SB 10: STATE POLICE RETIREMENT: Provides relative to the determination of employer contributions and amortization of certain actuarial gains. (gov sig) (EN SEE ACTUARIAL NOTE FC) - Louisiana

SB10 Original → SB10 Act · 4 edits

MODERATE

This bill repeals existing rules governing the Louisiana State Police Retirement System, specifically removing provisions for amortizing excess investment returns and funding permanent benefit increases. It also adds a new section establishing a 'Permanent Benefit Increase Funding Account' with strict limits on how much money can be credited to it, ensuring the account balance never exceeds the reserve needed for two specific 2% benefit increases. The changes simplify the funding mechanism by eliminating complex priority allocation rules while introducing a new cap on surplus funding.

Scope change

The bill narrows the scope of the retirement system's funding rules by repealing the application of excess investment returns to the amortization base and removing the 'priority amount' and 'priority allocation' mechanisms that previously governed how surplus funds were used.

FISCAL

Repealed the rule requiring excess investment returns to be applied to the amortization base instead of being retained for future benefit increases.

Repealed the 'priority amount' and 'priority allocation' mechanisms that dictated how surplus funds were distributed within the retirement system.

Created a new 'Permanent Benefit Increase Funding Account' that can only be credited with funds up to the amount necessary to fund two permanent 2% benefit increases.

REQUIREMENT

Changed the funding requirements by removing the account funding contribution rate provisions and replacing them with a hard cap on the account balance.

SB10 Enrolled → SB10 Original · 4 edits

MODERATE

This bill fundamentally restructures how the Louisiana State Police Retirement System calculates employer contributions and manages investment gains. It removes the specific rules for funding permanent benefit increases and eliminates the mechanism that applies excess investment returns to reduce future contribution costs. The changes shift the system from a model that prioritizes funding benefit increases to one focused solely on standard actuarial requirements.

Scope change

The bill narrows the scope of the State Police Retirement System by repealing specific statutes (R.S. 11:102(F)(3), 102.4, and 1332) that governed the experience account and permanent benefit increase funding, while amending the general contribution calculation formula.

FISCAL

Deleted the legal framework for the 'Permanent Benefit Increase Funding Account,' which previously allowed the system to use excess investment returns to fund future benefit increases for retirees.

Eliminated the 'priority amount' and 'priority allocation' mechanisms that dictated how excess investment gains were applied to the oldest outstanding amortization bases.

REQUIREMENT

Amended the general contribution formula to remove provisions related to the experience account's crediting and debiting based on investment gains and losses.

Repealed the specific statute that capped the balance in the experience account to ensure it could only cover two permanent benefit increases of two percent each.

SB10 Reengrossed → SB10 Enrolled · 3 edits · May 13, 2026

MINOR

The bill transitioned from a reengrossed draft to its final enrolled version, removing the Senate Legislative Services digest and formatting notes while retaining the core policy text. The substantive legal changes remain focused on state police retirement, specifically repealing old rules about how actuarial gains are used and modifying how excess employer contributions are handled.

TECHNICAL

Removed the 'Digest' section and legislative service notes that explained the bill's purpose, as these are informational summaries and not part of the actual law.

Changed the document header from 'REENGROSSED' to 'ENROLLED' and adjusted the page count from 3 to 2, reflecting the removal of the digest.

Deleted the 'Summary of Amendments Adopted by Senate' section, which listed clarifications made during the legislative process.

SB10 Engrossed → SB10 Reengrossed · 3 edits · May 12, 2026

MINOR

The bill was reengrossed to add a new section requiring that surplus employer contributions be amortized over a specific period rather than being immediately applied to reduce debt. This change clarifies how excess funds are handled, ensuring they follow the same amortization rules as other contributions while simultaneously repealing previous provisions that allowed for immediate debt reduction and specific benefit increase funding rules.

Scope change

The bill's scope was expanded to include a new requirement for the amortization of surplus contributions, while the repealed sections removed specific rules for permanent benefit increases and debt priority allocation.

FISCAL

Added a new section (1332.1) mandating that any employer contributions exceeding the maximum funding cap for permanent benefit increases must be amortized over a specified period instead of being immediately used to reduce system debt.

Repealed existing laws that established priority allocation rules for excess investment returns and specific criteria for granting permanent benefit increases to the Louisiana State Police Retirement System.

REQUIREMENT

Updated the bill's title and effective date section to reflect the addition of the new amortization requirement and the repeal of the repealed statutes.

STATE POLICE RETIREMENT: Provides relative to the determination of employer contributions and amortization of certain actuarial gains. (gov sig) (EN SEE ACTUARIAL NOTE FC)

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