2006 Louisiana Laws - RS 11:267 — Indexing; equity limitations
§267. Indexing; equity limitations
A. The provisions of this Section, except Subsection D, shall apply to each of the following systems:
(1) Louisiana State Employees' Retirement System.
(2) Teachers' Retirement System of Louisiana.
(3) Louisiana School Employees' Retirement System.
(4) Louisiana Assessors' Retirement Fund.
B.(1)(a) Each system listed in Subsection A of this Section shall invest an amount equal to at least ten percent of the system's total equity portfolio in one or more index funds which seek to replicate the performance of the chosen index or indices.
(b)(i) The governing authority of any system covered by Subsection A of this Section may divest its indexed funds if the Standard and Poor's 500 Composite Index, including dividend reinvestment, declines by an amount exceeding ten percent during the twelve-month period immediately preceding such divestment and further provided that any such governing authority furnishes written notice of such divestment to the House Retirement Committee and the Senate Retirement Committee within ten days following the governing authority's decision to divest.
(ii) If any such governing authority divests its indexed funds under the authority of this Subparagraph, and if the Standard and Poor's 500 Composite Index, including dividend reinvestment, increases by an amount exceeding ten percent, as compared to the date that the governing authority took official action causing such divestment, then the governing authority shall reindex equity assets in accordance with the provisions of this Subsection.
(2) For purposes of this Section, the term "equity" shall mean ownership of a corporation represented by shares that are publicly traded on a recognized exchange, including the National Association of Securities Dealers Automated Quotation (NASDAQ).
(3) Repealed by Acts 2005, No. 9, §2, eff. May 27, 2005.
C. Notwithstanding any other provision of law to the contrary, and specifically R.S. 11:263(D), any system covered by Subsection A of this Section shall be authorized to invest up to sixty-five percent of the system's total portfolio in equity securities, as that term is defined in Paragraph (B)(2) of this Section.
D. Repealed by Acts 2005, No. 9, §2, eff. May 27, 2005.
Acts 1997, No. 1301, §1, eff. June 30, 1997; Acts 2004, No. 850, §1, eff. July 12, 2004; Acts 2005, No. 9, §§1, 2, eff. May 27, 2005.
NOTE: See Acts 2004, No. 850, §3, relative to phasing in of indexing and relative to deadline for compliance by La. Assessors' Retirement Fund.
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