Regular Session News #14: Legislative session ends with new ORP changes and puts additional UAL payment on ballot for voter approval
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The 2025 Regular Session, which began April 14, ended on Thursday. TRSL monitored several pieces of legislation having a direct impact on the retirement system and/or its members. Here’s a look at what those that crossed the legislative finish line will do:
Optional Retirement Plan (ORP)
Act 47 [formerly House Bill 24] (Rep. Bacala) makes changes to the terms of the optional retirement plan (ORP), a defined contribution plan available to unclassified faculty and staff in postsecondary education. Specifically, Act 47 does the following:
Additional Payment toward Unfunded Accrued Liability (UAL)/Teacher Salaries
House Bill 473 (Rep. Emerson), a proposed constitutional amendment, makes a one-time payment to the UAL as a means to permanently fund teacher pay increases by applying the balance in three constitutionally protected education trust funds to erase a portion of the UAL, which is retirement debt owed to TRSL. The additional payment would eliminate TRSL’s two oldest debt schedules, thereby reducing the employer contribution rate. The Minimum Foundation Program (MFP) formula will include funds for the same permanent salary increases for public K-12 employees who do not participate in TRSL. Voters will decide on this constitutional amendment in the April 18, 2026, statewide election.
House Bill 466 (Rep. Carlson), a companion bill to HB 473, directs the savings realized from the reduced employer contribution rate, if enacted through the constitutional amendment, to make permanent salary increases for teachers ($2,250) and school personnel ($1,125) beginning in the 2026-2027 school year. The legislation establishes specific purposes for which school systems must use any realized savings that exceed what is needed to fund the pay increases. Separately, the bill requires completion of professional development in numeracy skills instruction for K-8 math teachers by certain dates. The teacher salary increase portion of HB 466 will only become effective if the constitutional amendment proposed in HB 473 is adopted through statewide election. The numeracy professional development portion of HB 466 becomes effective on August 1, 2025, if approved by the governor.
Task Force and Study Request to Consider Retirement Issues
House Resolution 143 (Rep. Bacala) establishes a task force to study a phased retirement program for Louisiana’s public postsecondary education institutions as well as certain ORP-related issues. The task force is expected to submit a report of its findings and recommendations for related legislation to the House Retirement Committee by December 31.
Senate Study Request 1 (Sen. Price) asks the Senate retirement committee to study TRSL retiree reemployment, current RTW laws, and potential changes that balance retiree options, employer needs, and the actuarial soundness of the retirement system.
A report of findings will be submitted to the full Senate before the 2026 Regular Legislative Session.
Citizenship/Immigration Verification and Public Benefits
House Bill 307 (Rep. Henry) requires state agencies or political subdivisions to verify citizenship or immigration status when an applicant applies for federal, state, or local public benefits, including retirement benefits. For purposes of any benefits paid by any public retirement system, fund, or plan, the verification of a public employee's U.S. citizenship or satisfactory immigration status at the time of their enrollment in a public retirement system will satisfy the verification requirements. HB 307 awaits the governor’s signature.
Optional Retirement Plan (ORP)
Act 47 [formerly House Bill 24] (Rep. Bacala) makes changes to the terms of the optional retirement plan (ORP), a defined contribution plan available to unclassified faculty and staff in postsecondary education. Specifically, Act 47 does the following:
- Expands ORP eligibility to technical college staff beginning July 1, 2025.
- Extends the window of time for certain ORP participants to leave the ORP and join the TRSL defined benefit plan from five years to seven years.
- Creates a window of time for certain ORP participants to become a member of the TRSL regular retirement plan should they return to employment in a TRSL-eligible position.
- Creates a 9-member ORP advisory committee with representation from each of the state’s four postsecondary education systems (LSU, SU, UL, and LCTCS), as well as one ORP participant not employed in postsecondary education.
Additional Payment toward Unfunded Accrued Liability (UAL)/Teacher Salaries
House Bill 473 (Rep. Emerson), a proposed constitutional amendment, makes a one-time payment to the UAL as a means to permanently fund teacher pay increases by applying the balance in three constitutionally protected education trust funds to erase a portion of the UAL, which is retirement debt owed to TRSL. The additional payment would eliminate TRSL’s two oldest debt schedules, thereby reducing the employer contribution rate. The Minimum Foundation Program (MFP) formula will include funds for the same permanent salary increases for public K-12 employees who do not participate in TRSL. Voters will decide on this constitutional amendment in the April 18, 2026, statewide election.
House Bill 466 (Rep. Carlson), a companion bill to HB 473, directs the savings realized from the reduced employer contribution rate, if enacted through the constitutional amendment, to make permanent salary increases for teachers ($2,250) and school personnel ($1,125) beginning in the 2026-2027 school year. The legislation establishes specific purposes for which school systems must use any realized savings that exceed what is needed to fund the pay increases. Separately, the bill requires completion of professional development in numeracy skills instruction for K-8 math teachers by certain dates. The teacher salary increase portion of HB 466 will only become effective if the constitutional amendment proposed in HB 473 is adopted through statewide election. The numeracy professional development portion of HB 466 becomes effective on August 1, 2025, if approved by the governor.
Task Force and Study Request to Consider Retirement Issues
House Resolution 143 (Rep. Bacala) establishes a task force to study a phased retirement program for Louisiana’s public postsecondary education institutions as well as certain ORP-related issues. The task force is expected to submit a report of its findings and recommendations for related legislation to the House Retirement Committee by December 31.
Senate Study Request 1 (Sen. Price) asks the Senate retirement committee to study TRSL retiree reemployment, current RTW laws, and potential changes that balance retiree options, employer needs, and the actuarial soundness of the retirement system.
A report of findings will be submitted to the full Senate before the 2026 Regular Legislative Session.
Citizenship/Immigration Verification and Public Benefits
House Bill 307 (Rep. Henry) requires state agencies or political subdivisions to verify citizenship or immigration status when an applicant applies for federal, state, or local public benefits, including retirement benefits. For purposes of any benefits paid by any public retirement system, fund, or plan, the verification of a public employee's U.S. citizenship or satisfactory immigration status at the time of their enrollment in a public retirement system will satisfy the verification requirements. HB 307 awaits the governor’s signature.
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