HLS 24RS-239 ENGROSSED
2024 Regular Session
HOUSE BILL NO. 43
BY REPRESENTATIVE BACALA
RETIREMENT/MUNICIPAL POL: Provides relative to contributions to and the
administration of the Municipal Police Employees' Retirement System
1 AN ACT
2To amend and reenact R.S. 11:2214(A)(2)(a) and (d)(ii), 2225(A)(3)(a), 2225.4(A)(1),
3 (B)(1), and (C)(1), and 2227(A) and (B)(1)(introductory paragraph) and to enact R.S.
4 11:2227(J)(3),(K) and (L), relative to the Municipal Police Employees' Retirement
5 System; to require employers to submit various member enrollment documents and
6 contribution reports to the system; to provide deadlines and related penalties; to
7 provide relative to the system's board of trustees; to provide relative to unfunded
8 accrued liability payments by municipalities that dissolve or substantially reduce
9 their police departments; to provide for an effective date; and to provide for related
10 matters.
11 Notice of intention to introduce this Act has been published
12 as provided by Article X, Section 29(C) of the Constitution
13 of Louisiana.
14Be it enacted by the Legislature of Louisiana:
15 Section 1. R.S. 11:2214(A)(2)(a) and (d)(ii), 2225(A)(3)(a), 2225.4(A)(1), (B)(1),
16and (C)(1), and 2227(A) and (B)(1)(introductory paragraph) are hereby amended and
17reenacted and R.S. 11:2227(J)(3),(K), and (L) are hereby enacted to read as follows:
18 §2214. Membership
19 A. The membership of the retirement system shall be composed as follows:
20 (1) All persons who are members on September 7, 1977, shall remain
21 members as a condition of their employment.
Page 1 of 10
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 24RS-239 ENGROSSED
HB NO. 43
1 (2)(a)(i) Except as provided further in this Paragraph, any person who
2 becomes an employee as defined in R.S. 11:2213 on and after September 9, 1977,
3 shall become a member as a condition of his employment. However, a person who
4 becomes an employee before July 1, 2021, shall become a member only if he is
5 under fifty years of age at the date of employment.
6 (ii) An employer shall submit to the retirement system for each member it
7 employs a fully completed membership enrollment form, a copy of the birth
8 certificate and Social Security card for each member and his beneficiaries and a fully
9 completed physical examination form pursuant to Subparagraph (d) of this Paragraph
10 by the later of ninety days after the member became eligible for membership or
11 October 1, 2024. An employer that fails to provide the documents specified in this
12 Item shall pay the retirement system a fine of twenty dollars per day per member
13 whose documents have not been submitted, subject to a maximum of two thousand
14 dollars per each such member. The fine shall be paid no later than the fifteenth day
15 of the month following the month in which the deadline occurred. Once the penalty
16 reaches the maximum penalty amount, payments shall also include interest at the
17 system's valuation interest rate. Payments shall be paid in the same manner as
18 regular payroll payments to the system. No retiree or beneficiary shall receive
19 benefits if the documents required by this Item pertaining to the retiree or beneficiary
20 are not submitted to the system and all fines owed to the retirement system that are
21 attributable to failure of the employer to timely submit the retiree's or beneficiary's
22 documents are paid.
23 (iii) Except as provided in R.S. 11:157(C)(1)(c), if a member submits
24 affidavits pursuant to R.S. 11:157 opting out of membership, such affidavit shall not
25 be effective until the date that all documents specified in Item (ii) of this
26 Subparagraph and pertaining to the member are provided to the retirement system
27 and any applicable fines and interest owed for such membership have been paid by
28 the employer to the retirement system.
29 * * *
Page 2 of 10
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 24RS-239 ENGROSSED
HB NO. 43
1 (d)
2 * * *
3 (ii) The submission to a physical examination and the execution of any
4 waivers of preexisting conditions or history shall be completed and all
5 documentation related thereto received by the system within six months after the
6 date of employment by the deadline provided in Item (a)(ii) of this Paragraph. The
7 employee is then a member of the system from the date of employment. If the
8 documentation for an employee whose employment making him eligible for
9 membership in the system occurs on or before June 30, 2021, is not received by the
10 system within the allotted time period, the employee shall be a member for purposes
11 of receiving regular benefits from the date of employment but shall not be eligible
12 for disability benefits until the documentation has been received by the system
13 except as provided in Item (iii) of this Subparagraph. If the system does not receive
14 the documentation within the allotted time period for an employee whose
15 employment making him eligible for membership in the system occurred after June
16 30, 2021, the employee shall be a member eligible to begin vesting for regular
17 benefits from the date of employment but shall not be eligible to begin vesting for
18 disability benefits for an injury not incurred in the line of duty until the
19 documentation is received.
20 * * *
21 §2225. Administration
22 A.
23 * * *
24 (3)(a) If a vacancy occurs in the office of a trustee, the vacancy shall be
25 filled for the unexpired term in the same manner as the office was previously filled.
26 If a member of the board of trustees elects to participate in the deferred retirement
27 option plan he shall continue to serve as a member of the board of trustees until the
28 expiration of the term for which he was elected or until his employment terminates,
29 whichever occurs first. If an elected member of the board of trustees with no more
Page 3 of 10
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 24RS-239 ENGROSSED
HB NO. 43
1 than two years left in his term becomes a retiree of the system, he may continue to
2 serve as a member of the board of trustees until the expiration of the term for which
3 he was elected. If a member of the board of trustees serving in a Chiefs District I or
4 Chiefs District II position with no more than two years left in his term ceases to be
5 a chief of police but remains a member of the system, he may continue to serve as
6 a member of the board of trustees until the expiration of the term for which he was
7 elected. All members of the board of trustees elected to terms beginning on or after
8 November 2, 1987, shall be employees of the district from which they are elected
9 and shall be elected under rules of the board of trustees by the members employed
10 in that district. Every active member shall be eligible to vote for the chief and
11 nonchief positions on the board of trustees in the districts which include the parish
12 of their employment.
13 * * *
14 §2225.4. Unfunded accrued liability; payment by employer
15 A.(1) If any an employer participating in the system fully dissolves its police
16 department and contracts for police services with another entity, the employer shall
17 remit to the system, beginning the July first immediately following the date of
18 dissolution, that portion of the unfunded accrued liability existing on the June
19 thirtieth immediately prior to the date of dissolution of the police department,
20 attributable to such employer and calculated using the allocation percentage included
21 in the prior fiscal year's employer pension report produced according to requirements
22 established by the Governmental Accounting Standards Board. The amount due
23 pursuant to the provisions of this Paragraph shall include interest at the system's
24 valuation interest rate.
25 * * *
26 B.(1) Any amount due pursuant to Subsection A of this Section shall be
27 determined by the actuary employed by the system and shall be amortized over
28 fifteen years in equal monthly payments with interest at the system's valuation
29 interest rate. Payments Such payments for withdrawals that occur on or after July 1,
Page 4 of 10
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 24RS-239 ENGROSSED
HB NO. 43
1 2018, shall be payable to the system electronically beginning July first of the second
2 fiscal year following the determination by the actuary and in the same manner as
3 regular payroll payments to the system. Beginning July first of the fiscal year
4 following the withdrawal, interest shall accrue at the system's actuarial valuation
5 rate, compounded annually. A penalty of twenty-five percent of the aggregate
6 monthly payments shall be assessed for any delinquent amounts due or remaining
7 due after June 30, 2024, pursuant to this Section. An employer that failed to transmit
8 the required amounts due in a timely manner shall also reimburse the system any
9 legal and actuarial fees paid by the system in the collection of amounts pursuant to
10 this Section attributable to amounts unpaid or remaining unpaid after June 30, 2024.
11 * * *
12 C.(1) If an employer fails to make a payment timely, the amount due shall
13 be collected in any of the following manners:
14 (a) By action in a court of competent jurisdiction the Nineteenth Judicial
15 Court of Louisiana against the delinquent employer. The amount due shall include
16 interest calculated at the system's actuarial valuation rate, compounded annually.
17 The employer shall also be liable for any legal and actuarial fees incurred by the
18 system in the collection of amounts pursuant to this Section.
19 (b) The board system's executive director may certify to the state treasurer
20 all amounts attributable to the delinquent employer. In support of such certification,
21 the board executive director shall submit certify to the treasurer a resolution
22 certifying the name of the delinquent employer, its failure to pay, and the amount
23 owed and shall name a designee or designees to act on the board's behalf. Upon
24 receipt of such certification, the treasurer shall deduct from monies payable to the
25 certified delinquent party the certified amount due and shall remit such deducted
26 amounts directly to the Municipal Police Employees' Retirement System.
27 * * *
28 §2227. Method of financing
29 A.(1) All of the assets of the retirement system shall be credited according
30 to the purpose for which they are held to one of five funds, namely, the Annuity
Page 5 of 10
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 24RS-239 ENGROSSED
HB NO. 43
1 Savings Fund, the Annuity Reserve Fund, the Pension Accumulation Fund, the
2 Expense Fund, and the deferred retirement option plan account.
3 (2)(a) Each mandatory reporter shall electronically submit a contributions
4 report to the retirement system no later than the fifteenth day of each month. Each
5 mandatory reporter shall report the amount of earnable compensation per employee
6 and shall separately report state supplemental pay and the amount of compensation
7 paid for overtime. The report shall include other information prescribed by the board
8 of trustees. A mandatory reporter that did not employ any eligible employees during
9 the previous month shall submit a contributions report certifying that fact to the
10 system.
11 (b) If a mandatory reporter submits a contributions report that is in error as
12 to the earnable compensation of any member, such an error results in an
13 overpayment of benefits by the system, and the system is unable to recover through
14 reduction of the member's benefits, the mandatory reporter is liable to the system for
15 the amount of overpayment and shall reimburse the system for the full amount of all
16 such overpayments within thirty days after notification of the discovery of the error
17 or overpayment.
18 (c) Beginning with the monthly contributions report due on August 15, 2025,
19 a mandatory reporter that does not submit a monthly contributions report shall pay
20 one hundred dollars per day for each day that the compensation report is delinquent.
21 The maximum penalty per monthly reporting period is two thousand dollars. Once
22 the penalty meets the maximum penalty amount, payments required by this
23 Subparagraph shall also include interest at the system's valuation interest rate and
24 shall be paid in the same manner as regular payroll payments to the system.
25 (d) For purposes of this Paragraph, "mandatory reporter" means any
26 municipality that, within the previous ten fiscal years, employed any police officer
27 or chief of police, regardless of whether such person met the definition of employee.
28 B. Annuity savings fund: The annuity savings fund shall be the fund in
29 which shall be accumulated contributions from the compensation of members to
Page 6 of 10
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 24RS-239 ENGROSSED
HB NO. 43
1 provide for their annuities. Contributions to the annuity savings fund shall be made
2 as follows:
3 (1) Each municipality shall make deductions from any salary or wages
4 excluding overtime paid by them to any member of this system in accordance with
5 the provisions of R.S. 11:62(6) on the earnable compensation paid him in each and
6 every payroll. All employers shall report separately the amount of compensation
7 paid for overtime on their monthly contribution reports.
8 * * *
9 J.
10 * * *
11 (3) For amounts that became delinquent on or before June 30, 2024, the
12 board of trustees may approve a payment plan for a term of up to fifteen years for the
13 delinquent amount together with interest charged at the legal rate from the date the
14 payment was due, provided the employer enrolled all eligible employees on or before
15 June 30, 2024, and timely enrolls all eligible employees thereafter, complies with
16 mandatory reporting and enrollment laws, pays contributions as the amounts become
17 due for current employees, and pays all amounts due under this Section not later than
18 the first day benefits become payable to any employee, beneficiary, or survivor.
19 K.(1) The board shall not collect any amounts due under this Section that are
20 owed by any employer that enrolled all eligible employees on or before June 30,
21 2024, if such amounts are related to a former employee who was not timely enrolled
22 or not enrolled while employed and first became due before June 30, 2021.
23 (2) Except as provided in Paragraph (1) of this Subsection, claims for
24 amounts due under this Section arising on or after July 1, 2024, shall never prescribe.
25 L. Any employer who fails to properly enroll in the system a person meeting
26 the definition of employee under R.S. 11:2213(11)(a)(iii) is also subject to a penalty
27 of fifty dollars for each day that the employee is not enrolled. Such penalty shall be
28 paid by the employer no later than the fifteenth day of the month following the
29 month in which the employee is enrolled in the system.
Page 7 of 10
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 24RS-239 ENGROSSED
HB NO. 43
1 Section 2. This Act shall become effective on July 1, 2024; if vetoed by the governor
2and subsequently approved by the legislature, this Act shall become effective on July 1,
32024, or on the day following such approval by the legislature, whichever is later.
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 43 Engrossed 2024 Regular Session Bacala
Abstract: Provides relative to the Municipal Police Employees' Retirement System
(MPERS) including provisions for: UAL payments by municipalities that dissolve
or substantially reduce their police departments; deadlines for submission of member
information and reports; penalties for failing to timely submit information or reports;
and service on the MPERS board of trustees.
Proposed law requires MPERS employers to submit to the retirement system a fully
completed membership enrollment form, a copy of the birth certificate and Social Security
card for each member it employs and his beneficiaries within 90 days after employment.
Present law requires an employee to have a physical examination and further requires that
the examination and the execution of any waivers of preexisting conditions or history be
received by the system within six months after employment.
Proposed law changes the deadline for submitting the physical examination to the system
to 90 days after employment.
Proposed law provides that an employer that does not submit the required materials within
90 days shall pay a fine of $20 per day per member whose documents have not be submitted,
subject to a maximum of $2,000 per member. Provides for interest on unpaid amounts.
Provides that no retiree or beneficiary shall receive benefits if the documents are not
received and fines not paid. Provides that an affidavit opting out of membership in the
system, as authorized by present law, is not effective until the date that such documents are
provided and fines paid.
Present law provides that the MPERS system is governed by a board of trustees comprised
of 15 members. Board membership includes seven active contributing members, four of
whom shall be police chiefs and three of whom shall not be chiefs.
Proposed law provides that if such a member of the board with no more than two years left
in his term becomes a retiree of the system or is no longer a police chief, he shall continue
to serve as a member of the board until the expiration of the term for which he was elected.
Proposed law requires a municipality that employed a police officer or chief within the
previous 10 fiscal years to submit reports to the system as follows:
(1)Reports shall be submitted not later than the 15th day of each month.
(2)The reports shall include the amount of earnable compensation per employee and
shall separately report state supplemental pay and the amount of compensation paid
for overtime. The report shall include other information prescribed by the board.
Page 8 of 10
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 24RS-239 ENGROSSED
HB NO. 43
(3)If a report is in error as to the earnable compensation of any member and such an
error results in an overpayment of benefits by the system, the municipality shall
reimburse the system for the overpayments within 30 days after notification of the
discovery of the error or overpayment.
(4)The penalty for failing to timely file such reports is $100 per day, subject to a
maximum of $2,000 per month. Once the penalty meets the maximum, the
municipality is also required to pay interest on the penalty.
Present law requires a municipality that dissolves or substantially reduces the size of its
police department to make certain unfunded accrued liability payments to MPERS based on
the size of the department prior to the reduction.
Proposed law provides for a 25% penalty for unpaid accrued liability payments when a
department dissolves or reduces its size. Further provides that the employer shall reimburse
the system any legal and actuarial fees associated with collection of the payments.
Present law provides that if an employer fails to transmit employer or employee
contributions within five days after their due date, the payment is delinquent. Provides as
follows relative to delinquent payments:
(1)They shall include interest charged at the legal rate and an amount to reimburse the
system any legal and actuarial fees.
(2)Contributions that are delinquent for more than 90 days are subject to a penalty of
25%.
(3)Any employer who is delinquent for more than 180 days is also liable for an amount
equal to the actuarial cost of a purchase of the service credit for which contributions
were not timely paid.
Proposed law provides that for contribution amounts that became delinquent on or before
June 30, 2024, the board of trustees may approve a payment plan for a term of up to 15 years
if the employer:
(1)Enrolled all eligible employees on or before June 30, 2024.
(2)Timely enrolls all eligible employees thereafter.
(3)Complies with mandatory reporting and enrollment laws.
(4)Pays contributions as the amounts become due for current employees.
(5)Pays all amounts due under present law not later than the first day benefits become
payable to any employee, beneficiary, or survivor.
Proposed law prohibits the board from collecting any amounts due under present law that
are owed by any employer that enrolled all eligible employees on or before June 30, 2024,
that are related to any former employee who was not timely enrolled or not enrolled while
employed, and that first became due before June 30, 2021. Provides that amounts due
arising on or after July 1, 2024, never prescribe.
Proposed law provides that an employer that fails to properly enroll an employee is also
subject to a penalty of $50per day.
Effective July 1, 2024.
Page 9 of 10
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 24RS-239 ENGROSSED
HB NO. 43
(Amends R.S. 11:2214(A)(2)(a) and (d)(ii), 2225(A)(3)(a), 2225.4(A)(1), (B)(1), and (C)(1),
and 2227(A) and (B)(1)(intro. para.); Adds R.S. 11:2227(J)(3), (K), and (L))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Retirement to the
original bill:
1. Remove proposed law regarding partial dissolution of police departments and the
calculation of UAL payment related thereto.
2. Decrease the fine for not providing documents to the retirement system from
$100 per day to $20 per day.
3. Add a penalty of $50 per day for a municipality that fails to enroll a member in
the system who should have been enrolled.
4. Add a provision for a 15-year payment plan for certain municipalities that have
outstanding amounts owed to the system.
5. Add provisions prohibiting the board from collecting certain amounts due and
providing that other amounts due never prescribe.
Page 10 of 10
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.