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Legislative Update

The 2015 Regular Legislative Session is in full swing.  While most of the focus of this session remains on how the budget will come together, LSERS is closely monitoring all bills which would affect the system and its members (active and retirees). 
 
  • SB16 by Chairman Guillory provides clarification of administration and actuarial implications of the elements of ACT 399 of the 2014 Session (COLA reform). The Board voted to Support this bill and it is making its way through the process.
  • SB14 by Chairman Guillory requires payment of administrative expenses annually rather than amortization of such costs. The Board took a Neutral position on this bill and it looks to have stalled out in the Senate Committee on Retirement as it was voluntarily deferred in committee.
  • HB11 by Rep. Price would have provided exceptions to the required payment of unfunded accrued liability resulting from privatization of positions.  The Board took No Position on this bill.  Instead, the Board instructed LSERS staff to work with the author on some language which may be acceptable.  The bill was voluntarily deferred by Rep. Price during the committee hearing.  This bill has now evolved into HCR130 which requests LSERS and the Louisiana School Boards Association (LSBA) to develop an appeals process for audits of privatized positions.
  • HB42 by Rep. Jones authorizes a maximum 1.5% COLA for eligible retirees to be paid out of the experience account.  The Board took No Position on this bill and again instructed staff to work with the author to determine the best possible result for our system and retirees.  This bill was first heard in the House Committee on Retirement where it failed to pass.  However, Rep. Jones urged the house to direct the committee to report the bill by May 14th.  The body voted in favor of this motion. On May 14, 2015, the House Committee on Retirement met and reported the bill unfavorably.   The House passed HB 42 with a vote of 80 - 20, it now awaits a hearing in the Senate Committee on Retirement.
For the latest on the bills affecting LSERS see the Legislation page on www.lsers.net.
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Audited Employer Net Pension Allocation Reports have been posted to the LSERS website
 

GASB 68 is effective for LSERS participating employers for the fiscal year beginning after June 15, 2014.  The new standard requires employers to recognize their portion of the net pension liability on their financial statements. 
 
To find your portion of the net pension liability, go to our website www.LSERS.net under Resources> Publications>Annual Reports.  Questions about how to report the employer’s share of the net pension liability should be directed to your financial auditors.  Contact our chief financial officer, Melinda Carson, at 225.925.6491 or via email at mcarson@lsers.net if you have questions about LSERS’ audited reports posted on the website.
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  Privatization Cost Calculations    
 

If your school board has decided to or is considering privatizing positions of bus drivers or custodial and maintenance staff, we encourage you to notify LSERS of the approaching privatization date and request a cost calculation before privatization occurs.  By paying the total privatization liability before you privatize the positions your school board would eliminate the interest payments which are required pursuant to R.S. 11:1195.1. 
 
This can be illustrated through this brief example: On 2/1/2015, a school board privatized a group of LSERS-eligible positions with a total annual salary amount of $175,000. The privatization cost will be $514,532 if the school board paid the balance in full on or before the date of privatization. However, if the school board privatized exactly the same group of positions on the same date and waited four months, until 6/1/2015, to pay the balance in full, the total privatization cost will be $526,678. This equates to a $12,146 increase in the payment amount due solely to accumulated interest.
 
The Privatization Fact Sheet 22 is available on LSERS website for more information.  If you have any questions, contact Carolyn Forbes at 225.925.6490 or cforbes@lsers.net.
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Year End Closeout Review and Procedures

If you missed the webinar titled Year End Closeout Review, an encore presentation is scheduled for June 1, 2015.  If you would like to register for an encore webinar and cannot locate the original invitation, please email webmaster@lsers.net for another invitation.

Year End Closeout procedures discussed in the webinar are listed below.


 
Contribution Exception Report Online

Employer Charges Payments Report

Employer Statement

Termination Online

Contribution Corrections Report (CCR) Online (Webinar)

Enrollment Online
 
All exceptions and reporting of salaries and contributions for fiscal year 2014-15 must be cleared and submitted prior to the deadline of July 24, 2015.  All exceptions should be addressed, however, we ask that you prioritize those members who have pending applications.  Any changes to a person’s actual earnings, after a fiscal year is closed, will necessitate you completing a PYC (prior year correction) for those persons.  In addition, if additional contributions are required you will be responsible for those monies.
 
If you have any questions, please contact Chenfei Zhou 225.925.6492, czhou@lsers.net or Kim Stewart 225.925.4411, kstewart@lsers.net
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Disregard Retiree Return-to-Work Exceptions at This Time
 

Retiree return-to-work (RTW) online enrollment and reporting will be effective July 1, 2015.  You may have noticed on your exception reports that there are some exceptions when looking for salary and contributions on the RTW accounts. At this time please disregard these exceptions as LSERS staff will be addressing these before July 1.
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Return-to-Work Retirees Online Enrollment and Form 15, Salary Reporting Webinars

As we announced in our March eNews, employers will begin enrolling return-to-work retirees online through LSERSWeb effective July 1, 2015.  This applies to both retiree groups (earnings limit and certified shortage of full-time bus drivers).  The online enrollment will replace the paper Form 15N for both retiree groups.  Also, the Form 15 used for monthly reporting of salary earned by those under earning limits will be replaced with online reporting.  This change for reporting purposes will only affect the earnings limit retirees where their salaries are currently submitted by Form 15 on a monthly basis. 
 
 
Our Education Division will be conducting webinars in the upcoming months.  Start planning now to attend one of these webinars:
           
            Friday, 6/5/2015 at 10:30 AM and 3:00 PM
            Tuesday, 6/23/2015 at 10:30 AM and 3:00 PM


 
If you have any questions about the upcoming webinars, contact Patty Traylor at 225.287.7493 or ptraylor@lsers.net or if you have questions about this new process, contact Chenfei Zhou at 225.925.6492 or czhou@lsers.net
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Salary Contribution Reports

Salaries and contributions reported are uploaded through our website by all employers.  As a result of these advancements in technology and efficiency, paper Salary Contribution Reports (formerly known as checklists) do not need to be sent to LSERS thereby saving employers time, paper and postage expense. 
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Revised Form

A revised Form 9IO – Application for Purchase of Out-of-State or Private Employment has been posted to LSERS website.
 
The following revisions were made: 
  1. Title change to include out-of-state and private employment; in-state should be submitted on Form 9SB
  2. Removed notary information from Section 4

And, as always, we appreciate and welcome any and all comments, as this helps
us identify ways to make improvements for you and provide better service to our
members and employers. Feel free to provide feedback and suggestions using
the LSERS Satisfaction Survey on our "Contact Us" page on the LSERS website.

Copyright © 2015 Louisiana School Employees' Retirement System, All rights reserved.


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