HLSENROLLED 26RS-219 ENGROSSED Regular Session HOUSE BILL NO.
22 BY REPRESENTATIVE BACALA RETIREMENT/CLERKSAN COURT:ACT ToamendandreenactR.S.11:1549,toenactR.S.11:1550,andtorepealR.S.11:105(A)(2), 106(A)(2), 107(A)(2), 107.1(A)(2), 242(B)(2), 243(A)(2), and 246(A)(2), relative to the Clerks' of Court Retirement and Relief Fund;
Provides relative to the Clerks' of Court Retirement System AN ACT ToamendandreenactR.S.11:1549,toenactR.S.11:1550,andtorepealR.S.11:105(A)(2), 106(A)(2), 107(A)(2), 107.1(A)(2), 242(B)(2), 243(A)(2), and 246(A)(2), relative to the Clerks' of Court Retirement and Relief Fund;
The Subject to the limitations of this Section, the board of trustees may, upon majorityvote oftheboard,usefundsof inthe thefundingdepositboard, accountuse tofunds grantin orthefundingdeposit accountto grantor provide a cost-of-living adjustment to retired members who have been retired retirees, beneficiaries, and survivors if benefits have been paid on the retiree's or member's record for at least one full calendar year as provided for in Subsection D, Pagebut 1only ofin 8the CODING:event that:
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HLS 26RS-219 ENGROSSED HB NO.
22 but only in the event that:
Anycost-of-livingadjustmentprovidedbytheboardinaccordancewiththisSection shall begin on a date to be determined by the board following the approval of the mostPage recent1 actuarial valuation by the board of trustees5 andCODING: adoption by the Public Retirement Systems' Actuarial Committee.
(1)Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored Atare theadditions. end of the system's current fiscal year the funded ratio of the system, as of the end of the previous fiscal year,equals or exceeds the target ratio as of that date for the system, and (2) TheleveloftheConsumerPriceIndexforAllUrbanConsumers(CPI-U) for the current fiscal year is at least three percent higher than the level of the CPI-U for the fiscal year in which the last cost-of-living adjustment was granted.
HB NO.
22 ENROLLED most recent actuarial valuation by the board of trustees and adoption by the Public Retirement Systems' Actuarial Committee.
(1) At the end of the system's current fiscal year the funded ratio of the system, as of the end of the previous fiscal year,equals or exceedsthe target ratio as of that date for the system, and (2) TheleveloftheConsumerPriceIndexforAllUrbanConsumers(CPI-U) for the current fiscal year is at least three percent higher than the level of the CPI-U for the fiscal year in which the last cost-of-living adjustment was granted.
As used in this Section, the "funded ratio" as of anyanyfiscal fiscal year end shall be defined as the ratio of the actuarial value of assets to the level percentage of payroll entry age normal actuarial accrued liability under the funding method prescribed by the office of the legislative auditor.
Page(c) 2The amount of 8each CODING:change in funded ratio due to mergers or changes in actuarial methods or assumptions occurring after the 1986 Fiscal Year end.
(d) For each change in funded ratio due to mergers or changes in actuarial methods or assumptions occurring after the 1986 Fiscal Year end, an amount of opposite arithmetic sign from such change in funded ratio equal in absolute value to thenumberoffiscalyearssincethechangeinfundedratiomultipliedbyone-thirtieth of the original change in funded ratio due to the merger or change in actuarial Page 2 of 5 CODING:
HLS 26RS-219 ENGROSSED HB NO.
22 (c)ENROLLED The amount of each change in funded ratio due to mergers or changes in actuarial methods or assumptionsassumptions. occurring after the 1986 Fiscal Year end.
(d) For each change in funded ratio due to mergers or changes in actuarial methods or assumptions occurring after the 1986 Fiscal Year end, an amount of opposite arithmetic sign from such change in funded ratio equal in absolute value to thenumberoffiscalyearssincethechangeinfundedratiomultipliedbyone-thirtieth of the original change in funded ratio due to the merger or change in actuarial methods or assumptions.
(b) ThesystemThesystemhasafundedratioofatleasteightypercentandtheboardhas hasafundedratioofatleasteightypercentandtheboardhas not granted a cost-of-living adjustment in either of the two most recent fiscal years.
Page(2) 3Grantacost-of-livingadjustmentthatisamonthlyincreaseofthebenefit of 8each CODING:recipient in a dollar amount that is a multiple or a fraction of the number of years of credited service accrued at retirement of the retiree or at death of the member plus a multiple or a fraction of the number of years since retirement of the retireeorsincedeathofthemembertotheeffectivedateoftheadjustment.
Thetotal actuarialpresentvalueofacost-of-livingadjustmentgrantedinaccordancewiththis Paragraph shall not exceedthe actuarialpresentvalueofacost-of-livingadjustment granted pursuant to Paragraph (1) of this Subsection.
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HLS 26RS-219 ENGROSSED HB NO.
22 (2)ENROLLED Grantacost-of-livingadjustmentthatisamonthlyincreaseofthebenefitE. of each recipient in a dollar amount that is a multiple or a fraction of the number of years of credited service accrued at retirement of the retiree or at death of the member plus a multiple or a fraction of the number of years since retirement of the retireeorsincedeathofthemembertotheeffectivedateoftheadjustment.
ThetotalThe actuarialpresentvalueofacost-of-livingadjustmentgrantedinaccordancewiththisboard Paragraphmay shallgrant nota exceedtheactuarialpresentvalueofacost-of-living cost-of-livingadjustmentadjustment grantedof pursuantup to Paragraphtwo (1)percent of thisthe Subsection.current benefit to all eligible retirees,beneficiaries,and survivors who aresixty- five years of age or over.
E.
The board may grant a cost-of-living adjustment of up to two percent of the currentbenefit to all eligible retirees, beneficiaries, and survivors who aresixty- five years of age or over.
PageD.(1) 4Notwithstanding any provision of 8law CODING:to the contrary, the board of trusteesmayinanyfiscalyeardirectthatfunds fromtheaccountbechargedforonly the following purposes:
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HLS 26RS-219 ENGROSSED HB NO.
22 D.(1) Notwithstanding any provision of law to the contrary, the board of trusteesmayinanyfiscalyeardirectthatfundsfromtheaccountbechargedforonly the following purposes:
(d) Toprovideforcost-of-livingadjustments,inaccordancewithapplicableToprovideforcost-of-livingadjustments, inaccordancewithapplicable law.
(2)Page In4 noof event5 shallCODING: the funds charged from the account exceed the outstanding account balance.
(3)Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored Ifare theadditions. board of trustees elects to charge funds from the funding deposit accountpursuantto Subparagraph (1)(c)of this Subsection, the percentreductionin the minimum recommended employer contribution rate otherwise applicable shall bedeterminedbydividingtheinterest-adjustedvalueofthechargesfromthefunding depositaccountbytheprojectedpayrollforthefiscalyearforwhichthecontribution rate is to be reduced.
HB NO.
22 ENROLLED (2) In no event shall the funds charged from the account exceed the outstanding account balance.
(3) If the board of trustees elects to charge funds from the funding deposit accountpursuant to Subparagraph (1)(c)of this Subsection, thepercentreductionin the minimum recommended employer contribution rate otherwise applicable shall bedeterminedbydividingtheinterest-adjustedvalueofthechargesfromthefunding depositaccountbytheprojectedpayrollforthefiscalyearforwhichthecontribution rate is to be reduced.
Section 2.2.R.S.
R.S.
This Act shall become effectiveuponeffective upon signature bythe governor or, if not signedbythegovernor,uponexpirationofthetimeforbillstobecomelawwithoutsignature by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana.
PageSPEAKER 5OF ofTHE 8HOUSE CODING:OF REPRESENTATIVES PRESIDENT OF THE SENATE GOVERNOR OF THE STATE OF LOUISIANA APPROVED:
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HLS 26RS-219 ENGROSSED HB NO.
22 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 22 Engrossed 2026 Regular Session Bacala Abstract:
Provides relative to cost-of-living adjustments and calculation of employer contributions for the Clerks' of Court Retirement and Relief Fund.
Present law authorizes certain statewide retirement systems including the Clerks' of Court Retirement and Relief Fund (Clerks) to grant adjustments in monthly benefits, commonly calledcost-of-livingadjustments (COLAs),to retireesandotherbeneficiaries.
Provides for eligibility, timing, and the amount of the COLA.
Limits the authority to grant a COLA based on the funding percentage of the system and the time the last COLA was granted.
Present law, applicable to certainstatewide systems, authorizes the Clerks board of trustees to set an employer contribution rate above the actuarially required contribution rate calculatedinaccordancewithpresentlaw.
Allowstheboardtosetaratebetweenthecurrent rate and the actuarially required minimum rate.
Allows the board to set the rate up to 3% higher than the actuariallyrequired rate.
Presentlaw,applicabletocertainstatewidesystemsincludingClerks,providesforafunding deposit account (FDA) for accumulation of the additional employer contributions collected as a result of the board setting an employer contribution rate above the actuariallyrequired rate.
Specifies the purposes for which the money in the FDA may be used, one of which is providing COLAs.
Proposed law retains present law.
Present law authorizes the Clerks board of trustees to grant a COLA to eligible benefit recipients who have been retired at least one full year.
Limits the COLA to the lesser of 2.5% or $40 per month.
Proposed law specifies that all retirees, beneficiaries, and survivors are eligible to receive COLAs.
Requires the FDA to be the source of funding.
Proposed law increases the maximum COLA to 3% and removes the $40 per month cap.
Proposed law provides that the COLA begins on a date as determined by the board of trustees following board approval of the actuarialvaluation and subsequent adoption bythe Public Retirement Systems' Actuarial Committee (PRSAC).
Present law limits the authority of certain statewide system boards to grant a COLA based on the funding level and date of the most recent COLA.
A board may grant a COLA if the system is:
(1) At least 90% funded and no COLA was granted in the most recent fiscal year.
(2) At least 80% funded and no COLA was granted in either of the two most recent fiscal years.
(3) At least70%fundedandno COLAwasgrantedinanyofthethreemost recentfiscal years.
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HLS 26RS-219 ENGROSSED HB NO.
22 Proposed law retains present law and authorizes the Clerks board to grant a COLA in any fiscal year in which the system is at least 100% funded.
Specifies that the funded ratio as of anyfiscal yearend shall be defined as the ratio of the actuarial value of assets to the level percentage of payroll entry age normal actuarial accrued liability.
Present law provides that, unless the legislature or the system board specifies otherwise, a COLA shall be an increase in the monthly benefit of each recipient in the dollar amount equal to:
(1) The total of number of years of creditedserviceaccruedat retirement or at the death of the member or retiree.
(2) The number of years since retirement or since the death of the member or retiree.
Present law provides that if there are not sufficient funds to fund the benefit at the rate of $1 per year for the total number of years, then the rate shall be reduced in proportion to the amount of funds that are available in the FDA to fund the COLA.
ProposedlawallowstheClerksboardtograntaCOLAofadollaramountbasedontheyears of service and the years since the benefit payments began.
Allows the board to use more than $1 as the multiplier and to have differentmultipliers.
Limits the selection of multiples used in the calculation by prohibiting the total actuarial present value of an increase under proposed law from exceeding the actuarial present value of a COLA that increases each recipient's benefit by 3%.
Proposed law otherwise retains present law.
Present law, applicable to certain statewide systems including Clerks, authorizes the board of trustees to use excess investment income to provide a supplemental COLA equal to 2% of the original benefit to all retirees and beneficiaries who are 65 years of age or older.
Limits the authority to years in which the actuarial rate of return exceeds the valuation interest rate.
PresentlawgoverningtheFDAallowsFDAmoneytobeusedto fundanyCOLAotherwise authorized by law.
ProposedlawauthorizestheClerksboardtograntaCOLAofupto2%ofthecurrentbenefit to recipients who are 65 years of age or over funded by money in the FDA.
Specifies that this may be in addition to any other COLA granted.
Proposed law otherwise retains present law.
Present law provides relative to the authorityof the board of trustees to grant a COLA in a year in which the legislature fails to enact legislation granting a COLA.
Present law prohibits the governing authority from granting a COLA during any calendar year prior to the final adjournment of the regular session of the legislature.
Present law provides that a COLA cannot be granted until a lapse of at least one-half of the fiscal year and the funded ratio of the previous fiscal year exceeds the target ratio defined in present law.
Proposed law removes the limitations of present law for Clerks.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S.
11:1549;
Adds R.S.
11:1550;
Repeals R.S.
11:105(A)(2), 106(A)(2), 107(A)(2), 107.1(A)(2), 242(B)(2), 243(A)(2), and 246(A)(2)) Page 7 of 8 CODING:
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HLS 26RS-219 ENGROSSED HB NO.
22 Summary of Amendments Adopted by House The Committee Amendments Proposed by House Committee on Retirement to the original bill:
1.
Change when a cost-of-living adjustment begins to a date determined by the board of trustees.
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