Regular Session News #15: Senate passes ORP bill
May 15, 2024
On Monday, the full Senate passed House Bill 31 (Rep. Frieberg), which would provide a window for active, contributing Optional Retirement Plan (ORP) participants to join the TRSL defined benefit plan. The ORP is a defined contribution retirement plan similar to a 401(k).
The bill now goes to the governor for his consideration. If enacted, the legislation will do the following:
For active, contributing ORP participants as of June 30, 2024, whose first ORP-eligible employment began on or before July 31, 2020:
- Would be eligible to make a one-time choice to join the TRSL defined benefit plan by submitting the necessary paperwork to TRSL no later than June 30, 2025.
- Individuals making this request by December 31, 2024, would cease contributing to their ORP accounts on January 31, 2025, and on February 1, 2025 would start contributing to and accruing service credit in the TRSL defined benefit plan as a member first eligible for membership in a state system on that date.
- All others in this group that make the one-time choice to join the TRSL defined benefit plan, would do so as a new member effective the first day of the month following the month in which TRSL receives the request. (e.g., If request is received in March 2025, membership in the TRSL defined benefit plan would be effective May 1, 2025.)
- Would be eligible to make a one-time choice to join the TRSL defined benefit plan at any time within five years of the individual’s first ORP-eligible employment.
- ORP participants who choose this option would join the TRSL defined benefit plan as a new member effective the first day of the month following the month in which TRSL receives the request.
Additionally, HB 31 provides that ORP participants that elect to join the TRSL defined benefit plan would retain their ORP accounts and receive eventual distributions from those accounts as provided in existing law; and that the ORP administrative fee would be paid by participants and employers.
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 Legislation page of this website, to see all legislation impacting the retirement system.
Stay tuned for future updates.