The New Orleans municipal government's Civil Service system began operations in 1943 and it soon became apparent that a municipal employees' retirement system was necessary and desirable. Act 119 of the 1944 Louisiana Legislature made such a system possible, and led the City to appoint a Retirement Committee to survey and report to the City Council on the feasibility of instituting a retirement system. On April 25, 1947 the Council passed ordinance #16,833 CCS establishing the Board of Trustees of the Employees' Retirement System of the City of New Orleans.

The Board was to have general administration and responsibility for the proper operation of the retirement system. It was to be composed of five members: a qualified elector of the City who was not a city employee (appointed by the Mayor with Council approval), the Commissioner of Public Finance (ex-officio), the Director of Personnel (ex-officio), and two city employees who were members of the system (elected by the members of the system). The ex-officio members served terms equal to their terms in office, the elector served an initial term of five years (four years thereafter), and the employee members served initial terms of one and two years (three years thereafter). The Board generally met once a month. Initially the system's staff included a director, a secretary, an accountant, a field inspector, and a clerk. It also employeed the services of an actuary who reported on the valuation of the system's assets and liabilities.