Regular Session News #1: 2022 Regular session starts Monday; several bills affect TRSL
Mar 11, 2022
The 2022 Regular Legislative Session begins Monday, March 14, and TRSL is monitoring the following bills that could impact the retirement system and its members:
Senate bills affecting TRSL
- Senate Bill 6 (Sen. Price) would authorize a 2% permanent benefit increase (PBI) to eligible TRSL retirees, beneficiaries, and survivors based on the first $68,396 of their annual retirement benefit, beginning July 1, 2022.
- Senate Bill 10 (Sen. Morris and Sen. Luneau) would allow active and contributing Optional Retirement Program (ORP) members to transfer their ORP funds into the TRSL defined benefit retirement plan and receive credit based upon their participation in the ORP by paying the actuarial cost of such credit. The proposed law would sunset on June 30, 2028.
- House Bill 22 (Rep. Edmonds) would increase the return-to-work (RTW) earnings limit from 25% to 50% of the retiree’s final average compensation (FAC) only for those who returned to work for the first time on or after July 1, 2020, and before December 31, 2021, under RTW Option 1. The proposed law would sunset on July 1, 2025.
- House Bill 25 (Rep. McCormick) would prohibit a retirement system from investing in companies having policies that prohibit: (1) investing in energy companies; (2) doing business with energy companies; and (3) entering into contracts with energy companies or with any class or group of companies within the energy sector.
- House Bill 26 (Rep. Romero) would increase the RTW earnings limit from 25% to 50% of the retiree’s final average compensation (FAC) for those who returned to work for the first time on or after July 1, 2020, under RTW Option 1.
- House Bill 29 (Rep. Nelson) would require a minimum of 50% of nonrecurring state revenue to be appropriated to the UAL of the four state retirement systems [TRSL, La. State Employees' Retirement System (LASERS), La. School Employees' Retirement System (LSERS), and La. State Police Retirement System (LSPRS)], beginning FY 2023-24. [Constitutional amendment]
- House Bill 30 (Rep. Frieman) would allow K-12 retirees to return to work with no suspension or reduction of retirement benefit; no waiting period; no contributions to TRSL from retiree or employer; and no service credit earned by the retiree.
- House Bill 31 & 32 (Rep. Tarver) would require that the lesser of $50 million or the balance of nonrecurring state revenue (after certain allocations) fund a one-time supplemental benefit to retirees, beneficiaries, and survivors of TRSL, LASERS, LSERS, and LSPRS. [Constitutional amendment and companion legislation]
- House Bill 213 (Rep. Miller) would, if certain criteria were met, automatically revoke certain beneficiary designations of ex-spouses for retirement accounts and life insurance policies upon divorce.
- House Bill 420 (Rep. Miller) would make technical corrections and organizational revisions to Title 36, including moving sections of current law regarding state retirement system employing authority.
- House Bill 592 (Rep. Zeringue) would make a supplemental appropriation of $48.1 million to the TRSL initial unfunded accrued liability (IUAL) from a portion of the FY 2020-21 surplus funds in the state treasury as required by the Constitution.
TRSL will keep you informed about the status of bills being monitored throughout the session. Stay tuned for future updates.