The Public Retirement Systems' Actuarial Committee of the Louisiana Legislature convened on June 25, 2025, to discuss significant updates regarding the state's public pension plans. A key focus of the meeting was the anticipated cash flow of $148 million, which is expected to arrive around June 30, 2025. This influx is part of the funding strategy to address the state police retirement system's debt.

During the meeting, committee members discussed the unique approach taken in calculating investment returns for the pension plan. Typically, investment return calculations rely on audited financials from the beginning and end of the year, accounting for cash flows as if they occur mid-year. However, due to the expected cash flow, the committee decided to treat this amount as a receivable, ensuring it is recognized as an asset for future calculations without restating previous return values.

The committee emphasized the importance of transparency in this process, noting that the current returns reflect only the earnings on invested assets, excluding the receivable from the balances used to determine the rate. This decision marks a slight departure from standard procedures, and the committee aims to maintain a continuous record of the plan's funding.

Additionally, the committee highlighted the implications of House Bill 460, which is set to become law and will significantly reduce the employer contribution rate. It is estimated that this change could save the state approximately $25 million annually. The new total contribution rate, including a 2.5% adjustment for pension benefit increases, will be 39.2%, effective July 1, 2025.

The meeting concluded with a motion to adopt the updated report, which will replace the previous one and serve as the basis for future valuations. The committee's actions reflect ongoing efforts to ensure the financial stability of Louisiana's public retirement systems.