Implications:

The bill allows certain members of MERS to remain in that system instead of transferring to LASERS when they take a new position that would otherwise make them ineligible for MERS but eligible for LASERS.

Proposes changes to the membership rules for the Municipal Employees' Retirement System (MERS) and its interaction with the Louisiana State Employees' Retirement System (LASERS).

1.  Eligibility and Conditions:

• Applies to MERS members with at least 5 years of creditable service.
• Such members can elect to stay in MERS if they become employed in a LASERS-eligible position by filing a written notice of election with the MERS board of trustees within 30 days of starting the new job.
• Once made, this election is irrevocable.

1. Applicability:

• The law applies to individuals who start LASERS-covered employment after December 31, 2024.
• For those employed in such a position between December 31, 2024, and the bill’s effective date, they have 30 days from the effective date to file their election to remain in MERS.

1. Funding:

• Any costs resulting from this legislation will be covered by additional employer contributions, as required by Article X, Section 29(F) of the Louisiana Constitution.

1. Effective Date:

• The bill takes effect upon the governor’s signature or, if not signed, when the constitutional period for gubernatorial action expires. If vetoed and overridden by the legislature, it becomes effective the day after legislative approval.

1. Background:

• Under current law, MERS membership ends if a member resigns, is dismissed, or separates from service. This bill creates an exception, allowing continued MERS membership under the specified circumstances.

Amends the retirement eligibility rules for the Louisiana State Employees' Retirement System (LASERS). The bill modifies R.S. 11:441(A)(2) to adjust retirement eligibility criteria for LASERS members, focusing on service years and age requirements.

1. Key Provisions by Employment Date:

• Members hired on or after July 1, 2006:
• Eligible with 30 years of service at any age.
• Eligible with 5 years of service at age 60 or later.
• Eligible with 20 years of service at any age, but benefits are actuarially reduced from the earliest regular retirement age (under the 30-year or 5-year/age 60 options), excluding military service and unused leave. These members cannot join the Deferred Retirement Option Plan (DROP) or Initial Benefit Option.
• Members hired between January 1, 2011, and June 30, 2015 (excluding Hazardous Duty Services Plan members):
• Same as above: 30 years at any age, 5 years at age 60 or later, or 20 years with an actuarial reduction and restrictions on DROP and Initial Benefit Option.
• Members hired on or after July 1, 2015 (excluding Hazardous Duty Services Plan members):
• Eligible with 30 years of service at any age.
• Eligible with 5 years of service at age 62 or later (changed from age 60 in prior categories).
• Eligible with 20 years of service at any age, with the same actuarial reduction and restrictions as above.

1. Changes from Current Law:

• Current law ties retirement eligibility without reduction to hire date: age 60 with 5 years for those hired after July 1, 2006, or between December 31, 2010, and July 1, 2015 (for certain officials), and age 62 with 5 years for those hired after July 1, 2015.
• Proposed law standardizes the 30-years-at-any-age option across all groups and clarifies the 20-year reduced benefit option, while adjusting the 5-year minimum age to 62 for post-July 1, 2015 hires.

1. Funding:

• Any costs will be covered by additional employer contributions, per Article X, Section 29(F) of the Louisiana Constitution.

1. Scope:

• Applies to LASERS members generally, with exceptions for Hazardous Duty Services Plan members (defined in R.S. 11:612), whose eligibility is not altered here.

In summary, refines LASERS retirement eligibility by offering a consistent 30-year service option at any age, maintaining a 20-year reduced benefit option, and slightly raising the minimum age for the 5-year service option to 62 for newer hires, aiming to streamline and clarify retirement rules.

HOUSE committee amendments technical other than Amendments 2&3 [LINK] which cover participation dates and add effective upon governor's signature or elapsed time paragraph.

Amends R.S. 11:2221(C) of the Municipal Police Employees' Retirement System to adjust the Deferred Retirement Option Plan (DROP). It sets a standard participation limit of five years but allows extensions beyond five calendar years (up to 60 non-consecutive months) if employer contributions and benefit payments are suspended due to employment interruptions. Additionally, it permits members who began DROP before July 1, 2024, with a participation period of three years or less and are still active on July 1, 2025, to extend their participation to a maximum of five years, provided they notify the board of trustees in writing by August 1, 2025. The bill takes effect on July 1, 2025.

Amends the Firefighters' Retirement System (FRS) laws by modifying R.S. 11:107.1(D)(4)(a), enacting R.S. 11:2256.4, and repealing R.S. 11:107.1(D)(4)(c). It removes the prohibition on using the FRS funding deposit account for cost-of-living increases and authorizes a one-time $2,000 lump-sum supplemental payment to retirees and beneficiaries who have received benefits for at least one year by June 30, 2025, to be paid by August 1, 2025. The payment is funded from the funding deposit account, with any additional costs covered by employer contributions. The bill takes effect upon the governor’s signature or lapse of veto period.

HOUSE and SENATE amendments [LINK] technical with date changes

Updates the Firefighters' Retirement System (FRS) by amending and enacting various statutes. It exempts disability retirees aged 62+ from benefit reductions and earnings reports, allows refunds of employee contributions (without interest) 30 days post-termination, and modifies the Deferred Retirement Option Plan (DROP). DROP changes include no employee contributions, employer contributions starting April 1, 2026, a five-year option for members with 28+ years of service, and a new self-directed investment account with third-party management, where participants assume all risks. Employers pay actuarial costs for contribution errors.

Amends R.S. 11:710.1(A)(1)(a) and (c) of the Teachers' Retirement System of Louisiana (TRSL) to adjust the rules governing the reemployment of teachers who retired on or after July 1, 2020. The bill focuses on increasing the earnings threshold for retirees working in TRSL-covered positions without triggering a reduction in retirement benefits, aiming to provide greater flexibility for retirees returning to work. It was prefiled under the Louisiana Constitution with a notice of intent published.

1. Amendment to R.S. 11:710.1(A)(1)

• Section Purpose: Governs the reemployment of TRSL retirees who return to active service in positions covered by the system, offering irrevocable options for managing benefits and earnings.
• Option 1 Adjustments:
• Earnings Limit Increase (A)(1)(a): Retirees can earn up to 50% of their final average compensation (FAC) per fiscal year during reemployment, up from the previous limit of 25%. If earnings exceed 50%, their retirement benefits are reduced by the amount over this threshold.
• Switching Options (A)(1)(c): Retirees under Option 1 (allowing earnings up to the limit) can switch to Option 2 (rejoining TRSL as an active member for a supplemental benefit) at any time—before or after hitting the 50% FAC cap. Upon switching:
• Employee contributions made under Option 1 are refunded.
• If earnings already exceeded 50% FAC before switching, either the refundable contributions or the benefits payable are reduced by the excess amount.

1. Funding Mechanism (Section 2)

• Any costs arising from this change (e.g., increased benefits or administrative expenses) must be covered by additional employer contributions, as required by Article X, Section 29(F) of the Louisiana Constitution, ensuring no unfunded liability for the system.

Amends and reenacts R.S. 11:3383, a section of Louisiana law governing the New Orleans Firefighters' Pension and Relief Fund. The bill focuses on ensuring a minimum pension benefit for retired firefighters and their surviving spouses while maintaining current contribution levels for active firefighters.

1.    Minimum Pension Benefit (Section A)

•   The bill mandates that every firefighter on the retired list of the New Orleans Fire Department, as well as each surviving spouse of a department member, receives a pension of at least $1,200 per month.
•   The phrasing "notwithstanding any other provision of law to the contrary" emphasizes that this minimum benefit overrides conflicting laws, ensuring its enforceability.
•   This provision appears to codify or reinforce an existing minimum benefit.

2.    Employee Contributions (Section B)

• The bill explicitly states that the contributions currently required from active firefighters into the pension fund will not increase due to this legislation.

3.    Technical Corrections

• The digest describes the proposed changes as "technical corrections," suggesting that the bill clarifies or refines existing law rather than introducing substantial new policy. The struck-through and underscored text in the document supports this, indicating minor adjustments to wording for clarity or consistency.
• Fiscal Implications: By preventing contribution increases for active firefighters, the bill shifts the burden of funding this minimum pension elsewhere—likely to the state, city, or fund reserves. The lack of detail on funding sources could raise questions about sustainability.
• Does not address potential funding gaps or inflation adjustments.
• Lacks specificity on how the pension fund will maintain solvency without raising contributions.