2009 Louisiana Laws TITLE 11 Consolidated public retirement :: RS 11:3690 Method of financing

§3690.  Method of financing

A.  All of the assets of the retirement system shall be credited according to the purpose for which they are held to one of four funds, namely, the Annuity Savings Fund, the Annuity Reserve Fund, the Pension Accumulation Fund, and the Expense Fund.

B.  Annuity savings fund.  The Annuity Savings Fund shall be the fund in which shall be accumulated contributions from the compensation of members to provide for their annuities.  Contributions to the Annuity Savings Fund shall be made as follows:

(1)  The port commission shall make deductions from any salary or wages paid by them to any member of this fund equal to seven percent of the compensation paid him in each and every payroll after August 1, 1971.

(2)  The deductions provided for herein shall be made notwithstanding that the minimum compensation provided for by law for any member shall be reduced thereby.  Every member shall be deemed to consent and agree to the deductions made and provided for herein and shall receipt for his full salary or compensation, and payment of salary or compensation less said deductions shall be a full and complete discharge and acquittance of all claims and demands whatsoever for the services rendered by such person during the period covered by such payment, except as to the benefits provided under this Subpart.  The employer shall certify to the Board of Trustees on each and every payroll or in such other manner as the Board of Trustees may prescribe, the amounts to be deducted; and each of said amounts shall be deducted, and when deducted shall be paid into said Annuity Savings Fund, and shall be credited to the individual account of the member from whose compensation said deduction was made.

C.  Annuity reserve fund.  The Annuity Reserve Fund shall be the fund in which shall be held the reserves on all annuities in force and from which shall be paid all annuities and all benefits in lieu of annuities, payable as provided in this Subpart.  Should a beneficiary retired on account of disability be restored to active service with a compensation not less than his average final compensation at the time of his last retirement, his annuity reserve shall be transferred from the Annuity Reserve Fund to the Annuity Savings Fund and credited to his individual account therein.

D.  Pension accumulation fund.  The Pension Accumulation Fund shall be the fund in which shall be accumulated all reserves for the payment of all pensions and other benefits payable from contributions made by employers.  Contributions to and payments from the Pension Accumulation Fund shall be made as follows:

(1)  On account of each member there shall be paid annually into the Pension Accumulation Fund for the preceding fiscal year an amount equal to a certain percentage of the earnable compensation of each member to be known as the "Normal Contribution", and an additional amount equal to a percentage of his earnable compensation to be known as the "Accrued Liability Contribution".  The rate per centum of such contributions shall be fixed on the basis of the liabilities of the retirement system as shown by actuarial valuation; subject to the limitation of Paragraph D(8).

(2)  The total amount that shall be contributed annually to the pension accumulation fund shall be equal to the amount obtained by applying the total rate ("normal contribution" plus "accrued liability contribution") to the earnable compensation of all members.  This amount shall be paid as provided in Paragraphs D(3) and (4).

(3)  The Port Commission shall annually contribute an amount equal to the rate per centum determined herein in accordance with Paragraphs D(4) and (8).  The first contribution under this Subpart shall begin with the fiscal year beginning July 1, 1971 and shall be made annually thereafter.

(4)  On the basis of regular interest and of such mortality and other tables as shall be adopted by the Board of Trustees, the actuary engaged by the Board to make each valuation required by this Subpart during the period over which the accrued liability contribution is payable, immediately after making such valuation, shall determine the uniform and constant percentage of the compensation of the average new entrant, which if contributed on the basis of compensation of such new entrant throughout the entire period of active service would be sufficient to provide for the payment of any pension payable on his account.  The rate per centum so determined shall be known as the "normal contribution" rate.  After the accrued liability contribution has ceased to be payable, the normal contribution rate shall be the rate per centum of the earned salary of all members obtained by deducting from the total liabilities of the Pension Accumulation Fund the amount of the funds in hand to the credit of that fund and dividing the remainder by one percentum of the present value of the prospective future salaries of all members as computed on the basis of the mortality and service tables adopted by the Board of Trustees and regular interest.  The normal rate of contributions shall be determined by the actuary after each valuation.

(5)  Immediately succeeding the first valuation the actuary engaged by the Board of Trustees shall compute the rate per centum of the total annual compensation of all members which is necessary to liquidate the amount of the total pension liability on account of all members and beneficiaries which is not dischargeable by the aforesaid normal contribution made on account of such members during the remainder of the active service.  The rate per centum originally so determined shall be known as the "Accrued Liability Contribution" rate.

(6)  The total amount payable in each year to the Pension Accumulation Fund shall be not less than the sum of the rate per centum known as the "Normal Contribution Rate" and the "Accrued Liability Contribution Rate" of the total compensation earned by all members during the preceding year and shall not exceed the limitation set forth in Paragraph D(8).

(7)  The accrued liability contributions shall be discontinued as soon as the accumulated reserve in the Pension Accumulation Fund shall equal the present value, as actuarially computed and approved by the Board of Trustees, of the total liability of such fund less the present value, computed on the basis of the normal contribution rate then in force, of the prospective normal contributions to be received on account of all persons who are at that time members.

(8)  The maximum contribution by the employer, Board of Commissioners of the Port of New Orleans, shall not exceed thirteen percent of the earned compensation of the members in any one year.  There shall be no contribution by employer other than the percentage of earned compensation of the members as provided in this Subpart, and subject to the maximum stated above, even in the event that the payment by employer should not be sufficient, when combined with the amount in the fund, to provide the retirement allowances and other benefits payable out of the fund.

(9)  All fines collected by any court, official or agency from violators of ordinances of the City of New Orleans applicable to the wharves, landings and river front of the city or ordinances of the Board of Commissioners of the Port of New Orleans, as provided for in R.S. 34:25, shall be transmitted to the board of trustees of this system.  Such funds shall be used by the board solely for the payment of the retirement allowances provided for in Subsections B, C, and D of this Section, and such funds shall be supplemented by such other funds as are now or may be hereafter paid into the system on account of members of the harbor police department of the Port of New Orleans.

(10)  All pensions, and benefits in lieu thereof, with the exception of those payable on account of members who receive no prior service allowance, payable from contributions of employees, shall be paid from the Pension Accumulation Fund to the Annuity Reserve Fund.

(11)  Upon the retirement of a member not entitled to credit for prior service, an amount equal to his pension reserve shall be transferred from the Pension Accumulation Fund to the Annuity Reserve Fund.

(12)  The Board of Trustees may transfer annually from the Pension Accumulation Fund to the Expense Fund a sum not to exceed one and one-half percent of the total assets of the system as shown by the balance sheet at the end of the last fiscal year.

E.  Expense fund.  The Expense Fund shall be the fund from which the expenses of the retirement system shall be paid, exclusive of amount payable as retirement allowances and other benefits provided therein.  Contributions shall be made to the Expense Fund as follows.  The Board of Trustees shall determine annually the amount required to defray such expenses for the ensuing fiscal year and shall have the right to transfer the amount required to defray the cost of expenses of administration from the amount transferred from the Pension Accumulation Fund.

F.  Collections of contributions.  (1)  The collection of members' contributions shall be as follows:

(a)  The Port Commission shall cause to be deducted on each and every payroll of a member for each and every payroll period subsequent to the date of establishment of the retirement system the contributions payable by such member as provided in this Subpart.

(b)  The Treasurer, or other officer authorized to issue warrants, shall make deductions from salaries of members as provided in this Subpart, and shall transmit monthly the amount specified to be deducted to the Secretary-Manager of the Board of Trustees.  The Secretary-Manager of the Board of Trustees after making a record of all such receipts shall deposit them in a bank or banks selected by the Board of Trustees.

(2)  The collection of employers' contributions, if and when assessed or required, shall be as follows.  Upon the basis of each actuarial valuation provided herein, the Board of Trustees shall annually prepare a statement of the total amount necessary for the ensuing fiscal year to the Pension Accumulation and Expense Funds as provided under Subsections D and E of this Section.

Designated from Acts 1971, No. 71, §10 by Acts 1991, No. 74, §3, eff. June 25, 1991; Acts 2008, No. 493, §1, eff. July 1, 2008.