SB21 • 2026

STATE EMPLOYEE RET: Provides relative to payments toward the unfunded accrued liability of the Louisiana State Employees' Retirement System and the amortization of certain actuarial gains. (gov sig) (EN SEE ACTUARIAL NOTE FC)

Budget Labor

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor: Ed Price
Last action: 2026-05-15
Official status: Signed by the Governor - Act 230
Effective date: Not listed

Plain English Breakdown

The official source material does not provide detailed information about how individual employees' benefits are affected.

Louisiana State Employee Retirement System Changes

This act modifies the Louisiana State Employees' Retirement System by changing how employer contributions are calculated, managing unfunded liabilities, and handling certain financial gains.

What This Bill Does

Changes how employer contribution rates for the retirement fund are calculated.
Adjusts rules on paying off the difference between what is owed in the pension fund and what has been paid into it (unfunded liability).
Updates how certain financial gains within the system's budget are managed.

Who It Names or Affects

Louisiana state employees who participate in the retirement system.
The Louisiana State Employees' Retirement System itself and its management.

Terms To Know

Unfunded Accrued Liability: The difference between what a pension fund owes to retirees and what it actually has on hand in terms of money or assets.
Amortization: A method for paying off debt over time through regular payments, often used to manage large debts like unfunded liabilities in pension funds.

Limits and Unknowns

The act does not specify how the changes will affect individual employees' retirement benefits.
It is unclear what specific financial impacts these changes will have on the state budget or the retirement system's finances.

Bill History

2026-05-15 S
Effective date 5/15/2026.
2026-05-15 S
Signed by the Governor. Becomes Act No. 230.
2026-05-14 S
Sent to the Governor by the Secretary of the Senate.
2026-05-13 H
Signed by the Speaker of the House.
2026-05-13 S
Enrolled. Signed by the President of the Senate.
2026-05-12 S
Received from the House without amendments.
2026-05-12 H
Read third time by title, roll called on final passage, yeas 90, nays 3. Finally passed, ordered to the Senate.
2026-05-11 H
Scheduled for floor debate on 05/12/2026.
2026-05-07 H
Read by title, passed to 3rd reading.
2026-05-06 H
Reported without Legislative Bureau amendments.
2026-05-05 H
Reported favorably (16-0). Referred to the Legislative Bureau.
2026-03-25 H
Read by title, under the rules, referred to the Committee on Retirement.
2026-03-24 H
Received in the House from the Senate, read by title, lies over under the rules.
2026-03-24 S
Read by title, passed by a vote of 37 yeas and 0 nays, and sent to the House. Motion to reconsider tabled.
2026-03-17 S
Read by title. Ordered engrossed and passed to third reading and final passage.
2026-03-16 S
Reported favorably.
2026-03-09 S
Introduced in the Senate; read by title. Rules suspended. Read second time and referred to the Committee on Retirement.
2026-01-23 S
Prefiled and under the rules provisionally referred to the Committee on Retirement.

Official Summary Text

STATE EMPLOYEE RET: Provides relative to payments toward the unfunded accrued liability of the Louisiana State Employees' Retirement System and the amortization of certain actuarial gains. (gov sig) (EN SEE ACTUARIAL NOTE FC)

Current Bill Text

Read the full stored bill text

2026 Regular Session ENROLLED
SENATE BILL NO. 21
BY SENATOR PRICE
1 AN ACT
2 To amend and reenact R.S. 11:102.1(A)(4)(c)(iv), to enact R.S. 11:102.1(A)(5), and to
3 repeal R.S. 11:102.1(A)(4)(c)(v), (e)(ii) and (iii), and (h) through (j), relative to the
4 Louisiana State Employees' Retirement System; to provide for the calculation of
5 employer contributions, minimum employer contribution rates, amortization of the
6 unfunded accrued liability, and treatment of contribution variances for the Louisiana
7 State Employees' Retirement System; to provide for an effective date; and to provide
8 for related matters.
9 Notice of intention to introduce this Act has been published.
10 Be it enacted by the Legislature of Louisiana:
11 Section 1. R.S. 11:102.1(A)(4)(c)(iv) is hereby amended and reenacted and R.S.
12 11:102.1(A)(5) is hereby enacted to read as follows:
13 §102.1. Amortization payment schedules; priority excess return allocations;
14 Louisiana State Employees' Retirement System
15 A.(1) * * *
16 * * *
17 (4) For purposes of this Section, the following shall apply:
18 * * *
19 (c) "Secondary priority amount" shall mean the maximum amount of system
20 returns in excess of the system's actuarially assumed rate of return that may be
21 applied to the experience account amortization base, regardless of whether actual
ACT No. 230
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words in boldface type and underscored are additions.
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1 returns that equal or exceed the maximum are available, and shall equal:
2 * * *
3 (iv) For the first valuation after the original amortization base is liquidated,
4 the portion of the prior year's primary priority amount that was necessary to liquidate
5 the original amortization base plus the prior year's secondary priority amount, both
6 increased by the percentage increase in the system's actuarial value of assets for the
7 prior year, if any the provisions of this Paragraph shall terminate.
8 * * *
9 (h)(5)(a) Notwithstanding the provisions of Subparagraph (i) of this
10 Paragraph any other provision of this Section, effective for the June thirtieth
11 valuation following the fiscal year in which the system first attains a funded
12 percentage of eighty or more pursuant to R.S. 11:542 and for each valuation
13 thereafter, the net remaining liability of the any amortization base to which the any
14 additional funds are applied shall be reamortized with annual level-dollar payments
15 calculated as provided in R.S. 11:102 over the remainder of the amortization period
16 originally established for that amortization base.
17 (i)(b) Beginning with Fiscal Year 2019-2020 and every fifth fiscal year
18 thereafter, the remaining liability net of all payments made since the last
19 reamortization shall be reamortized over the remainder of the amortization period
20 originally established for that amortization base with annual payments calculated as
21 provided for in this Section.
22 (j)(c) Except as provided in Subparagraphs (h) and (i) (a) and (b) of this
23 Paragraph and in Item (B)(3)(a)(iv) of this Section, the net remaining liability of the
24 amortization base to which the funds are applied shall not be reamortized after such
25 application.
26 * * *
27 Section 2. R.S. 11:102.1(A)(4)(c)(v), (e)(ii) and (iii), and (h) through (j) are hereby
28 repealed.
29 Section 3. This act shall become effective upon signature by the governor or, if not
30 signed by the governor, upon expiration of the time for bills to become law without signature
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words in boldface type and underscored are additions.
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1 by the governor, as provided in Article III, Section 18 of the Constitution of Louisiana. If
2 vetoed by the governor and subsequently approved by the legislature, this Act shall become
3 effective on the day following such approval.
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED:
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.