Wednesday, May 16, 2012

HB 61 Moves to Senate Floor, LASERS Board Opposes Bill

Excerpt from The Advocate - Legislative Briefs - May 16, 2012

Gov. Bobby Jindal's proposal to move new state employees to a 401(k)-type pension plan cleared another legislative hurdle Tuesday night.

The Senate Finance Committee, without objection, sent House Bill 61 to the Senate floor for debate.

The committee vote came when the administration and the legislature's retirement system actuaries gave conflicting testimony and reports on the financial impact of the change.

The administration's Boston-based actuary predicted savings to the state and less exposure to new pension liabilities.

The Legislature's actuary said there would be state costs and could leave state employees without sufficient retirement income to last throughout their lives.

The Louisiana State Employees Retirement System opposes HB61 - the so-called cash balance plan, its executive director, Cindy Rougeou, told the panel. It had previously not taken a position.

"Significant risk is shifted to the employee," Rougeou said.

LASERS will continue to provide updates on retirement legislation, so check the website daily.

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