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 34 Engrossed 2023 Regular Session Bacala
Abstract: Establishes a funding deposit account for the Municipal Police Employees' Retirement
System (MPERS) for the purpose of funding additional benefits for retirees, survivors, and
beneficiaries.
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 at the otherwise required rate plus .85%.
(2)When the contribution rate is lower than the previous year's rate, 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 authorizes, in FY 23-24, the board of trustees to require an employer contribution rate
up to the following limits rather than the limits above:
(1)When the contribution rate is equal or greater than the previous year's rate, the board can set
the rate at the otherwise required rate plus .425%.
(2)When the contribution rate is lower than the previous year's rate, the board can set the rate
at the otherwise required rate plus .425% plus half the difference between the rates for the
two years.
Proposed law required that excess contribution be applied to reduce the outstanding balance of the
oldest amortization base or to additional benefits for retirees, survivors, and beneficiaries.
Proposed law authorizes the board to dedicate a specific amount of the excess contributions, .85%
greater than the contribution rate, to fund additional benefits.
Proposed law provides that a additional benefits 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 additional benefits:
(1)Whether the benefits are permanent or nonrecurring. Provides that a nonrecurring lump-sum
payment may be paid from the funding deposit account only once in any three-year period.
(2)Whether the benefits are based on the retiree or survivor's current or original benefit.
(3)Whether a minimum age is required.
(4) Whether a retiree or survivor is required to meet a minimum period since benefit
commencement.
Proposed law provides that permanent benefits increases may not exceed 3% of benefit, and
additional benefits are not payable until one year after benefit commencement.
Proposed law requires that an adjustment to benefits be made by formal action by the board of
trustees.
Effective July 1, 2023.
(Adds R.S. 11:2225.5; Repeals R.S. 11:107.2, 243(A)(8), 246(A)(8), and 2225(A)(7))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Retirement to the original bill:
1. Limit the authorized contribution rate increase in the first year.