AI-assisted research summary: The board must appoint an actuary and use that actuary for ongoing valuation and advisory work, and changes to actuarial assumptions must be formally adopted, disclosed, and cannot reduce accrued benefits.
§1302.2. Actuary; appointment; duties and powers; actuarial assumptions A.(1) The board of trustees shall designate an actuary who shall be a technical advisor of the board of trustees on matters regarding the operation of the retirement system created by the provisions of this Chapter and shall perform such other duties as are required by law or by the board of trustees. (2) Beginning with the 2012-2013 fiscal year, and at least once in each five-year period thereafter, the actuary shall make an actuarial investigation into the mortality, service, and compensation experience of the members and beneficiaries of the retirement system and shall make a valuation of the assets and liabilities of the system, and taking into account the result of such investigation and valuation, the board of trustees shall: (a) Adopt for the retirement system such mortality, service, and other tables as shall be deemed necessary. (b) Certify the rates of contribution payable by the state of Louisiana on account of new entrants at various ages. (3) On the basis of such tables as the board of trustees shall adopt, the actuary shall make an annual valuation of the assets and liabilities of the system created by this Chapter. (4) Any new tables and interest assumptions adopted in accordance with Subparagraph (2)(a) of this Subsection shall be applicable only with respect to persons who are members on the date of adoption. Tables in effect on the date of retirement shall remain applicable with respect to persons who retire prior to the adoption of new tables. B.(1) Effective June 30, 2013, unless different actuarial assumptions are formally adopted and disclosed, as provided in Paragraph (2) of this Subsection, the following assumptions shall determine the actuarial equivalents to be used in this retirement system: (a) Interest shall be compounded at the rate of seven and one-half percent per annum. (b) Annuity rates shall be determined on the basis of the RP-2000 Sex Distinct Mortality Table. (2) The board of trustees may authorize the use of interest and mortality rates in determining the actuarial equivalents which are different from the actuarial assumptions specified in Paragraph (1) of this Subsection. Any change in such actuarial assumptions shall be considered a part of the plan provisions of this retirement system and shall be considered an amendment to the plan provisions contained in this Section. In order to be effective, such change shall be formally adopted by the board of trustees as a rule or rules promulgated pursuant to the Administrative Procedure Act and disclosed to members of the retirement system. (3) No change in actuarial assumptions shall reduce a member's accrued benefit. Acts 2013, No. 287, §1, eff. June 30, 2013; Acts 2014, No. 791, §5.