House Bill No. 295 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 funds to state retirement systems. The bill seeks to remove the existing requirement that mandates these funds be applied to the oldest unfunded accrued liabilities (UAL) first. Instead, it allows for more flexibility in how these funds can be allocated, enabling the legislature to establish a distribution formula for the nonrecurring money among the state retirement systems based on their respective unfunded accrued 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 addressing their UALs. However, by eliminating the requirement to prioritize the oldest liabilities, the amendment aims to provide state retirement 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.