This bill amends several sections of the Louisiana Revised Statutes concerning the Municipal Police Employees' Retirement System, with a focus on retirement benefits, membership, and service credit. A significant change is the new definition of "earnable compensation," which will exclude nonrecurring lump-sum payments and ad hoc bonuses starting July 1, 2026. The bill also allows members to purchase service credit for prior law enforcement employment that is not creditable in any public retirement system, contingent upon payment of actuarial costs. Additionally, it establishes survivor benefits for officers killed in the line of duty, enabling eligible beneficiaries to apply for benefits even if the officer was not enrolled in the system at the time of death.

Moreover, the bill introduces modifications to the Deferred Retirement Option Plan (DROP), including investment rules and contribution treatment. It facilitates the transfer of certain employees from the Louisiana State Employees' Retirement System to the Municipal Police Employees' Retirement System and outlines contribution rates for the funding deposit account through fiscal year 2028. The legislation also addresses retirement benefit calculations and contribution rates, allowing for excess contributions to be used for reducing outstanding balances or providing additional benefits to retirees and beneficiaries. Starting January 1, 2027, individuals who opted to remain members of the Louisiana State Employees' Retirement System will transition to the Municipal Police Employees' Retirement System, and there will be no reimbursement claims against the system for amounts deducted from nonrecurring lump-sum payments or bonuses prior to the bill's effective date.

Statutes affected:
HB45 Original: 11:2221(N), 11:5(A)
HB45 Engrossed: 11:2213(10), 11:2221(N), 11:5(B)(1), 11:5(A)
HB45 Reengrossed: 11:2213(10), 11:2221(N), 11:5(B)(1), 11:5(A)
HB45 Enrolled: 11:2213(10), 11:2221(N), 11:5(B)(1), 11:5(A)
HB45 Act 609: 11:2213(10), 11:2221(N), 11:5(B)(1), 11:5(A)