§1903. Admission of certain entities as employers

            A. The following entities may submit, for approval by the board of trustees, a plan for extending the benefits of this Chapter to employees of the entity:

            (1) Any taxing district in or any branch or section of a parish that qualifies as an employer pursuant to R.S. 11:1902, including but not limited to any hospital district, water district, or library.

            (2) A district indigent defender program in this state.

            (3) A soil and water conservation district in this state.

            (4) Any public corporation created pursuant to R.S. 9:2341 et seq., whose sole beneficiary is a parish in the state.

            B. Each such plan or any amendment thereof shall be approved by the board of trustees if it finds that such plan, or such plan as amended, is in conformity with regulations of the board of trustees, except that no such plan shall be approved unless:

            (1) It is in conformity with the requirements of this Chapter and applicable state law.

            (2) It covers all services which are performed in the employ of the entity, by any employees thereof, and it extends benefits to all employees of the entity.

            (3) It specifies the source or sources from which the funds necessary to make the payments required by Paragraph (D)(1) and Subsection E of this Section are expected to be derived and contains reasonable assurance that such sources will be adequate for such purpose.

            (4) It provides for administration of the plan by the entity as the board of trustees finds necessary for the proper and efficient administration thereof.

            (5) It provides that the entity will make such reports, in such form and containing such information, as the board of trustees may from time to time require and comply with such provisions as the board of trustees may from time to time find necessary to assure the correctness and verification of such reports.

            (6) It authorizes the system to terminate the plan in its entirety, in the discretion of the board of trustees, if it finds that there has been a failure to comply substantially with any provision contained in such plan, such termination to take effect at the expiration of such notice and on such conditions as may be provided by regulations of the board of trustees.

            (7) None of the employees of the entity are eligible to participate in another Louisiana public retirement or pension system, plan, or fund based on the employee's employment with the entity.

            C. The board of trustees shall not finally refuse to approve a plan submitted under Subsection A of this Section and shall not terminate an approved plan without reasonable notice and opportunity for hearing to each entity affected thereby. The board of trustees' decision in any such case shall be final, conclusive, and binding unless the entity aggrieved thereby appeals to the district court in accordance with the provisions of law with respect to review of civil causes by certiorari.

            D.(1) Each entity for which a plan has been approved under this Section shall pay into the system contributions, with respect to earnings as defined in R.S. 11:1902, at such time or times as the board of trustees may by regulation prescribe, in the amounts and at the rates prescribed by the board of trustees as set forth in Part VII of this Chapter.

            (2) Every entity required to make payments under Paragraph (1) of this Subsection is authorized, in consideration of the employee's retention in, or entry upon, employment after enactment of this Chapter, to impose upon its employees, as to services covered by an approved plan, a contribution with respect to earnings as provided in Parts III and IV of this Chapter, and to deduct the amount of such contribution from the earnings as and when paid. Contributions so collected shall be paid into the contribution fund in partial discharge of the liability of such entity under Paragraph (1) of this Subsection. Failure to deduct such contribution shall not relieve the employee or employer of liability therefor.

            (3) Except as provided in R.S. 11:143 and notwithstanding any other provision of law to the contrary, employer contributions shall not be returned, refunded, transferred, or rolled over to any employee or employer or to any retirement system, plan, or fund.

            E. Delinquent payments due under Paragraph (D)(1) of this Section, may, with interest at the system's actuarial valuation rate compounded annually, be recovered by action in a court of competent jurisdiction against the entity liable therefor or may, upon due certification of delinquency and at the request of the board of trustees, be deducted from any other monies payable to the entity by any department or agency of the state.

            F.(1) If any plan entered into under this Section is terminated, the entity which terminates its plan may not again participate in the system pursuant to this Section, unless approved by the board of trustees.

            (2) Notwithstanding any other provision of law, if an employer terminates its agreement for coverage of its employees, the employer shall remit to the system that portion of the unfunded actuarial accrued liability, if any, which is attributable to the employer's participation in the system. The amount required to be remitted pursuant to this Paragraph shall be determined as of the December thirty-first immediately prior to the date of termination. Such determination shall be made using the entry age normal actuarial funding method.

            (3) The amount due shall be determined by the actuary employed by the system and shall be paid in a lump sum or amortized over ten years in equal monthly payments with interest at the system's actuarial valuation rate in the same manner as regular payroll payments to the system, at the option of the employer.

            (4) If the employer fails to make payment timely, the amount due shall be collected in the same manner as authorized by Subsection E of this Section and R.S. 11:2014.

            G.(1) Notwithstanding any provision of this Chapter to the contrary, a hospital service district located in a parish with a total population between seventy thousand and eighty thousand persons as of the latest federal decennial census may terminate coverage for employees of the district first hired on or after January 1, 2015, as further provided in this Subsection.

            (2) If any plan entered into by a hospital district under this Section is prospectively terminated, the hospital district which prospectively terminates its plan may not again begin participation for new employees in the system pursuant to this Section, unless approved by the board of trustees.

            (3) Prospective termination of a plan shall follow all notice and any other requirements of termination provided for in the plan agreement.

            (4) If, pursuant to this Subsection, an employer terminates its agreement for coverage of its employees first hired after the effective date of the termination, the employer shall remit to the system that portion of the unfunded actuarial accrued liability, if any, which is attributable to the employer's termination. The amount required to be remitted pursuant to this Paragraph shall be determined as of the December thirty-first immediately prior to the date of termination. Such determination shall be made using the entry age normal actuarial funding method.

            (5) The amount due shall be determined by the actuary employed by the system and shall either be paid in a lump sum or amortized over ten years in equal monthly payments with interest at the system's actuarial valuation rate in the same manner as regular payroll payments to the system, at the option of the employer.

            (6) If the employer fails to make payment timely, the amount due shall be collected in the same manner as authorized by Subsection E of this Section and R.S. 11:2014.

            Acts 1979, No. 765, §1, eff. Jan. 1, 1980. Amended by Acts 1981, No. 232, §1; Acts 1983, No. 213, §1; Acts 1983, No. 214, §1; Acts 1985, No. 398, §1, eff. July 10, 1985; Acts 1988, No. 133, §1; Acts 1991, No. 674, §1, eff. July 18, 1991; Acts 1991, No. 686, §4, eff. Dec. 31, 1991; Redesignated from R.S. 33:6103 by Acts 1991, No. 74, §§3, 5, eff. June 25, 1991; Acts 1993, No. 320, §1; Acts 1993, No. 321, §1; Acts 1997, No. 867, §1, eff. July 1, 1997; Acts 2003, No. 819, §1, eff. July 1, 2003; Acts 2006, No. 508, §1, eff. June 22, 2006; Acts 2008, No. 397, §1, eff. June 30, 2008; Acts 2010, No. 869, §1, eff. July 1, 2010; Acts 2010, No. 870, §1, eff. July 1, 2010; Acts 2010, No. 871, §2, eff. July 1, 2010; Acts 2014, No. 851, §1, eff. Jan. 1, 2015; Acts 2019, No. 58, §1; Acts 2020, No. 5, §1.