SB 20 — SCHOOL EMPLOYEES RET: Provides relative to the determination of employer contributions and amortization of certain actuarial gains. (gov sig) (EN SEE ACTUARIAL NOTE FC)

SLS 26RS-107 ENGROSSED Regular Session ENROLLED SENATE BILL NO.

20 BY SENATOR PRICE SCHOOLAN EMPLOYEESACT RET.ToamendandreenacttheintroductoryparagraphofR.S.11:102(B)(1)(a)andtorepealR.S.

Provides relative to the determination of employer contributions and amortization of certain actuarial gains.

(gov sig) AN ACT ToamendandreenacttheintroductoryparagraphofR.S.11:102(B)(1)(a)andtorepealR.S.

state systems * * * B.(1)(a)ExceptasprovidedinB.(1)(a)ExceptasprovidedinR.S. R.S.

11:102.1, 102.2,102.3,102.4,and102.5 andinParagraph(5)ofthisSubsection,foreachfiscalyear,commencingwithFiscal YearYear1989-1990, 1989-1990, for eacheachof of the public retirement systems referencedin Subsection AofthisSection,thelegislatureshallAofthis settherequiredemployercontributionSection,thelegislatureshallsettherequiredemployercontribution ratefor each system or plan equal to the sum of the following:

Page* 1* of* 2Section Coding:2.

Words which are struck through are deletions from existing law;

words in boldface type and underscored are additions.

SLS 26RS-107 ENGROSSED SB NO.

20 * * * Section 2.

If vetoedPage bythe1 governorandof subsequentlyapprovedbythe2 legislature,Coding: this Act shall become effective on the dayfollowing such approval.

TheWords original instrument and the following digest, which constitutesare nostruck partthrough ofare thedeletions legislativefrom instrument,existing werelaw; prepared bySenate Legislative Services.

Thewords keyword,in summary,boldface type and digestunderscored doare notadditions. constitute part of the law or proof or indicia of legislative intent.

[R.S.SB NO.

1:13(B) and 24:177(E)] DIGEST SB 20 EngrossedENROLLED 2026vetoed Regularbythe Sessiongovernorand Pricesubsequentlyapprovedbythe Presentlegislature, lawthis requiresAct thatshall thebecome employereffective contribution rate for each state public retirement system, including Louisiana School Employees' Retirement System (LSERS), is based on the actuariallydayfollowing requiredsuch employerapproval. contribution.

ThisPRESIDENT rateOF isTHE determinedSENATE bySPEAKER dividingOF theTHE requiredHOUSE employerOF contributionREPRESENTATIVES asGOVERNOR determinedOF byTHE theSTATE actuaryOF byLOUISIANA theAPPROVED: total payroll of active members of the system resulting in the aggregate employer contribution rate.

ProposedlawchangesthemethodforcalculatingtheemployercontributionrateforLSERS.Page 2 of 2 Coding:

Present law requires that excess investment returns be applied to the amortization base.

If thesystem'sinvestmentexperienceexceedstheactuariallyassumedrateofreturn,theexcess is applied to the oldest outstanding amortization base.

Proposed law repeals the application of excess returns to the amortization base, as well as the "priority amount" and "priority allocation" mechanisms.

Present law provides that the experience account be credited with a portionof the system's netinvestmentgains,subjecttolimitations, andbeusedtofundpermanentbenefitincreases for retirees which requires that certain funding thresholds be met.

This account is also debitedforinvestmentlossesandbenefitincreases.Proposedlaweliminatesthemechanism for crediting and debiting the account based on investment gains and losses.

Present law provides that the account funding contribution rate is a component part of the employercontributionratewhichisusedtofundthepermanentbenefitincreaseamountand is subject to caps and adjustments based on the projected aggregate employer contribution rate.

Proposed law removes the account funding contribution rate provisions.

Effective upon signature of the governor or lapse of time for gubernatorial action.

(Amends R.S.

11:102(B)(1)(a)(intro para);

repeals 11:102(E)(4), 102.3, and 1145.1) Page 2 of 2 Coding: