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 21 Engrossed 2022 Regular Session Bacala
Abstract: Establishes a funding deposit account for the Municipal Police Employees' Retirement
System (MPERS) for the purpose of granting and funding cost-of-living adjustments
(COLA).
Proposed law establishes a funding deposit account for MPERS.
Proposed law authorizes the board of trustees to require an employer contribution rate up to the
following limits:
(1)When the contribution rate is equal or greater than the previous year's rate, the board can set
the rate .85% greater than the fiscal year's rate.
(2)In a fiscal year when the contribution rate is lower than the previous year, the board can set
the rate at the otherwise required rate plus .85% plus half the difference between the rates for
the two years.
Proposed law requires that excess contributions be applied to reduce the outstanding balance of the
oldest amortization base or to COLAs.
Proposed law authorizes the board to dedicate a specific amount of the excess contributions, .85%
greater than the contribution rate, to fund COLAs.
Proposed law provides funds that a COLA shall be paid only with funds from the funding deposit
account and only when funds are sufficient.
Proposed law provides that the board of trustees shall determine the following when granting a
COLA:
(1)Whether the COLA is permanent or nonrecurring.
(2)Whether the COLA is based on the retiree or survivor's current or original benefit.
(3)Whether a minimum age is required.
(4)Whether a retiree or survivor meets minimum period since benefit commencement. Proposed law provides that COLA payments may not exceed 3% of benefit or be payable to the
retiree or survivor until one year since benefit commencement.
Proposed law requires that an adjustment to benefits due to a COLA be made by formal action by
the board of trustees.
(Adds R.S. 11:2225.5; Repeals R.S. 11:2225(A)(7)) Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Retirement to the original bill:
1. Repeal conflicting provisions of present law regarding use of investment earnings to pay
for COLAs.