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 25 Original 2020 Regular Session Ivey
Abstract: Provides for payment of the initial unfunded accrued liability (IUAL) of the Teachers'
Retirement System of La. (TRSL) by general appropriation by the Legislature of La.
Present law establishes the calculation for annual employer contribution rates for employers in the
state retirement systems—of which TRSL is one. Part of the annual contribution is used to fund debt
service on the IUAL amount.
Present constitution creates the minimum foundation program (MFP), which is designed to provide
minimum education funding for public schools in the state. The MFP monies are used by school
districts to cover education-related expenses, including salaries and retirement costs for the teachers
and school employees in the district.
Proposed law requires the legislature to appropriate sufficient funds annually to cover the IUAL
payment to TRSL through the general appropriations bill. Further requires the State Bd. of
Elementary and Secondary Education to consider the appropriation when formulating the MFP
formula and to make appropriate adjustments.
(Adds R.S. 17:23)