Plan C. The unfunded accrued liability as of December 31, 1998, shall be
amortized over a fifteen-year period with level dollar payments annually.
(9) Sheriffs' Pension and Relief Fund. The unfunded accrued liability, as of June 30,
1989, determined under the funding method specified in R.S. 11:22(B)(11), shall be
amortized over a forty-year period, commencing with fiscal year 1989-1990, with payments
forming an annuity increasing at three and one-half percent annually.
(10) Louisiana State Police Retirement System. The unfunded accrued liability, as
of June 30, 1988, determined under the funding method specified in R.S. 11:22(B)(12), shall
be amortized over a twenty year period, commencing with the fiscal year 1989-1990, with
level dollar payments annually.
(11)(a) Teachers' Retirement System of Louisiana. The unfunded accrued liability,
as of June 30, 1988, determined under the funding method specified in R.S. 11:22(B)(13),
shall be amortized over a forty-year period, commencing with the Fiscal Year 1989-1990.
The outstanding balance of the unfunded accrued liability as of July 1, 1992, shall be
amortized over the remaining thirty-seven-year period with payments forming an annuity
increasing at four and one-half percent annually.
(b) Effective for the June 30, 2009, valuation and beginning July 1, 2010, the
outstanding balance of this unfunded accrued liability shall be consolidated with other
amortization bases and credits as provided in R.S. 11:102.2, and that consolidated total shall
be amortized over the remaining constitutionally-mandated period with annual payments
beginning in Fiscal Year 2010-2011. The final payment shall be made in Fiscal Year 2028-2029.

Legislative History

Acts 1988, No. 81, §2, eff. July 1, 1989; Acts 1988, 2nd Ex. Sess., No. 6, §2, eff. Oct. 31, 1988; Acts 1989, No. 499, §1, eff. July 1, 1989; Acts 1989, No. 502, §1, eff. July 1, 1989; Acts 1992, No. 257, §1, eff. July 1, 1992; Acts 1997, No. 867, §1, eff. July 1, 1997; Acts 2009, No. 497, §1, eff. June 30, 2009; Acts 2010, No. 861, §4; Acts 2012, No. 227, §1; Acts 2016, No. 650, §1, eff. June 17, 2016; Acts 2019, No. 91, §1, eff. July 1, 2019.