A. Effective July 1, 2023, the balance in the permanent benefit increase funding account, referred to in this Section as the “PBI account”, shall be zero.

            B.(1) The PBI account shall be credited as follows:

            (a) Any amount allocated to the PBI account in accordance with La. Rev. Stat. 11:883.1.

            (b) To the extent permitted by Subparagraph (d) of this Paragraph, all employer contributions paid pursuant to La. Rev. Stat. 11:102(D)(6)(e).

            (c) To the extent permitted by Subparagraph (d) of this Paragraph, an amount not to exceed that portion of the system’s net investment income attributable to the balance in the PBI account at the end of the prior year.

            (d) In no event shall a credit be made to the PBI account that would cause the balance in the account to exceed the reserve necessary to grant two permanent benefit increases of two percent in accordance with the provisions of this Section. Any contributions received from payment of the account funding contribution rate in compliance with La. Rev. Stat. 11:102(D)(6)(e) that would cause the account balance to exceed this reserve if deposited in the account shall be applied as provided in La. Rev. Stat. 11:102.2.

            (2) The PBI account shall be debited as follows:

            (a) An amount equal to that portion of the system’s net investment loss attributable to the balance in the PBI account at the end of the prior year.

            (b) An amount sufficient to fund a permanent benefit increase granted pursuant to the provisions of this Section.

            (c) In no event shall the balance in the PBI account fall below zero.

            C. In accordance with the provisions of this Section, the board of trustees may recommend to the president of the Senate and the speaker of the House of Representatives that the system be permitted to grant a permanent benefit increase to retirees, beneficiaries, and survivors when the conditions in this Section are satisfied. The board of trustees shall not grant a permanent benefit increase unless the permanent benefit increase has been approved by the legislature. Receipt of future permanent benefit increases, as provided for in this Section, shall not be an accrued benefit. Retirees, beneficiaries, and survivors shall have no right to receive a permanent benefit increase until the permanent benefit increase has been approved by the legislature.

            D.(1) Any increase granted pursuant to the provisions of this Section shall begin on the July first following legislative approval and shall equal up to two percent, unless the legislature provides for a different rate or amount in the legislative instrument approving the permanent benefit increase. If the balance in the PBI account is not sufficient to fully fund the permanent benefit increase on an actuarial basis as determined by the system actuary in agreement with the legislative auditor’s actuary, no increase shall be granted.

            (2) The calculation of any permanent benefit increase paid under the provisions of this Section shall be based on the benefit being paid to the recipient on the effective date of the increase and shall be limited to and shall be payable based only on an amount not to exceed sixty thousand dollars of the recipient’s annual benefit.

            E. A benefit recipient shall be eligible to receive a permanent benefit increase if the recipient is one of the following:

            (1) A regular retiree who has received a benefit for at least two years and is at least age sixty-two.

            (2) A disability retiree who has received a benefit for at least two years regardless of age.

            (3) A beneficiary of a deceased retiree who, if the retiree were alive, would meet the eligibility criteria in Paragraph (1) or (2) of this Subsection.

            (4) A nonretiree beneficiary who has received a benefit for at least two years and whose benefits are derived from the service of a deceased member who would be at least age sixty-two if the member were alive.

            Acts 2023, No. 184, §1, eff. June 8, 2023.