TAX FORMS AVAILABLE: 1099-Rs for 2020 have been mailed and are now accessible through Member Access. 

TRSL Valuation: Funded status climbs; DROP interest rate announced

December 14, 2020

Baton Rouge—The latest actuarial valuation report for the Teachers’ Retirement System of Louisiana (TRSL) was approved by the Public Retirement Systems’ Actuarial Committee (PRSAC) today.

The valuation report shows the System’s funded status continues to climb, reaching 67.9% up from 67.1%, last year. The funded ratio is a measure of the retirement system’s assets against its liabilities and is a metric commonly used to gauge a pension plan’s financial position. The funded status has increased almost 25% from 2010 when the System experienced the full impact of the 2008 economic market downturn. 

Additionally, TRSL’s valuation assets again set an all-time high, reaching $21.97 billion—an increase of $788 million over last year—and the unfunded accrued liability (UAL) decreased to $10.36 billion from $10.39 billion last fiscal year. Principal and interest on this debt has now been paid for the eighth consecutive year.
 
DROP interest: The valuation report also included the FY 2020 DROP interest rate for accounts belonging to members who were eligible to participate in the program prior to January 1, 2004. Those DROP accounts will earn 6.30%.

DROP accounts for members who were eligible to participate on or after January 1, 2004, earn interest at the liquid asset money market rate of return, which averaged 1.0797% in FY 2020.
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