House Bill No. by Representative Bacala proposes the establishment of a Phased Retirement Program (PRP) within the Teachers' Retirement System of Louisiana. The bill outlines that members who qualify for phased retirement must apply according to their institution's policy. During their participation in the PRP, members will receive a reduced retirement benefit based on the full regular benefit amount they would have been eligible for at the start of their participation, adjusted by the percentage of work they will perform. Upon completing the program, participants will begin receiving their full retirement benefits. Additionally, neither the participant nor the employer will make contributions to the defined benefit plan during the PRP, and the participant's benefit, average compensation, and creditable service will remain fixed.

The bill also amends the current law regarding the payment of administrative fees associated with the Optional Retirement Program. It specifies that starting July 1, 2027, the employer will be responsible for paying the full amount of the monthly fee, rather than just the balance after the participant's share. The costs associated with the implementation of this bill will be funded through additional employer contributions, in compliance with the Louisiana Constitution.

Statutes affected:
HB42 Original: 11:927(F)(2)