GREEN SHEET REDIGEST
HB 21 2022 Regular Session Bacala
RETIREMENT/MUNICIP AL POL: Provides for a funding deposit account for
Municipal Police Employees' Retirement System and authorizes the board of trustees
of the system to modify required employer contributions.
DIGEST
Proposed law establishes a funding deposit account (FDA) for the Municipal Police
Employees' Retirement System (MPERS).
Proposed law authorizes the board of trustees to require additional employer contributions
as follows:
(1)In any year, the board may increase the contribution rate required under present law
by 0.85 percentage points.
(2)In a fiscal year when the contribution rate required under present law is lower than
the previous year, the board may increase the rate by the 0.85 percentage points plus
half the difference between the rates for the two years.
Proposed law requires the additional employer contributions paid under proposed law to be
applied to reduce the outstanding balance of the oldest amortization base or credited to the
FDA to provide funding for additional benefits for retirees, survivors, and beneficiaries.
Proposed law authorizes the board to dedicate a specific amount of the additional
contributions up to the amount generated by the extra 0.85% to fund the additional benefits.
Proposed law provides that additional benefits shall be paid for only with funds from the
funding deposit account and only when funds are sufficient.
Proposed law provides that a permanent benefit increase shall not exceed 3% of the benefit.
Requires one year to have elapsed since benefit commencement for any additional benefit
to be payable to a retiree, survivor, or beneficiary.
Proposed law provides that the board of trustees shall determine the following regarding
payment of an additional benefit:
(1)Whether the benefit is permanent or nonrecurring.
(2)Whether the benefit is based on the current or original benefit.
(3)Whether a minimum age is required.
(4)Whether a minimum period beyond the one year since benefit commencement is
required.
Proposed law requires that an adjustment to benefits to be made by formal action of the
board of trustees.
Effective June 30, 2022.
(Adds R.S. 11:2225.5; repeals R.S. 11:107.2, 243(A)(8), 246(A)(8), and 2225(A)(7))
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Prepared by LG Sullivan. 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.
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Retirement to the
reengrossed bill
1. Add effective date.
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Finance to the reengrossed
bill
1. Make technical changes.
2. Clarify terminology.
3. Specify that a nonrecurring lump-sum payment may be paid from the FDA only
once in a three-year period.
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Prepared by LG Sullivan.