HB 45 — RETIREMENT/MUNICIPAL POL: Provides relative to benefits of participating employees in the Municipal Police Employees' Retirement System (EN INCREASE APV)

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45 ENROLLED (d) The additional benefit received bythe participant and the beneficiaryor survivor shall be actuarially reduced by a prorated amount calculated to offset the cost of the initial benefit payment.

(e) Cost of living adjustments shall not be payable on the initial benefit.

(c) For any person subject to the provisions of this Subsection, after the person's plan participation ceases, any amounts retained or transferred pursuant to the rules promulgated as authorized in this Paragraph shall earn interest, credited Pageannually, 5at a rate equal to the actuarial rate of 16return CODING:of the system's investment portfoliofortheapplicablefiscalyear,lessone-halfofonepercent,ascertifiedinthe system's actuary's annual valuation report.

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored(d) areThe additions.board of trustees may adopt rules governing eligibility, timing of transfers,administration,valuationdates,creditingperiods,administrativefees,and anyothermattersnecessaryto implement theprovisions ofthisParagraph.

HLS 26RS-303 REENGROSSED HB NO.

45 annually, at a rate equal to the actuarial rate of return of the system's investment portfoliofortheapplicablefiscalyear,lessone-halfofonepercent,ascertifiedinthe system's actuary's annual valuation report.

(d) The board of trustees may adopt rules governing eligibility, timing of transfers,administration,valuationdates,creditingperiods,administrativefees,and anyothermattersnecessaryto implementtheprovisionsofthisParagraph.

(2) Any member electing a participation period in the Deferred Retirement Option Plan that begins on or after July 1, 2026, shall, by such election, be deemed toPage have6 knowingly and voluntarily waived any rights or claims under the Constitution of Louisiana12 relativeCODING: to the benefits credited or the interest earned on amounts credited to the participant's Deferred Retirement Option Plan account, including any claim to a guaranteed rate of return or to any particular method of investment or crediting of interest.

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45 ENROLLED to have knowingly and voluntarily waived any rights or claims under the Constitution of Louisiana relative to the benefits credited or the interest earned on amounts credited to the participant's Deferred Retirement Option Plan account, including any claim to a guaranteed rate of return or to any particular method of investment or crediting of interest.

The board of trustees shall promulgate rules in accordance with the Administrative Procedure Act to approve anyother methods of payment authorized bybutby but not expressly provided in this Section.

11:103 or 104, for fiscal years beginning on or afterJuly1, 2023, and endingon or beforeJune 30, 2028, the board Pageoftrusteesmayrequireanetdirectcontributionrateofuptothefollowingapplicable 6limit: of 16 CODING:

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45 oftrusteesmayrequireanetdirectcontributionrateofuptothefollowingapplicable limit:

11:103 decreases, the funding deposit account rate shall increasebyone-halfofPage the7 amount of the12 decreaseinCODING: the rate determined under R.S.

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45 ENROLLED increasebyone-halfof the amount of the decreasein the rate determined under R.S.

(4)(a) For any fiscal year ending on or before June 30, 2028, in which the board of trustees sets the direct employer contribution rate higher than the rate Pagedetermined 7under ofR.S. 16 CODING:

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45 determined under R.S.

C.(1) Except as provided in Paragraph (2) of this Subsection, any excess contributions for any fiscal year ending on or before June 30, 2028, resulting from theboard'sexerciseofitsauthoritypursuanttoParagraph(B)(1)ofthisSectionshall be applied, until exhausted, exclusively to reduce the outstanding balance of the oldestPage positive8 amortizationof base;12 CODING:

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45 ENROLLED oldest positive amortization base;

(2) The For any fiscal year ending on or before June 30, 2028, the board of trustees may dedicate a specific amount of excess contributions, up to the amount generatedbysettingtherateequalto eighty-fivehundredthsofeighty-fivehundredths of one percentage point moremorethantheratedetermined than the rate determined under R.S.

11:103, to beusedsolelytobe used solelyto payadditional benefits to retirees, survivors, and beneficiaries.

Except as provided in Subsection B of this Section, a member shall receivearetirementbenefit equal to threepercentofthree percentof average final compensation for every year of creditable service in this subplan credited before to January 1, 2027, and three and one-third percent of average final compensation for every year of Pagecreditable 8service ofin 16this CODING:subplan credited on or after January1, 2027, not to exceed one hundred percentof the member's average final compensation.

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45 creditable service in this subplan credited on or after January1, 2027, not to exceed one hundred percentof the member's average final compensation.

(2)Page The9 cost of such12 purchaseCODING: shall be an amount calculated on an actuarial basis which totally offsets the increase in accrued liability resulting from the application of the higher accrual rate.

TheWordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored costare shalladditions. be determined by the system actuaryusingtheactuarialassumptions andmethodsinusebythesystematthetime of the member's election.

(3)HB NopurchaseauthorizedbythisSubsectionshallbeeffectiveuntilthefullNO. actuarial cost is paid by the member.

45 ENROLLED (2) The cost of such purchase shall be an amount calculated on an actuarial basis which totally offsets the increase in accrued liability resulting from the application of the higher accrual rate.

The cost shall be determined by the system actuaryusingtheactuarialassumptions andmethods in usebythesystem atthetime of the member's election.

(3) NopurchaseauthorizedbythisSubsectionshallbeeffectiveuntilthefull actuarial cost is paid bythe member.

Except as provided in Subsection B of this Section, a member shall receive a retirement benefit equal to two and one-half percent of average final compensation for every year of creditable service in this subplan credited before January 1, 2027, and three percent of average final compensation for every year of Pagecreditable 9service in this subplan credited on or after January1, 2027, not to exceed one hundred percent of 16the CODING:member's average final compensation.

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45 creditable service in this subplan credited on or after January1, 2027, not to exceed one hundred percent of the member's average final compensation.

The cost shall be determined by the system actuaryusingtheactuarialassumptionsandmethodsinactuaryusingtheactuarialassumptions usebythesystemandmethodsinusebythesystematthetime atthetime of the member's election.

The cost of the purchase shall be borne solely byPage the10 memberof and12 shallCODING: not be paid, directly or indirectly, by the employer or the system.

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45 ENROLLED by the member and shall not be paid, directly or indirectly, by the employer or the system.

All service in the Louisiana State Employees' Retirement System of a person subject to the provisions of Subsection A of this Section shall be transferred PageinaccordancewithR.S.11:143(C),anduponreceiptoftheamountrequiredpursuant 10to ofR.S. 16 CODING:

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45 inaccordancewithR.S.11:143(C),anduponreceiptoftheamountrequiredpursuant to R.S.

SectionPage 3.11 of 12 CODING:

This Act shall become effective upon signature bythe governor or, if not signedbythegovernor,uponexpirationofthetimeforbillstobecomelawwithoutsignature by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana.

If vetoed bythe governorand subsequentlyapprovedbythe legislature, this Act shall become effective on the dayfollowing such approval.

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 45 Reengrossed 2026 Regular Session Bacala Abstract:

Provides relative to benefits of participating employees in the Municipal Police Employees' Retirement System (MPERS).

Earnable Compensation Present law defines "earnable compensation" as the full amount of compensation earned by an employee for a given month, including supplemental pay, but not including overtime.

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45 ProposedENROLLED lawSection retains3. present law.

ProposedThis lawAct furthershall providesbecome thateffective beginningupon Julysignature 1,bythe 2026,governor "earnableor, compensation"if shallnot notincludeanynonrecurringlump-sumpaymentoradhocbonusesincludingbutnotlimitedsignedbythegovernor,uponexpirationofthetimeforbillstobecomelawwithoutsignature toby the following:governor, as provided by Article III, Section 18 of the Constitution of Louisiana.

(1)If Hiringvetoed orbythe signinggovernorand bonuses.subsequentlyapproved bythe legislature, this Act shall become effective on the dayfollowing such approval.

(2)SPEAKER RetentionOF incentivesTHE orHOUSE bonuses.OF REPRESENTATIVES PRESIDENT OF THE SENATE GOVERNOR OF THE STATE OF LOUISIANA APPROVED:

(3)Page Clothing12 allowances.of 12 CODING:

(4) Anyotherone-timeawardnotpaidaspartoftheemployee'sregularrecurringsalary.

Proposed law provides that payments not paid as part of the employee's regular recurring salary on or after Jan.

1, 2026 and on or before July 1, 2026 are not used in the calculation of retirement benefits unless the payments were remitted to MPERS no later than Jun.

30, 2026.

Providesthatanycontributions retainedbytheemployerandnot remittedto MPERS are returned to the employee.

Proposed law provides that no right or claim shall exist for reimbursement against MPERS or against any employer or municipality for amounts deducted, paid, or otherwise payable on certain non-recurring payments to employees before the effective date of proposed law.

Provides that the system and any employer or municipality is immune from suit or liability from payment of certain nonrecurring payments to employees without deductions required pursuant to present law.

Creditable Service Proposed law allows a police officer who was employed by any other law enforcement agencyofthestateofLa.oranypoliticalsubdivisionthereof,ifsuchserviceisnotcreditable in any public retirement or pension system, fund, or plan in the state, to purchase service credit in the system by paying the actuarial costs of such purchase in accordance with present law.

Proposed law provides that if a member with at least 6 months of service credit in MPERS whowasemployedbyanylawenforcementagencyofthefederalgovernmentorofanystate oranypoliticalsubdivisionofanotherstatewheresuchserviceisnotcreditableinanypublic retirement or pension system, fund, or plan the ability to purchase service credit bypaying the actuarial costs in accordance with present law.

Provides for payment.

Survivor Benefits Proposed law provides that for officers killed in the line of duty between July 1, 2010, and March1,2026,asurvivingspousemayapplyforsurvivorbenefitsunderpresentlawnolater than June 30, 2027, if the employee otherwise met the eligibility requirements for membership in the system at the time of death.

Proposedlawprovidesthatifthesurvivingspousequalifiesforsurvivorbenefitsthesystem shall pay such benefits notwithstanding the failure of the employer to properly enroll the officerin the system at the time of the death.

Providesthattheactuarialcostofthepayment associated with the benefit is funded with additional employer contributions.

Requires retroactive benefit payments to be made no later than three months after the system determines that the applicant is eligible.

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45 Funding Deposit Account Present law authorizes the board of trustees to require an employer contribution rate up to the following limits:

(1) Whenthecontributionrateisequalorgreaterthanthepreviousyear'srate,theboard can set the rate at the other required rate plus .85%.

(2) When the contribution rate is lower than the previous year's rate, the board can set the rate at the otherwiserequiredrateplus .85% plus half the differencebetweenthe rates for the two years.

Proposed law authorizes the board to require an employer contribution rate up to the rate provided pursuant to present law plus the applicable benefit rate.

ProposedlawprovidesthatbeginningJuly1,2027,thefundingdepositaccountrate(FDAR) is .85%.

Proposed law provides that in any fiscal year beginning on or after July 1, 2028, if the contribution rate as provided in present law decreases, the FDAR shall increase by 50% of theamount ofthedecrease.

ProvidesthatanyincreaseintheFDARis permanent.

Provides that the adjusted FDAR shall not exceed 2.5%.

Proposed law provides that in any fiscal year beginning on or after July 1, 2028, if the sum of the contribution rate as provided in present law and the FDAR does not exceed 29.35%, the applicable benefit rate shall be equal to the FDAR.

Proposed law provides that in any fiscal year beginning on or after July 1, 2028, in which thesumoftherateasprovidedin presentlawand theFDAR exceeds29.35%theapplicable benefit rate is equal to 0.85% or the difference between 29.35% and the rate as determined in present law, whichever is greater.

Proposedlawrequiresthatexcesscontributionsbeusedtopayadditionalbenefitstoretirees, survivors, and beneficiaries.

DROP PresentlawprovidesfortheestablishmentoftheDeferredRetirementOptionPlan (DROP) for members of the MPERS.

Present law provides that for certain participants in DROP, accounts are invested through athird-partyprovider selectedbythe system's boardoftrusteesto administeraself-directed investment program.

Proposed law authorizes the board of trustees, in accordance with present law (Administrative Procedure Act), to adopt rules that would allow the system to retain and invest amounts credited to DROP accounts, including amounts held after termination of participation.

ProvidesthatsuchrulesapplytoanypersonwhoseDROPparticipationbegins onorafterJuly1,2026.

Specifiesthatiftherulesauthorizedbyproposedlawhavenotbeen promulgated by the date the person's DROP period ends, the individual's account shall be transferred as provided in present law.

Proposedlawfurtherauthorizestheboard,byruleandattheoptionoftheDROPparticipant, to transfer amounts credited to DROP accounts invested outside of the system, including third-party providers, back to the system.

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45 Proposedlawprovidesthatamountsretainedortransferredtothesystempursuanttopresent law shall earn interest at the system's actuarial interest rate of return minus one-halfof one percent on an annual basis.

Proposed law authorizes the board of trustees to adopt rules governing the following, prospectively only:

(1) Eligibility.

(2) Timing of transfers.

(3) Administration.

(4) Valuation dates.

(5) Crediting periods.

(6) Administrative fees.

(7) Other matters as necessary.

Proposed law provides, beginning July 1, 2026, that any member electing to participate in DROPisdeemedto haveknowinglyandvoluntarilywaivedrightsandclaimsunderpresent constitution as it relates to benefits credited to and interest earned on DROP accounts.

Provides that the waiver applies to all amounts credited to DROP accounts whether during or after participation in DROP.

Benefit Calculations Present law, applicable to MPERS members hired before Jan.

1, 2013, provides an accrual rate of three and one-third percent of the member’s final average compensation.

Proposed law retains present law.

Present law provides for two subplans in MPERS for those hired on Jan.

1, 2013, or later.

Provides for the hazardous duty subplan and the nonhazardous duty subplan.

Proposed law retains present law.

Present law provides that for members of the hazardous duty subplan the accrual rate is equal to three percent of the member's final average compensation.

Proposed law increases the accrual rate to three and one-third percent of the member's final average compensation for creditable service credited on or after Jan.

1, 2027.

Present law provides that for members of the nonhazardous duty subplan, the accrual rate is equal to two and one-half percent of the member's final average compensation.

Proposed law increases the accrual rate to three percent of the member's final average compensation for creditable service credited on or after Jan.

1, 2027.

Proposedlawallowsamemberofthehazardousdutysubplanornonhazardousdutysubplan to purchase an increase in the member's accrual rate so that the member's years of service are credited at the higher accrual rate.

Proposed law requires the purchase to be calculated on an actuarial basis to offset any accruedliabilityresultingfromthepurchaseofthehigheraccrualrate.

Providesthatthecost Page 14 of 16 CODING:

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45 is determined by the system's actuary using the assumptions and methods in use by the system at the time of the member's election.

Proposed law provides that the new accrual rate is not effective until the full purchase is made and that the cost of the purchase is borne solely by the member and cannot be paid, directly or indirectly, by an employer of the system.

Transfer of Membership Present law provides that a member of the La.

State Employees' Retirement System (LASERS) who becomes employed in a position where he is no longer eligible for membershipinLASERS but is eligibleformembership in anotherpublicretirementsystem may remain a member of LASERS in lieu of participation in another public retirement system.

Present law requires that the member have a minimum of 10 years of service credit in LASERS.

Present law requires the member file a notice of election with the board of trustees within days of employment.

Provides that the election is irrevocable.

Proposed law retains present law.

Proposed law provides that each member of MPERS, who filed an irrevocable election to remaininLASERS,andwho,onDec.31,2026,isemployedinapositionthatwouldqualify the member to be in the MPERS nonhazardous duty subplan shall become a member of MPERS and his service credit is transferred on an actuarial basis to MPERS.

Proposed law provides that the transfer of service is deemed to be creditable service in MPERS for purposes of eligibility for benefits and benefit computation.

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

(AmendsR.S.11:2213(10),2221(N),2225.5(B)(1)(intro.para.)and(2)and(C),2241.5(A), and 2242.5(A);

Adds R.S.

11:2218(K), 2220.1, 2221(G)(6) and (O), 2225.5(B)(3) and (4), 2241.5(D), 2242.5(D), and 2242.9) Summary of Amendments Adopted by House The Committee Amendments Proposed by House Committee on Retirement to the original bill:

1.

Provide relative to what is not "earnable compensation".

2.

Allow a member who was employed by another law enforcement agency of the state, a political subdivision, another state, or the federal government the ability to purchase service credit.

3.

Provide for survivor benefits for spouses of police officers killed in the line of duty between July 1, 2010, and March 1, 2026.

4.

Provide relative to additional employer contributions to be deposited in the funding deposit account.

5.

Reduce the accrual rate for members of the nonhazardous duty plan from three and one-third percent to three percent.

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45 The House Floor Amendments to the engrossed bill:

1.

Make technical changes.

2.

Provide relative to what is not "earnable compensation".

3.

Provide for the calculation of retirement benefits for certain payments to employees made on or after Jan.

1, 2026, and on or before July 1, 2026.

4.

Provide contributions for payments to employees that are not "earnable compensation" pursuant to proposed law.

5.

Providethatnorightorclaimforreimbursementexistsagainstthesystem orany employer or municipality for amounts deducted, paid, or otherwise payable on or before the effective date of proposed law for certain nonrecurring payments to employees, and provide for immunity from suit or liability from payment of certain nonrecurring payments to employees without the deductions required pursuant to present law.

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