US - More than 54% of employers contributing to the Teachers' Retirement System of Louisiana have been late in paying required contributions between 2002 and 2004, according to a legislative audit.
Additionally, 26% of employers contributing to the Louisiana School Employees’ Retirement System (LSERS), and 2% of employers contributing to the Louisiana State Employees’ Retirement System (LASERS) have been late in paying contributions over the last three years, the Louisiana Legislative Auditor said.
In total, the three pension schemes are owed nearly US$3m in late payments.
Late payers have been charged US$800,000 in interest for delinquent payments of more than US$2.2m, while LSERS charged interest of over $45,000 on $145,000 in late payments. LSERS has overcharged by more than $22,000 by using an incorrect rate of interest, the audit found. LASERS does not levy interest on on delinquent payments of $552,900, Louisiana Legislative Auditor Steve Theriot said.
“Of the three state retirement systems we reviewed, only TRSL has been charging interest to delinquent payers in the manner required by law,” the report stated. “LASERS has chosen not to charge interest because of cost/benefit concerns, and LSERS has charged delinquent payers interest at an incorrect rate since January 1, 1991.”
LASERS has agreed with the report’s findings and will begin charging delinquent employers effective April, while LSERS has changed its system to ensure that it will charged he correct rate of interest.
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