MPERS Legislative Update

March 24, 2026

Proposed legislation introduced this week may affect how future retirement benefits are calculated for all MPERS members statewide:

House Bill 993 (2026 Regular Session)


• Author: Representative Freeman
• Bill Number: HB 993

House Bill 993 would amend Louisiana law by narrowing the definition of “earnable compensation” for purposes of MPERS.

As filed, the bill would exclude from earnable compensation:



• Retention payments
• Recruitment incentives
• Hiring or signing bonuses
• Other nonrecurring or one-time payments



The bill provides that these changes would apply prospectively to compensation earned on or after July 1, 2026.

Scope of the Bill

The bill is not limited to New Orleans or to any specific type of compensation.



If enacted, it would apply to all MPERS members, regardless of employer.

Current Law

Notably, the filing of HB 993 reflects that current law does treat these payments as pensionable. Otherwise, there would be no need for a statutory amendment to exclude them.

Under current law, “earnable compensation” is defined broadly as the full amount of compensation earned, excluding only overtime.

The Attorney General has opined that retention and similar payments fall within that definition and are pensionable, and Louisiana Supreme Court jurisprudence likewise supports that conclusion.

Consistent with that interpretation, many retirees and beneficiaries statewide are already receiving benefits calculated using these types of compensation.

Why This Matters

Retirement benefits under MPERS are based on earnable compensation.

A narrower definition would reduce the compensation used to calculate benefits based on compensation earned on or after July 1, 2026. That change would affect the value of retirement benefits beginning with compensation earned on or after that date.



The bill also presents legal questions, including whether and to what extent changes in the treatment of compensation may affect benefits associated with compensation earned by current employees under existing law, and whether such changes implicate constitutional protections, including those under the Contract Clause.

Status

HB 993 is proposed legislation. It has not been enacted.

MPERS will continue to monitor this legislation and provide updates as appropriate. MPERS' role is to administer the system in accordance with applicable law and to keep members informed of developments that may affect their benefits.



If you have questions, please contact our office.