[R.S.

1:13(B) and 24:177(E)] HB 47 Engrossed 2026 Regular Session Berault Abstract:

Provides relative to cost-of-living increases for the Assessors' Retirement Fund.

Present law authorizes certain statewide retirement systems including the Assessors' RetirementFund(ASSR)tograntincreasesinthemonthlybenefit,commonlycalledcost-of- livingadjustments (COLAs),to retirees and otherbeneficiaries.

Providesforeligibilityfor, the timing, and the amount of the COLAs.

Limits the authority to grant a COLA based on the funded level of the system and the time since the last COLA was granted.

Present law, applicable to certain statewide systems, authorizes the ASSR board of trustees to set an employer contribution rate above the actuarially required contribution rate calculatedinaccordancewithpresentlaw.

Allowstheboardtosetaratebetweenthecurrent rate and the actuariallyrequired rate.

Presentlawallowstheboardtosettherateupto3%higherthantheactuariallyrequiredrate.

Presentlaw,applicabletocertainstatewidesystemsincludingASSR,providesforafunding deposit account (FDA) for the accumulation of the additional employer contributions collected as a result of the board setting an employer contribution rate above the actuarially required rate.

Specifies the purposes for which the moneyin the FDA may be used, one of which is providing COLAs.

Proposed law retains present law.

Present law authorizes the ASSR board of trustees to use excess investment earnings to provideaCOLAofupto3%oftheoriginalbenefittoretiredmembersortheirbeneficiaries.

Limits the annual amount of the COLA to $300.

Proposed law removes authority for using excess investment earning to fund COLAs and makes the FDA the sole authorized funding source.

Proposed law applies anypercentincreaseto the currentbenefit.

Removes the $300 annual cap.

Proposed law provides that the COLA begins on Oct.

first, following the board's approval.

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HLS 26RS-308 ENGROSSED HB NO.

47 PresentENROLLED lawSection limits3. the authority of certain statewide system boards to grant a COLA based on funding level and the date of most recent COLA.

AThis boardAct mayshall grantbecome aeffective COLAupon signature bythe governor or, if not signedbythegovernor,uponexpirationofthetimeforbillstobecomelawwithoutsignature by the systemgovernor, is:as provided by Article III, Section 18 of the Constitution of Louisiana.

(1)If Atvetoed leastbythe 90%governorand fundedsubsequentlyapproved andbythe nolegislature, COLAthis wasAct grantedshall inbecome theeffective moston recentthe fiscaldayfollowing year.such approval.

(2)SPEAKER AtOF leastTHE 80%HOUSE fundedOF andREPRESENTATIVES noPRESIDENT COLAOF wasTHE grantedSENATE inGOVERNOR eitherOF ofTHE theSTATE twoOF mostLOUISIANA recentAPPROVED: fiscal years.

(3)Page At6 least70%fundedandnoCOLAwasgrantedinof anyofthethreemost6 recentfiscalCODING: years.

Proposed law retains present law and authorizes the ASSR board to grant a COLA in any fiscal yearin which the system is more than 100% funded.

Specifiesthat the funded ratio as of anyfiscal yearend shall be defined as the ratio of the actuarialvalue of assets to the level percentage of payroll entryage normal actuarial accrued liability.

Excludes the moneythat will fund the COLA from the determination of funded ratio under proposed law.

Present law provides that, unless the legislature or the system board specifies otherwise, a COLA shall be an increase of the monthly benefit of each recipient in the dollar amount equal to:

(1) The total of the number of years of credited service accrued at 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 arenot sufficient funds to fund thebenefitat therate 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.

Proposed law allows the ASSR board to grant a COLA of a dollar amount based on years 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 this 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 ASSR, 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.

Present law governing the FDA allows FDA funds to be used to pay any COLA otherwise authorized by present law.

ProposedlawauthorizestheASSRboardtograntaCOLAofupto2%ofthecurrentbenefit to recipients who are 65 years of age or older funded by funds 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.

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Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HLS 26RS-308 ENGROSSED HB NO.

47 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 yearand thefundedratioofthepreviousfiscalyearexceedsthe target ratio as defined in present law.

Proposed law removes the limitations of present law for ASSR.

Effective upon signature of governor or lapse of time for gubernatorial action.

(Amends R.S.

11:1404(A), 1461, and 1481(1)(b);

Adds R.S.

11:1485;

Repeals R.S.

11:105(A)(1), 106(A)(1), 107(A)(1), 107.1(A)(1), 242(B)(1), 243(A)(1), and 246(A)(1)) Page 8 of 8 CODING: