A funding deposit account must be created and used only as this section allows. The board of trustees may adjust contribution rates and direct account funds for listed retirement-funding purposes, but the account balance cannot be overdrawn.
§2175.1. Funding deposit account A.(1) There shall be established a funding deposit account. Such account shall be credited and charged solely as provided in this Section. (2) The balance in the account shall be set equal to zero as of December 31, 2008. (3)(a) Notwithstanding the provisions of R.S. 11:103 and 104, in any fiscal year during which the net direct employer contribution rate would otherwise decrease, the board of trustees is authorized to set the employer contribution rate at any point between the previous year's employer contribution rate and the decreased rate otherwise required pursuant to R.S. 11:103 and 104. (b) All surplus funds collected for any fiscal year terminating on or after December 31, 2008, in which the board of trustees sets the direct employer contribution rate higher than the minimum recommended rate pursuant to the provisions of Subparagraph (a) of this Paragraph, shall be credited to the account. B. The funds in the account shall earn interest annually at the board-approved valuation interest rate, and the interest shall be credited to the account at least once a year. C. Beginning with the June 30, 2009 valuation, the board of trustees may in any fiscal year direct that funds from the account be charged according to the following options: (1) To reduce the unfunded accrued liability as prescribed in R.S. 11:105. (2) To reduce the present value of future normal costs. (3) To pay all or a portion of any future net direct employer contributions. (4) To provide for permanent benefit increases as provided for in R.S. 11:2178. D. In no case shall the funds charged from the account exceed the outstanding account balance. E. In the event that the board of trustees elects to charge funds from the funding deposit account pursuant to Paragraph (C)(3) of this Section, the percent reduction in the minimum employer recommended contribution rate otherwise applicable shall be determined by dividing the interest-adjusted value of the charges from the funding deposit account by the projected payroll for the fiscal year for which the contribution rate is to be reduced. F. For funding purposes, any asset value utilized in the calculation of the actuarial value of assets shall exclude the funding deposit account balance as of the asset determination date for such calculation. G. For all purposes other than funding, the funds in the account shall be considered assets of the system. Acts 2009, No. 247, §1, eff. June 30, 2009; Acts 2012, No. 721, §1, eff. July 1, 2012; Acts 2015, No. 136, §1, eff. June 30, 2015.