The Louisiana School Employees’ Retirement System (LSERS) ended the 2012-13 fiscal year on June 30 with an increase of $89.4 million in its valuation of assets equating to an actuarial value of 12.04%, which exceeded the 7.50% assumed rate of return. The projected DROP rate is 11.54% for those in the old DROP program (eligible for DROP or IBRP retired before 1/1/2004). Additionally, the system’s funded ratio rose from 61.6% to 62.1%. These are all positive results of a good year.
Now the not-so-good news. The system’s total active membership count dropped for the fourth consecutive year which has a negative impact on the employer contribution rate when applied to the fixed dollar unfunded accrued liability (UAL) amortization payment and then expressed as a percentage of payroll. The Board of Trustees approved the proposed employer contribution rate of 35.4% for FY 2014-15 as recommended by the system’s actuary. This recommendation will go before the Public Retirement Systems’ Actuarial Committee (PRSAC) in early 2014 for approval and, unless the legislature adopts changes, this will be the employer’s contribution rate for 2014-15. LSERS will notify all employers of the approval after the PRSAC meeting.
If you have any questions, contact Carolyn N. Forbes, Assistant Director, at 225.925.6490 or cforbes@lsers.net.
