DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part 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)]
HB 19 Engrossed 2020 Regular Session Bacala
Abstract: Authorizes the Municipal Police Employees' Retirement System (MPERS) to increase
required employer contribution rates in certain circumstances and establishes a cost-of-living
adjustment pre-funding account within the system for collection of contribution remittances
above the actuarially required amount.
Present law provides for employer contribution rates within MPERS. Provides that in any fiscal year
during which the recommended employer contribution rate would otherwise be decreased, the board
of trustees may either maintain the previous fiscal year's employer contribution rate or set the
employer contribution rate at any point between the previous year's rate and the recommended rate.
Present law further provides that any excess funds resulting from the board's exercise of its authority
shall be combined with any contribution surplus, or offset by any contribution shortfall, and the
resulting balance, if greater than zero, shall be applied for the following purposes:
(1)To reduce system unfunded accrued liabilities.
(2)To reduce the outstanding amortization charge base or bases.
Proposed law establishes a cost-of-living adjustment pre-funding account within MPERS and further
provides that the system may only provide for cost-of-living adjustments from the funding deposit
account. Authorizes the board of trustees to require a net direct contribution to the pre-funding
account of up to .85% more than otherwise authorized by present law.
Present law provides that MPERS may provide a supplemental cost-of-living adjustment from
interest income from investments to all retirees and beneficiaries who are 65 years of age or over
provided certain requirements are met. Proposed law provides that after June 30, 2020, the first of
such cost-of-living increase may be funded under present law, and any such cost-of-living increase
thereafter may only be funded through the funding deposit account.
Effective June 30, 2020.
(Adds R.S. 11:2225.5; Repeals R.S. 11:107.2 and 2225(A)(7))
Summary of Amendments Adopted by House The Committee Amendments Proposed by House Committee on Retirement to the original bill:
1. Create a fund specifically for funding cost-of-living adjustments.
2. Change the percent by which MPERS can increase required employer contribution rates.