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Did Not Advance

Louisiana House Bill 40 Exempts Employers from Unfunded Liability Payments After Certain Police Employee Transfers

Original title: RETIREMENT/MUNICIPAL POL: Provides relative to the payment of unfunded accrued liability by employers of the Municipal Police Employees' Retirement System (OR SEE ACTUARIAL NOTE FC)

Last action · March 9, 2026: Read by title, under the rules, referred to the Committee on Retirement.Sponsor: Rhonda Butler

Introduced
Committee
Floor Vote
Passed
Law

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What This Bill Proposed

Louisiana House Bill 40 exempts police departments from making payments to the Municipal Police Employees' Retirement System if a partial department dissolution resulted solely from transferring employees to another participating department where they remain system members.

Why it matters

Determines whether local police departments or municipalities must pay large unfunded liability assessments to the state retirement system when transferring officers between agencies.

Who It Would Have Affected

Groups the bill's text would have affected, as described in the record. Being affected is not a position for or against it.

Directly affected

Municipal police departments

Police departments that transfer employees may be exempt from or have modified calculations for unfunded accrued liability payments.

Directly affected

Municipal Police Employees' Retirement System

The system is required to evaluate transfer circumstances and recalculate unfunded liability obligations for qualifying employers.

Key Facts

  • The Municipal Police Employees' Retirement System must determine whether a partial police department dissolution would have occurred without an employee transfer.
  • If a partial dissolution would not have happened absent the transfer and transferred employees remain system members, the transferring employer is excused from unfunded accrued liability payments.
  • If the retirement system determines a partial dissolution would have occurred regardless of the transfer, calculations of the amount due exclude the transferred employees.
  • Present law defines partial dissolution based on employee headcounts dropping below 70% of the previous year or decreasing by 50 or more employees as of June 30.

Frequently Asked Questions

When is an employer exempt from unfunded accrued liability payments under HB 40?
An employer is exempt if a partial department dissolution occurs due to transferring employees to another participating employer, provided the system finds the dissolution would not have happened otherwise and the employees stay in the retirement system.
How is the payment calculated if a partial dissolution would have happened anyway?
The amount due is calculated without regard to the transferred employees, provided those employees remain members of the system.

What else do you want to know?

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Where This Stands

This bill did not become law - Died at adjournment · in House committee.

Procedural history

4 actions
  1. Mar 9, 2026HouseIntroduced
    Read by title, under the rules, referred to the Committee on Retirement.
  2. Jan 23, 2026House
    Prefiled.
  3. Jan 23, 2026HouseCommittee
    Under the rules, provisionally referred to the Committee on Retirement.
  4. Jan 23, 2026House
    First appeared in the Interim Calendar on 1/23/2026.

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Sponsors

Connected Entities

Municipal Police Employees' Retirement System
OrganizationMunicipal Police Employees' Retirement System“Retirement system administering police pensions in Louisiana.”Map →

Sources

Open source document

www.legis.la.gov

Analysis Score

0–100
  • Significance20
    Lowered because this bill did not pass (its text scored 45)
  • Controversy10
    Intensity of disagreement among stakeholders
  • Entertainment5
    Compellingness for a non-policy-wonk reader
  • Buzz15
    Current news / social attention level

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