Amendment vs bill House Committee Amendment, #3274, RET, Draft vs Enrolled

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ENROLLED Regular Session HOUSE BILL NO.
HCAHB45 4267 3274 HOUSE COMMITTEE AMENDMENTS Regular Session Amendments proposed by House Committee on Retirement to Original House Bill No.
45 BY REPRESENTATIVES BACALA AND FREEMAN AN ACT ToamendandreenactR.S.11:2213(10),2221(N),2225.5(B)(1)(introductoryparagraph)and (2) and (C), 2241.5(A), and 2242.5(A) and to enact R.S.
45 by Representative Bacala AMENDMENT NO.
11:2218(K), 2220.1, 2221(G)(6), (K)(5), and (O), 2225.5(B)(3) and (4), 2241.5(D), 2242.5(D), and 2242.9, relative to the Municipal Police Employees' Retirement System;
1 On page 1, line 2, after "reenact" and before "2241.5(A)," delete "R.S.
to provide relative to benefits;
11:2221(N)," and insert "R.S.
to provide for membership in the system;
11:2213(10), 2221(N), 2225.5(B)(1)(introductoryparagraph) and (2) and (C)," AMENDMENT NO.
to provide relative to the definition of earnablecompensation;
2 On page 1, at the beginning of line 3, delete "11:2221(G)(6) and (O)," and insert "11:2218(K), 2220.1, 2221(G)(6) and (O), 2225.5(B)(3) and (4)," AMENDMENT NO.
to provide for servicecredit;
3 On page 1, line 4, after "benefits;" insert "to provide for membership in the system;
to provide relative to the definition of earnable compensation;
to provide for service credit;
to provide relative to the fundingdepositaccount;toproviderelativetotheDeferredRetirementOptionPlan;
to provide relative to the funding deposit account;" AMENDMENT NO.
to provide relative to investment of Deferred Retirement Option Plan accounts;
4 Onpage1,line16,after"Section1."delete"R.S.11:2221(N),"andinsert"R.S.11:2213(10), 2221(N), 2225.5(B)(1)(introductory paragraph) and (2) and (C)," AMENDMENT NO.
to provide relative to investment earnings on Deferred Retirement Option Plan accounts;
5 On page 1, line 17, after "reenacted and" delete "R.S.
to provide relative to the accrual rate for service credit in the hazardous and nonhazardous duty subplans;
11:2221(G)(6) and (O)," and insert "11:2218(K), 2220.1, 2221(G)(6) and (O), 2225.5(B)(3) and (4)," AMENDMENT NO.
to provide for the transfer of certain employees from the Louisiana State Employees' Retirement System to the Municipal Police Employees' Retirement System;
6 On page 1, between lines 18 and 19, insert the following:
to provide for an effective date;
"§2213.
and to provide for related matters.
Notice of intention to introduce this Act has been published as provided by Article X, Section 29(C) of the Constitution of Louisiana.
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HB NO.
45 ENROLLED Be it enacted by the Legislature of Louisiana:
Section1.
R.S.11:2213(10),2221(N),2225.5(B)(1)(introductoryparagraph)and(2) and(C),2241.5(A),and2242.5(A)areherebyamendedandreenactedandR.S.11:2218(K), 2220.1, 2221(G)(6), (K)(5), and (O), 2225.5(B)(3) and (4), 2241.5(D), 2242.5(D), and 2242.9 are herebyenacted to read as follows:
§2213.
(b) Beginning July 1, 2026, "earnable compensation" shall not include any nonrecurring lump-sum payment or ad hoc bonus, including but not limited to recruitment incentives, hiring or signing bonuses, retention incentives or bonuses, clothingallowance,and anyother one-time awardnot paid as part of the employee's regular recurring salary.
(b) Beginning January 1 2026, "earnable compensation", shall not include any nonrecurring lump-sum payment or ad hoc bonus, including but not limited to recruitment incentives, hiring or signing bonuses, retention incentives or bonuses, clothing allowance,and anyother one-time award not paid as part ofthe employee's regular recurring salary.
(c) For the purpose of calculating retirement benefits, for anynonrecurring lump-sum payment or ad hoc bonus, including but not limited to recruitment incentives, hiring or signing bonuses, retention incentives or bonuses, clothing allowance, and anyother one-time award not paid as part of the employee's regular recurring salary made on or after January 1, 2026, and on or before July 1, 2026, such non-recurring lump-sum payments or ad hoc bonuses shall not be used in the calculation of retirement benefits unless the employer and employee contributions forsuchlump-sum paymentsoradhocbonusesareremittedto theMunicipalPolice Employees' Retirement System no later than June 30, 2026.
Any retirement contributions on such non-recurring lump-sum payments and ad hoc bonuses retained by an employer and not remitted to the retirement system shall be returned to theemployeebytheemployer.
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HB NO.
45 ENROLLED fromtheemployee,theemployershall not be responsibleforremittingmoneyto the employee.
Creditable service * * * K.(1) Notwithstanding anyprovision of law to the contrary, anymember of this system who was employed by anyother law enforcement agencyof the state of Louisianaoranypolitical subdivision thereof,ifsuchserviceisnotcreditablein any public retirementorpensionsystem, fund, or plan in the state, maypurchaseservice credit in this system by paying all actuarial costs of such purchase as determined by theretirementsystemactuaryinaccordancewithR.S.11:158(C).
Creditable service * * * K.(1) Notwithstanding anyprovision of law to the contrary, anymember of this system who was employed by any other law enforcement agency of the state of Louisianaoranypolitical subdivision thereof,ifsuchserviceisnotcreditableinany public retirementor pension system, fund, or plan in thestate,maypurchaseservice credit in this system by paying all actuarial costs of such purchase as determined by theretirementsystemactuaryinaccordancewithR.S.11:158(C).
Themembershall pay the cost of such service credit either in a lump sum, or the member may enter into an installment agreement with the system, on terms established by the system, for payments over a period not to exceed sixty months, inclusive of interest at the actuariallyassumed rate of return.
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Notwithstanding the foregoing, anyoutstanding balance shall be paid in full no later than thirty days prior to the member's effective retirement date or the date on which the member first receives a benefit from the system, whichever is earlier.
(2)(a) Notwithstandinganyprovisionoflawtothecontrary,anypersonwho hasatleastsix months ofservicecreditinthissystemandwhowasemployedbyany law enforcement agency of the federal government or of any other state or of any political subdivision of another state where such service is not creditable in any public retirementor pension system, fund, or plan, in this oranyother state or of the federalgovernment,maypurchaseservicecreditinthissystemforsuchemployment bypayingallactuarialcostsofsuchpurchaseasdeterminedbytheretirementsystem actuary,inaccordancewithR.S.11:158(C)andasfurtherprovidedinthisParagraph.
(b) Topurchasecreditforsuchservice,themembershallapplytothesystem and furnish with such application information on the name and address of each retirementorpensionsystem,plan,orfundinwhichthememberwasenrolledduring the out-of-state or federal law enforcement employment, together with the dates of Page 3 of 12 CODING:
HB NO.
HCAHB45 4267 3274 pay the cost of such service credit either in a lump sum, or the member may enter into an installment agreement with the system, on terms established by the system, for payments over a period not to exceed sixty months, inclusive of interest at the actuariallyassumed rate of return.
45 ENROLLED such employment.
Notwithstanding the foregoing, any outstanding balance shall be paid in full no later than thirty days prior to the member's effective retirement date or the date on which the member first receives a benefit from the system, whichever is earlier.
The appropriate officer, trustee, or employee of each system, plan, or fund, or of the out-of-state or federal employing agency shall certify the length of employment of the member and that the member does not have retirement or pension credit for such employment which duplicates the service credit being purchased in the system.
(2)(a) Notwithstandinganyprovisionoflawtothecontrary,anypersonwho hasatleastsix monthsofservicecreditin this system andwhowasemployedbyany law enforcement agency of the federal government or of any other state or of any political subdivision of another state where such service is not creditable in any public retirementor pension system, fund, or plan, in this or anyother state or of the federalgovernment,maypurchaseservicecreditinthissystemforsuchemployment bypayingallactuarialcostsofsuchpurchaseasdeterminedbytheretirementsystem actuary,inaccordancewithR.S.11:158(C)andasfurtherprovidedinthisParagraph.
(b) Topurchasecreditforsuchservice,themembershallapplytothesystem and furnish with such application information on the name and address of each retirementorpensionsystem,plan,orfundinwhichthememberwasenrolledduring the out-of-state or federal law enforcement employment, together with the dates of such employment.
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The appropriate officer, trustee, or employee of each system, plan, or fund or of the out-of-state or federal employing agency shall certify the length of employment of the member and that the member does not have retirement or pension credit for such employment which duplicates the service credit being purchased in the system.
Notwithstanding the foregoing,anyoutstandingbalanceshallbepaidin full nolaterthanthirtydaysprior to the member's effectiveretirement date or the date on which the member is to first receive a benefit from the system, whichever is earlier.
Notwithstanding the foregoing,anyoutstandingbalanceshallbepaidinfull nolaterthanthirtydaysprior to the member's effectiveretirement date or the date on which the member is to first receive a benefit from the system, whichever is earlier.
Survivorbenefitsforofficerskilled in thelineofduty;
Survivor benefitsforofficerskilled in thelineofduty;
failure of employer enrollment A.
failureofemployer enrollment A.
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D.
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HB NO.
45 ENROLLED D.
* * * §2221.
* * *" Page 2 of 4 CODING:
Deferred Retirement Option Plan * * * G.
* * * (6) In the case of anyconflict betweenthe provisions of this Subsection and Subsection N of this Section, the provisions of Subsection N of this Section shall control.
* * * K.
The following shall also applyif employment is not terminated at the end of the period of participation:
* * * (5)(a)Aparticipantwhohadtwenty-eightormoreyearsofcreditableservice upon commencementof participation in the plan, whoelectedaparticipationperiod of three years before July 1, 2024, and who thereafter resumed active contributing membership in the system pursuant to Paragraph (1) of this Subsection, may elect upon subsequent retirement to receive the additional retirement benefit payable under Paragraph (3) of this Subsection as an initial benefit plus a reduced monthly retirement allowance equal to the actuarially equivalent amount of his maximum additional retirement benefit.
(b) The initial benefit shall not exceed twenty-four payments of the monthly retirement benefit that was being paid into the participant's Deferred Retirement Option Plan account upon termination of participation in the plan.
(c) The participant, at his option, shall receive the initial benefit as a lump- sum payment or in an investment account established and administered under this Section.
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HB NO.
HCAHB45 4267 3274 AMENDMENT NO.
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.
7 On page 2, at the end of line 22, delete "shall earn interest at a rate equal" and delete lines 23 through 25 in their entirety and insert the following:
(e) Cost of living adjustments shall not be payable on the initial benefit.
"shall earninterest, creditedannually, at a rate equal to the actuarial rate of return of the system's investment portfolio for the applicable fiscal year, less one-half of one percent, as certified in the system's actuary's annual valuation report." AMENDMENT NO.
* * * N.(1)(a) Notwithstanding any provision of this Section to the contrary and as further provided in this Paragraph, the board of trustees may adopt rules in accordance with the Administrative Procedure Act to provide for amounts credited to Deferred Retirement Option Plan accounts, including amounts credited after termination of participation in the plan, to be retained and invested by the system.
8 On page 3, between lines 17 and 18, insert the following:
The rules shall apply to any person whose plan participation begins on or after July 1, 2026;
"§2225.5.
provided, however, that if the rules authorized bythis Paragraph have not been promulgated by the date a person's participation period ends, the person's account shall be transferred as provided in Subparagraph (G)(5)(b) of this Section.
(b) The board of trustees may adopt rules for the transfer to the system, at the option of the participant, of amounts previouslycreditedto DeferredRetirement OptionPlanaccountsthatareinvestedoutsideofthe system,includingamountsheld by third-party providers or in externally managed funds.
(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 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 implement theprovisions ofthisParagraph.
Anyrule adopted pursuant to this Paragraph shall apply prospectively only.
(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 Page 6 of 12 CODING:
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HB NO.
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 waiver provided by this Paragraph shall apply to all amounts credited to the participant's Deferred Retirement Option Plan account, whether credited during or after participation in the plan, and regardless of whether such amounts are retained and invested by the system or transferred pursuant to law or rules adopted by the board of trustees.
O.
The board of trustees shall promulgate rules in accordance with the Administrative Procedure Act to approve anyother methods of payment authorized by but not expressly provided in this Section.
Once promulgated, the rules shall be considered plan provisions for purposes of compliance with requirements of the Internal Revenue Code and associated regulations.
* * * §2225.5.
11:103 or 104, for fiscal years beginning on or afterJuly1, 2023, and endingon or beforeJune 30, 2028, the board oftrusteesmayrequireanetdirectcontributionrateofuptothefollowingapplicable limit:
11:103 or 104, for fiscal years beginning on or after July1, 2023 and ending on or before June 30, 2028, the board oftrusteesmayrequireanetdirectcontributionrateofuptothefollowingapplicable limit:
11:103 plus the applicable benefit rate as determined under Subparagraphs (3)(c) and (d) of this Subsection.
11:103 plus the applicable additional benefits funding rate as determined under Subparagraphs (3)(c) and (d) of this Subsection.
(3)(a) Effective July 1, 2027, the funding deposit account rate shall be eighty-five hundredths of one percentage point.
(3)(a) Effective July 1, 2027, the additional benefits funding rate shall be eighty-five hundredths of one percentage point.
11:103 decreases, the funding deposit account rate shall Page 7 of 12 CODING:
11:103 decreases, the additional benefits funding rate shall increase by the lesser of one-half of the amount of the decrease in the rate determined under R.S.
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11:103 or the amount necessary for the additional benefits funding rate to equal two and one-half percent.
HB NO.
Any increase in the additional benefits funding rate shall be permanent.
45 ENROLLED increasebyone-halfof the amount of the decreasein the rate determined under R.S.
11:103.
Anyincreaseinthefundingdepositaccountrateshallbepermanent,andthe adjusted funding deposit account rate shall not exceed two and one-half percent.
11:103 and the funding deposit account rate determined pursuant to Subparagraph (b) of this Paragraph does not exceed twenty- nine and thirty-five hundredths percent, the applicable benefit rate shall be equal to the funding deposit account rate determined pursuant to Subparagraph (b) of this Paragraph.
11:103 and the additional benefits funding rate does not exceed twenty-nine and thirty-five hundredths percent, the applicable additionalbenefitsfundingrateshallbeequaltotheadditionalbenefitsfundingrate.
11:103 and the funding deposit account rate determinedpursuanttoSubparagraph(b)ofthisParagraphexceedstwenty-nineand thirty-five hundredths percent, the applicable benefit rate shall be equal to eighty- five hundredths of one percentage point or the difference between twenty-nine and thirty-fivehundredthspercentandtheratedeterminedunderR.S.11:103,whichever is greater.
11:103 and the additional benefits funding rate exceeds twenty-nine and thirty-five hundredths percent the applicable additional benefits funding rate shall be equal to the greater of eighty-five hundredths of one percentage point and the differencebetween twenty-nine and thirty-five hundredths percent and the rate determined under R.S.
11:103.
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 Page 8 of 12 CODING:
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HB NO.
HCAHB45 4267 3274 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 oldest positive amortization base;
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-fivehundredths of one percentage point morethantheratedetermined under R.S.
(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-fivehundredths of one percentage point more than the rate determined under R.S.
11:103, to be used solelyto payadditional benefits to retirees, survivors, and beneficiaries.
11:103, to be usedsolelytopayadditional benefitstoretirees,survivors,andbeneficiaries.Thededicatedamountoffundsshall be credited to the account.
The dedicated amount of funds shall be credited to the account.
* * *" AMENDMENT NO.
* * * §2241.5.
9 On page 4, line 23, after "three" delete "and one-third" AMENDMENT NO.
Retirement benefit calculation A.
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Except as provided in Subsection B of this Section, a member shall receivearetirementbenefit equal to three 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 creditable service in this subplan credited on or after January1, 2027, not to exceed one hundred percentof the member's average final compensation.
Notwithstanding this provision, a member who retires with thirty or more years of creditable service shall receive a retirement benefit equal to three and one-third percent of the member's average final compensation for every year of creditable service in this subplan, not to exceed one hundred percent of the member's average final compensation.
* * * D.(1) Notwithstandinganyprovisionoflawtothecontrary,amemberofthis subplanmayelecttopurchaseanincreaseintheaccrualrateapplicabletoanyperiod of creditable service in this subplan that was credited at the rate of three percent of theaveragefinalcompensation,sothatsuchserviceissubjecttotherateofthreeand one-third percent of the average final compensation.
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HB NO.
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.
The cost of the purchase shall be borne solely by the member and shall not be paid, directly or indirectly, by the employer or the system.
* * * §2242.5.
Retirement benefit calculation A.
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 creditable service in this subplan credited on or after January1, 2027, not to exceed one hundred percent of the member's average final compensation.
* * * D.(1) Notwithstandinganyprovisionoflawtothecontrary,amemberofthis subplanmayelecttopurchaseanincreaseintheaccrualrateapplicabletoanyperiod of creditable service in this subplan that was credited at the rate of two and one-half percent of the average final compensation, so that such service is subject to the rate of three percent of average final compensation.
(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 andmethodsinusebythesystematthetime of the member's election.
(3) NopurchaseauthorizedbythisSubsectionshallbeeffectiveuntilthefull actuarial cost is paid by the member.
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HB NO.
45 ENROLLED by the member and shall not be paid, directly or indirectly, by the employer or the system.
* * * §2242.9.
Certain employees previouslyelectingmembership in the Louisiana State Employees' Retirement System A.
Any person who made an election pursuant to R.S.
11:160 to remain a member of the Louisiana State Employees' Retirement System and who on December 31, 2026, is employed in a position that would otherwise qualify him to be a member of the Municipal Police Employees' Retirement System shall, beginning January 1, 2027, become a member of the Municipal Police Employees' Retirement System.
B.
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 inaccordancewithR.S.11:143(C),anduponreceiptoftheamountrequiredpursuant to R.S.
11:143(C), the member shall receive his service credit.
C.
All service credit transferred pursuant to this Section shall be deemed creditable service in the Municipal Police Employees' Retirement System for purposes of benefit computation and eligibility.
Section 2.
There shall exist no right or claim for reimbursement against the Municipal Police Employees' Retirement System or against any employer or municipality for anyamounts deducted,paid, or otherwise payable, on or beforethe effectivedate of this Act, from the earnable compensation of a member of the system from any nonrecurring lump-sum payment or ad hoc bonus, including but not limited to recruitment incentives, hiringorsigningbonuses,retentionincentivesorbonuses,clothingallowance,andanyother one-timeawardnotpaidaspartoftheemployee'sregularrecurringsalary.
Tothemaximum extentpermittedbylaw,thesystemandanyemployerormunicipalityshallbeimmunefrom suit or other financial liabilityfrom the payment of anynonrecurringlump-sum payment or ad hoc bonus without the deductions on earnable compensation pursuant to R.S.
11:2227(B)(1)(a).
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HB NO.
45 ENROLLED Section 3.
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 subsequentlyapproved bythe legislature, this Act shall become effective on the dayfollowing such approval.
SPEAKER OF THE HOUSE OF REPRESENTATIVES PRESIDENT OF THE SENATE GOVERNOR OF THE STATE OF LOUISIANA APPROVED:
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