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HB 42LOUISIANASession 2026State BillSigned into law

Enacted

Louisiana authorizes phased retirement programs for public postsecondary faculty and staff

Original title: RETIREMENT/TEACHERS: Provides relative to a phased retirement program within the Teachers' Retirement System of Louisiana (EN INCREASE FC GF EX See Note)

Last action · June 9, 2026: Effective date: 08/01/2026.Sponsors: Tony Bacala and 18 others

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Introduced

Committee

Floor Vote

Passed

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What This Bill Does

Louisiana authorizes public postsecondary education management boards to develop s for eligible employees beginning July 1, 2027, allowing participants to work reduced hours while receiving a prorated retirement benefit. The law sets minimum eligibility criteria, establishes employer and participant contribution rules, and requires employers to pay the full monthly administrative fee starting July 1, 2027.

Why it matters

Eligible university and college employees aged 59 and older with at least ten years of service can transition into retirement with reduced workloads and prorated benefits, while postsecondary institutions gain a tool for faculty retention and succession planning backed by new employer contribution requirements.

Who It Affects

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

Directly affected

public postsecondary education employees

Employees meeting age and service criteria are given the option to participate in a phased retirement program with reduced workloads and prorated benefits.

Directly affected

public postsecondary education management boards

Boards are authorized to develop and implement phased retirement program policies and must ensure employer contributions and administrative fee payments comply with the new rules.

Directly affected

Teachers' Retirement System of Louisiana

The retirement system must administer phased retirement benefits, receive notification of participant terms, and process adjusted employer contributions.

Key Facts

Public postsecondary education management boards are authorized to develop and implement phased retirement programs for institutions under their supervision.
Actual implementation of a phased retirement program cannot begin prior to July 1, 2027.
Program participation is voluntary for employees who are eligible for retirement under R.S. 11:761, have at least ten years of collective service at a Louisiana public postsecondary institution, and have reached age 59.5 or older.
The employee participation period must be between 12 and 36 months, with a required workload of no less than 50% effort.

Show all 10 facts

Participants receive a reduced retirement benefit based on the regular benefit amount reduced by the percentage of work effort performed.
During phased retirement participation, the participant and employer do not pay contributions to the defined benefit plan, and the participant's benefit, average compensation, and creditable service remain fixed.
Employers must notify the retirement system of phased retirement terms, including start date, length, termination date, and work effort percentage.
Beginning July 1, 2026, employers in the optional retirement plan shall contribute an additional amount equal to 1.8% of pay, subject to appropriation.
Beginning July 1, 2027, employers must pay the full amount of the monthly administrative fee.
Participants are prohibited from holding dual employment in any other position eligible for participation in another retirement system during the program.

Frequently Asked Questions

Who is eligible to participate in the phased retirement program?

To be eligible, an employee must be eligible for retirement under R.S. 11:761, have a minimum of ten years of collective service at a public postsecondary education institution in Louisiana without a refund of retirement contributions, and have reached the age of 59.5 years or older.

Can an employee be forced to enter the phased retirement program?

No, participation in the program is strictly voluntary on the part of the employee.

What is the minimum and maximum duration for participating in the program?

The employee participation period must be not less than twelve months and not more than thirty-six months.

What else do you want to know?

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Where This Stands

Current status: Signed into law.

Procedural history

40 actions

Jun 9, 2026HouseEnrolled
Signed by the Governor. Becomes Act No. 781.
Jun 9, 2026House
Effective date: 08/01/2026.
Jun 4, 2026House
Sent to the Governor for executive approval.
Jun 1, 2026HouseIntroduced
Read by title, returned to the calendar.
Jun 1, 2026House
Called from the calendar.
Jun 1, 2026HouseFloor
Conference Committee Report read, roll called, yeas 101, nays 0. Having received two-thirds vote of the elected members, the Conference Committee Report was adopted.

Show 34 earlier actions

Jun 1, 2026SenateFloor
Notice House adopted the Conference Committee Report.
Jun 1, 2026SenateFloor
Conference Committee Report read; adopted by a vote of 36 yeas and 0 nays.
Jun 1, 2026House
Notice of Senate adoption of Conference Committee Report.
Jun 1, 2026HouseEnrolled
Enrolled and signed by the Speaker of the House.
Jun 1, 2026SenateEnrolled
Signed by the President of the Senate on 6/2/2026.
May 31, 2026House
Conference Committee report received. Lies over under the rules.
May 31, 2026Senate
Conference committee report received.
May 31, 2026House
Scheduled for floor debate on 06/01/2026.
May 29, 2026HouseIntroduced
Read by title, roll called, yeas 95, nays 0. The Senate amendments, not having received two-thirds vote of the elected members, were rejected. Conference committee appointment pending.
May 29, 2026Senate
Notice House rejected the Senate amendments.
May 29, 2026Senate
Senate conference committee members appointed: Price, Owen, and Barthelemy.
May 29, 2026House
House conferees appointed: Bacala, Turner, and Brass.
May 29, 2026Senate
Notice House Conference Committee members appointed.
May 29, 2026House
Notice of Senate conferees appointed.
May 27, 2026House
Scheduled for concurrence on 05/29/2026.
May 26, 2026SenateFloor
Rules suspended. Senate floor amendments read and adopted. Read by title, passed by a vote of 37 yeas and 0 nays, and ordered returned to the House. Motion to reconsider tabled.
May 26, 2026House
Received from the Senate with amendments.
May 21, 2026SenateFloor
Reported without Legislative Bureau amendments. Read by title and passed to third reading and final passage.
May 20, 2026Senate
Rules suspended. Recalled from Committee.
May 20, 2026SenateIntroduced
Read by title and referred to the Legislative Bureau.
May 6, 2026SenateIntroduced
Read by title. Recommitted to the Committee on Finance.
May 5, 2026SenateCommittee
Reported favorably.
Apr 28, 2026SenateCommittee
Read second time by title and referred to the Committee on Retirement.
Apr 27, 2026HouseFloor
Read third time by title, roll called on final passage, yeas 98, nays 1. The bill, having received two-thirds vote of the elected members, was finally passed, title adopted, ordered to the Senate.
Apr 27, 2026Senate
Received in the Senate. Read first time by title and placed on the Calendar for a second reading.
Apr 23, 2026House
Scheduled for floor debate on 04/27/2026.
Apr 22, 2026HouseFloor
Read by title, ordered reengrossed, passed to 3rd reading.
Apr 21, 2026HouseCommittee
Reported favorably (16-0).
Mar 30, 2026HouseIntroduced
Read by title, amended, ordered engrossed, recommitted to the Committee on Appropriations.
Mar 26, 2026House
Reported with amendments (9-0).
Mar 9, 2026HouseIntroduced
Read by title, under the rules, referred to the Committee on Retirement.
Jan 23, 2026House
Prefiled.
Jan 23, 2026HouseCommittee
Under the rules, provisionally referred to the Committee on Retirement.
Jan 23, 2026House
First appeared in the Interim Calendar on 1/23/2026.

Version history

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