Louisiana public college and university boards may offer eligible employees voluntary phased retirement, with programs starting no earlier than July 1, 2027.
Approved participants receive a reduced retirement benefit while working part time, then the full regular benefit when the program ends. Their benefit amount and service credit stay fixed during participation.
Boards may offer eligible employees a voluntary path toward retirement, with written terms and a work schedule lasting one to three years.
The text sets a 1.8 percent of pay contribution for optional retirement plan participants, if money is appropriated.
Employers pay the full monthly fee for optional retirement plan participants starting in 2027.
The retirement system pays an approved participant a reduced benefit during phased retirement, then the full regular benefit after the program ends. This applies to a Teachers' Retirement System of Louisiana member approved for a public postsecondary institution's phased retirement program. The employee must qualify under the institution's policy and be approved to participate. The reduced benefit is based on the full regular benefit available when participation begins, reduced by the participant's share of full-time work. The participant's benefit amount, average compensation, and service credit stay fixed during participation, and neither the participant nor employer pays contributions to the defined benefit plan. The reduced benefit applies throughout participation. The full regular benefit begins when participation is complete.
A public postsecondary education management board may create a phased retirement program and must adopt a policy if it does. A board may cover employees at public postsecondary institutions under its management and supervision. Participation must be voluntary. The policy must include employees who can retire, have at least ten years of Louisiana public postsecondary service without a refund of retirement contributions, and are at least 59½ years old. Participation must last 12 to 36 months. A written agreement must set workload, schedule, and expectations, and receive required institutional approvals. Workload must be at least 50 percent, and employees must acknowledge the terms in writing. The policy must set reemployment rules for after the program and bar participants from another job eligible for a different retirement system. Boards may adopt a policy before July 1, 2027, but may not start a program before that date.
Public postsecondary boards and their institutions and agencies contribute 1.8 percent of pay for each optional retirement plan participant. This applies to optional retirement plan participants and the public postsecondary boards, institutions, and agencies that contribute for them. The contribution is subject to appropriation. The Board of Regents must tell the retirement system by the start of each fiscal year whether funds were appropriated. The stated contribution begins July 1, 2026.
The employer pays the full monthly fee for an optional retirement plan participant. This applies to the employer's monthly fee for an optional retirement plan participant. The full employer payment applies beginning July 1, 2027.
No hearings or votes scheduled.