House Bill No. 423, introduced by Representative McMakin, amends the Louisiana State Police Retirement System (LSPRS) regulations regarding employer contributions and amortization periods for changes, gains, and losses. The bill modifies existing law to establish a 20-year amortization period for over or under payments starting with the June 30, 2027, actuarial valuation, as opposed to the previous five-year period. Additionally, it consolidates all existing amortization bases beginning July 1, 2029, and mandates that these consolidated bases be amortized over a 20-year period ending in 2049. Furthermore, the bill introduces a 15-year amortization period for all changes, gains, or losses occurring from July 1, 2030, onward.

The proposed legislation also sets a minimum employer contribution rate starting in Fiscal Year 2027-2028, ensuring that the required contribution will not fall below the projected employer normal cost divided by the projected payroll of active members, plus the permanent benefit increase account funding contribution (AFC) rate for that year. The bill stipulates that any costs incurred from these changes must be funded through additional employer contributions, in accordance with the Louisiana Constitution. The effective date of the bill is contingent upon the governor's signature or the expiration of the time for gubernatorial action.

Statutes affected:
HB13 Original: 11:102(B)(3)
HB13 Engrossed: 11:102(B)(3), 11:1(B)(1)