HB 18: Sensible Changes

Prior to July 1, 2021, MPERS had no post-employment restrictions. On that date, Act No. 249 of the 2020 Regular Session became effective. R.S. 11:2220(J) requires the benefits of any MPERS retiree who retires and becomes employed by an employer but does not meet the definition of an employee within the twenty-four-month period immediately following the effective date of his retirement shall be suspended for the duration of such employment or the lapse of twenty-four months from the effective date of retirement, whichever occurs first, even if such service is part-time, based on employment by contract, or in a non-qualifying position.

HB 18 would decrease the suspension period from twenty-four to twelve months and create exceptions to the twelve-month suspension period for employment as either:

• a police officer for not more than fifty hours per month; and
• as an elected official other than a chief of police.

Retirees meeting either of these exceptions (unless covered by another retirement system) and their employers will have to make contributions to MPERS, but the retirees will receive no additional service credit and will not accrue any additional retirement benefit. Upon termination of reemployment, employee contributions paid since reemployment shall, upon application, be refunded to the retiree without interest. MPERS will retain the employer contributions and interest on contributions.

If a retiree meets either of these two exceptions but is covered by another retirement system, he won’t receive a retirement benefit during the sixty-day period following the effective date of his retirement.