The Louisiana Senate on Monday (June 15th) approved a House passed bill to allow employees of the state’s public colleges and universities to maintain their retirement plan during furloughs enacted as part of a budget cutting process.
HB 673 provides that employees can purchase service credit for up to 30 days in a fiscal year. Both the employee and the employer would be required to pay contributions for the furloughed time.
The measure also provides that the service credit purchased plus any “air time” purchase may not exceed five years. The bill applies to certain members of the Louisiana State Employees’ Retirement System (LASERS) and the Teachers’ Retirement System of Louisiana (TRSL).