LouisianaHB 322026 Regular SessionHouseWALLET

RETIREMENT/STATE EMPS: Provides relative to the Louisiana State Employees' Retirement System (EN NO IMPACT APV)

Sponsored By: Peter F. Egan Sr. (Republican)

Signed by Governor

Retirement

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 1 benefits, 3 costs, 1 mixed.

Revised pension limits for state workers

Beginning July 1, 2026, Louisiana State Employees’ Retirement System members classified as non-qualified participants face revised benefit limits. Their annual pension cannot exceed the lower of the applicable federal limit or 100% of average pay. State law determines whether the pay average uses the highest three or five years, rather than always three. The maximum retirement allowance calculation also uses the average-pay rules in R.S. 11:403.

New return-to-work rules for disability retirees

Beginning July 1, 2026, returning disability retirees face a regular-retirement-age cutoff instead of age 60. This covers Louisiana state and statewide retirement systems, regardless of when the person qualified for disability benefits. Before that cutoff, returning to active service stops the disability allowance and restarts membership and contributions at the current rate. After at least three years of contributions, time on disability retirement counts toward retirement eligibility, but not the benefit amount. Prior service credit is restored, and later retirement includes all service as a member.

More flexibility for temporary state jobs

Beginning July 1, 2026, temporary Louisiana state job appointments no longer have a fixed two-year maximum. Their length is set by State Civil Service Commission rules. The law does not itself set a new appointment length or guarantee a longer job.

Added exception to state pension protections

Beginning July 1, 2026, covered Louisiana retirement benefits and contribution refunds remain exempt from state and municipal taxes. They also remain protected from seizure, garnishment, other collection actions, and assignment, subject to legal exceptions. The law adds the exception in R.S. 11:293 alongside the existing exception in R.S. 11:292. Payments covered by either exception do not receive the same protection from collection or assignment.

Employers must fund pension law costs

Beginning July 1, 2026, responsible employers must fund any cost of this law through additional retirement contributions. Funding must follow Article X, Section 29(F) of the Louisiana Constitution. This requirement does not impose a direct payment duty on employees or retirees. The law states no additional contribution amount or rate.

Sponsors & Cosponsors

Sponsor

  • Peter F. Egan Sr.

    Republican • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 143 • No: 0

Senate vote • 4/22/2026

Read by title, passed by a vote of 37 yeas and 0 nays, and ordered returned to the House. Motion to reconsider tabled.

Yes: 37 • No: 0

House vote • 4/1/2026

Read third time by title, roll called on final passage, yeas 97, nays 0. Finally passed, title adopted, ordered to the Senate.

Yes: 97 • No: 0

House vote • 3/26/2026

Reported favorably

Yes: 9 • No: 0

Actions Timeline

  1. Signed by the Governor. Becomes Act No. 25.

    4/30/2026House
  2. Effective date: 07/01/2026.

    4/30/2026House
  3. Sent to the Governor for executive approval.

    4/28/2026House
  4. Enrolled and signed by the Speaker of the House.

    4/27/2026House
  5. Signed by the President of the Senate.

    4/27/2026Senate
  6. Received from the Senate without amendments.

    4/23/2026House
  7. Read by title, passed by a vote of 37 yeas and 0 nays, and ordered returned to the House. Motion to reconsider tabled.

    4/22/2026Senate
  8. Reported without Legislative Bureau amendments. Read by title and passed to third reading and final passage.

    4/15/2026Senate
  9. Read by title and referred to the Legislative Bureau.

    4/14/2026Senate
  10. Reported favorably.

    4/13/2026Senate
  11. Read second time by title and referred to the Committee on Retirement.

    4/7/2026Senate
  12. Read third time by title, roll called on final passage, yeas 97, nays 0. Finally passed, title adopted, ordered to the Senate.

    4/1/2026House
  13. Received in the Senate. Read first time by title and placed on the Calendar for a second reading.

    4/1/2026Senate
  14. Scheduled for floor debate on 04/01/2026.

    3/31/2026House
  15. Read by title, ordered engrossed, passed to 3rd reading.

    3/30/2026House
  16. Reported favorably (9-0).

    3/26/2026House
  17. Read by title, under the rules, referred to the Committee on Retirement.

    3/9/2026House
  18. First appeared in the Interim Calendar on 1/23/2026.

    1/23/2026House
  19. Prefiled.

    1/22/2026House
  20. Under the rules, provisionally referred to the Committee on Retirement.

    1/22/2026House

Bill Text

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