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Regular Session News #10: House includes IUAL payments in budget bill

May 5, 2023

Yesterday, the full House amended and passed House Bill 1 (Rep. Zeringue), the legislation that provides for the operating expenses of state government for FY 2024. Amendments to HB 1 included a $444.3 million appropriation to TRSL to reduce the initial unfunded accrued liability (IUAL). The proposed FY 2024 appropriation would cover the scheduled employer payments to the IUAL for that fiscal year and make an additional payment on this debt. The IUAL, which must be paid out by 2029, is a portion of the total unfunded accrued liability (UAL).

The full House also passed the following budget-related bills:

House Bill 550 (Rep. Zeringue) which, through an amendment, creates a fund to hold the $444.3 million appropriation from HB 1 and directs TRSL on the application of monies in the fund.

An amended House Bill 560 (Rep. Zeringue), which would make a supplemental appropriation of $49.2 million to the TRSL initial unfunded accrued liability (IUAL) from a portion of the FY 2021-22 surplus funds in the state treasury as required by the Constitution. The amendments were unrelated to TRSL.

These bills will next go to Senate Finance for consideration.

Next week:

The Senate Finance committee will revisit Senate Bill 18 (Sen. Price/co-sponsored by Senate President Cortez) at 9 a.m., Monday May 8 (agenda). SB 18 would establish a new model for providing permanent benefit increases (PBIs) to retirees and beneficiaries of the four state retirement systems for teachers, state employees, school employees, and state police.

The House Civil Law and Procedure Committee will consider House Bill 47 (Rep. Nelson) at 10 a.m., Monday, May 8 (agenda). HB 47, a proposed Constitutional amendment, would require a minimum of 25% of nonrecurring state revenue to be appropriated to the unfunded accrued liabilities (UALs) of the four state retirement systems for teachers, state employees, school employees, and state police, beginning FY 2024-25. 
 

TRSL will keep you informed about the status of bills being monitored throughout the session. You can view all meeting schedules and agendas on the Louisiana State Legislature website. Visit the Legislature page of this website, to see all legislation impacting the retirement system.

​​​​​​​Stay tuned for future updates
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