This text of Louisiana § 11:547 (Cost-of-living adjustment funding account) 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.
§547. Cost-of-living adjustment funding account
A. Effective July 1, 2023, the balance in the cost-of-living adjustment funding
account, referred to in this Section as the "COLA account", shall be zero.
B.
(1)The COLA account shall be credited as follows:
(a)Any amount allocated to the COLA account in accordance with R.S. 11:542.
(b)To the extent permitted by Subparagraph (d) of this Paragraph, all employer
contributions paid pursuant to R.S. 11:102(C)(6)(e).
(c)To the extent permitted by Subparagraph (d) of this Paragraph, an amount not to
exceed that portion of the system's net investment income attributable to the balance in the
COLA account at the end of the prior year.
(d)In no event shall a credit be made to the COLA account that would cause the
balance in the account to exceed t
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§547. Cost-of-living adjustment funding account
A. Effective July 1, 2023, the balance in the cost-of-living adjustment funding
account, referred to in this Section as the "COLA account", shall be zero.
B.(1) The COLA account shall be credited as follows:
(a) Any amount allocated to the COLA account in accordance with R.S. 11:542.
(b) To the extent permitted by Subparagraph (d) of this Paragraph, all employer
contributions paid pursuant to R.S. 11:102(C)(6)(e).
(c) To the extent permitted by Subparagraph (d) of this Paragraph, an amount not to
exceed that portion of the system's net investment income attributable to the balance in the
COLA account at the end of the prior year.
(d) In no event shall a credit be made to the COLA account that would cause the
balance in the account to exceed the reserve necessary to grant two cost-of-living adjustments
of two percent in accordance with the provisions of this Section. Any contributions received
from payment of the account funding contribution rate in compliance with R.S.
11:102(C)(6)(e) that would cause the account balance to exceed this reserve if deposited in
the account shall be applied as provided in R.S. 11:102.1.
(2) The COLA account shall be debited as follows:
(a) An amount equal to that portion of the system's net investment loss attributable
to the balance in the COLA account at the end of the prior year.
(b) An amount sufficient to fund a cost-of-living adjustment granted pursuant to the
provisions of this Section.
(c) In no event shall the balance in the COLA account fall below zero.
C. In accordance with the provisions of this Section, the board of trustees may
recommend to the president of the Senate and the speaker of the House of Representatives
that the system be permitted to grant a cost-of-living adjustment to retirees, beneficiaries, and
survivors when the conditions in this Section are satisfied. The board of trustees shall not
grant a cost-of-living adjustment unless the cost-of-living adjustment has been approved by
the legislature. Receipt of future cost-of-living adjustments, as provided for in this Section,
shall not be an accrued benefit. Retirees, beneficiaries, and survivors shall have no right to
receive a cost-of-living adjustment until the cost-of-living adjustment has been approved by
the legislature.
D.(1) Any cost-of-living adjustment granted pursuant to the provisions of this
Section shall begin on the July first following legislative approval and shall equal up to two
percent, unless the legislature provides for a different rate or amount in the legislative
instrument approving the cost-of-living adjustment. If the balance in the COLA account is
not sufficient to fully fund the cost-of-living adjustment on an actuarial basis as determined
by the system actuary in agreement with the legislative auditor's actuary, no adjustment shall
be granted.
(2) The calculation of any cost-of-living adjustment paid under the provisions of this
Section shall be based on the benefit being paid to the recipient on the effective date of the
adjustment and shall be limited to and shall be payable based only on an amount not to
exceed sixty thousand dollars of the recipient's annual benefit.
E. A benefit recipient shall be eligible to receive a cost-of-living adjustment if the
recipient is one of the following:
(1) A regular retiree who has received a benefit for at least two years and is at least
age sixty-two.
(2) A disability retiree who has received a benefit for at least two years regardless
of age.
(3) A beneficiary of a deceased retiree who, if the retiree were alive, would meet the
eligibility criteria in Paragraph (1) or (2) of this Subsection.
(4) A nonretiree beneficiary who has received a benefit for at least two years and
whose benefits are derived from the service of a deceased member who would be at least age
sixty-two if the member were alive.