LA HB42

Creates a Phased Retirement Program within the Teachers' Retirement System of Louisiana allowing eligible members to work part-time while receiving a reduced retirement benefit proportional to their reduced work effort.

Participants receive a reduced benefit during the phased retirement period, then transition to their full regular retirement benefit upon completion of the program.

During phased retirement, neither the participant nor employer pays contributions to the defined benefit plan, and the participant's benefit amount, average compensation, and creditable service are frozen at program entry.

Employers must notify the retirement system of phased retirement terms including start date, duration, termination date, and percentage of work to be performed.

Beginning July 1, 2027, employers will pay the full amount of the monthly administrative fee for the Optional Retirement Program, rather than splitting the cost with participants.