Louisiana Revised Statutes 11:927 – A. Each participant shall contribute monthly to the optional retirement plan the same amount which he would be required to contribute to the regular retirement plan of the Teachers’
Terms Used In Louisiana Revised Statutes 11:927
- Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
- Contract: A legal written agreement that becomes binding when signed.
- Earnable compensation: means the compensation earned by a member during the full normal working time as a teacher. See Louisiana Revised Statutes 11:701
- Employer: means the state of Louisiana, any city, parish, or other local school board, the State Board of Elementary and Secondary Education, any board created by La. See Louisiana Revised Statutes 11:701
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- Fiscal year: means the period beginning July first of any year and ending June thirtieth of the next succeeding year. See Louisiana Revised Statutes 11:701
- Internal Revenue Code: means the United States Internal Revenue Code of 1986, as amended. See Louisiana Revised Statutes 11:701
- Member: means any teacher included in the membership of the system as provided in Part II of this Chapter. See Louisiana Revised Statutes 11:701
- Retirement: means withdrawal from active service with a retirement allowance granted under the provisions of this Chapter. See Louisiana Revised Statutes 11:701
- Retirement system: means the Teachers' Retirement System of Louisiana as defined in La. See Louisiana Revised Statutes 11:701
- Service: means service as a teacher within the meaning of Paragraph (33) of this Section. See Louisiana Revised Statutes 11:701
A. Each participant shall contribute monthly to the optional retirement plan the same amount which he would be required to contribute to the regular retirement plan of the Teachers’ Retirement System of Louisiana if he were a member of that retirement plan. Participant contributions may be made by employer pick-up in accordance with the provisions of Section 414(h)(2) of the United States Internal Revenue Code or any amendment thereto. The entirety of each participant’s contribution, less any monthly fee established by the board to cover the cost of administration and maintenance of the optional retirement plan, shall be remitted to the appropriate designated company or companies for application to the participant’s contract or contracts.
B.(1) Prior to July 1, 2014, each employer institution and board shall contribute to the Teachers’ Retirement System of Louisiana on behalf of each participant in the optional retirement plan the same amount it would have contributed if the participant had been a member of the regular retirement plan of the Teachers’ Retirement System of Louisiana. Upon receipt of this contribution, the Teachers’ Retirement System of Louisiana shall promptly pay over to the appropriate designated company or companies an amount equal to the employer’s portion of the normal cost contribution as determined annually by the Public Retirement Systems’ Actuarial Committee, this amount to be credited to the participant’s contract or contracts. The Teachers’ Retirement System of Louisiana shall retain the balance of this contribution for application to the unfunded accrued liability of the system.
(2)(a) Beginning July 1, 2014, and continuing through Fiscal Year 2017-2018, each higher education board created by La. Const. Art. VIII of Louisiana and each employer institution and agency under its supervision and control shall contribute to the Teachers’ Retirement System of Louisiana on behalf of each participant in the optional retirement plan the sum of:
(i) The amounts calculated pursuant to La. Rev. Stat. 11:102(D)(6)(b), (c), and (d).
(ii) An amount equal to or greater than the equivalent of the employer’s portion of the normal cost contribution of the regular retirement plan.
(b) Beginning July 1, 2018, each higher education board created by La. Const. Art. VIII of Louisiana and each employer institution and agency under its supervision and control shall contribute to the Teachers’ Retirement System of Louisiana on behalf of each participant in the optional retirement plan the sum of:
(i) The amounts calculated pursuant to La. Rev. Stat. 11:102(D)(6)(b), (c), and (d).
(ii) An amount not less than six and two-tenths percent of pay.
(c) Each board shall establish the amount provided pursuant to Items (2)(a)(ii) or (b)(ii) of this Paragraph by resolution. The amount established shall be the same for all employer institutions and agencies under each board’s supervision and control and shall be effective for an entire fiscal year.
(d) For fiscal year 2014-2015, each board shall submit to the retirement system such resolution no later than July 15, 2014, in order for an amount established pursuant to this Subsection to become effective. For each fiscal year thereafter, the system shall receive such resolution no later than June first in order for a new rate to become effective for the next fiscal year. If the system does not receive a resolution containing a contribution amount by the required deadline, the system shall apply the most recent contribution amount paid by such board or employer institution.
(e) Upon receipt of this contribution, the Teachers’ Retirement System of Louisiana shall promptly pay over to the appropriate designated company or companies an amount equal to the amount established by the applicable board pursuant to Items (2)(a)(ii) or (b)(ii) of this Paragraph.
(f) All amounts paid over to the appropriate designated company or companies pursuant to this Paragraph shall be credited to the participant’s contract or contracts. The Teachers’ Retirement System of Louisiana shall retain the balance of this contribution for application to the unfunded accrued liability of the system.
(3)(a) Beginning July 1, 2014, for each employer that is not a higher education board created by La. Const. Art. VIII of Louisiana or an employer institution under the supervision and control of such a board, each such employer institution and board shall contribute to the Teachers’ Retirement System of Louisiana on behalf of each participant in the optional retirement plan the greater of:
(i) The amount it would have contributed if the participant were a member of the regular retirement plan of the Teachers’ Retirement System of Louisiana pursuant to La. Rev. Stat. 11:102(D)(3).
(ii) The sum of the amounts calculated pursuant to La. Rev. Stat. 11:102(D)(6)(b), (c), and (d) plus six and two-tenths percent of pay.
(b) Upon receipt of this contribution, the Teachers’ Retirement System of Louisiana shall promptly pay over to the appropriate designated company or companies an amount equal to:
(i) The employer’s portion of the normal cost contribution as determined annually by the Public Retirement Systems’ Actuarial Committee if payment is remitted pursuant to Item (3)(a)(i) of this Paragraph.
(ii) Six and two-tenths percent of pay if payment is remitted pursuant to Item (3)(a)(ii) of this Paragraph.
(c) All amounts paid over to the appropriate designated company or companies pursuant to this Paragraph shall be credited to the participant’s contract or contracts. The Teachers’ Retirement System of Louisiana shall retain the balance of the contribution for application to the unfunded accrued liability of the system.
C. Notwithstanding the provisions of Subsections A and B of this Section, the Teachers’ Retirement System of Louisiana shall not remit any funds or contributions to any company or companies from an employer institution or board until the correct and total amount, rounded to the nearest dollar amount, to be remitted to the Teachers’ Retirement System of Louisiana under Subsections A and B of this Section is received each month from the employer institution or board.
D. If a participant first became eligible for membership in the Teachers’ Retirement System of Louisiana, or this Optional Retirement Plan, on or after July 1, 1996, the contributions remitted by the Teachers’ Retirement System of Louisiana to any authorized company shall not be based upon compensation in excess of the annual limit of Section 401(a)(17) of the United States Internal Revenue Code as amended and revised.
E. Effective January 1, 2009, to the extent required by 26 U.S.C. § 414(u)(12), any differential wage payment, as defined by 26 U.S.C. § 3401(h)(2), of which is made by any employer to any individual performing qualified military service shall be treated as earnable compensation for purposes of applying the limits on annual additions under 26 U.S.C. § 415(c), and any participant of the optional retirement plan shall be treated as an employee of the employer making such payment.
Acts 1989, No. 90, §1; Acts 1991, No. 836, §1, eff. July 1, 1991; Redesignated from La. Rev. Stat. 17:777 by Acts 1991, No. 74, §§3 and 5, eff. June 25, 1991; Acts 1995, No. 586, §1, eff. July 1, 1995; Acts 1998, 1st Ex. Sess., No. 88, §1, eff. July 1, 1998; Acts 2012, No. 510, §1, eff. July 1, 2012; Acts 2014, No. 607, §1, eff. June 30, 2014; Acts 2016, No. 95, §1, eff. June 30, 2016.
NOTE: See Acts 2014, No. 607, §2, relative to funding the increased contributions provided for in this Section.