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 24 Original 2025 Regular Session Bacala
Abstract: Provides relative to the Teachers' Retirement System of La. (TRSL) including provisions
for: opting out of the retirement system; optional retirement plan (ORP) participation,
eligibility, employer contribution rate, and implementation of the plan; election to move from
the ORP to the regular retirement plan; and ORP Advisory Committee.
Membership
Present law provides for optional participation in TRSL for certain members.
Proposed law additionally provides that membership in the system is optional for those who:
(1)Are 60 years of age or older.
(2)Are 55 years of age or older with 40 quarters in Social Security. Optional Retirement Plan (ORP)
Present law provides for the creation of the ORP. Provides employees eligible for membership in
the ORP are as follows:
(1)Academic and administrative employees of public postsecondary education institutions.
(2)Employees of the Board of Regents, the Board of Supervisors for the University of La.
System, the Board of Supervisors of La. State University Ag. and Mechanical College, and
the Board of Supervisors of Southern University Ag. and Mechanical College.
Proposed law retains present law.
Proposed law adds the Board of Supervisors of Community and Technical Colleges.
Present law requires the TRSL board of trustees to select no more than three companies from which
contracts will be purchased.
Present law provides for the efficacy of contracts in the recruitment and retention of employees for
the following:
(1)Various state public postsecondary education institutions.
(2)Board of Regents.
(3)Board of Supervisors for the University of La. System.
(4)Board of Supervisors of La. State University Ag. and Mechanical College.
(5)Board of Supervisors of Southern University Ag. and Mechanical College.
(6)Any other constitutionally established board which manages public postsecondary education
institutions.
Proposed law retains present law.
Proposed law adds the Board of Supervisors of Community and Technical Colleges.
Present law provides for the suitability or rights and benefits to the needs of the following
participating employees of:
(1)Various state public postsecondary education institutions.
(2)Board of Regents. (3)Board of Supervisors for the University of La. System.
(4)Board of Supervisors of La. State University Ag. and Mechanical College.
(5)Board of Supervisors of Southern University Ag. and Mechanical College.
(6)Any other constitutionally established board which manages public postsecondary education
institutions. Proposed law retains present law.
Proposed law adds the Board of Supervisors of Community and Technical Colleges.
ORP Eligible Employees
Present law provides for the eligibility of employees employed by the following to participate in the
ORP:
(1)Various state public postsecondary education institutions.
(2)Board of Regents.
(3)Board of Supervisors for the University of La. System.
(4)Board of Supervisors of La. State University Ag. and Mechanical College.
(5)Board of Supervisors of Southern University Ag. and Mechanical College.
(6)Any other constitutionally established board which manages public postsecondary education
institutions.
Proposed law retains present law.
Proposed law adds the Board of Supervisors of Community and Technical Colleges.
Present law provides if employees choose to participate in the ORP, the irrevocable election must
be made 180 days after the implementation date at their employer institution or board.
Present law allows employees of the following institutions or boards the opportunity to elect to
participate in the ORP within 60 days after employment:
(1)Various state public postsecondary education institutions.
(2)Board of Regents.
(3)Board of Supervisors for the University of La. System.
(4)Board of Supervisors of La. State University Ag. and Mechanical College.
(5)Board of Supervisors of Southern University Ag. and Mechanical College.
(6)Any other constitutionally established board which manages public postsecondary education
institutions. Proposed law retains present law.
Proposed law adds the Board of Supervisors of Community and Technical Colleges.
Present law allows an employee of the following institutions or boards who is an active contributing
member in the TRSL regular retirement plan with less than five years of service the opportunity to
make the irrevocable election to participate in the ORP and transfer all accumulated employee
contributions to his ORP account:
(1)Various state public postsecondary education institutions.
(2)Board of Regents.
(3)Board of Supervisors for the University of La. System.
(4)Board of Supervisors of La. State University Ag. and Mechanical College.
(5)Board of Supervisors of Southern University Ag. and Mechanical College.
(6)Any other constitutionally established board which manages public postsecondary education
institutions.
Proposed law retains present law.
Proposed law adds the Board of Supervisors of Community and Technical Colleges.
ORP Employer Rate
Present law requires, beginning July 1, 2018, each constitutionally established board that manages
postsecondary education institutions and each employer institution and agency to contribute to TRSL
the following amounts:
(1)An amount calculated in accordance with present law.
(2)An amount not less than 6.2% of pay.
Proposed law provides that through June 30, 2025, employers pay 6.2% of pay. Provides beginning
July 1, 2025, the employer rate increases to 8% of pay.
Present law authorizes each board to establish an amount as provided for in present law by
resolution. Provides the amount established is effective for an entire fiscal year.
Proposed law provides for fiscal year 2025-2026, each board is to submit to the retirement system
no later than July 15, 2025, an amount established in present law and proposed law for the next fiscal
year. Present law requires each employer that is not a higher education board created by present
constitution (Art. VIII) or an employer institution under the supervision and control of such board
to contribute to TRSL the greater of:
(1)An amount it would have contributed in accordance with present law.
(2)The sum of amounts calculated pursuant to present law.
Proposed law provides the contributions are the sum of:
(1)The amounts calculated as provided in present law.
(2)Through June 30, 2025, 6.2% of pay.
(3)Beginning July 1, 2025, 8.0% of pay.
Present law requires TRSL to pay to the appropriate company the amount equal to:
(1)The employer's portion of the normal cost as determined by the Public Retirement Systems'
Actuarial Committee pursuant to present law.
(2)6.2% of pay pursuant to present law.
Proposed law requires the pay to be equal to an amount pursuant to present law.
ORP Membership
Present law provides a participant in the ORP is not eligible for membership in the TRSL regular
retirement plan even if he is employed in a position covered by TRSL.
Present law provides if an ORP participant assumes a position that is not an employee of the
following, he continues to participated in the ORP:
(1)Various state public postsecondary education institutions.
(2)Board of Regents.
(3)Board of Supervisors for the University of La. System.
(4)Board of Supervisors of La. State University Ag. and Mechanical College.
(5)Board of Supervisors of Southern University Ag. and Mechanical College.
(6)Any other constitutionally established board which manages public postsecondary education
institutions. Proposed law retains present law.
Proposed law adds the Board of Supervisors of Community and Technical Colleges.
Present law provides if a participant becomes employed by any of the following, in a position
covered by another retirement system, he must begin membership in that system:
(1)Various state public postsecondary education institutions.
(2)Board of Regents.
(3)Board of Supervisors for the University of La. System.
(4)Board of Supervisors of La. State University Ag. and Mechanical College.
(5)Board of Supervisors of Southern University Ag. and Mechanical College.
(6)Any other constitutionally established board which manages public postsecondary education
institutions.
Proposed law retains present law.
Proposed law adds the Board of Supervisors of Community and Technical Colleges.
ORP Implementation
Present law provides for the implementation of the ORP for the TRSL board of trustees and public
institutions of higher education on July 1, 1990. Provides that no later than July 1, 1998, the ORP
is implemented by the following:
(1)Various state public postsecondary education institutions.
(2)Board of Regents.
(3)Board of Supervisors for the University of La. System.
(4)Board of Supervisors of La. State University Ag. and Mechanical College.
(5)Board of Supervisors of Southern University Ag. and Mechanical College.
(6)Any other constitutionally established board which manages public postsecondary education
institutions.
Proposed law retains present law. Proposed law requires the ORP to be implemented by postsecondary education institutions not
covered by present law no later than July 1, 2025.
Present law provides any active contributing participant in the ORP, whose first employment made
him eligible for participation in the ORP on or after August 1, 2020, and who is otherwise eligible
for membership in the regular retirement plan of the TRSL may irrevocably elect to become a
member of the TRSL regular retirement plan.
Proposed law retains present law.
Transfer From ORP to Regular Retirement Plan
Present law requires election be made in writing and received by the retirement system within five
years of participant's first employment making him eligible for membership in the ORP.
Proposed law increases time period to seven years.
ORP Advisory Committee
Proposed law provides for the creation of the ORP Advisory Committee.
Proposed law requires the committee to be composed of the following members who must be
participants in the ORP:
(1)One faculty member from among the faculty members selected by the president of each
board which manages public postsecondary education institutions.
(2)One unclassified non-faculty member from among the unclassified non-faculty members
selected by the president of each board which manages public postsecondary education
institutions.
(3)One member selected by the commissioner of higher education not employed by a public
postsecondary education institution.
Proposed law requires members to serve without compensation, but provides they may be
reimbursed for expenses by the appointing authority.
Proposed law requires the committee to do the following:
(1)Provide information and feedback to the TRSL board of trustees related to:
(a)ORP terms.
(b)Vendor selection. (c)Administrative fees.
(d)Investments.
(2)Provide regular updates to ORP participants
Proposed law requires each entity represented to provide clerical and support staff as requested by
the committee.
Proposed law makes technical changes throughout present law.
Proposed law requires that any cost of proposed law be funded with additional employer
contributions in compliance with present constitution (Art. X, Sec. 29(F)).
Effective July 1, 2025.
(Amends R.S. 11:921(A), 924(2) and (5), 925, 927(B)(2)(b), (c), (d), and (e) and (3)(a) and (b), 928,
931, and 932(B)(1); Adds R.S. 11:721.1(D) and 933; Repeals R.S. 11:927(B)(2)(f))