Cities across Louisiana, including New Orleans, are raising concerns about the Municipal Police Employees Retirement System (MPERS) and its penalizing tactics that are harming local police departments, especially in smaller cities.
These issues, which are now garnering attention ahead of the legislative session, are forcing cities to address punitive fines and challenging policies that threaten their ability to function effectively.
First Issue: Fines for Police Department Reductions
One of the most pressing concerns is the fines imposed on cities for the reduction in police department size. New Orleans, in particular, is facing over $38 million in fines because the New Orleans Police Department (NOPD) lost more than 50 officers for two consecutive years. Current law penalizes a drop of more than 50 officers in one year.
Moreover, a second penalty applies if a police department’s numbers drop below 40% of the previous year’s total. This regulation has resulted in significant financial penalties, especially for smaller cities like Turkey Creek, which went from six officers to three and was fined over $260,000. Other small towns, including Boyce, Jackson, Lutcher, Homer, and Franklin, have faced similar fines.
The heavy fines are deemed punitive, unaffordable, and unacceptable by many cities, especially those with smaller budgets. This is in stark contrast to the continuous efforts by cities like New Orleans to retain and recruit officers rather than reducing their force.
Second Issue: Retention Bonuses and Pension Problems
Another major issue with MPERS involves the treatment of one-time retention bonuses. In January, the city authorized the payment of $9 million in retention bonuses to NOPD officers. However, MPERS unexpectedly ruled that these retention bonuses were pensionable, meaning the city owed the pension fund an additional $3 million.
This decision was met with strong opposition from local officials, as one-time bonuses had never been considered part of pension calculations. Upon further investigation, it was revealed that there was no legal or administrative basis for this requirement, only a directive from MPERS’ executive director.
The Louisiana Legislative Auditor, Mike Waguespack, also agreed that the bonuses should not be considered pensionable, calling MPERS’ position extremely problematic.
The concern is that inflating salary calculations with one-time bonuses increases contributions disproportionately without resulting in higher future benefits for officers. This creates an unfair financial burden on cities, especially when they are trying to ensure officer retention.
The Irony and the Call for Change
The irony in the situation is clear: New Orleans is accused of trying to dissolve its police department due to the loss of officers, yet it is also being penalized for attempting to retain officers through retention bonuses. The city’s leadership, however, is determined to find a solution that works for both New Orleans and other cities across Louisiana.
A Push for Fair Solutions
As the legislative session approaches, New Orleans’ leadership is working on a resolution that will aim to resolve the issues surrounding MPERS and ensure that fair and consistent policies are in place for cities across the state. The goal is to create a solution that benefits police officers while also ensuring that cities are not unduly penalized for trying to maintain a stable police force.
