House Bill No. by Representative Bacala amends and reenacts several provisions of the Municipal Police Employees' Retirement System (MPERS) to enhance benefits for participating employees. Key changes include the establishment of new rules for the Deferred Retirement Option Plan (DROP), allowing the board of trustees to retain and invest amounts credited to DROP accounts, including those held after termination of participation. These rules will apply to participants whose DROP involvement begins on or after July 1, 2026. Additionally, the bill increases the accrual rates for retirement benefits, allowing members to purchase an increase in their accrual rate for prior service periods, with costs calculated on an actuarial basis.

The bill also facilitates the transfer of certain employees from the Louisiana State Employees' Retirement System (LASERS) to MPERS. Specifically, any member who elected to remain in LASERS but is employed in a position qualifying for MPERS as of December 31, 2026, will automatically become a member of MPERS, with their service credit transferred accordingly. This transfer will be recognized as creditable service for benefit computation and eligibility purposes. The bill is set to take effect upon the governor's signature or after the lapse of time for gubernatorial action.

Statutes affected:
HB45 Original: 11:2221(N), 11:5(A)