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            A.(1) Effective July 1, 2004, the balance in the experience account shall be zero.

            (2) Effective June 30, 2009, the balance in the experience account shall be zero. Any funds in the account on June 29, 2009, shall be allocated in the following order:

            (a) To provide for any net investment loss attributable to the balance in the account as provided in Subparagraph (B)(3)(a) of this Section.

            (b) To fund any permanent benefit increase or minimum benefit pursuant to Act 144 of the 2009 Regular Session of the Legislature.

            (c) To apply to the experience account amortization base as provided in La. Rev. Stat. 11:102.2(C)(2); however, as of June 30, 2009, these funds shall be transferred to the system’s Texaco Account and retained in a subaccount of that account until that account is applied as provided in La. Rev. Stat. 11:102.2. The subaccount shall continue to be credited and debited as provided in this Section until such application.

            B.(1) Effective for the June 30, 2015, valuation, the system’s funded percentage for purposes of this Section shall be determined before any allocation to the experience account.

            (2) The experience account shall be credited as follows:

            (a) To the extent permitted by Subparagraph (c) of this Paragraph and after allocation to the amortization bases as provided in La. Rev. Stat. 11:102.2, an amount not to exceed fifty percent of the remaining balance of the prior year’s net investment experience gain as determined by the system’s actuary.

            (b) To the extent permitted by Subparagraph (c) of this Paragraph, an amount not to exceed that portion of the system’s net investment income attributable to the balance in the experience account during the prior year.

            (c) In no event shall a credit be made to the account that would cause the balance in the experience account to exceed the reserve necessary to grant:

            (i) Two permanent benefit increases determined pursuant to Subsection D of this Section if the system is at least eighty percent funded.

            (ii) One permanent benefit increase as determined pursuant to Subsection D of this Section if the system is less than eighty percent funded.

            (d) If the system is less than eighty percent funded and the account has reserves in excess of the amounts provided for in Item (c)(ii) of this Paragraph, no amount shall be credited to the account.

            (3) The experience account shall be debited as follows:

            (a) An amount equal to that portion of the system’s net investment loss attributable to the balance in the experience account during the prior year.

            (b) An amount sufficient to fund a permanent benefit increase granted pursuant to the provisions of this Section.

            (c) In no event shall the amount in the experience account fall below zero.

            C. In accordance with the provisions of this Section, the board of trustees may recommend to the president of the Senate and the speaker of the House of Representatives that the system be permitted to grant a permanent benefit increase to retirees and beneficiaries whenever the conditions in this Section are satisfied. The board of trustees shall not grant a permanent benefit increase unless such permanent benefit increase has been approved by the legislature.

             D.(1) No increase shall be granted if one or more of the following apply:

            (a) The system is less than fifty-five percent funded.

            (b) The system is at least fifty-five percent funded but less than eighty-five percent funded and the legislature granted a benefit increase in the preceding fiscal year.

            (c) The system is less than eighty percent funded and the system fails to earn an actuarial rate of return which exceeds the board-approved actuarial valuation rate.

            (2) Any increase granted pursuant to the provisions of this Section shall begin on the July first following legislative approval, shall be payable annually, and shall equal the amount required pursuant to Subparagraph (a) or (b) of this Paragraph. If the balance in the experience account is not sufficient to fully fund that sum on an actuarial basis as determined by the system actuary in agreement with the legislative auditor’s actuary, no increase shall be granted. The increase shall be an amount equal to the lesser of:

            (a) The increase in the consumer price index, U.S. city average for all urban consumers (CPI-U), as prepared by the U.S. Department of Labor, Bureau of Labor Statistics, for the twelve-month period ending on the system’s valuation date, if any.

            (b)(i) Three percent if the system is at least eighty percent funded and the system earns an actuarial rate of return of at least eight and one-quarter percent interest on the investment of the system’s assets.

            (ii) Two and one-half percent, if all of the following apply:

            (aa) The system is at least seventy-five percent funded but less than eighty percent funded.

            (bb) The system earns an actuarial rate of return of at least eight and one-quarter percent interest on the investment of the system’s assets.

            (cc) The legislature has not granted a benefit increase in the preceding fiscal year.

            (iii) Two percent, if either of the following applies:

            (aa) The system is at least sixty-five percent funded but less than seventy-five percent funded and the legislature has not granted a benefit increase in the preceding fiscal year.

            (bb) The system is at least seventy-five percent funded and the system does not earn an actuarial rate of return of at least eight and one-quarter percent interest on the investment of the system’s assets.

            (iv) One and one-half percent, if the system is at least fifty-five percent funded but less than sixty-five percent funded and the legislature has not granted a benefit increase in the preceding fiscal year.

            (3) The percentage of each recipient’s permanent benefit increase shall be based on the benefit being paid to the recipient on the effective date of the increase.

            (a) Any such permanent benefit increase granted on or before June 30, 2015, shall be limited to and shall be payable based only on an amount not to exceed seventy thousand dollars of the retiree’s annual benefit. The seventy-thousand-dollar limit shall be increased each year in an amount equal to any increase in the CPI-U for the preceding year.

            (b) Any such permanent benefit increase granted on or after July 1, 2015, shall be limited to and shall be payable based only on an amount not to exceed sixty thousand dollars of the retiree’s annual benefit. Effective on or after July 1, 2015, the sixty-thousand-dollar limit shall be increased each year in an amount equal to any increase in the CPI-U for the twelve-month period ending on the system’s valuation date.

            (4)(a) Notwithstanding any provision of this Section to the contrary, in a year in which the experience account balance is insufficient to fund the amount required pursuant to Paragraph (2) of this Subsection, the board may make the recommendation provided in Subsection C of this Section if all of the following conditions are satisfied:

            (i) No benefit increase was granted in the preceding fiscal year.

            (ii) The experience account balance established in the system valuation for the preceding fiscal year reached its maximum reserve permitted pursuant to Subparagraph (B)(2)(c) of this Section applicable to the system valuation for that valuation year.

            (iii) The experience account balance established in the system valuation for the current fiscal year is insufficient to fund the increase permitted pursuant to Paragraph (2) of this Subsection applicable to the system valuation for the preceding fiscal year.

            (iv) All of the insufficiency in the account is attributable to the following:

            (aa) The growth of the cost of the increase, but only if that growth was produced solely by either or both of these events:

            (I) Changes in the pool of the eligible recipients.

            (II) The growth in the benefit amount to which the increase applies due to the application of the CPI-U pursuant to the provisions of Paragraph (3) of this Subsection.

            (bb) The insufficiency of credits to the account, if any, to cover the growth in the cost of the increase.

            (b) The amount of the increase shall be equal to the amount that the balance in the experience account will fully fund rounded to the nearest lower one-tenth of one percent.

             E.(1)(a) Except as provided in Subparagraph (c) of this Paragraph, in order to be eligible for any permanent benefit increase payable on or before June 30, 2009, there must be the funds available in the experience account to pay for such an increase, and a retiree:

            (i) Shall have received a benefit for at least one year.

            (ii) Shall have attained at least age fifty-five.

            (b) Except as provided in Subparagraph (c) of this Paragraph, a nonretiree beneficiary shall be eligible for the permanent benefit increase payable on or before June 30, 2009:

            (i) If benefits had been paid to the retiree or the beneficiary, or both combined, for at least one year.

            (ii) In no event before the retiree would have attained age fifty-five.

            (c) The provisions of Items (a)(ii) and (b)(ii) of this Paragraph shall not apply to any person who receives disability benefits from this system, or who receives benefits based on the death of a disability retiree of this system.

            (2)(a) Except as provided in Subparagraph (c) of this Paragraph, in order to be eligible for any permanent benefit increase payable on or after July 1, 2009, there shall be the funds available in the experience account to pay for such an increase, and a retiree:

            (i) Shall have received a benefit for at least one year.

            (ii) Shall have attained at least age sixty.

            (b) Except as provided in Subparagraph (c) of this Paragraph, a nonretiree beneficiary shall be eligible for the permanent benefit increase payable on or after July 1, 2009:

            (i) If benefits had been paid to the retiree or the beneficiary, or both combined, for at least one year.

            (ii) In no event before the retiree would have attained age sixty.

            (c) The provisions of Items (a)(ii) and (b)(ii) of this Paragraph shall not apply to any person who receives disability benefits from this system, or who receives benefits based on the death of a disability retiree of this system.

            F.(1) The first normal permanent benefit increase shall be effective July 1, 1999.

            (2) The actuarial cost of implementing the provisions of Act 1162 of the 2001 Regular Session of the Legislature shall be paid by debiting the experience account which shall have the funds available in the experience account to pay for such an increase.

            (3) On December 1, 2001, the board of trustees shall grant a one-time cost-of-living adjustment to:

            (a) Each retiree who had twenty-five years of service credit, exclusive of unused leave, or a disability retiree regardless of the number of years of service credit, and had been receiving a benefit for at least fifteen years on December 1, 2001.

            (b) Each nonretiree beneficiary receiving a benefit on December 1, 2001, if the deceased member had twenty-five years of service credit exclusive of unused leave, or was a disability retiree regardless of the number of years of service credit, and the retiree and nonretiree beneficiary, or both combined, had received a benefit for at least fifteen years.

            (c) The one-time adjustment payable to each recipient shall equal an amount up to but not exceeding two hundred dollars a month, but the total monthly benefit of any such recipient resulting from this adjustment shall not exceed one thousand dollars.

            G.(1) Effective for the system valuation in which the original amortization base established in La. Rev. Stat. 11:102.2 is liquidated, after the experience account is credited and debited in accordance with Subsection B of this Section, the remaining balance in the experience account shall be allocated to the PBI account established pursuant to La. Rev. Stat. 11:883.5, and the experience account balance shall be zero.

            (2) After the allocation of funds provided for in Paragraph (1) of this Subsection, the provisions of this Section shall terminate.

            H. Repealed by Acts 2016, No. 95, §2, eff. June 30, 2016.

            Acts 1992, No. 1031, §1, eff. July 1, 1992; Acts 1999, No. 402, §1; Act 2001, No. 1162, §1, eff. July 1, 2001; Act 2001, No. 1172, §1; Acts 2004, No. 588, §1, eff. June 30, 2004; Acts 2009, No. 497, §§1 & 3, eff. June 30, 2009; Acts 2012, No. 483, §1, declared unconstitutional by La. Supreme Court; HCR 2 of the 2013 R.S., eff. May 23, 2013; Acts 2014, No. 399, §1, eff. June 30, 2014; Acts 2016, No. 95, §§1, 2, eff. June 30, 2016; Acts 2023, No. 184, §1, eff. June 8, 2023.