Regular Session News #9: Senate Retirement Committee advances ORP bill

Yesterday, the Senate Retirement Committee reported House Bill 24 (Rep. Bacala) favorably. HB 24 would make changes to the terms of the optional retirement plan (ORP), a defined contribution plan available to unclassified faculty and staff in higher education. As currently written, HB 24 would:
 

• Expand ORP eligibility to technical college staff beginning July 1, 2025. Existing technical college staff would have 180 days from July 1, 2025, to opt into the ORP.
• Extend the window for ORP participants to switch back to the TRSL defined benefit plan from five years after first ORP eligibility to seven years. 
• Create a window for certain ORP participants (whose first employment in Louisiana higher education occurred before August 1, 2020, but were ineligible to make an irrevocable election to transfer to TRSL last June 30) to become a member of the TRSL regular retirement plan should they return to employment in a TRSL-eligible position. These ORP participants would need to make the switch to TRSL by the later of September 2, 2025, or sixty days after the date of reemployment with a TRSL-contributing employer for the first time after July 1, 2024.
• Add the Commissioner of Higher Education or designee as an ex officio member on the TRSL Board of Trustees.

• Create a nine-member ORP advisory committee comprised of both a faculty and non-faculty ORP participant from each of the state’s four higher education systems (LSU, SU, UL, and LCTCS) as well as one ORP participant not employed in higher education.
• Change the terms of the TRSL defined benefit plan to allow those who are (1) at least age 60 when first employed in a TRSL-eligible position, or (2) at least age 55 with 40 quarters in Social Security to decline membership in TRSL.