RS 1733 - Agreement for coverage of employees of incorporated cities, towns, villages and tax boards or commissions
A. Each incorporated city, town, or village or tax board or commission of a municipality or parish is hereby authorized to submit for board approval an agreement for extending the benefits of this Chapter to its employees. Each such agreement or amendment thereof shall be approved by the board if it is in conformity with the rules of the board, the requirements of this Chapter, and applicable state laws. Each agreement shall:
(1) Specify the particular plan of the system in which the employer wishes to enroll.
(2) Designate the classes of employees to be enrolled and certify that such employees meet the membership criteria of this Chapter.
(3) Specify that all eligible employees shall become members in this system on the agreement date and all future employees shall become members as a condition of employment.
(4) Certify all periods of employment for each employee and specify the extent to which credit for such prior service shall be granted.
(5) Provide as an attachment to the agreement, and at the employer's expense, an actuarial study of the total existing accrued liability.
(6) Provide for payment to the system at time of enrollment, of an amount to be determined by the board in accordance with its funding philosophy, to offset the increase in accrued liability to the system.
(7) Specify the source or sources from which the funds necessary to make the payments required by this Chapter are expected to be derived, that such sources will be adequate for such purpose, and that all contributions required by this Chapter shall be collected and remitted to the system.
(8) Certify, if enrollment is to be in Plan A, that the employer has officially terminated its agreement with the Department of Health, Education and Welfare for employee coverage under the Social Security Act, except as noted in R.S. 11:1734, or agrees not to apply for such coverage.
(9) Provide for the appointment of an authorized agent.
(10) Provide that the authorized agent will make such reports, in such form, containing such information, as the board may from time to time require, and comply with such provisions as the board may find necessary to assure the correctness and completeness of such reports.
(11) Authorize the board to terminate the plan in its entirety if it finds a failure to comply substantially with any provision contained in such plan, such termination to take effect at the expiration of such notice and on such conditions as provided by the board.
B. The board shall not finally refuse to approve an agreement submitted under Subsection A of this Section, and shall not terminate an agreement, without reasonable notice and opportunity for hearing to each employer affected thereby.
C.(1) Each employer as to which a plan has been approved under this Section shall pay into the contribution fund, with respect to earnings, at such time or times as the board may by regulation prescribe, contributions in the amounts and at the rates prescribed by the board as set forth in Parts III and IV of this Chapter.
(2) Except as provided in R.S. 11:143 and notwithstanding any other provision of law to the contrary, employer contributions shall not be returned, refunded, transferred, or rolled over to any employee or employer or to any retirement system, plan, or fund.
D. Every employer required to make payments pursuant to Subsection C of this Section, is authorized, in consideration of the employees' membership service, to impose upon its employees, as to services which are covered by an agreement, a contribution with respect to earnings as set forth in Parts III and IV of this Chapter and to deduct the amount of such contribution from earnings as and when paid. Contributions so collected shall be paid into the appropriate fund in partial discharge of the liability of such employer. Failure to deduct such contribution shall not relieve the employee or employer of liability thereof.
E. Delinquent payments due pursuant to Subsection C of this Section, may, with interest at the system's actuarial valuation rate compounded annually, be recovered by action in a court of competent jurisdiction against the employer liable therefor or shall, upon due certification of delinquency and at the request of the board, be deducted from any other monies payable to such employer by any department or agency of the state.
F.(1)(a) Notwithstanding any other provision of law, if an employer terminates its agreement for coverage of its employees, the employer shall remit that portion of the unfunded accrued liability existing on June thirtieth immediately prior to the date of termination which is attributable to the employer's participation in the system.
(b) Notwithstanding any other provision of law, if an employer eliminates an employee position or class of positions covered by this system by contracting with a private entity for the work formerly done by employees in eliminated positions, the employer shall remit that portion of the unfunded accrued liability existing on June thirtieth immediately prior to the date of privatization which is attributable to the eliminated position or class of positions.
(c)(i) Except as provided in Item (ii) of this Subparagraph and notwithstanding any other provision of law to the contrary, if an employer eliminates any position from system coverage, the employer shall remit that portion of the unfunded accrued liability existing on the June thirtieth immediately prior to the date of elimination which is attributable to the eliminated position.
(ii) If a position is eliminated from system coverage because the person occupying the position is laid off or if a vacant position is eliminated from system coverage, no payments pursuant to Item (i) of this Subparagraph shall be due; provided, however, that if any new position is established or an eliminated position is reestablished and the person employed to fill that position does not become a member of this system, the payments required by Item (i) of this Subparagraph shall be calculated and remitted as though the position had been eliminated from system coverage.
(2) When an employer terminates its agreement for coverage of its employees or eliminates a position or class of positions from system coverage for any reason, this system shall notify each other Louisiana state and statewide retirement system. If that employer enrolls an employee or class of employees in a system that received notice of termination or elimination from this system, that other system shall notify this system of the enrollment within fifteen days.
(3) The amount due shall be determined by the actuary employed by the system using the entry age normal funding method and shall either be paid in a lump sum or amortized over ten years in equal monthly payments with interest at the system's actuarial valuation rate in the same manner as regular payroll payments to the system, at the option of the employer.
(4) Should the employer fail to make a payment timely, the amount due shall be collected in the same manner as authorized by Subsection E of this Section and R.S. 11:1864.
Acts 1978, No. 788, §1; Redesignated from R.S. 33:7153 by Acts 1991, No. 74, §3, eff. June 25, 1991; Acts 2008, No. 397, §1, eff. June 30, 2008; Acts 2009, No. 68, §1, eff. July 1, 2009; Acts 2018, No. 110, §1, eff. May 11, 2018; Acts 2018, No. 112, §1, eff. July 1, 2018; Acts 2020, No. 298, §1.