Bill > HB42

This bill establishes a phased retirement program within the Teachers' Retirement System of Louisiana, allowing eligible members to transition into retirement gradually. Under this program, participants will receive a reduced retirement benefit initially, calculated based on their full potential benefit minus a percentage reflecting their reduced work effort as defined by their employer's policy. Upon completing the phased retirement period, they will then receive their full regular retirement benefit. Importantly, during their participation in the phased retirement program, neither the participant nor their employer will make further contributions to the defined benefit plan, and the participant's retirement benefit, average compensation, and creditable service will be frozen at the level they were at when they began the phased retirement. Employers are required to report the specifics of each participant's phased retirement, including start and end dates and work effort percentage, to the retirement system and to notify them upon completion or termination of the program. Additionally, the bill amends existing law to stipulate that beginning July 1, 2027, employers will be solely responsible for paying the full amount of a monthly fee, which was previously shared with participants.

Labor and Employment

https://www.legis.la.gov/legis/BillInfo.aspx?s=26rs&b=HB42&sbi=y