Killian agrees to $50,000 settlement with MPERS to resolve lawsuit over police retirement enrollment

The Town of Killian agreed to pay the Municipal Police Employees' Retirement System (MPERS) $50,000 and take new compliance steps to resolve a lawsuit alleging Killian failed to timely enroll certain police employees in MPERS and remit required contributions.

Under the settlement, MPERS will release Killian from the claims asserted in the lawsuit and file a motion to dismiss after MPERS receives the $50,000 payment, verification that Killian has paid court costs, and written confirmation that affected former employees were notified. The agreement says the release does not extend to any claim asserted by or on behalf of a former MPERS-eligible employee or a third party.

The agreement recounts that membership in MPERS became mandatory for certain municipal police employees beginning July 1, 1973, and that Killian later entered into a Social Security coverage agreement that excluded those MPERS-covered employees. MPERS' lawsuit sought enrollment of current and former eligible employees and delinquent contributions, interest, and actuarial costs.

As part of the settlement, Killian must: provide written verification that all former MPERS-eligible employees employed on or after July 1, 2024 were made aware of the agreement; pay $50,000 in a lump sum by Feb. 28, 2026; and, beginning Feb. 10, 2026, certify each month via MPERS' portal that no MPERS-eligible employees were hired in the prior month or that any hires were timely enrolled. If Killian fails to comply with the monthly certification requirement for three months in any 12-month period, it must engage an auditor at its own expense to perform agreed-upon procedures to verify compliance. The auditor's report is to be provided to MPERS, the legislative auditor, and the state treasurer within three business days of receipt by the employer.

The agreement also contains broad indemnification provisions. Killian agrees to release, defend, indemnify, and hold harmless MPERS and its officials from claims relating to the employment and the prior failures to enroll or pay contributions for former eligible employees; if MPERS incurs amounts because of claims by former employees, Killian must reimburse MPERS within 30 days of demand. The contract warns that failure to comply after Aug. 15, 2025 could allow MPERS to certify delinquencies to the state treasurer under R.S. 11:2227(D)(2)(a) and that the treasurer may deduct certified amounts from funds payable to Killian.

The parties also acknowledge that Killian laid off all MPERS-eligible employees and entered a one-year contract with the Livingston Parish Sheriff's Office to provide public safety services on or about Aug. 15, 2025. The settlement requires Killian to pay court costs (approximately $822.51) to the East Baton Rouge Parish Clerk of Court by Feb. 28, 2026.

The agreement is signed on behalf of the Town of Killian by Caleb Atwell, Mayor, and on behalf of MPERS by Benjamin A. Huxen II, Executive Director and General Counsel. It states that the parties had the opportunity to consult counsel and that the agreement constitutes their entire understanding on the matters addressed.

Next steps include MPERS' receipt and verification of the payment, court-costs payment, and employee notifications; MPERS will then file a motion to dismiss the pending suit.