Struck = removed from the bill ·
added = the amendment's new text.
ENROLLEDSFAHB1237 2270 3157 SENATE FLOOR AMENDMENTS Regular Session HOUSEAmendments BILLproposed NO.by Senator Price to Reengrossed House Bill No.
1237 (Substituteby forRepresentative HouseBacala BillAMENDMENT No.NO.
491 byOn Representativepage Bacala)1, BYline REPRESENTATIVES2, BACALAafter AND"and FREEMAN(D)," ANinsert ACT"2227(D)(2)," ToAMENDMENT amendNO. and reenact R.S.
11:157(C)(1),2 2225.4(B),On (C)(2),page and1, (D),at 2227(D)(2),the andbeginning 2262.1(A),(B),and(D)(introductoryparagraph),of toline enactR.S.6, after "systems;" insert "to provide for recovery of delinquent payments;" AMENDMENT NO.
11:2262.1(D)(3)and3 (4)On andpage (E),1, andline to15, repealafter R.S."and (D)," insert "2227(D)(2)," AMENDMENT NO.
11:2225.4(A)(2),4 relativeOn topage the3, Municipalbetween Policelines Employees'12 Retirementand System13, andinsert the Firefighters'following: Retirement System;
to"§2227. provide relative to membership in the systems;
to provide for recovery of delinquent payments;
to provide relative to partial dissolution of a police department or a fire department;
to provide relative to the payment of unfunded accrued liability by employers;to provideforcertaindeterminations;to providefortimingofpayments;
to provide for definitions;
to provide relative to employer contributions;
to provide for effectiveness;
and to provide for related matters.
Notice of intention to introduce this Act has been published as provided by Article X, Section 29(C) of the Constitution of Louisiana.
Be it enacted by the Legislature of Louisiana:
Section 1.
R.S.
11:157(C)(1), 2225.4(B), (C)(2), and (D), 2227(D)(2), and 2262.1(A),(B),and(D)(introductoryparagraph)areherebyamendedandreenactedandR.S.
11:2262.1(D)(3) and (4) and (E) are herebyenacted to read as follows:
§157.
Firefighters' Retirement System;
Municipal Police Employees' Retirement System;optionalmembership;refundofemployeecontributions;irrevocable election;
reenrollment;
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1237 ENROLLED C.(1) Any employee who elects not to become a member of the applicable retirementsystemsetforthinSubsectionAofthisSectionshall,beforesuchelection can become valid, execute and file with the retirement system an affidavit stating that his election not to be a member is of his own free will and is his own voluntary act and deed.
For an employee as defined in R.S.
11:2213, the affidavit shall be signed and notarized bythe chief of police or mayor of the employing municipality.
* * * §2225.4.
Unfunded accrued liability;
payment by employer * * * 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 monthly payments with interest at the system's valuation interest rate.
Such payments shall be payable to the system electronicallybeginning Julyfirst of the second fiscal year following the determination bythe actuaryand in the same manner as regular payroll payments to the system.
Beginning July first of the fiscal year following the withdrawal dissolution, 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 June thirtieth immediately preceding the withdrawal, the payments required by this Section shall cease on the July first following the determinationbytheactuarythatasufficientincreaseinparticipatingemployeeshas occurred, and no further payments shall be due with respectto the withdrawal.
Any paymentsmadepursuanttothisSectionshallbecreditedasanoffsetofanyamounts due by the employer attributable to any subsequent withdrawal that occurs within fifteen years of the payments.
C.
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1237 ENROLLED (2) Notwithstanding anyother provision of law to the contrary, the board of trustees shall not collect any payments due from an employer for any partial dissolution that occurred prior to July 1, 2018.
July 1, 2025.
D.
For the purposes of this Section, the following terms shall have the following meanings:
(1) "Participating employee" shall mean an active member or participant in the Deferred Retirement Option Plan.
(2) "Withdrawal"shallmeanthedissolutionorpartialdissolutionofapolice department as described in Subsection A of this Section.
For the purposes of this Section,theunfundedaccruedliabilityshallbedeterminedusingthelevelpercentage of payroll entry age normal actuarial accrued liability.
* * * §2227.
The pension accumulation fund shall be the fund in which shall be accumulatedaccumulatedall allreservesfor reserves for the payment of all pension andandbenefits benefits payable fromcontributions madebyemployers.Contributions to andpayments from contributionsthe pension accumulation fund shall be made byas employers.follows:
Contributions* to* and* payments(2) fromDelinquent thepayments pensiondue accumulationunder fundR.S. shall be made as follows:
*11:2227(B)(1) *and *2227(D)(1) (2)Delinquentpaymentsmay dueunderR.S.11:2227(B)(1)and2227(D)(1)may be recovered through either of the following actions:
(a) Upon certification to the state treasurer and written notice to the municipalitymunicipalitybythedirectorthatamunicipality'smonthlyreportandpayment by the director that a municipality's monthly report and payment of contributions is delinquent, the state treasurer shall deduct the amount of the delinquentcontributionsfromanymoniesthenavailablefordistributiontoorforthedelinquent contributions from anymonies then available for distribution to or for the benefit of that municipality and shall transmit said amount directlydirectlyto to the board of trustees of the retirement system.
Upon making such aadeduction,thestatetreasurershallimmediatelynotifythemunicipalitythat deduction, the state treasurer shall immediatelynotifythe municipalitythat the deduction has been made and that the funds availableforavailable for distribution to it are reduced accordingly.
In like manner, the Pagedirector 3of the system, upon receipt of 7said CODING:funds, shall credit such funds to the proper account affected thereby and shall notify the municipality thereof;
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1237 ENROLLED director of the system, upon receipt of said funds, shall credit such funds to the proper account affected therebyand shall notify the municipality thereof;
* * **" §2262.1.Page 1 of 1
Dissolution of fire department;
unfunded accrued liability;
payment by employer A.(1)(a) Ifanemployerfullydissolvesitsfiredepartment,theemployershall remit to the system, beginning the first July immediately following the date of dissolution, that portion of the unfunded accrued liabilityexisting on the thirtieth of June immediately prior to the date of dissolution of the fire department that is attributabletosuchemployerandcalculatedusingtheallocationpercentageincluded inthepriorfiscalyear'semployerpensionreportproducedaccordingtorequirements 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.
(b) ForthepurposesofthisSection,theactuaryemployedbythesystemmay make adjustments to the allocation percentages included in the employer pension report for the prior fiscal year based on additional information.
(2)(a) If an employer partially dissolves its fire department during a fiscal year, 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 multiplying the total payment that would have been required pursuant to the provisions of Paragraph (1) of this Subsection if the employer had fullydissolved its fire department.
Payments requiredpursuant to the provisions of this Paragraph shall include interest at the system's valuation interest rate.
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1237 ENROLLED count and the fiscal year's participating employee count to the prior fiscal year's participating employee count.
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 participating employer count as of the thirtieth of June is less than seventy percent of the base employee count rounded down to the nearest whole number, and the difference between the base employee count and the participating employee count is at least three number of participating employees of the employer on the thirtieth of June of the prior yearand either the number of participatingemployees decreasesbyat least three or the number of participating employees is zero.
(ii) Thenumberofparticipatingemployeesoftheemployerasofthethirtieth of June employee count is at least fifty fewer than the number of participating employeesoftheemployerasofthethirtiethofJuneoftheprioryear.baseemployee count.
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 fifteenyearsinequalpaymentswithinterestatthesystem'svaluationrate.
Payments Any 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 if such determination occurs prior to June 30, 2024, or beginning July first of the third fiscal year following the determination by the actuary if such determination occurs on or after June 30, 2024.
Such payments shall be payable 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)(a) Ifthenumberofparticipatingemployeesparticipatingemployeecount of an employer subject to Paragraph (A)(2) of this Section returns to at least the numberof participatingemployees asofthethirtieth ofJuneimmediatelypreceding Page 5 of 7 CODING:
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1237 ENROLLED the withdrawal, base employee count for the fiscal year of partial dissolution, the payments required by this Section shall cease on the first of July following the determinationbytheactuarythatasufficientincreaseinparticipatingemployeeshas occurred,andnofurtherpaymentsshallbeduewithrespecttothewithdrawal.partial dissolution.
Any payments made pursuant to this Section that partial dissolution shall be credited as an offset of anyamounts due bythe employer attributable to any subsequent withdrawal that occurs partial dissolution occurring after the fiscal year of the sufficient increase in participating employees but within fifteen years of the payments.
(b) Each fiscal year, for each employer subject to Paragraph (A)(2) of this Section for which a payment remains due in the following fiscal year, the system's actuaryshall review the participating employee count for the employer for the prior fiscal year.
Beginning July first for the fiscal year following the actuary's review, the payments determined according to Paragraph (B)(1) of this Section shall be proportionatelyadjustedbasedontheparticipatingemployeecountfortheemployer for the prior fiscal year.
Such adjustments shall not cause the proportional payment to exceed the payment initially determined for the partial dissolution.
* * * D.
Forthepurposesofthis Section,the following terms shall mean have the following meanings:
* * * (3) "Participating employee count" for an employer for a fiscal year shall mean the number of participating employees as of June thirtieth of that fiscal year.
(4) "Base employee count" for an employer for a fiscal year shall mean the number of participating employees as of June thirtieth of the prior fiscal year unless the employer has partially dissolved in one or more of the prior fifteen fiscal years and payments remain due for at least one such partial dissolution.
In that case, the base employee count for an employer for a fiscal year shall be the lesser of the smallest participating employee count from such prior partial dissolution or the numberoftheparticipatingemployeesasoftheJunethirtiethofthepriorfiscalyear.
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1237 ENROLLED E.
For the purposes of this Section, the unfunded accrued liability shall be determined using the level percentage of payroll entryage normal actuarial accrued liability.
Section 2.
R.S.
11:2225.4(A)(2) is hereby repealed in its entirety.
Section 3.
This Act shall become effectiveupon signature bythe governor or, if not signedbythegovernor,uponexpirationofthetimeforbillstobecomelawwithoutsignature by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana.
If vetoed bythe governor and subsequentlyapprovedbythe legislature, this Act shall become effective on the dayfollowing such approval.
SPEAKER OF THE HOUSE OF REPRESENTATIVES PRESIDENT OF THE SENATE GOVERNOR OF THE STATE OF LOUISIANA APPROVED:
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