House Bill No. 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 the 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 as of June 30, 2029, and mandates that these be amortized with level-dollar payments over a 20-year period ending in 2049. For changes, gains, or losses occurring from July 1, 2030, onward, a 15-year amortization period will apply.

Furthermore, the bill introduces a minimum employer contribution rate starting in Fiscal Year 2027-2028, ensuring that the required contribution for any given year 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. The AFC rate is set to be zero effective July 1, 2023, but may increase in subsequent years based on the projected aggregate employer contribution rate. The bill stipulates that any costs incurred from these changes must be funded through additional employer contributions in compliance with the Louisiana Constitution.

Statutes affected:
HB13 Original: 11:102(B)(3)