STATE POLICE RETIREMENT: Provides relative to the determination of employer contributions and amortization of certain actuarial gains. (gov sig) (EN SEE ACTUARIAL NOTE FC)
Summary
SB 10 makes targeted changes to the Louisiana State Police Retirement System’s funding rules. It amends provisions governing how employer contribution rates are determined and revises how money is credited to the system’s Permanent Benefit Increase (PBI) account. The bill limits deposits into the PBI account so the balance does not exceed the reserve needed to fund two 2% permanent benefit increases and two 2% supplemental permanent benefit increases.
The bill also changes the treatment of excess contributions that would otherwise overfund the PBI account. Instead of being handled under repealed provisions, those amounts are directed to be applied and amortized under the system’s existing actuarial amortization framework. In addition, SB 10 repeals several related statutory provisions, including R.S. 11:102(F)(3), 102.4, and 1332, to conform the retirement funding statutes to the new approach.
Impact
SB 10 affects Louisiana Revised Statutes Title 11, specifically the laws governing state retirement system employer contributions and the State Police Retirement System’s PBI funding account. By capping PBI account credits and redirecting excess contributions into amortization treatment, the bill changes how actuarial gains are managed and how retirement funding obligations are calculated and applied. The practical effect is to adjust the retirement system’s funding mechanics for the Louisiana State Police Retirement System and the state entities that contribute to it.
Sentiment
The bill appears to have been broadly supported and noncontroversial. It passed the Senate 35-1 and the House 90-0, and there is no committee transcript indicating significant debate or opposition. The final enactment and governor’s signature suggest general agreement that the measure was a technical or fiscal adjustment to retirement funding rules rather than a major policy dispute.
Contention
The main point of potential contention is the bill’s handling of excess actuarial gains and the repeal of existing statutory provisions that previously governed those amounts. Any concern would likely come from stakeholders focused on retirement system funding stability, the timing and availability of permanent benefit increases, or the actuarial assumptions used to amortize gains. However, the recorded votes show little visible opposition, and no specific objections are reflected in the available discussion materials.
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