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HLS 26RS-176 ORIGINAL
2026 Regular Session
HOUSE BILL NO. 40
BY REPRESENTATIVE BUTLER
RETIREMENT/MUNICIPAL POL: Provides relative to the payment of unfunded accrued
liability by employers of the Municipal Police Employees' Retirement System
1 AN ACT
2 To enact R.S. 11:2225.4(A)(2)(d), relative to the Municipal Police Employees' Retirement
3 System; to provide relative to payment of unfunded accrued liability; to provide for
4 transfer of employees; to provide relative to partial dissolution of a police
5 department; and to provide for related matters.
6 Notice of intention to introduce this Act has been published
7 as provided by Article X, Section 29(C) of the Constitution
8 of Louisiana.
9 Be it enacted by the Legislature of Louisiana:
10 Section 1. R.S. 11:2225.4(A)(2)(d) is hereby enacted to read as follows:
11 §2225.4. Unfunded accrued liability; payment by employer
12 A.
13 * * *
14 (2)
15 * * *
16 (d) Notwithstanding the provisions of Subparagraphs (a) and (b) of this
17 Paragraph, if, on the June thirtieth immediately following the transfer of employees
18 from one police department that is a participating employer of the Municipal Police
19 Employees' Retirement System to another police department that is also a
20 participating employer of the system, the transferring employer is deemed to have
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
HLS 26RS-176 ORIGINAL
HB NO. 40
1 partially dissolved its police department, the system shall determine whether the
2 partial dissolution would have occurred without the transfer of employees. If no
3 partial dissolution would have occurred without the transfer, and the employees who
4 transferred remain members of the system, the employer shall not be required to
5 make the payments otherwise required by this Section. If the system determines that
6 a partial dissolution would have occurred regardless of the transfer, and the
7 transferred employees remain members of the system, then the amount due pursuant
8 to the provisions of this Section shall be calculated without regard to the transferred
9 employees.
10 * * *
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 40 Original 2026 Regular Session Butler
Abstract: Provides relative to the payment of unfunded accrued liability by certain
employers of the Municipal Police Employees' Retirement System.
Present law provides that an employer of the Municipal Police Employees' Retirement
System (MPERS) is deemed to have partially dissolved when the following occurs:
(1) The number of employees, as of June 30, is less than 70% of the number of
employees on June 30 of the previous fiscal year and either the number of employees
decreases by at least two or the number of employees is zero.
(2) The number of employees, as of June 30, is at least 50 fewer than the number of
employees on June 30 of the previous fiscal year.
Present law provides that if an employer partially dissolves its police department, the
employer is responsible for the pro rata portion of MPERS unfunded accrued liability
(UAL). Provides that the portion is calculated by applying the percent decrease in salaries
paid to employees by the employer on June 30 and the salaries paid to employees of the
employer on June 30 of the previous fiscal year. Requires payments of the UAL by
employers to include interest at the system's valuation interest rate.
Proposed law retains present law.
Proposed law provides that if a participating employer is deemed to have partially dissolved
after a transfer of employees to another participating employer, the system shall determine
whether the partial dissolution would have occurred without the transfer. If not, and the
employees remain in the system, the employer is not required to make the payments required
by present law. If the partial dissolution would have occurred regardless of the transfer, and
the employees remain in the system, the amount due is calculated without regard to the
transferred employees.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
HLS 26RS-176 ORIGINAL
HB NO. 40
(Adds R.S. 11:2225.4(A)(2)(d))
Page 3 of 3
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.