HB 42

ENROLLED
 2026 Regular Session
  ACT No. 781
 HOUSE BILL NO. 42
 BY REPRESENTATIVES BACALA, ADAMS, BOUDREAUX, BROUSSARD,
  CARPENTER, WILFORD CARTER, EDMONSTON, FREEMAN, FREIBERG,
  DANA HENRY, MIKE JOHNSON, LAFLEUR, MARCELLE, MILLER, MOORE,
  MURRAY, STAGNI, TAYLOR, AND WYBLE
1AN ACT
2 To amend and reenact R.S. 11:927(B)(2)(c)(i) and (d) and (F)(2) and to enact R.S. 11:791
3and 927(B)(2)(b)(iii) and R.S. 17:3357, relative to the Teachers' Retirement System
4of Louisiana; to provide for the creation of and participation in a phased retirement
5program; to provide relative to benefits; to provide relative to participant and
6employer contributions; to provide relative to the payment of certain administrative
7fees; to authorize each public postsecondary education management board to develop
8and implement a phased retirement program; to provide that such program is subject
9to board policy; to specify minimum provisions for each policy; to provide for
10implementation; and to provide for related matters.
11Notice of intention to introduce this Act has been published
12as provided by Article X, Section 29(C) of the Constitution
13of Louisiana.
14 Be it enacted by the Legislature of Louisiana:
15Section 1. R.S. 11:927(B)(2)(c)(i) and (d) and (F)(2) are hereby amended and
16 reenacted and R.S. 11:791 and 927(B)(2)(b)(iii) are hereby enacted to read as follows:
17§791. Phased retirement program
18A. Any member of this system who qualifies for phased retirement pursuant
19to the policy governing his public postsecondary education institution and who has
20been approved for participation in a phased retirement program in accordance with
21such policy shall apply for retirement as otherwise provided in this Chapter.
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1B. For the duration of his participation in the employer's phased retirement
2program, the participant shall receive a reduced retirement benefit. This reduced
3retirement benefit shall be based on the full regular benefit amount for which he
4would have been eligible at the commencement of his participation in the employer's
5phased retirement program, reduced by the percentage of work effort to be
6performed by the participant as set forth in the approved documents governing his
7participation in his employer's phased retirement program. Upon completion of
8participation in the employer's phased retirement program, the participant shall begin
9receiving his full regular retirement benefit.
10C. During the time that a participant receives a benefit pursuant to this
11Section, the participant and the employer shall not pay contributions to the defined
12benefit plan, and the participant's benefit, average compensation, and creditable
13service shall remain fixed as they existed on the date of commencement of
14participation in his employer's phased retirement program.
15D. The employer of any participant in a phased retirement program shall
16notify the system of the terms of the participant's phased retirement, including the
17start date, length of the phased retirement, final termination date, and percentage of
18work effort to be performed by the participant. The employer and participant shall
19notify the system upon the completion or termination of the phased retirement
20program.
21*       *  *
22§927. Contributions
23*       *  *
24B.(1)
25*       *  *
26(2)(a)
27*       *  *
28(b) Beginning July 1, 2018, each constitutionally established board which
29manages public postsecondary education institutions and each employer institution
30and agency under its supervision and control shall contribute to the Teachers'
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1Retirement System of Louisiana on behalf of each participant in the optional
2retirement plan the sum of:
3*       *  *
4(iii) Beginning July 1, 2026, an amount equal to one and eight-tenths percent
5of pay, subject to appropriation. The Board of Regents shall notify the Teacher's
6Retirement System of Louisiana whether or not funds have been appropriated for this
7purpose by the beginning of each fiscal year.
8(c)(i) Each board may establish by resolution an amount in excess of the sum
9of the amounts required by Items (b)(ii) and (iii) minimum required by Item (b)(ii)
10of this Paragraph. The amount established shall be the same for all employer
11institutions and agencies under each board's supervision and control and shall be
12effective for an entire fiscal year.
13*       *  *
14(d) Upon receipt of this contribution, the Teachers' Retirement System of
15Louisiana shall promptly pay over to the appropriate designated company or
16companies an amount equal to the amount established by the applicable board
17pursuant to Subparagraph (c) of this Paragraph or the sum of the amounts required
18by Items (b)(ii) and (iii) minimum required by Item (b)(ii) of this Paragraph,
19whichever is greater.
20*        *  *
21F.
22*       *  *
23(2)(a)   The employer's share of the monthly fee shall be the balance
24remaining after payment of the participant's share.
25(b) Notwithstanding any provision of Paragraph (1) of this Subsection,
26beginning July 1, 2027, the employer shall pay the full amount of the monthly fee.
27Section 2. R.S. 17:3357 is hereby enacted to read as follows:
28§3357. Phased retirement program
29A. Each public postsecondary education management board may develop
30and implement a phased retirement program, referred to in this Section as a
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1"program", for institutions under its management and supervision for the purpose of
2supporting faculty and staff recruitment and retention, facilitating institutional
3knowledge transfer, and promoting strategic succession planning.
4B. If a management board opts to exercise its authority, it shall adopt a
5policy for this purpose which shall address the specific operational and institutional
6needs of the applicable system and institutions and provide for, at a minimum, all of
7the following:
8(1) A provision that participation in the program is voluntary on the part of
9an employee.
10(2) A definition of eligible employee with respect to program participation,
11which shall include, at a minimum, all of the following:
12(a) He is eligible for retirement as provided in R.S. 11:761 at the time that
13he begins participating in the program.
14(b) He has a minimum of ten years of collective service at a public
15postsecondary education institution in Louisiana, whether consecutive or
16nonconsecutive, without a refund of retirement contributions.
17(c) He has reached the age of fifty-nine and one-half years or older.
18(3) An employee participation period of not less than twelve months and not
19more than thirty-six months.
20(4)(a) A requirement that a written memorandum of understanding be
21executed between the public postsecondary education system or institution and the
22employee that specifies workload, schedule, and program expectations.
23(b) A requirement that the memorandum of understanding be approved by
24the institution's human resources officer, chief academic officer, and chief fiscal
25officer, as applicable.
26(5) A requirement that participant workload be no less than fifty percent
27effort during program participation.
28(6) A requirement for formal written acknowledgment by the employee of
29all program terms and conditions.
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1(7)   Provisions governing the reemployment following completion of
2participation in the program, including a defined waiting period as established by the
3policy.
4(8) A prohibition on dual employment in any other position eligible for
5participation in another retirement system during program participation.
6C. Each management board may adopt a program policy as provided in this
7Section prior to July 1, 2027, but shall not begin actual implementation of a program
8prior to that date.
9D. Nothing in this Section shall be construed to prohibit a management
10board, in addition to the policy provided for in this Section, from adopting guidance
11or implementation measures with respect to a phased retirement program that are
12consistent with the provisions of this Section and other applicable law.
13Section 3. The cost of this Act, if any, shall be funded with additional employer
14 contributions in compliance with Article X, Section 29(F) of the Constitution of Louisiana.
  SPEAKER OF THE HOUSE OF REPRESENTATIVES
  PRESIDENT OF THE SENATE
  GOVERNOR OF THE STATE OF LOUISIANA
 APPROVED:
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