HR 352 — RETIREMENT/TEACHERS: Creates a task force to study the Optional Retirement Plan within the Teachers' Retirement System of Louisiana

HLSENROLLED 26RS-6125 ORIGINAL Regular Session HOUSE RESOLUTION NO.

352 BY REPRESENTATIVE KERNER RETIREMENT/TEACHERS:A RESOLUTION To establish a task force to study the Optional Retirement Plan within the Teachers' Retirement System of Louisiana, including differences affecting long-term participants, and to report its findings to the House Committee on Retirement no later than ninety days prior to the convening of the 2027 Regular Session of the Legislature.

Creates a task force to study the Optional Retirement Plan within the Teachers' Retirement System of Louisiana A RESOLUTION To establish a task force to study the Optional Retirement Plan within the Teachers' Retirement System of Louisiana, including differences affecting long-term participants, and to report its findings to the House Committee on Retirement no later than ninety days prior to the convening of the 2027 Regular Session of the Legislature.

the traditional TRSL plan is a defined benefit plan with a guaranteed pension, but the ORP is a defined contribution plan withoutaguaranteedpensionandparticipantsassumeallinvestmentrisks,makingtheORPwithoutaguaranteedpensionandparticipantsassumeallinvestmentrisks, makingtheORP unique among the plans available to public employees in Louisiana;

and WHEREAS, ORP participants are not provided Social SecuritySecuritycoverage, coverage, resulting an in increased reliance on individual retirement savings;

and WHEREAS, the median default employer contribution rate for optional defined contribution plan accounts is 8.25% of pay according to National Association of State PageRetirementAdministrator'skeyfindingsforhighereducationemployeesoftheSoutheastern 1Conference ofschools; 5 HLS 26RS-6125 ORIGINAL HR NO.

352and RetirementAdministrator'skeyfindingsforhighereducationemployeesoftheSoutheasternPage Conference1 schools;of 5 HR NO.

and352 ENROLLED WHEREAS,long-termemployeeswhotransitionfromtheORPtotheTRSLdefined benefit plan later in their careers face an inability to apply prior years of service toward vesting requirements;

and WHEREAS, differences exist in the treatment of accrued leave, as defined benefit planmembersmayconvertunusedleaveinto servicecredit,whileORPservicecredit,while ORP participantsreceive limited or no comparable benefit;

THEREFORE, BE IT RESOLVED that the House of Representatives of the Legislature does herebyestablish a task force to studythestudy the Optional Retirement Plan within theTeachers'RetirementSystemofLouisiana,withaspecificfocusondifferencesaffecting long-termparticipantsandoptionsforachievinggreaterparitywiththedefinedbenefitplan.

(1) The feasibility and potential design of granting pension service credit to long- termORPparticipants,includingthosewhohavetransitionedtothedefinedbenefitplanand those whohavewho have not, based on actuarialyears ofofservice,in service,in exchange for the transferof ORP account balances, with or without requiring the purchase of such credit, including consideration of graduated or tenure-based approaches, and taking into account historical employer contribution levels to the ORP in evaluating actuarial equity.

Page(3) 2Alternatives ofto 5the HLScurrent 26RS-6125five-year ORIGINALvesting HRrequirement NO.for employees who transition from the ORP to the defined benefit plan later in their careers, including recognition of prior service or accrued leave.

352Page (3)2 Alternatives to the current five-year vesting requirement for employees who transition from the ORP to the defined benefit plan later in their careers, including recognition of prior5 serviceHR orNO. accrued leave.

352 ENROLLED (4) Policies to provide equitable treatment of accrued leave for ORP participants and recent pension transfers, including actuarial conversion of leave into ORP retirement accounts, direct payment of accrued leave at retirement, or application toward vesting requirements.

(10) The impact of irrevocable ORP election decisions on employees with intermittent orornon-continuousservice,includingthose non-continuouswho service,includingreturn thosewhoreturntoto publiceducationafterpublic educationafter extended absences and are subsequently ineligible for participation in the defined benefit plan, as well as those who transition to the defined benefit plan later in their careers but encounter difficulties in meeting vesting requirements, and the feasibility of providing alternative enrollment pathways or targeted remedies for such individuals.

Page(1) 3The Board of 5Supervisors HLSfor 26RS-6125the ORIGINALUniversity HRof NO.Louisiana System shall appoint three members, at least two of whom shall be ORP participants.

352Page (1)3 The Board of Supervisors5 forHR theNO. University of Louisiana System shall appoint three members, at least two of whom shall be ORP participants.

352 ENROLLED (2) TheBoardofSupervisorsoftheLouisianaStateUniversityandAgriculturaland Mechanical College shall appoint three members, at least two of who shall be Optional Retirement Plan participants.

(7) The actuaryforcommissioner theof legislativeadministration auditorshall appoint two members, at least one of whom shall servebe asa anrepresentative exof officiothe member.Office of Group Benefits.

(8) AtThe leastactuaryfor two members representing long-term Optional Retirement Plan participantswithtwentyormoreyearsofservice,includingatleastonewhohastransitioned to the definedlegislative benefitauditor plan, shall beserve appointedas byan theex speakerofficio ofand thenonvoting Housemember. of Representatives.

BEITFURTHERRESOLVEDthattheappointingauthoritiesshallsubmitthenames(9) andcontactinformationfortheirappointeestothecommissionerofhighereducationnolaterThe thansecretary July1,of 2026,the andDepartment theof commissionerRevenue, shallor callhis thedesignee, firstshall meetingofthetaskforcenoserve lateras thanan Augustex 1,officio 2026.member.

BEITFURTHERRESOLVEDthattheBoardofRegentsshallprovidestaffsupport(10) forAt theleast tasktwo force,members andrepresenting long-term Optional Retirement Plan participantswithtwentyormoreyearsofservice,includingatleastonewhohastransitioned to the legislativedefined auditorbenefit plan, shall providebe actuarialappointed servicesby uponthe request.speaker of the House of Representatives.

BEITFURTHERRESOLVEDthattheappointingauthoritiesshallsubmitthenames and contact information for their appointees to the commissioner of administration no later than July1, 2026, andthecommissioner shall callthe first meetingof the task forceno later than August 1, 2026.

BEITFURTHERRESOLVEDthatthedivisionofadministrationshallprovidestaff supportforthetaskforce,andthesecretaryoftheDepartmentofRevenueandthelegislative auditor shall provide information and analysis upon request.

BEPage IT4 FURTHER RESOLVED that the task force shall submit a written report of itfindingsandrecommendationstotheHouseCommitteeonRetirementnolaterthanninety5 daysHR priorNO. to the convening of the 2027 Regular Session of the Legislature.

Page352 4ENROLLED BE IT FURTHER RESOLVED that the task force shall submit a written report of 5itfindingsandrecommendationstotheHouseCommitteeonRetirementnolaterthanninety HLSdays 26RS-6125prior ORIGINALto HRthe NO.convening of the 2027 Regular Session of the Legislature.

352SPEAKER DIGESTOF ThedigestprintedbelowwaspreparedbyHouseLegislativeTHE Services.HOUSE OF REPRESENTATIVES Page 5 of 5

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)] HR 352 Original 2026 Regular Session Kerner Establishes a task force to study the Optional Retirement Plan within the Teachers' Retirement System of La.

and report its findings to the House Committee on Retirement no later than 90 days prior to the 2027 R.S.

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