3rd Extraordinary Session News #7: Senate passes UAL payment bill
Nov 22, 2024
Today, the full Senate amended and passed House Bill 7 (Rep. Emerson). HB 7 seeks to revise the state constitution to require an additional, one-time payment to the unfunded accrued liability (UAL). The proposed payment is designed to reduce the employer contribution rate for TRSL-participating employers. The state treasurer must transfer funds for the one-time UAL payment to TRSL by May 1, 2025.The amendments were unrelated to the one-time UAL payment.
The full House concurred in Senate Amendments for HB 7. As a proposed constitutional amendment, HB 7 will become effective if approved by voters in a statewide election on March 29, 2025.
In other news…
House Bill 5 (Rep. Bacala) was also amended and passed by the full Senate. HB 5 directs the savings realized from the reduced employer contribution rate for TRSL-participating employers, as enacted through HB 7, to fund permanent pay raises for teachers/school personnel and requires the state to provide any additional funds needed for those raises.
The amendments require that school boards spend extra savings realized (monies exceeding what is needed to fund permanent pay raises) on critical shortage areas, summer enrichment programs, and early childhood education programs. Along with other technical changes, the amendments also require public school systems and the Louisiana Department of Education to report on their implementation of the permanent salary increases.
The full House concurred in Senate amendments for HB 5. It now awaits the signature of the Speaker of the House, Senate President, and Governor. HB 5 will only become effective if the constitutional amendment proposed in HB 7 is adopted through statewide election.
Visit the “Legislation” page of this website, to see special session legislation impacting the retirement system. Stay tuned for future updates.