HB 13 revises the funding rules for the Louisiana State Police Retirement System, with a focus on how employer contribution rates are calculated and how actuarial gains, losses, and prior underpayments are amortized over time. The bill changes several amortization periods, including setting a 20-year period for certain prior-year over- or underpayments for the June 30, 2027, 2028, and 2029 valuations, and then moving to a 15-year period for changes, gains, or losses with payments beginning July 1, 2030, or later. It also provides for consolidation and reamortization of outstanding bases in 2029 and adjusts how experience-account gains are treated.
The bill also modifies the permanent benefit increase (PBI) funding structure. It keeps the AFC rate at zero as of July 1, 2023, but allows that rate to increase in certain years when projected employer contribution rates decrease, up to a cap of 2.5 percent. The legislation further clarifies that these PBI-related contributions are not counted as actuarially required contributions for certain constitutional and statutory purposes, and it updates the minimum employer contribution floor beginning with Fiscal Year 2027-2028 so that it cannot fall below normal cost plus the AFC rate.
In practical terms, HB 13 amends Louisiana Revised Statutes governing state retirement system funding, specifically R.S. 11:102 and 11:1332.1, and changes the timing and structure of employer payments into the State Police retirement plan. It affects the state, as employer, by potentially altering annual contribution obligations and the long-term schedule for paying down unfunded liabilities, while also affecting the retirement system’s funding stability and the accounting of reserves for future benefit increases.
The overall sentiment around the bill appears strongly supportive and noncontroversial. It passed the House 94-0 and the Senate 36-0, and it was ultimately signed by the Governor as Act 20. The unanimous votes suggest broad agreement that the changes were needed to manage the system’s actuarial funding and contribution mechanics.
There is little evidence of public or legislative contention in the available record. The main policy issue inherent in the bill is the balance between lowering or smoothing near-term employer contribution pressures and maintaining adequate long-term retirement funding, but no recorded committee debate or opposing votes are available. The bill’s actuarial note reference also suggests the changes were evaluated primarily as a technical funding adjustment rather than a disputed policy overhaul.
HB 13 amends Louisiana retirement law by revising the employer contribution and amortization provisions applicable to the Louisiana State Police Retirement System. It changes R.S. 11:102 to alter how actuarial gains, losses, and prior over- or underpayments are amortized, and it updates R.S. 11:1332.1 to conform the permanent benefit increase account funding rules to the new contribution structure. The bill affects the state’s annual employer contribution obligations and the system’s long-term funding schedule, while preserving the framework for future benefit increase reserves.
The bill appears to have been viewed favorably and as a technical or actuarial funding measure rather than a controversial policy change. It passed both chambers unanimously, 94-0 in the House and 36-0 in the Senate, and was signed into law as Act 20. The voting record indicates broad bipartisan support and little to no opposition.
No substantive contention is reflected in the available committee or floor record. The only likely policy tension is between reducing short-term employer contribution volatility and ensuring adequate long-term retirement system funding, especially as the bill lengthens or shortens amortization periods and adjusts the PBI funding mechanism. However, the unanimous votes and lack of recorded committee debate suggest these issues were not politically divisive in this instance.