2009 Louisiana Laws TITLE 11 Consolidated public retirement :: RS 11:2175.1 Funding deposit account

§2175.1.  Funding deposit account

A.(1)  There shall be established a funding deposit account.  Such account shall be credited and charged solely as provided in this Section.

(2)  The balance in the account shall be set equal to zero as of December 31, 2008.

(3)  Notwithstanding any provision of R.S. 11:105 to the contrary, all surplus funds collected shall be credited to the funding deposit account for any fiscal year terminating on or after December 31, 2008, in which the board of trustees elects or previously elected to set the direct employer contribution rate higher than the minimum recommended rate pursuant to R.S. 11:105.

B.  The funds in the account shall earn interest annually at the board-approved valuation interest rate, and the interest shall be credited to the account at least once a year.

C.  Beginning with the June 30, 2009, valuation, the board of trustees may in any fiscal year direct that funds from the account be charged according to the following options:

(1)  To reduce the unfunded accrued liability as prescribed in R.S. 11:105.

(2)  To reduce the present value of future normal costs.

(3)  To pay all or a portion of any future net direct employer contributions.

D.  In no case shall the funds charged from the account exceed the outstanding account balance.

E.  In the event that the board of trustees elects to charge funds from the funding deposit account pursuant to Paragraph (C)(3) of this Section, the percent reduction in the minimum employer recommended contribution rate otherwise applicable shall be determined by dividing the interest-adjusted value of the charges from the funding deposit account by the projected payroll for the fiscal year for which the contribution rate is to be reduced.

F.  For funding purposes, any asset value utilized in the calculation of the actuarial value of assets shall exclude the funding deposit account balance as of the asset determination date for such calculation.

G.  For all purposes other than funding, the funds in the account shall be considered assets of the system.

Acts 2009, No. 247, §1, eff. June 30, 2009.