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Regular Session News #5: House retirement committee passes one PRSAC bill; defers others

Mar 29, 2018

Today the House retirement committee considered four bills related to the Public Retirement Systems' Actuarial Committee (PRSAC), which is a committee created by the legislature in 1988 to help Louisiana's state and statewide retirement systems, pension plans, and funds attain and maintain their soundness. One of those bills, HB 12, was amended and reported favorably. It will now be considered by the full House.
  • HB 12 (Rep. Ivey) would require PRSAC to submit to the legislature the final approved valuation for each public retirement system and all additional assumptions and valuations it receives; also requires the legislative auditor to prepare and submit to the legislature a summary of all disparities between the various assumptions and valuations presented to PRSAC for each system. As amended, the legislative auditor would also submit the summary of disparities to the House and Senate retirement committees.
Two bills deferred until the next committee meeting:
  • HB 21 (Rep. Ivey) was amended and deferred until April 5. The original bill would have increased members on PRSAC from seven to 11 by adding two members of the House of Representatives appointed by the House Speaker and two members of the Senate appointed by the Senate President. As amended, the bill would add one member from the House and one member from the Senate to the committee instead of two from each chamber and would also change the requirement for a quorum to a simple majority.
  • HB 24 (Rep. Ivey), which would require that actuaries for state and statewide retirement systems and for the legislative auditor use uniform reporting standards to present discount rate and assumed rate of return information to PRSAC, was also deferred until April 5.
Other House retirement committee action:
  • HB 11 (Rep. Ivey), which would have imposed a fiduciary duty to state and statewide retirement systems on members of PRSAC, was voluntarily deferred by the author.
  • HB 23 (Rep. Ivey), which would have prohibited state and statewide retirement systems from investing more than 25% of their total investment portfolio in alternative investments, was voluntarily deferred by the author.
Senate retirement bills
On Monday, the Senate retirement committee passed an amended SB 14 (Sen. Peacock). SB 14 would establish a hybrid retirement plan within the Louisiana State Employees’ Retirement System (LASERS) for rank-and-file state workers hired on or after January 1, 2020. The hybrid retirement plan would consist of a defined benefit component (with a 1.5% accrual rate) as well as a defined contribution component.

The bill's amendments would: (1) limit contributions to the member’s account to the amount set by Section 415(c) of the IRS Code, and (2) base the annuity for the member’s defined contribution account on the system’s actuarially assumed rate of return less 2.0%. SB 14 was recommitted to Senate Finance.

A complete list of legislation affecting TRSL, along with the positions taken by the TRSL Board of Trustees for each bill, is available on the legislation page of our website, www.TRSL.org
Tune in & watch live:
You can watch live retirement committee meetings online at www.legis.la.gov. Click on the TV icon for any meeting in progress that you’d like to view. Archived broadcasts are available here.
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