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Program A: State Aid

Program Authorization: Statutes Itemized Below; R.S. 11:101-103

PROGRAM DESCRIPTION

This state retirement system receives state aid for the following purposes:

1. Supplemental retiree payments provided by the following various legislative actions:

 

LEGISLATIVE ACTION

FISCAL YEAR 1999

R.S. 17:721-730 Supplemental Benefits for approximately 48 teachers under the provisions of Act 228 of 1944

$8,000

R.S. 17:719.1-.5 Supplemental Allowance for approximately 177 teachers under the provisions of Act 27 of 1957 as amended by Act 320 of 1960.

$40,000

R.S. 17:720.1-.5 Supplemental Allowance for approximately 363 teachers receiving benefits under the provisions of Act 440 of 1960.

$53,000

R.S. 17:711-717 Supplemental Allowance for approximately 62 teachers receiving benefits under Act 568 of 1952.

$9,000

R.S. 11:881 Supplemental Benefits for LSU - Cooperative Education retirees under the provisions of Act 74 of 1991 as amended by Act 676 of 1995

$755,288

TOTAL

$865,288

2. On January 1, 1979, all LSU employees became members of either Teachers' Retirement System or Louisiana State Employees Retirement System as provided by statute. The unfunded liability for service credit earned prior to July 1, 1971 (the date upon which the funded LSU Retirement System was established) remains a liability of the Board of Supervisors of LSU and Agricultural and Mechanical College. This program provides funding to pay retirement benefits to those: (1) former employees currently retired under the University Retirement Plan (unfunded); (2) former employees currently retired under the LSU Funded Retirement System having credited service prior to July 1, 1971, and who became members of the Teachers' Retirement System effective January 1, 1979; and (3) employees having credited service prior to July 1, 1971, retiring during Fiscal Year 1999 under the Teachers' Retirement System.

RESOURCE ALLOCATION FOR THE PROGRAM

SOURCE OF FUNDING

This program is funded from state general fund direct

ANALYSIS OF RECOMMENDATION

GENERAL FUND

TOTAL

T.O.

 

DESCRIPTION

 

 

 

 

 

$5,425,232

$5,425,232

0

 

ACT 18 FISCAL YEAR 1997-1998

 

 

 

 

 

 

 

 

 

BA-7 TRANSACTIONS:

$0

$0

0

 

None

 

 

 

 

 

$5,425,232

$5,425,232

0

 

EXISTING OPERATING BUDGET - December 10, 1997

 

 

 

 

 

($15,200)

($15,200)

0

 

Reduction in funding for supplemental retirement benefits to anticipated expenditure level

$95,089

$95,089

0

 

Adjustment to the Louisiana State University Retirement System - Unfunded Accrued Liability funding to the level approved by the Public Retirement Systems' Actuarial Committee at its January 29, 1998 meeting

 

 

 

 

 

$5,505,121

$5,505,121

0

 

TOTAL RECOMMENDED

 

 

 

 

 

$79,889

$79,889

0

 

DIFFERENCE (TOTAL RECOMMENDED AND EXISTING OPERATING BUDGET)

The total means of financing for this program is recommended at 101.5% of the existing operating budget. It represents 100% of the total request ($5,505,121) for this program. The recommended funding level provides for the anticipated retiree supplemental benefit costs as well as for the constitutionally required funding for the LSU Retirement System - Unfunded Accrued Liability obligation pursuant to the Public Retirement Systems' Actuarial Committee's recommendation.

PROFESSIONAL SERVICES

This program does not have funding for Professional Services for Fiscal Year 1998-1999.

OTHER CHARGES

$4,639,833

 

State contribution to the Teachers' Retirement System for the LSU Retirement System - unfunded accrued liability

$755,288

 

State funding for supplemental payments to LSU - Cooperative Extension retirees

$110,000

 

State funding for the supplemental allowances provided by various legislation

 

 

 

$5,505,121

 

TOTAL OTHER CHARGES

ACQUISITIONS AND MAJOR REPAIRS

This program does not have funding for Acquisitions and Major Repairs for Fiscal Year 1998-1999.


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