Regular Session News #6: UAL payment bills advance
Apr 25, 2023
On Monday, the House Appropriations Committee favorably reported House Bill 47 (Rep. Nelson). 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.If enacted, funding allocated for UAL payments in accordance with this legislation cannot be used to directly or indirectly fund permanent benefit increases.
HB 47 now goes to the full House for consideration.
The full House amended and passed House Bill 170 (Rep. Turner) on Monday. HB 170 would create a special fund in the state treasury for the purpose of paying down TRSL’s oldest debt schedule, known as the original amortization base (OAB). A portion of the 0.45% state sales and use tax would be deposited into the fund over two years to allow for monthly payments toward the OAB, beginning July 1, 2023. The remaining balance in the fund would be applied directly to the OAB.
As amended, K-12 and higher education employers would be credited with a proportionate share of contributions savings based on their aggregate payroll for FY 2023 and FY 2024, as reported to TRSL.
HB 170 now goes to the Senate for consideration.
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