Wednesday, April 23, 2008

2008 Legislative Update

HCR 2 providing a 3% COLA to the pensions of eligible LASERS retirees was passed by the House of Representatives by a vote of 98-0.

61 representatives signed on as co-authors.

5 comments:

J said...

What about the retirees under the age of 55? Why can't they get the 3% cost-of-living raise?

Anonymous said...

Eligibility for a cost-of-living adjustment (COLA) for LASERS retirees is defined by state statute, La. R.S. 11:542C(4)(a).

To be eligible for COLA, a regular LASERS retiree must have reached the age of 55 as of June 30th of the year that a COLA is authorized by the legislature. In addition, you must have been retired since June 30th of the previous year.

J said...

I understand the state statue. But why is that? Why is the age set at 55? What about the people who put in their 30 years and retire and are under the age of 55?

Anonymous said...

In enacting the statute, the Legislature expressed the intent that the COLA was meant to help those who needed it most, which they felt were older retirees who had been on fixed incomes for some time. Some legislators expressed a concern that state employees could retire at age 55 or even younger, while the Social Security retirement age (at the time) was 65.

J said...

But the younger state retirees will not get social security benefits or medicare, therefore their health insurance premium are higher than older retirees.