House Bill No. by Representative McMakin proposes a constitutional amendment to Article VII, Section 10(D)(2)(b)(iii) of the Louisiana Constitution, which pertains to the allocation of nonrecurring state monies to state retirement systems for addressing unfunded accrued liabilities (UAL). The bill seeks to remove the existing requirement that mandates these funds be applied to the oldest outstanding UAL first. Instead, it allows for a more flexible approach in the application of these funds, enabling the legislature to establish a distribution formula for the nonrecurring money among the state retirement systems based on their respective unfunded liabilities.

The proposed amendment retains the stipulation that at least 25% of any nonrecurring state funds must be appropriated to the state retirement systems for UAL purposes. However, by eliminating the requirement to prioritize the oldest liabilities, the amendment aims to provide the systems with greater discretion in managing their financial obligations. The amendment will be submitted to voters for approval during the statewide election scheduled for November 3, 2026.