Labor & Employment (Retirement Benefits)

HB 45 amends Louisiana's Municipal Police Employees' Retirement System to adjust retirement benefit calculations and Deferred Retirement Option Plan (DROP) rules. It increases the retirement benefit rate from 3% to 3.333% of average final salary for service on or after January 1, 2027, for both hazardous and non-hazardous duty subplans. The bill also allows members to purchase higher accrual rates for past service (at their own cost) and requires those electing DROP after July 2026 to waive constitutional guarantees about guaranteed returns or investment methods. This affects current and future municipal police officers in Louisiana participating in this retirement system.

This bill clarifies rules for municipal retirees who return to part-time work. It ensures retirees with over 30 years of service and age 60+ will keep full retirement benefits without reduction if rehired part-time (until June 2028), regardless of earnings. For other retirees (30 years or less service), benefits are reduced if their part-time earnings exceed the difference between their final salary and retirement benefit. The changes apply specifically to those returning to employment covered by Louisiana's Municipal Employees' Retirement System.

HB 21 clarifies Louisiana's Municipal Employees' Retirement System rules for local government workers and employers. It updates definitions to treat elected officials as employees unless declared otherwise, adjusts refund timing for accumulated contributions (requiring 30 days of termination), and allows municipalities to switch between retirement plans without transferring past service credits. The bill also modifies retirement benefit calculations, adding 0.5% per year of elected service for certain members. These changes directly affect municipal employees, their employers, and the retirement system's administration.