LA HB45

Authorizes the MPERS board of trustees to retain and invest Deferred Retirement Option Plan (DROP) accounts internally rather than through third-party providers, with interest credited at the system's investment return rate minus 0.5%, applying to participants beginning DROP on or after July 1, 2026.

Increases the benefit accrual rate for hazardous duty subplan members from 3% to 3.33% of average final compensation for service credited on or after January 1, 2027, and for nonhazardous duty subplan members from 2.5% to 3.33% for the same period.

Allows members in both subplans to purchase an upgrade to the higher 3.33% accrual rate for service previously credited at the lower rate, with the full actuarial cost paid solely by the member.

Requires LASERS members who previously elected to remain in that system but are employed in MPERS-eligible positions as of December 31, 2026, to transfer to MPERS beginning January 1, 2027, with all service credit transferred on an actuarial basis.

Members electing DROP participation on or after July 1, 2026, are deemed to have waived constitutional claims related to guaranteed rates of return or investment methods on their DROP accounts.