Regular Session News #19: End of session delivers return-to-work and Optional Retirement Plan changes
Jun 5, 2024
The 2024 Regular Session, which began March 11, ended on Monday. TRSL monitored several pieces of legislation having a direct impact on the retirement system and/or its members.Overall, several pieces of legislation impacting TRSL received final legislative passage. Here’s a look at what they do:
Return to Work
Act 394 [House Bill 967] (Rep. Riser) will allow TRSL retirees, regardless of retirement date, to be reemployed in critical shortage positions in full-time and part-time capacity after a one-year waiting period. NOTE: Prior to Act 394, critical shortage provisions were only available to individuals retired on/before June 30, 2020. Those provisions allowed FT and PT reemployment for PreK-12 classroom teachers in specific subject areas, and FT only reemployment for certain “assessment” positions.
Optional Retirement Plan (ORP)
Act 109 [House Bill 31] (Rep. Freiberg) will allow certain ORP participants—depending on their date of ORP eligibility—a window of opportunity to make a one-time, irrevocable decision to opt into TRSL’s defined benefit plan. (The ORP is a defined contribution retirement plan similar to a 401(k).)
House Resolution 169 (Rep. Bacala) establishes a 16-member task force to study the ORP, including how other states manage similar plans, advantages and disadvantages of selecting ORP, and employer contribution rates, and to report its findings to the House Retirement Committee no later than 90 days prior to the 2025 Regular Legislative Session. HR 169 has been enrolled with the Secretary of State.
Transfer of Service Credit
Act 46 [Senate Bill 1] (Sen. Price) adds clarifying language in the law related to employer contributions eligible for transfer to another Louisiana public retirement system when a member requests to transfer their service credit to another system in which they become eligible for membership.
Supplemental UAL Payments
House Bill 782 (Rep. McFarland) makes a supplemental appropriation of $23.6 million to the TRSL initial unfunded accrued liability (IUAL) from a portion of the FY 2022-23 surplus funds in the state treasury as required by the state Constitution; also makes a $1.03 million statutory dedication appropriation to the IUAL. HB 782 awaits the governor’s signature.
Social Security Offsets
House Concurrent Resolution 20 (Rep. M. Johnson) asks Congress to review the Government Pension Offset (GPO) and Windfall Elimination Provision (WEP) Social Security benefit reductions and to eliminate or reduce them by supporting H.R. 82 and S. 597 of the 118th Congress and all similar purposed legislation. HCR 20 has been enrolled with the Secretary of State.
NOTE: Changes to Social Security offsets must come at the federal level. For more information about current federal legislation related to WEP and GPO, contact your U.S. representative and/or senator.