House Bill No. by Representative Butler aims to amend the payment structure for unfunded accrued liability (UAL) by employers within the Municipal Police Employees' Retirement System (MPERS). The bill introduces new provisions under R.S. 11:2225.4(A)(2)(d), which stipulate that if a police department, after transferring employees to another participating employer, is deemed to have partially dissolved, the system will assess whether this dissolution would have occurred without the transfer. If it is determined that the partial dissolution would not have happened without the transfer, and the employees remain members of the system, the transferring employer will not be obligated to make the UAL payments typically required. Conversely, if the dissolution would have occurred regardless of the transfer, the UAL amount due will be calculated excluding the transferred employees.

The proposed law retains existing provisions regarding the criteria for partial dissolution and the calculation of UAL payments, which are based on the percentage decrease in salaries from the previous fiscal year. This bill seeks to provide clarity and fairness in the financial responsibilities of police departments undergoing employee transfers, ensuring that they are not penalized for circumstances beyond their control while still maintaining the integrity of the retirement system.