House Bill No. by Representative Spell amends the Teachers' Retirement System of Louisiana to ensure compliance with the Internal Revenue Code and related federal regulations regarding the payment of benefits. The bill modifies the commencement of benefit payments, stipulating that they must begin no later than the member's required beginning date or April 1 following the year of retirement, whichever is later. This replaces the previous requirement that payments commence upon reaching age seventy and one-half years. Additionally, the bill clarifies the timeline for benefit distributions to surviving spouses, allowing for flexibility based on the submission of an acceptable election to the retirement system.

The proposed law also addresses the distribution of benefits in the event of a member's death, ensuring that benefits for designated beneficiaries begin within specified timeframes. It specifies that if a surviving spouse submits an election to be treated as a member, distributions must start by the required beginning date or the April 1 following the year the spouse reaches their required beginning date. The bill mandates that any costs associated with these changes be funded through additional employer contributions, and it is set to take effect on July 1, 2027.

Statutes affected:
HB25 Original: 11:784(A)