Senate Panel Approves Bill to Encourage Retirement for Certain State Workers - by Robyn Ekings

The Senate Retirement Committee today approved a bill (SB 58) that would allow members of the Louisiana State Employees’ Retirement System (LASERS)who have reached the age where they are eligible to retire, to buy additional service credit that they may lack. The measure, by Morgan City Senator and Committee Chair Butch Gautreaux is, as he told the panel, “designed to cut back on the workforce, in a friendly way.” Provisions of the bill allow those who are old enough to retire to purchase five years or less of service credit. The purchases are at an actuarial cost for up to five years in one year increments. Application to participate must be made before August 31, 2010, with payments to be made by December 31, 2010. Retirement must become effective by February 1, 2011. Members who purchase credit may also pay to upgrade prior service. The LASERS Board of Trustees took a neutral position on the plan. The bill now heads to the full Senate for debate.