Assessors' retirement fund near fully funded; committee certifies 0% employer rate and 0.2312% ad valorem remittance

The Public Retirement Actuary Committee on Aug. 19 accepted the 2024 actuarial valuation for the Louisiana Assessors' Retirement Fund and certified a minimum recommended net direct employer rate of 0% and an ad valorem remittance rate of 0.2312% to be disseminated to the parishes. The committee approved the report by motion and without objection.

The valuation shows a funded ratio of 98.44% on a funding (smoothed) basis, with an accrued liability of $556,400,000 and an actual (smoothed) asset value of $547,700,000. Present and future benefits were reported at about $730,000,000; payroll for active members was $50,700,000 and retired membership was 592. The report also lists a funding deposit account balance of $51,700,000 and a market-value asset amount of roughly $581,000,000. On a market basis the plan returned 19.8% for the fiscal year ending Sept. 30, 2024; after smoothing that produced a 7.2% rate of return versus the plan's assumed rate of 5.5%.

Why it matters: the committee-certified employer rate and the certified ad valorem remittance percentage determine how much tax revenue parishes will remit to the plan and how much employers will be required to contribute. Senator Joseph Price questioned whether the certified 0.2312% ad valorem remittance represents a decrease in overall collection; Greg Curran, the systems actuary presenting the report, explained the committee’s certification instructs parishes how much to remit and that local tax collections can vary year to year.

Discussion and staff review: Greg Curran, the systems actuary, walked the committee through the summary, explaining that the difference between present-and-future benefits and accrued liability represents future service accruals; he described this as a mark of what would be needed to pre-fund future liabilities. Curran also noted the plan has had investment gains that raised assets faster than liabilities and that the board has elected to collect a 5% employer rate above the minimum in recent practice, directing those extra dollars into the funding deposit account for future cost-of-living adjustments (COLAs) or to offset future contributions. Committee reviewer Mr. Herbold reported that PERSAC replicated the valuation calculations and did not identify significant deficiencies in the report or the valuation basis.

Formal action: Ms. Johnson moved to accept the assessors' valuation as presented, including recognition of a recommended net direct employer rate of 0% and an ad valorem remittance rate of 0.2312%; Mr. Curran seconded. The motion was adopted with no objection.

Notes and uncertainties: Curran cautioned that the certified remittance percentage is based on projected ad valorem tax revenue and that actual tax collections could be higher or lower, which would affect whether the plan collects more or less than the certified amount in any given year. The committee noted the certification will be disseminated to parishes (except Orleans Parish, per the presentation) through the legislative auditor and staff will coordinate that distribution.