The Louisiana House today approved a bill that would raise the final average compensation (FAC) calculation on which retirement is based for rank and file LASERS members from 3 years to 5 years.
HB 530 by House Retirement Committee Chair Rep. Kevin Pearson was originally crafted with a total 2 percent contribution increase for LASERS members beginning a 1 percent hike in the 2012-13 fiscal year, and another 1 percent in fiscal year 2013-14.
Rep. Pearson wanted all the money raised to go toward the Unfunded Accrued Liability(UAL or debt) of the system, but that plan generated strong opposition. Instead, Pearson said he would only ask that the FAC be increased raising, he says, $55-58 million a year in actuarial savings that could go towards the UAL.
In a 76-20 vote, the house approved the new version of the bill which now moves on to Senate committee for discussion.
The LASERS Board of Trustees opposed the measure in its original form.