Retirement

This resolution asks the legislative auditor to study whether it is possible and affordable to combine the Baton Rouge City Parish Employees' Retirement System with the state's Firefighters' Retirement System. The study will specifically examine the costs and practicality of moving Baton Rouge firefighters into the larger state system, which currently has a higher funding level than the local system. An official report on these findings must be submitted to the House Committee on Retirement by January 15, 2027. This action directly affects the Baton Rouge firefighters and their pension plans by initiating a formal review of their retirement options.

SB 22 adds constables in the Second City Court of New Orleans to the Municipal Employees' Retirement System (MERS) as eligible members. This specifically affects constables in that court who previously may not have qualified for MERS membership under existing rules. The bill amends Louisiana law to define "marshals or constables of city courts" as eligible employers under MERS, expanding retirement system access for these positions. The change takes effect upon governor's signature or legislative approval, without altering existing retirement benefits or creating new positions.

SB 14 allows retired Louisiana teachers to return to eligible teaching positions while receiving partial retirement benefits, affecting those who retired before June 2010, are age 65 or older, or return within 12 months of retirement. Retirees can choose between two options: working with earnings capped at 50% of their original salary (receiving reduced benefits but no additional retirement credits) or suspending benefits to regain full membership during reemployment, with a supplemental benefit calculated upon leaving. The bill requires retirees to pay employee contributions during reemployment but refunds these contributions (without interest) upon termination, while employer contributions are retained. Disability retirees are excluded, and the bill includes reporting requirements with an effective date of July 1, 2026.

SB 16 requires trustees of Louisiana's public retirement systems to complete specific annual training. Trustees must attend 8 hours of investment training, 4 hours of actuarial science education, 2 hours on applicable laws, and 2 hours on ethics and fiduciary responsibilities each year. New trustees appointed after June 1, 2026, only need to comply with these requirements starting from their appointment. The law takes effect on August 31, 2026, and applies to all trustees serving on retirement system boards.

SB 21 amends Louisiana's state employees' retirement system funding rules, directly affecting state employees and the retirement system's financial management. It establishes new rules for calculating employer contributions and reamortizing the system's unfunded liability (retirement fund shortfall), requiring reamortization when the system reaches 80% funding or every five years starting in 2019-2020. The bill modifies how excess investment returns are applied to reduce the debt and clarifies that payments must follow specific amortization schedules. These changes aim to systematically address the retirement system's financial obligations without altering benefit levels.