Parochial Employees’
Retirement System
2014 Administrative Training
Who Is Eligible to Participate?
Mandatory participation for all full-time
permanent employees who work 28
hours or more per week
 Optional participation for 55 and older
with 40 quarters in Social Security

Age 55 Opt Out
Employees age 55 at date of hire who
also have 40 quarters of Social Security
coverage have an option to participate in
PERS
 Employee must make an election within
90 days of date of hire
 This is a one time irrevocable election
 Does not apply to rehired retirees

Eligibility of Elected Officials
Parish elected officials who are currently
enrolled are allowed to remain in the
plan
 Parish presidents, justices of the peace
and coroners are the only newly elected
officials able to enroll in PERS
 Contact our office with any questions
concerning elected officials

Earnable Compensation
Regular wages and overtime are
includable for purposes of retirement
contributions
 R.S. 11:1902 (11) provides the definition
of earnable compensation
 This definition specifically excludes fees
and commissions

Earnable Compensation – Cont’d
R.S. 11:233 B provides additional
exclusions from the definition of earnable
compensation
 Car allowances, lump sum payments for
annual and/or sick leave, bonuses, and
terminal leave pay are some of the
exclusions listed in this statute

Normal Retirement Provisions

Members hired prior to 1/1/07

Plan A
7 years and age 65
 10 years and age 60
 25 years and age 55
 30 years and any age


Plan B
7 years and age 65
 10 years and age 60
 30 years and age 55

Normal Retirement Provisions

For members hired 1/1/07 and later

Plan A and B
7 years and age 67
 10 years and age 62
 30 years and age 55

Benefit Estimates
An employer or the member can request
a written benefit estimate when the
member is within 3 years of retirement
eligibility
 All estimate requests must be submitted
in writing
 Only one estimate allowed in a 12 month
period

Submission of Proper Applications

Normal Retirement
Retirement Application
 Employer Request Form
 Copy of Member’s Birth Certificate
 Copy of Spouse’s Birth Certificate if
member chooses Opt. 2 or Opt. 3
 Maximum Affidavit if member chooses
Maximum benefits

Submission of Proper Applications

DROP
DROP Application
 Employer Request Form
 Copy of member’s birth certificate
 Copy of spouse’s birth certificate if member
chooses Opt. 2 or Opt. 3
 Maximum affidavit if member chooses
maximum

Submission of Proper Applications

Disability Retirement
Retirement Application
 Employer Request Form
 Copy of Member’s Birth Certificate
 Copy of Spouse’s Birth Certificate if
member chooses Opt. 2 or Opt. 3
 Maximum affidavit if member chooses
maximum benefits

Disability Applications – Cont’d
Disability Claim Form
 Disability Report by Supervisor and
Personnel Officer
 Copies of all medical records which
reference the disability

New Form Required

All applications for any form of monthly
benefit must utilize our new form which
requires both the retiree and spouse to
have their signatures witnessed by a
notary.
Leave Conversion
Members can convert unused & unpaid
sick and annual leave at normal
retirement or upon entry into DROP
 Leave cannot be used to acquire
eligibility
 Amount of service granted is calculated
by dividing the number of unused and
unpaid days by 260

Leave Conversion – Cont’d

Cost of leave conversion is currently part
of the employer contribution rate for
active members hired prior to 1/1/07.
For members hired 1/1/07 and later the
actuarial cost of leave conversion will be
paid by the employer at the time of the
member’s retirement
Overtime & LWOP
6 years of overtime earnings are
required when a member receives
overtime pay. Employers are
responsible for maintaining these
records.
 Send written notification of the exact
dates of leave without pay. This will
affect service credit and eligibility.

Retiree Return to Work
If a retiree returns to work on a full time
basis, his benefit will cease and he will
begin contributing to the retirement
system
 If a retiree returns to work in a part-time
capacity, the number or hours is limited
 480 hours per calendar year or 1,040
hours per calendar year if retired 3 or
more years and age 65

Actuarial Transfer of Service

If a member has service credit in another
state or statewide retirement system in
Louisiana, he can apply to transfer that
service once he has 6 months of service
credit in PERS. The same is true if a
former member of PERS wishes to
transfer our service to another state or
statewide retirement system.
Actuarial Transfer of Service
An Application for Actuarial Transfer of
Service must be filed with the system
that the member is actively contributing
to.
 This form can be found on our website.
 Application fee of $100 must accompany
the form

Employer Rates 2015

Employer rates have been set as follows
effective 1/1/2015:
Plan A = 14.50%
 Plan B = 9.00%
 PRSAC has met and has approved this
valuation.

What Can We Do to Control Costs?

Actuarial Equation
Contributions + Investment Earnings =
Benefits + Expenses
 The 3 major components in this equation
are contributions, investment earnings and
benefits.
 Expenses are a small part of the equation.
The cost of administering the system was
$46 per member during 2013

Cost Sharing Provisions
Implemented in 2010
SB 85 0f 2010 permits the Board to set
the employee contribution rate higher in
both Plan A and Plan B.
 This will allow for cost sharing if the
employer rate is scheduled to increase
from current levels.
 Employee rates will remain at 9.5% in
Plan A and 3% in Plan B for 2015

Cost Saving Measures Already In
Place
A new plan of benefits was put in place
for new employees hired 1/1/07 and later
 Provisions include:

Five year FAC
 Eligibility requirements changed:

7 years and age 67
 10 years and age 62
 30 years and age 55

Cost Savings - Continued
7 years of service required for disability
retirement. In addition, the definition of
disability was changed. A member must
be unable to perform any type of gainful
employment
 Actuarial cost of leave conversion will be
paid by each individual employer at the
time of the member’s retirement

Pension Changes Still Sweeping the
Country

Although changes are still being made to plans
across the country, the rate of change has
slowed
 States continue to make changes to employee
contribution rates and COLA provisions
 Cash balance plans or defined contribution
plans are still being considered as
substitutions for defined benefit plans
GASB 68
GASB 68 provides new accounting and
reporting rules for employers
 The new standard will require the
employer to report its proportionate
share of the liability of the pension plan
on its financial statements.
 Our actuary will calculate the
proportionate share for each participating
employer in PERS

GASB 68
This new standard also requires changes
to the note disclosures in the employer’s
financial statements. These will be
prepared by your auditors.
 This new standard takes effect for fiscal
years beginning in 2015.

GASB 67

GASB 67 revises financial reporting for
pension plans.
 Effective for fiscal years ending June 30, 2014
and calendar years ending December 31,
2014
 This statement will require the retirement
system to conduct a sampling of payroll audits
of participating employers to determine that
only eligible members are enrolled and that
salaries are being properly reported
Mandatory Social Security
In Louisiana, 72% of state and local
government employees are not covered
by Social Security
 Mandatory coverage is considered as a
revenue raiser for the Federal
Government
Mandatory Social Security
Mandatory coverage could surface as
part of an overall package designed to
make State and local governments
“reform” their pensions
Contact Your Congressman





Let your congressman know the number of
active members covered by our retirement
system
Our plans share costs between employee and
employer
Investment and longevity risks are pooled
Mandatory coverage will increase Social
Security’s liabilites
The Social Security Act of 1935 specifically
excluded state and local governments from
Social Security
Divided Referendum
Act 280 of 2004 allows a divided vote for
Medicare coverage for those employees
hired prior to 4/1/86 who currently do not
pay Medicare
 In order to receive Medicare Part A at no
cost, you must have 40 quarters of
Medicare coverage
 With at least 30 quarters, Medicare Part
A would cost $244 per month

Divided Referendum
With less than 30 quarters of Medicare
coverage, Medicare Part A would cost
$443 per month
 To conduct a divided referendum contact
Angie Dowdy at the State Treasurer’s
office: 225-342-0026

Distribution of Summary of Principal
Features
Our updated Summaries through the
2014 Legislative Session will be mailed
this month
 Sufficient copies for all active members
 Please distribute only to those covered
by PERS
 Copy of the current Summary located on
our website

Reporting Due Dates
Salary and contribution reports are due
on a quarterly basis. The due dates are
January 15, April 15, July 15 and
October 15
 Your report along with your check must
be received in our office on the due date.

Reporting Due Dates
If your report is not received in our office
by the deadline, the late penalty
assessed is 1.5% of the total remitted
 If you will be remitting close to the
deadline it may be cost effective to use
an overnight delivery service in order to
avoid the penalty:
 $12.95 is less than 1.5% of $200,000
($3,000)

Contact Info
Mailing address: P.O. Box 14619, Baton
Rouge, LA 70898
 Phone: 225-928-1361
 Fax: 225-923-0933
 Website: www.persla.org
