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HR 352

RETIREMENT/TEACHERS: Creates a task force to study the Optional Retirement Plan within the Teachers' Retirement System of Louisiana

2026 Regular Session Introduced by Tim Kerner

A task force will study the TRSL Optional Retirement Plan to propose reforms for long-term ORP participants to achieve greater parity with the defined-benefit plan.

Taken by the Clerk of the House and presented to the Secretary of State in accordance with the Rules of the House.
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Bill Summary · HR 352

Overview

House Resolution 352 (HR 352), introduced in the 2026 Regular Session of the Louisiana Legislature, establishes a study task force to examine the Optional Retirement Plan (ORP) within the Teachers' Retirement System of Louisiana (TRSL). The task force will assess differences affecting long-term ORP participants and explore options to achieve greater parity with the traditional defined-benefit TRSL plan. The task force must report its findings to the House Committee on Retirement no later than 90 days before the 2027 Regular Session convenes.

Main purpose and intent

  • Create a structured, expert review of the ORP within TRSL.
  • Identify and analyze differences impacting long-term ORP participants, including those who have transitioned to the TRSL defined-benefit plan.
  • Explore design options and reforms intended to improve retirement security for ORP participants and to align or temper disparities between ORP and the defined-benefit plan.

Key provisions and topics to study

The resolution requires the task force to examine, and make recommendations on, among other things:

  1. Pension service credit for long-term ORP participants

    • Feasibility and design of granting service credit for years of ORP participation.
    • Consideration of transferring ORP balances in exchange for service credit and whether purchases are required.
    • Evaluation of actuarial equity, including historical employer contributions to the ORP.

  2. Hybrid or partial retirement models

    • Possibility of models that blend elements of defined contribution (ORP) and defined benefit (TRSL) plans for current long-term ORP participants and recent transfers.

  3. Vesting and prior service recognition

    • Alternatives to the current five-year vesting requirement for employees who transfer later in their careers.
    • Recognition of prior service or accrued leave.

  4. Accrued leave policies

    • Equitable treatment of accrued leave for ORP participants and recent pension transfers.
    • Methods: actuarial conversion of leave, direct leave payout at retirement, or applying leave toward vesting.

  5. Tax treatment and retirement income exemptions

    • Feasibility of allowing ORP participants who transfer to alternative providers to receive the same state tax exemptions on retirement income as TRSL-defined-benefit retirees.

  6. Employer contributions and funding impact

    • Review of ORP employer contribution rates, historical changes, and effects on the TRSL unfunded liability.
    • Impact on participants’ ability to accumulate adequate retirement savings and potential opportunity costs.

  7. Social Security exemptions

    • Addressing the absence of Social Security coverage for ORP participants and recent transfers, and options to mitigate retirement income gaps.

  8. Identification of long-term ORP participants

    • Focus on individuals with 20+ years of service, including those who transitioned to the defined-benefit plan, and targeted remedies for this group.

  9. Review of prior task force findings

    • Reassessment of earlier recommendations and identification of any remaining gaps.

  10. Irrevocable ORP election implications

    • Impact on employees with intermittent/non-continuous service, extended absences, or later transitions to the defined-benefit plan.
    • Feasibility of alternate enrollment pathways or targeted remedies for these individuals.

Composition and appointment of the task force

  • Louisiana Board of Supervisors for the University of Louisiana System: 3 members (at least 2 ORP participants).
  • LSU Board of Supervisors and Agricultural and Mechanical Colleges: 3 members (at least 2 ORP participants).
  • Southern University Board of Supervisors: 3 members (at least 2 ORP participants).
  • Community and Technical Colleges Board: 2 members (at least 1 ORP participant).
  • Board of Regents: 2 members (at least 1 ORP participant).
  • TRSL Board of Trustees: 2 members (at least 1 ORP participant).
  • Legislative auditor’s actuary: ex officio member.
  • Additional long-term ORP participants: at least 2 members (20+ years of service), appointed by the Speaker, including at least one who has transitioned to the defined-benefit plan.

Administration and timelines

  • Appointees’ names and contact information must be submitted to the Commissioner of Higher Education by July 1, 2026.
  • The Commissioner must convene the first task-force meeting by August 1, 2026.
  • The Board of Regents will provide staff support; the legislative auditor can provide actuarial services upon request.
  • Members serve without compensation.
  • The task force must deliver a written report of findings and recommendations to the House Committee on Retirement no later than 90 days before the 2027 Regular Session convenes.

Potential impacts

  • Aims to improve retirement equity for ORP participants relative to the TRSL defined-benefit plan.
  • Could influence future policy decisions about credit entitlement, vesting, leave conversion, tax treatment, and employer contributions within public postsecondary education employment.
  • Results may affect long-term planning for TRSL funding, plan design, and personnel recruitment/retention strategies.

Summary

HR 352 creates a focused, multi-constituent task force to rigorously study the Optional Retirement Plan within TRSL, with emphasis on long-term participants and parity with the traditional defined-benefit plan. It outlines specific study areas, appointing mechanisms for diverse stakeholder representation, a defined timeline for reporting, and provisions for necessary staff and actuarial support. The objective is to produce actionable recommendations ahead of the 2027 legislative session.

Compiled from official sources — confirm details with the bill’s official record.

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