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Funding Review Panel

Recommendations

 

Recommendation No. 1: The Funding Review Panel recommends to the Louisiana legislature that the Commissioner of Administration and the Treasurer as well as two mayors selected as provided by the legislature be added to the board of trustees for the Municipal Police Employees' Retirement System.

Recommendation No. 2: The Funding Review Panel hereby recommends to the legislature that the boards of trustees of the Municipal Police Employees' Retirement System and the Firefighters' Retirement System be granted the authority and discretion to maintain employer contributions at the existing level in any year in which the net actuarially-required contribution would otherwise function to reduce the rate, with the additional funds to be applied to reduce the system's unfunded accrued liability. The Panel further recommends that the boards be allowed to exercise this authority only up to a rate of 15%.

Recommendation No. 3: The Funding Review Panel hereby recommends to the Louisiana legislature that, for employees whose earned compensation is above the poverty level as determined by the United States Department of Labor, the fixed employee contribution rate specified in R.S. 11:62 or in other provisions of law be replaced with a range of permissible employee rates, as follows:

(1) The Firefighters' Retirement System fixed employee contribution rate of 8.0% of pay shall be replaced with a range between 8.0% and 10.0%.

(2) The Municipal Police Employees' Retirement System fixed employee contribution rate of 7.5% of pay shall be replaced with a range between 7.5% and 10.0%

The employee rates shall fluctuate in one-quarter increments in conjunction with changes in the actuarially-required employer contribution rate as provided by the police system actuary, Charles Hall, in his letter of February 23, 2011. (Attached.)

Recommendation No. 4: The Funding Review Panel hereby recommends to the Louisiana legislature that the Funding Review Panel continue. The Panel further recommends that the Proposals on which the Panel has not acted be subject to further consideration by the Panel at some future date. (Agenda with Proposals attached.)

Recommendation No. 5: The Funding Review Panel hereby recommends to the Louisiana legislature that all active members of the three municipal retirement systems be subject to a fifteen percent anti-spiking provision beginning July 1, 2011.

 

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Baton Rouge, Louisiana.