§102.3. Priority excess return allocations; Louisiana School Employees' Retirement System A. For purposes of this Section, the following shall apply: (1) "Priority amount" shall mean the maximum amount of system returns in excess of the system's actuarially assumed rate of return that may be applied to the oldest outstanding positive amortization base, regardless of whether actual returns that equal or exceed the maximum are available, and shall equal: (a) For the June 30, 2015 valuation, fifteen million dollars. (b) For each valuation thereafter, the prior year's priority amount increased by the percentage increase in the system's actuarial value of assets for the prior year, if any. (2) "Priority allocation" shall mean the actual returns available for application to the oldest outstanding positive amortization base. (3) For any valuation in which the oldest outstanding positive amortization base is liquidated without using the full amount of the priority allocation, the remaining amount from that year's priority allocation after liquidation of the oldest base shall be applied to the next oldest base. (4) In no event shall one year's priority amount be less than the previous year's priority amount. (5) Notwithstanding the provisions of Paragraph (6) of this Subsection, effective for the June thirtieth valuation following the fiscal year in which the system first attains a funded percentage of eighty or more pursuant to R.S. 11:1145.1 and for each valuation thereafter, the net remaining liability of the amortization base to which the funds are applied shall be reamortized with annual level-dollar payments calculated as provided in R.S. 11:102 over the remainder of the amortization period originally established for that amortization base. (6) Beginning with Fiscal Year 2019-2020 and every fifth fiscal year thereafter, the remaining liability net of all payments made since the last reamortization shall be reamortized with annual level-dollar payments calculated as provided in R.S. 11:102 over the remainder of the amortization period originally established for that amortization base. (7) Except as provided in Paragraphs (5) and (6) of this Subsection, the net remaining liability of the amortization base to which the funds are applied shall not be reamortized after such application. B.(1) Effective for the June 30, 2015 valuation and for each valuation thereafter, if the system's investment experience for the fiscal year exceeds the system's actuarially assumed rate of return, the system shall apply the priority allocation to the oldest outstanding positive amortization base of the system, excluding any amortization base established to amortize a liability pursuant to R.S. 11:102(B)(2)(a) or (3)(c) until all such bases are completely liquidated. After the final base is completely liquidated, the assets shall be treated as provided in R.S. 11:102(B)(4). (2) If there are multiple positive bases of the same age and the same duration, all such bases shall be collapsed into a single base for purposes of this Subsection. (3) If there are multiple positive bases of the same age but of different durations, the oldest outstanding positive amortization base with the shortest remaining amortization period shall be treated as the "oldest" for purposes of this Subsection. C. Effective for the June 30, 2014 valuation, if the system's investment experience for the fiscal year exceeds the system's actuarially assumed rate of return, the system shall apply the excess investment experience returns, up to a maximum of the first seven and one-half million dollars, to the oldest outstanding positive amortization base of the system, excluding any amortization base established to amortize a liability pursuant to R.S. 11:102(B)(2)(a) or (3)(c) without reamortization of such base. Acts 2014, No. 399, §1, eff. June 30, 2014; Acts 2016, No. 95, §1, eff. June 30, 2016.
