Practice

2023Spring DistrictMeeting Packets

LRTA supports legislation that will positively affect retired teachers and opposes legislation that will adversely affect retiredteachers.LRTAalsosupportseffortstomaintainadequatefundingfortopqualitypubliceducationin Louisiana. Althoughtheseprioritiesarelistedinnumericalorder,theitemslistedarealltopprioritiesofLRTA.

1.LRTA supports aretirementbenefitstructureadministeredbytheTeachers’RetirementSystemof Louisianathatincludesadequateandstablefundingforregularcost-of-livingincreasestopreserve thepurchasingpowerofretirees.

2.LRTA supports COLAreformsthatprovideforsupplementalbenefitincreasesonaregularbasisas theUALisreducedandpaidthroughthecostsavingstothestate.

3.LRTA supports dedicatedallocationsfromstatefundstomeetthestate’sobligationtoreducethe InitialUnfundedAccruedLiabilities(IUALs)oftheTeachers’RetirementSystemofLouisianawithout causinganadversebudgetimpactonpubliceducationagenciesorretirees.

4.LRTA supports staterevenueenhancementsthatprovideameaningfuleconomicimpactonretired educatorsinenhancingtheirdignity,independenceandoverallqualityoflife.

5.LRTA supports fundingfromstatefundstooffsetincreasingcostsofhealthinsurancepremiumsand otherbenefitsforretirededucatorsofferedbytheOfficeofGroupBenefitsandotherhealthcare insurersandproviders.

6.LRTA opposes anyactionthatwouldnegativelyimpacttheactuarialsoundnessoftheTeachers’ RetirementSystemofLouisiana.

7.LRTA opposes theconsolidationoftheTeachers’RetirementSystemofLouisianawithanyother retirementsystem.

8.LRTA opposes theconsolidationofassetsoftheTeachers’RetirementSystemofLouisianawithany otherretirementsystem,andopposesanyotheractionthatwoulddilutemembershipcontrolofthe investmentoftheassetsoftheTeachers’RetirementSystemofLouisiana.

9.LRTA opposes anyactionthatwouldalterthecurrentdefinedbenefitstructureofferedbythe Teachers’RetirementSystemofLouisianatoitsmembers.

10. LRTA supports aviable,adequatelyfundedpubliceducationprogramthatrequireseducatorsto becomemembersoftheTeachers’RetirementSystemofLouisiana.

11.LRTA opposes theprovisionofstatefundedscholarships/vouchersforpublicelementaryand secondaryschoolstudentstoattendprivateandnon-publicschools.

12. LRTA supports boththepartialand/orfullrepealoftheGovernmentPensionOffset(GPO)andthe WindfallEliminationProvision(WEP)oftheSocialSecurityAdministrationandopposesmandatory SocialSecuritycoverageofpublicemployeesinLouisiana.

13. LRTA supports thecontinuationofLouisianastateincometaxexemptionforretirementbenefits issuedbytheTeachers’RetirementSystemofLouisiana.

14. LRTA opposes anylegislationorbillthatwouldcutordiminishMedicarebenefits.

15. LRTA opposes anylegislationthatcallsforastateconstitutionalconvention.

Thedeadlinetopre-filebillsdealingwithretirementissueswas5p.m.,Friday,February24. Providedbelowisalistofbillsthatwerepre-filedforconsiderationbytheLegislatureduringthe upcomingRegularSession.Thesebillscouldhaveapotentialimpactonyouasaretirededucator and/oryourretirementsystem.

The2023 RegularLegislative Sessionbegins atnoon onMonday, April10, andthe legislaturemust completeitsworkby6p.m.onThursday,June8.

ThelistingprovidesthepositionLRTAwillrecommendtakingoneachofthebills.Itisanticipated thatother billsand resolutionsthat couldpertain toretirement, suchas constitutionalconventions, willbe addedto thislist oflegislation tobe monitoredby LRTAonce thesession begins.For anupto-datelistofbillsLRTAistracking,visithttps://lrta.net/bills/.

HousebillsandSenatebillsaregroupedunderthespecifictopicaddressedbythelegislation.

DirectFundingofPermanentBenefitIncreases(PBIs)/CostofLivingAdjustments(COLAs)

SenateBillNo.18bySenatorEdPrice

Thisbill providesfor directpayment ofadditional employercontributions tobe creditedto anewly establishedPBI/COLAaccountdesignedforaccumulationoffundstopayPBIs/COLAs(thePBI/ COLAaccount).Thebillalsoprovidesforanadditionalcomponentoftherequiredemployer contributionratecalledthePBI/COLAaccountfundingcontribution,orAFCrate.Inayearwhen theemployerrateisscheduledtodrop,halfofthedecreasewillbeaddedtothemaximum possibleAFCrateuntilthatmaximumequals2.5%.Thebillwouldphaseoutandterminatethe ExperienceAccountandofthediversionoftheinvestmentearningsintotheaccount.In approximately2029, theExperience Accountwill bephased outand anyremaining balancewould betransferredtothenewCOLAfundingaccount.

AlthoughthisbillwillnotguaranteePBI/COLAs,theintentofthislegislationistogarnerdirect fundingtoeventuallyawarda2%supplementalbenefitincreaseeverytwotothreeyearsto retireesbeginningin2029whentheinitialunfundedaccruedliability(IUAL)ispaidoff.

Updated:February24,2023

2023Pre-filedBills

WhatYOUneedtoknow…

Unfortunately, Congress was unable to reach a solution to repeal the GPO and WEP during the 117th CongressionalSessiondespitebipartisansupport.LegislationtorepealtheGPOandWEPmust nowstartbackatthebeginningofthelegislativeprocess.

H.R.82 hasbeen refiledin Congress,AND LouisianaRepresentative GarretGraves issponsoring the bill. Rep. Graves has been a vocal proponent of repealing the GPO and WEP, and we are encouraged bythecontinuedthe supportofourLouisiana delegation.Withinthefirst 24hoursoffiling H.R.82, nearlyallofLouisiana’srepresentativescosponsoredthelegislation(Rep.JuliaLetlow,Rep.Troy Carter,Rep.ClayHigginsandRep.MikeJohnson).

IfyouareaconstituentwithRep.Scalise,pleasecontactthemandaskhimtocosponsorH.R.82.

PleasebesuretothankRep.Graves,Rep.Letlow,Rep.Carter,Rep.HigginsandRep.Johnsonifyou areoneoftheirconstituents.

Remember: H.R.82willneednationalsupportinordertomovethrough thelegislativeprocess.CongresscanforceafloorvoteonceH.R.82hasreached over290cosposnors.AsofFebruary27,H.R.82has168cosponsors.

repealtheGPO/WEP.Don’tforgettocheck theLRTAEmailClub,Faebookpageand website(www.lrta.net)forupdates!

WestillneedU.S.Rep.SteveScalisetocosponsorH.R.82!

Introduction

DearRetirementAdvocate,

Thefollowingisasequenceofeventsforourretirementadvocatestofollowforthe2023 RegularSession.Particularly,theseeventsapplytoSenateBill18,theCOLAreformlegislation aimedatprovidingmoreregularpermanentbenefitsincreaseswhentheIUALispaidoff around2029.

Pleasefamiliarizeyourselfwiththematerialsinthisadvocacypacket,whichincludesaFAQ sheetabouttheproposedlegislation.

Here’stheplan:Goaheadandpre-writefourlettersand/oremailsinsupportofSB18. Handwrittenlettersarebest,butyoumaytypeyourletter.Youcanalsosaveyourletterina WordDocumenttoyourcomputerandcutandpasteitintothebodyofyourletteroremailat theappropriatetime.

Inthispacketyouwillfinddifferentversionsofsamplelettersyoumayuseasaguideasyou writeyourownletter.Theselettersarepurelysuggestedlanguageforyoutouseinyour communicationtoyourlegislators.Youdonotneedtocopythelettersword-for-word;please feelfreetopickandchoosethelanguageyouwanttousewhencommunicatingtolegislators.

The2023RegularSessionbeginsApril10andrunsuntilJune8,sobillswillhavetomove quicklytocompletethelegislativeprocess.That’swhyyouneedtopreparenow!

Writeyourlettersandemailsintheorderasfollows:

1.SenateRetirementCommittee

2.YourstateSenator

3.HouseRetirementCommittee

4.YourstateRepresentative

Jointhe LRTAEmail Clubat https://bit.ly/LRTAEmailClub,and wewill emailyou exactlywhen to sendeachletter and/oremail.If youareunable toreceiveemails ordonot useemail,mail your lettersintheordermentionedaboveoneweekapartbeginningwiththeSenateRetirement CommitteeonApril10,2023.

Seethetimelinebelow:

1.April10–mailyourlettertotheSenateRetirementCommittee

2.April17–mailyourlettertoyourstateSenator

3.April24–mailyourlettertotheHouseRetirementCommittee

4.May1–mailyourlettertoyourstateRepresentative

Ifyou arenot surewho yourstate representativeor senatoris, hereis anonline toolyou canuse tofindout:https://legis.la.gov/legis/FindMyLegislators.aspx

Ifyouarenotafanofwritinglettersorfeelyoujustdon’thaveawaywithwords,donotforget aboutourVoterVoicetool!MembersoftheEmalClubwillalsoreceiveactionalertswhenitis timetocontactlegislators.TheactionalertswillincludealinktoourVoterVoicetool,andyou cancontactyourlegislatorswithjustafewclicks.

Phonecallsandfacetofacemeetingswithyourlegislatorsarealsoencouraged.Abrief conversationatacoffeeshop,restaurant,grocerystore,orchurchstepsisextremelypowerful. UseyourCOLAFAQsheettoleadtheconversation.

Also,pleaseencourageactiveteacherstoparticipateinouradvocacycampaignaswell!This COLAlegislationaffectsthemjustasmuchbecausethisbillpreservesfuturesupplemental retirementbenefitsforallcurrentandfutureretires.

IfyouliveintheBatonRougeareaorabletotraveltotheStateCapitol,wewillneedmanyof youtosit inboththe SenateandHouse RetirementCommitteemeetings whenSB18 isheard. Wewillcontactyoubyemailwithdetailsonwheretomeet.Staffwillgreetyouwithcardsof support (or opposition if a detrimental retirement bill is on the agenda) and instruct you on how tofillthemout.Afterthat,allyouhavetodoissitbackandwatchtheshow!Iwillsitwithkey LRTAandTRSLpersonneltogivetestimonyonyourbehalf.

AlthoughthefirstCOLA/PBIwillnotbeawardedforafewyears,wewillbegindepositing moneyintotheCOLA/PBIaccountnextyear,sothislegislationisessentialtopreservingthe buyingpowerofyourretirementbenefit.

Ifyou needadditional materialsor copiesof thispacket, contactMorgan Millingor JenniferTran atthestateofficetorequestcopiesat225-927-8837.

Yourparticipationintheseeffortsisbothappreciatedandessential.Startpreparingtoday,and let’sallparticipateinwhatissuretobecomealegacyinretirementreformlegislation!

Regards, RodneyR.Watson

LRTAExecutiveDirector

Whatyouwillfindinthispacket:

•AnoverviewofSB18

•Sampleletters/emails

•SB00FAQ’sandTalkingPoints

•Mapofhowabillbecomesalaw

•RetirementCommitteeContacts

•HowtofindyourstaterepresentativeorsenatorontheLouisianalegislaturewebsite

HouseRetirement CommitteeMembers

Rep.PhillipDeVillier(Chairman)

P.O.Box986

Eunice,LA70535

(337)457-0194

devillierp@legis.la.gov

Rep.JohnR.Illg,Jr.(Vice-Chairman)

9523JeffersonHwy.,SuiteA RiverRidge,LA70123

(504)736-7030

hse078@legis.la.gov

Rep.RoyDarylAdams

P.O.Box217

Jackson,LA70748

(225)634-7470

hse062@legis.la.gov

Rep.TonyBacala

15482AirlineHwy.,SuiteA

Prairieville,LA70769

(225)677-8020

bacalat@legis.la.gov

Rep.DelishaBoyd

3401GeneralDeGaulleDrive,Suite5076 NewOrleans,LA70114 (504)605-6552 hse102@legis.la.gov

Rep.JulieEmerson 306NorthChurchSt. Carencro,LA70520 (337)886-4687

emersonj@legis.la.gov

Rep.GabeFirment

181BarronRoad Pollock,LA71467

(318)765-9606

hse022@legis.la.gov

Rep.ClaySchexnayder(ExOfficio)

6473Highway44,Suite205

Gonzales,LA70737

(225)473-6016

schexnayderc@legis.la.gov

Rep.AimeeFreeman 8600OakStreet NewOrleans,LA70118 (504)861-1614 hse098@legis.la.gov

Rep.PaulHollis

600N.Highway190,Suite202A Covington,LA70433 (985)871-4680 hollisp@legis.la.gov

Rep.BarryIvey P.O.Box78286 BatonRouge,LA70837 (225)261-5739 iveyb@legis.la.gov

Rep.PatrickO.Jefferson 504N.MainSt. Homer,LA71040 (318)927-2519 jeffersonpo@legis.la.gov

Rep.VanessaCastonLaFleur 2370TowneCenterBlvd.,1stFloor BatonRouge,LA70806 (985)925-6880 hse101@legis.la.gov

Rep.RichardNelson 2001LakeshoreDrive Mandeville,LA70448 (985)222-2638 hse089@legis.la.gov

Rep.PhillipEricTarver

132Jamestown LakeCharles,LA70605 (337)472-8186

hse036@legis.la.gov

Rep.TannerMagee(ExOfficio)

7833W.MainSt. Houma,LA70360

(985)858-2970

mageet@legis.la.gov

Needtofindyourlegislator?Goto:http://www.legis.la.gov/legis/FindMyLegislators.aspx

SenateRetirement CommitteeMembers

SenatorEdwardJ.Price(Chairman)

2115S.BurnsideAve.,SuiteB

Gonzales,LA70737

(225)644-6738

(855)844-1430

pricee@legis.la.gov

SenatorRobertMills(Vice-Chairman) 105Harvey’sWay

Minden,LA71055

(318)371-5200

sen36@legis.la.gov

SenatorCleoFields

2147GovernmentStreet

BatonRouge,LA

(225)644-6738

cfields@legis.la.gov

SenatorBobHensgens

122N.StateStreet,Suite100

Abbeville,LA70510

(337)740-6425

(800)259-5035

sen26@legis.la.gov

SenatorBethMizell

1051MainStreet

Franklinton,LA70438

(985)839-3936

mizellb@legis.la.gov

SenatorBarrowPeacock

1619JimmieDavisHighway

BossierCity,LA71112

(318)741-7180

peacockb@legis.la.gov

SenatorKirkTalbot

9523JeffersonHwy.,SuiteB

RiverRidge,LA70123

(504)736-7299

talbotk@legis.la.gov

Needtofindyourlegislator?Goto:http://www.legis.la.gov/legis/FindMyLegislators.aspx

How to FindYourState RepresentativeorSenatoronthe LouisianaLegislatureWebsite

1.Typein www.legis.la.gov inthesearchbarofyourwebbrowser.

2.Clickon“WhoAreMyLegislators?”ontheleftsideofthescreen(under“AbouttheLegislature”).

3.Typeinyouraddress,cityandzipcode. Then,clickonthe“Find”button.

4.Alistofthestaterepresentativesandsenators,aswellasfederal legislators,willappear.Click ontheirnames toberedirectedto theircontactinformationpage.Onthispage,youshouldfindtheirmailingaddress,phone numberandemailaddress.

Theselettersarepurelysuggestedlanguageforyoutouseinyourcommunicationtoyour legislators.Youdonotneedtocopythelettersword-for-word;pleasefeelfreetopickand choosethelanguageyouwanttousewhencommunicatingtolegislators.

Dear_________:

Mynameis__________________________andIamaretirededucatorfrom __________________.[Addsomethingpersonalaboutyoureducationalexperiences.] Iamacurrent,tax-payingresidentofLouisianaandcontinuetosupportthelocaland stateeconomywithmyretirementbenefit.IamalsoamemberoftheLouisianaRetired TeachersAssociation.

IamwritingtoaskthatyouSUPPORTSenateBill18bySenatorEdPrice,whichoutlines anewmodelfortheemployertopayforsupplementalbenefitsinamoredirect methodology.SupplementalbenefitsinLouisianaarereferredtoascost-of-living adjustments(COLAs)orpermanentbenefitincreases(PBIs).

Thecostofliving,includinggroceries,commoditiesandinsurancecosts,continuesto remainhigh.FormostLouisianaretiredteachers,theirpensionistheirONLYsourceof retirementincome.Pleasesupportabillthatwilladdressthisissueforcurrentandfuture retiredteachers.

In2020,boththeHouseandSenatechamberspassedresolutionsrequestingthestate retirementsystemstoreviewnewmethodstoprovide“meaningfulbenefitincreaseson aregularlyscheduledbasis,designedtopreservethepurchasingpoweroftherecipients.” SB18isinresponsetothelegislature’srequests.

RetirementreformsareworkinginLouisianaandthisnewbeneficiallegislationassures pensionreformswillbepreserved.Moreover,itdoesnotcreateadditionaldebttothe retirementsystem.

Additionally,theprojectedoutcomeofthislegislationincludesincreasingthefrequency ofCOLAs/PBIs,futurecostsbecomebetterknownandtransparentassetbythe legislature,includesemployersafeguardscontrollingforcosts,andprovidesthatthe legislatureretainfullcontrolovergrantingCOLAs/PBIs.

Bysupportingthislegislation,youarepreservingthebuyingpowerofretirededucators andprovidingforagreatereconomicimpactonthebusinessandindustryinLouisiana. Thankyouforyourconsiderationofthisimportantrequest.

Theselettersarepurelysuggestedlanguageforyoutouseinyourcommunicationtoyour legislators.Youdonotneedtocopythelettersword-for-word;pleasefeelfreetopickand choosethelanguageyouwanttousewhencommunicatingtolegislators.

Dear_________:

Mynameis__________________________andIamaretirededucatorfrom __________________.[Addsomethingpersonalaboutyoureducationalexperiences.] Iamacurrent,tax-payingresidentofLouisianaandcontinuetosupportthelocaland stateeconomywithmyretirementbenefit.IamalsoamemberoftheLouisianaRetired TeachersAssociation.

IamwritingtoaskthatyouSUPPORTSenateBill18bySenatorEdPrice,whichoutlines anewmodelfortheemployertopayforsupplementalbenefitsinamoredirect methodology.SupplementalbenefitsinLouisianaarereferredtoascost-of-living adjustments(COLAs)orpermanentbenefitincreases(PBIs).

In2020,boththeHouseandSenatechamberspassedresolutionsrequestingthestate retirementsystemstoreviewnewmethodstoprovide“meaningfulbenefitincreaseson aregularlyscheduledbasis,designedtopreservethepurchasingpoweroftherecipients.” SB00isinresponsetothelegislature’srequests.

Louisiana’sretiredteachershavereceivedonlytwoCOLAs(2016and2022)equaling about3.5%ofinflation.TheConsumerPriceIndex(CPI)forthistimeperiodwas17.92%. Essentially,$1in2016wasworthabout$1.24in2022.

WithSB18,COLA/PBIfrequencybecomesmuchmorepredictableandtheirfuturecosts becomesmuchmoretransparent.Inadditiontoestablishingemployersafeguardsto controlforcosts,SB00retainsboththelegislature’sfullcontrolovergrantingCOLAs/ PBIsandbeneficialpensionreforms.

SB18simplyproposesadifferentyetreliablemethodtofundingCOLAs.COLAswillnot beautomaticandwillstillrequirelegislativeapproval.

Thisnewapproachwillnotcreatenewdebtstotheretirementsystem,becausetherewill beemployersafeguardsputintoplacetocontrolforcosts(suchascappingtheemployer rateat2.5%annually).Theessentialpensionreformsthathavecontinuedtoreducethe retirementdebtandincreasingitsfundinglevelannuallywillalsoremaininplace.

Bysupportingthislegislation,youarepreservingthebuyingpowerofretirededucators andprovidingforagreatereconomicimpactonthebusinessandindustryinLouisiana. Thankyouforyourconsiderationofthisimportantrequest.

Theselettersarepurelysuggestedlanguageforyoutouseinyourcommunicationtoyour legislators.Youdonotneedtocopythelettersword-for-word;pleasefeelfreetopickand choosethelanguageyouwanttousewhencommunicatingtolegislators.

Dear_________:

Mynameis__________________________andIamaretirededucatorfrom __________________.[Addsomethingpersonalaboutyoureducationalexperiences.] IamalsoamemberoftheLouisianaRetiredTeachersAssociation.

IamwritingtoaskthatyouSUPPORTSenateBill18bySenatorEdPrice,whichoutlines anewmodelfortheemployertopayforsupplementalbenefitsinamoredirect methodology.SupplementalbenefitsinLouisianaarereferredtoascost-of-living adjustments(COLAs)orpermanentbenefitincreases(PBIs).

Louisiana’sretiredteachershavereceivedonlytwoCOLAs(2016and2022)equaling about3.5%ofinflation.TheConsumerPriceIndex(CPI)forthistimeperiodwas17.92%. Essentially,$1in2016wasworthabout$1.24in2022.Researchhasshownthegreat economicimpactpensionbenefitshaveonlocalandstateeconomies.Pleasesupporta billthatwilladdressthisissueandprotectthepurchasingthepowerofretirees.

SB18simplyproposesadifferentyetreliablemethodforemployerstofundCOLAs. COLAswillnotbeautomaticandwillstillrequirelegislativeapproval.

Thisnewapproachwillnotcreatenewdebtstotheretirementsystem,becausetherewill beemployersafeguardsputintoplacetocontrolforcosts(suchascappingtheemployer rateat2.5%annually).Theessentialpensionreformsthathavecontinuedtoreducethe retirementdebtandincreasingitsfundinglevelannuallywillalsoremaininplace.

In2020,boththeHouseandSenatechamberspassedresolutionsrequestingthestate retirementsystemstoreviewnewmethodstoprovide“meaningfulbenefitincreaseson aregularlyscheduledbasis,designedtopreservethepurchasingpoweroftherecipients.” SB00isinresponsetothelegislature’srequests.

WithSB18,COLA/PBIfrequencybecomesmuchmorepredictableandtheirfuturecosts becomesmuchmoretransparent.Inadditiontoestablishingemployersafeguardsto controlforcosts,SB18retainsboththelegislature’sfullcontrolovergrantingCOLAs/PBIs andbeneficialpensionreforms.

Bysupportingthislegislation,youarepreservingthebuyingpowerofretirededucators andprovidingforagreatereconomicimpactonthebusinessandindustryinLouisiana. Thankyouforyourconsiderationofthisimportantrequest.

AboutTRSL

� Establishedin1936

� Largestpublicre�rementsysteminstate

� Systemsta�s�csasofJune30,2022:

» Ac�velyworkingmembers: 86,364

» Re�rees&beneficiaryrecipients: 82,600

» DROPpar�cipants: 2,172

» Totalnetassets: $25.1billion

� Primarypurposeistoprovidere�rement incometore�reesandbeneficiariesoftheplan

� Governedby17-memberboardoftrustees: 12electedbymembership;fiveareexofficio

TRSLBenefits

� TRSLadministersa defined benefitre�rementplan (DB) thatprovidesalife�me re�rementbenefitbased uponyearsofservice, averagesalary,anda benefitfactor(typically 2.5%).

� Incontrast,a defined contribu�onre�rement plan(DC), likea401(k), providesre�rementincome baseduponthebalancein are�rementaccount.

KeyPlanInforma�on

� TRSLhastwoDBplans:

» RegularPlan. Forteachers,administrators, unclassifiedhighereduca�onpersonnel;most membersbelongtothisplan.

» PlanB. Forschoolfoodservicepersonnelin 20parishesthatpar�cipateinSocialSecurity.

NOTE:Since1983,anotherplanadministeredbyTRSL (SchoolLunchPlanA)hasbeenclosedandnolonger enrollsnewmembers.

� TRSLalsoadministersthe Op�onalRe�rement Plan(ORP),adefinedcontribu�onplanopento unclassifiedpersonnelinhighereduca�on.

TRSLFunding

� Fundedbythreesources:

» Employeecontribu�ons. Establishedinlaw; mostpay8%ofsalary

» Employercontribu�ons. Basedonactuarial calcula�onsprovidedinstatute;determined annually

» Investmentearnings. Employerandemployee contribu�onsarepooledandinvested TRSLInvestmentPerformance

� AsofJune30,2022,TRSLpor�olioinvestments— whichareapor�onofthere�rementsystem’s totalassets—werevaluedat$24.3billion. TRSL’s investmentreturnsrankinthetop(best)5th percentofpublicpensionfundswithassetsgreater than$1billion,accordingtotheWilshireTrust UniverseComparisonService(TUCS)forthe10year periodended6/30/22. Source:WilshireTrustUniverse ComparisonService(TUCS)

EconomicImpact

� InFY2022,TRSLpaid$2.4billioninbenefits.Ofthat, $2billionwaspaidtoLouisianaresidents.

� TheaverageannualTRSLbenefitis$28,036for regularre�rees.

� TRSLbenefitsarepaidtore�reesandbeneficiaries ineveryregionofthestate,wheretheybuylocal goodsandservices,andpaytaxes.

AbouttheUnfundedAccruedLiability(UAL)

� AsofFY2022,TRSLhasa$9billionUAL.Apor�onof thisdebtisduetounderfundingbenefitsfrom1936 whentheSystemwascreatedtotheimplementa�on ofa1987cons�tu�onalamendmentthatrequired theSystemtobeactuariallyfunded.

� Asaresultofthecons�tu�onalchange,lawmakers establishedapaymentplantopayoff thedebt (exis�ngasofJune30,1988)by2029.Bydesign, earlypaymentscheduleswereback-loaded,resul�ng inpaymentsnotevencoveringinterestonthedebt. Consequently,thetotaldebtincreasedbecause unpaidinterestfromanycurrentyearwasaddedto theprincipalamountofthedebtforthenextyear.

� In2009,lawmakerspassedAct497,which restructuredthedebtandpaymentplantomake paymentsmorelevelandapplymoreofTRSL’s investmentearningstowardthedebt.

� Since2009,inaddi�ontoregulardebtpayments, $2.2billionininvestmentearningshavebeenused toreducetheUAL.Thishasresultedinlessmoney beingcreditedtotheTRSLexperienceaccount,which fundscost-of-livingincreasesforeligiblere�rees.

PensionReform

� Louisianahasbeenafrontrunnerinthena�onfor implemen�ngpensionreformsthatprotectthefiscal healthofitspublicre�rementsystems.

� TRSLhasworkedwith lawmakerstoimplement pensionreformsthatreducecostsandensurefunding sufficiency.Severalofthoseini�a�vesinclude:

» Making100%oftheactuariallyrequiredpayments

» Applyingmoreexcessinvestmentearningstothe UAL

» Replacing3-yearaveragesalarycalcula�onwith a5-yearcalcula�onfornewhiresasofJanuary1, 2011

» Raisingthere�rementageto62fornewhiresas ofJuly1,2015

» Conver�ngtoanactuarialfundingmethodthat createsmorelevelfundingrequirementsovera member’sworkingcareer

» Reducingthediscountrate(forfundingregular planbenefits)toalignwithexpectedmarket performance

TRSL:Asustainableretirementplan

Reformsenactedsince2009arenowbearingfruitand theresultsarereflectedinTRSL’slatestActuarial Valua�onReport.HerearesomehighlightsfromtheFY2022 report.

� UALcon�nuestodiminish. InFY2021,theUALfellbelow$10 billionforthefirst�mesince2008. FY2022 wasanotheryearofachievementwiththeUALbalance droppingto$9billion.Debtthataccumulatedover theyearsiswellontracktobepaid off on�mewithasizableamount re�redby2029.

� Theemployercontribu�onratewilldropforthe fi�hconsecu�veyear. Therecommendedrateforthenext schoolyearis24.1%forK-12(downfrom24.8%); and23.3%forhighereduca�on(downfrom24.1%).The actualcostofprovidingthere�rementbenefit(normalcost)is wellbelowSocialSecurity—at3.57%forK-12 and2.79%forhighereduca�on.

� Fundedstatusgrewto73.7%. TRSL’sfundedstatusincreasedto73.7%fromlastyear’s71.8%. Thisisa significantachievementconsideringthefundedstatuswas54.4%inFiscal Year2010followingthe2008 economicdownturn.

� Earned8.96%actuarialrateofreturn. Eventhoughitwasatoughyearforinvestments,thisactuarial return exceedsthediscountrateof7.25%.Thediscountrateis whattheSystemneedstoachieveoverthelong termtofundregularmonthlybenefits.

� MembersreceivedaPermanentBenefitIncrease(PBI). Anacross-the-board2%PBIwaspaidtoeligible re�reesforthefirst�mesince2016.PBIshelpre�redteachers, beneficiariesandsurvivorspreservetheir purchasingpoweragainstarising�deofgrowingexpenses.

Thereformsareworking.TRSLisasustainablere�rementplan thatprovidessecuritytomembersatalow costtoemployers.AstheUALdiminishesevenfurther, employers’costswillcon�nuetoshrink.

MemberEngagement Increases

StayEngagedwithLRTA!

► LRTANewsletter-Readuponimportantevents andupdatesonyourretirementbenefits.LRTA nowoffersmemberstheoptiontoreceivethe LRTAnewsletterelectronically.Youcanaccessthe LRTAnewsletterevenwhileyouareoutand about.

► LRTASocialMedia-Didyouknow:LRTAhas over1,400likesonourFacebookpage?Don’t missoutonthefun!LRTApostsonFacebook regularlywithUnitSpotlights,membership updatesandmore.

► LRTAEmailClub-Ifyouhavenotdoneso already,makesureyouaresubscribedtotheLRTA EmailClub.Signuporupdateyouremailaddress here:https://bit.ly/LRTAEmailClub

Helpspreadthewordaboutour workforretiredteachersatLRTA!

EncourageotherretiredteacherstojoinLRTA! Visitwww.lrta.netformoreinformation.