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HLS 26RS-279 ENGROSSED
2026 Regular Session
HOUSE BILL NO. 42
BY REPRESENTATIVE BACALA
RETIREMENT/TEACHERS: Provides relative to a phased retirement program within the
Teachers' Retirement System of Louisiana
1 AN ACT
2 To amend and reenact R.S. 11:927(F)(2) and to enact R.S. 11:791 and R.S. 17:3357, relative
3 to the Teachers' Retirement System of Louisiana; to provide for the creation of and
4 participation in a phased retirement program; to provide relative to benefits; to
5 provide relative to participant and employer contributions; to provide relative to the
6 payment of certain administrative fees; to authorize each public postsecondary
7 education management board to develop and implement a phased retirement
8 program; to provide that such program is subject to board policy; to specify
9 minimum provisions for each policy; to provide for implementation; and to provide
10 for related matters.
11 Notice of intention to introduce this Act has been published
12 as provided by Article X, Section 29(C) of the Constitution
13 of Louisiana.
14 Be it enacted by the Legislature of Louisiana:
15 Section 1. R.S. 11:927(F)(2) is hereby amended and reenacted and R.S. 11:791 is
16 hereby enacted to read as follows:
17 §791. Phased retirement program
18 A. Any member of this system who qualifies for phased retirement pursuant
19 to the policy governing his public postsecondary education institution and who has
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1 been approved for participation in a phased retirement program in accordance with
2 such policy shall apply for retirement as otherwise provided in this Chapter.
3 B. For the duration of his participation in the employer's phased retirement
4 program, the participant shall receive a reduced retirement benefit. This reduced
5 retirement benefit shall be based on the full regular benefit amount for which he
6 would have been eligible at the commencement of his participation in the employer's
7 phased retirement program, reduced by the percentage of work effort to be
8 performed by the participant as set forth in the approved documents governing his
9 participation in his employer's phased retirement program. Upon completion of
10 participation in the employer's phased retirement program, the participant shall begin
11 receiving his full regular retirement benefit.
12 C. During the time that a participant receives a benefit pursuant to this
13 Section, the participant and the employer shall not pay contributions to the defined
14 benefit plan, and the participant's benefit, average compensation, and creditable
15 service shall remain fixed as they existed on the date of commencement of
16 participation in his employer's phased retirement program.
17 D. The employer of any participant in a phased retirement program shall
18 notify the system of the terms of the participant's phased retirement, including the
19 start date, length of the phased retirement, final termination date, and percentage of
20 work effort to be performed by the participant. The employer and participant shall
21 notify the system upon the completion or termination of the phased retirement
22 program.
23 * * *
24 §927. Contributions
25 * * *
26 F.
27 * * *
28 (2)(a) The employer's share of the monthly fee shall be the balance
29 remaining after payment of the participant's share.
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1 (b) Notwithstanding any provision of Paragraph (1) of this Subsection,
2 beginning July 1, 2027, the employer shall pay the full amount of the monthly fee.
3 Section 2. R.S. 17:3357 is hereby enacted to read as follows:
4 §3357. Phased retirement program
5 A. Each public postsecondary education management board may develop
6 and implement a phased retirement program, referred to in this Section as a
7 "program", for institutions under its management and supervision for the purpose of
8 supporting faculty and staff recruitment and retention, facilitating institutional
9 knowledge transfer, and promoting strategic succession planning.
10 B. If a management board opts to exercise its authority, it shall adopt a
11 policy for this purpose which shall address the specific operational and institutional
12 needs of the applicable system and institutions and provide for, at a minimum, all of
13 the following:
14 (1) A provision that participation in the program is voluntary on the part of
15 an employee.
16 (2) A definition of eligible employee with respect to program participation,
17 which shall include, at a minimum, all of the following:
18 (a) He is eligible for retirement as provided in R.S. 11:761 at the time that
19 he begins participating in the program.
20 (b) He has a minimum of ten years of collective service at a public
21 postsecondary education institution in Louisiana, whether consecutive or
22 nonconsecutive, without a refund of retirement contributions.
23 (c) He has reached the age of fifty-nine and one-half years or older.
24 (3) An employee participation period of not less than twelve months and not
25 more than thirty-six months.
26 (4)(a) A requirement that a written memorandum of understanding be
27 executed between the public postsecondary education system or institution and the
28 employee that specifies workload, schedule, and program expectations.
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1 (b) A requirement that the memorandum of understanding be approved by
2 the institution's human resources officer, chief academic officer, and chief fiscal
3 officer, as applicable.
4 (5) A requirement that participant workload be no less than fifty percent
5 effort during program participation.
6 (6) A requirement for formal written acknowledgment by the employee of
7 all program terms and conditions.
8 (7) Provisions governing the reemployment following completion of
9 participation in the program, including a defined waiting period as established by the
10 policy.
11 (8) A prohibition on dual employment in any other position eligible for
12 participation in another retirement system during program participation.
13 C. Each management board may adopt a program policy as provided in this
14 Section prior to July 1, 2027, but shall not begin actual implementation of a program
15 prior to that date.
16 D. Nothing in this Section shall be construed to prohibit a management
17 board, in addition to the policy provided for in this Section, from adopting guidance
18 or implementation measures with respect to a phased retirement program that are
19 consistent with the provisions of this Section and other applicable law.
20 Section 3. The cost of this Act, if any, shall be funded with additional employer
21 contributions in compliance with Article X, Section 29(F) of the Constitution of Louisiana.
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 42 Engrossed 2026 Regular Session Bacala
Abstract: Provides relative to the creation of and participation in a phased retirement
program within the Teachers' Retirement System of Louisiana and for the payment
of administrative fees.
Proposed law provides for the creation of a Phased Retirement Program (PRP) within the
Teachers' Retirement System of La.
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Proposed law provides that a member of the system who qualifies with the member's
respective institution must apply to the retirement system as provided in present law.
Proposed law provides that during participation in the PRP the participant's benefit is
reduced. Provides that the reduction of the retirement benefit is based on the full regular
benefit amount the participant would have been eligible to receive at the beginning of the
participation period reduced by the percentage of work performed by the participant.
Proposed law provides that upon completion of the phased retirement program, the
participant begins to receive his full regular retirement benefit.
Proposed law provides that during the PRP, the participant and the employer do not make
contributions if they are on the defined benefit plan. Provides the following remain fixed
as they were with the participant began in the PRP:
(1) The participant's benefit.
(2) Final average compensation.
(3) Creditable service.
Proposed law requires the employer of the participant in the PRP to notify the system of the
participant's terms including the following:
(1) The participant's start date.
(2) Length of participation in the plan.
(3) Final termination date.
(4) The percentage of work to be performed by the participant.
Proposed law requires the employer and participant to notify the system upon completion
or termination of participation in the PRP.
Present law provides for a monthly fee to cover the administration and maintenance of the
Optional Retirement Program. Provides that the fee is expressed as a percentage of the
participant's earnable compensation. Provides that the participant's share of the monthly fee
is the lesser of:
(1) One-half of the total monthly fee.
(2) Five-hundredths of one percent of the participant's compensation.
Present law provides that the employer's share of the fee is the balance remaining after
payment of the participant's share.
Proposed law, beginning July 1, 2027, provides that the employer shall pay the full amount
of the monthly fee.
Proposed law provides:
(1) Each public postsecondary education management board may develop and
implement a phased retirement program.
(2) Any such program is subject to board policy, which shall provide for, at a minimum,
all of the following:
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(a) Program participation is voluntary.
(b) Eligibility criteria for employees to participate in the program.
(c) Program participation period of 12-36 months.
(d) Requirement for memorandum of understanding between the employee and
his institution or system about workload (must be no less than 50%),
schedule, and program expectations.
(e) A requirement for formal written acknowledgment by the employee of all
program terms and conditions.
(3) Authorizes a management board to adopt a policy prior to July 1, 2027, but prohibits
program implementation prior to that date.
Proposed law requires that any cost of proposed law be funded with additional employer
contributions in compliance with present constitution (Art. X, Sec. 29(F)).
(Amends R.S. 11:927(F)(2); Adds R.S. 11:791 and R.S. 17:3357)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Retirement to the
original bill:
1. Authorize each public postsecondary education management board to develop
and implement a voluntary phased retirement program for faculty and staff.
2. Specify that the member's institution is a public postsecondary education
institution.
3. Make technical changes.
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