HB 25 — RETIREMENT/TEACHERS: Provides relative to the payment of benefits for the Teachers' Retirement System of Louisiana (EN NO IMPACT APV)

HLSENROLLED 26RS-247 ENGROSSED Regular Session HOUSE BILL NO.

25 BY REPRESENTATIVE SPELL RETIREMENT/TEACHERS:AN ACT To amend and reenact R.S.

ProvidesrelativetothepaymentofbenefitsfortheTeachers' Retirement System of Louisiana AN ACT To amend and reenact R.S.

The retirement system shall pay all benefits in accordance with a good faith interpretation of the requirementsrequirementsof of Section 401(a)(9)of the Internal Revenue Codeandrelatedfederalregulations,asapplicabletoagovernmentalplanwithinthe meaning of Section 414(d) of the Internal Revenue Code.

The payment of benefits to or on behalf of a member shall commence not later than April first following the calendarcalendaryear year in which the member retires, or attains age seventyand one-halfone-halfyears years the member's required beginning date, whichever is later.

HLS 26RS-247 ENGROSSED HB NO.

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PageSPEAKER 2OF ofTHE 3HOUSE CODING:OF REPRESENTATIVES PRESIDENT OF THE SENATE GOVERNOR OF THE STATE OF LOUISIANA APPROVED:

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HLS 26RS-247 ENGROSSED HB NO.

25 DIGEST ThedigestprintedbelowwaspreparedbyHouseLegislative Services.

It constitutes nopart of the legislative instrument.

The keyword, one-liner, abstract, and digest do not constitute part of the law or proof or indicia of legislative intent.

[R.S.

1:13(B) and 24:177(E)] HB 25 Engrossed 2026 Regular Session Spell Abstract:

Provides relative to tax qualification for the Teachers' Retirement System of Louisiana.

Present law requires the system to pay all benefits in accordance with a good faith interpretation of present federal law.

Proposed law retains present law and adds related federal regulations.

PresentlawrequiresthepaymentofbenefitstocommencenotlaterthanAprilfirstfollowing the calendar year in which the member retired or the member attains age 70½ years, whichever is later.

Proposed law requires payment of benefits to commence not later than the member's required beginning date, based on present federal law, or April first following the year in which the member retires, whichever is later.

Present law provides that if a member dies before he has received his benefit, the interest is distributed over five years after the member's death to the member's beneficiary.

Provides that present law does not apply to any portion of the member's benefit or the benefit of a designated beneficiaryso long as distributions begin not laterthanDec.31st ofthecalendar year immediately following the calendar year of the member's death or in the case of the member's spouse, Dec.

31st of the calendar year in which the member would have attained age 72½.

Proposed law provides that in the case of a surviving spouse, distributions must begin not later than Dec.

31st of the calendar year in which the member would have reached his requiredbeginningdate,ortheAprilfirstfollowingthecalendaryearinwhichthesurviving spouse reaches the spouse's required beginning date if the surviving spouse submits an election to the system at least 30 days prior to anydistributions or the deadline provided by federal law.

Proposed law requires that any cost of proposed law be funded with additional employer contributions in compliance with present constitution (Art.

X, Sec.

29(F)).

Effective July 1, 2026.

(Amends R.S.

11:784(A) and (C)(2)) Summary of Amendments Adopted by House The Committee Amendments Proposed by House Committee on Retirement to the original bill:

1.

Change the effective date from July 1, 2027, to July 1, 2026.