Louisiana Gov. Bobby Jindal signed a law Monday to provide $40 million to the $16 billion Teachers Retirement System of Louisiana and $20 million to the $9 billion Louisiana State Employees Retirement System, both of Baton Rouge. The money will accelerate the payoff of unfunded accrued liabilities. The money would come from the states $1.1 billion surplus from the 2006-07 fiscal year. According to the governors website, the state will save $4.28 in interest for every dollar the state invests now.We are pleased to receive the appropriation of $40 million to pay down the unfunded accrued liability, Lisa Honore, public information director for TRSL, said in an e-mail. This payment helps the system move toward full funding which, in turn, benefits our members and the state.
Ms. Honore said TRSLs current unfunded liability is $6.3 billion. Bobby Beale, CIO of LASERS, said his systems unfunded accrued liability is around $4.1 billion.