Provides for funding of certain insurance costs for retirees of the St. Charles Parish Sheriff's Office. (8/1/26)

Senate Bill 85 enacts Louisiana Revised Statutes 13:5554.15 to establish the St. Charles Parish Sheriff Retired Employees Insurance Fund, a permanent investment fund designed to help finance group insurance premium costs for retired sheriffs and deputy sheriffs in St. Charles Parish. The sheriff may make discretionary contributions to the fund, which shall be invested according to a prescribed allocation requiring at least 25 percent in equities and 25 percent in fixed income securities rated as investment grade by a nationally recognized rating agency. Investment earnings from the fund become available for withdrawal only after the fund's principal and accumulated earnings reach four million dollars, at which point earnings may be used solely to pay insurance premiums for eligible retirees or legal representation costs for the fund's advisory board. The statute preserves existing law under R.S. 13:5554(O) that currently provides for the payment of insurance premiums from the sheriff's general fund for retirees meeting either of two service requirements: at least 15 years of service and age 55, or at least 20 years of service at any age.

The practical effect of this legislation primarily impacts the St. Charles Parish Sheriff's Office and its retired employees. By establishing an investment fund with dedicated earnings, the bill reduces the pressure on the sheriff's general operating fund to cover retiree insurance costs once the fund reaches its four million dollar threshold. Retired sheriffs and deputy sheriffs benefit from the continued guarantee that insurance premiums will be paid, as any shortfall remains the responsibility of the general fund. The sheriff retains full discretion over whether and when to contribute to the fund, and the active and retired employees appointed to the investment advisory board gain a formal voice in fund management decisions. If the fund balance ever drops below four million dollars, the sheriff's general fund again becomes the sole payment source, ensuring uninterrupted coverage regardless of investment performance.

This legislation operates within the existing statutory framework established in R.S. 13:5554(O), which already mandates insurance premium payments for qualified retired sheriffs and deputy sheriffs as a standing obligation of the St. Charles Parish Sheriff's Office. The new fund structure represents a financing mechanism rather than a substantive change to eligibility or coverage benefits. The bill establishes mandatory audit provisions requiring that any financial audit of the sheriff's office specifically verify compliance with the fund's investment allocation requirements and withdrawal restrictions, integrating the fund into existing sheriff's office oversight procedures. The law becomes effective August 1, 2026, allowing time for the sheriff to establish the investment advisory board and begin fund operations before that date.