2015 Louisiana Laws
Revised Statutes
TITLE 11 - Consolidated Public Retirement
RS 11:2225.4 - Unfunded accrued liability; payment by employer

§2225.4. Unfunded accrued liability; payment by employer

            A.(1) If any employer participating in the system dissolves its police department and contracts for police services with another entity, the employer shall remit to the system, as further provided in this Subsection, that portion of the unfunded accrued liability existing on the June thirtieth immediately prior to the date of dissolution of the police department, attributable to such employer. The amount due pursuant to the provisions of this Paragraph shall include interest at the system's valuation interest rate.

            (2) If a participating employer does not dissolve its police department but the salaries upon which contributions are made by an employer to the system for a fiscal year are less than seventy percent of the salaries upon which contributions were made to the system for the employer's immediately prior fiscal year, then the employer shall be deemed to have partially dissolved its police department and shall be liable for a pro rata portion of the system's unfunded accrued liability. The portion shall be calculated by applying the percentage decrease in the employer's fiscal year over fiscal year salaries upon which contributions are made to the total payment that would have been required pursuant to the provisions of Paragraph (1) of this Subsection if the employer had dissolved its police department. Payments required pursuant to the provisions of this Paragraph shall include interest at the system's valuation interest rate.

            B. Any amount due pursuant to Subsection A of this Section shall be determined by the actuary employed by the system and shall be paid either in a lump sum or amortized over ten years in equal monthly payments with interest at the system's valuation interest rate in the same manner as regular payroll payments to the system, at the option of the employer.

            C. If an employer fails to make a payment timely, the amount due shall be collected in any of the following manners:

            (1) By action in a court of competent jurisdiction against the delinquent employer. The amount due shall include interest calculated at the system's actuarial valuation rate, compounded annually.

            (2) The board may certify to the state treasurer all amounts attributable to the delinquent employer. In support of such certification, the board shall submit to the treasurer a resolution certifying the name of the delinquent employer, its failure to pay, and the amount owed and shall name a designee or designees to act on the board's behalf. Upon receipt of such certification, the treasurer shall deduct from monies payable to the certified delinquent party the certified amount due and shall remit such deducted amounts directly to the Municipal Police Employees' Retirement System.

            D. For the purposes of this Section, the term "employer" shall have the same meaning as provided in R.S. 11:2213 and shall include any municipality that terminates participation in the system by dissolving its police department pursuant to Subsection A of this Section.

            Acts 2015, No. 43, §1, eff. June 5, 2015.