Wednesday, April 10, 2013

Proposed Legislation May Impact Retirement Benefits for Active LASERS Members

Active LASERS Members have asked which bills are being considered in the current legislative session which may impact their future retirement benefits. 

Here are the pertinent bills to watch:

SB 7 (Peacock) Provides for a 60-month final average compensation (FAC) period and a 15 percent anti-spiking rate, each of which would change the compensation number used to calculate benefits.

SB 11 (Guillory) Increases employee contributions by three percent beginning July 1, 2013, provides for a 60-month FAC, and a 15 percent anti-spiking rate. These changes would be used to fund future COLAs of one to two percent, on the first $50,000 of benefits, and payable in odd-numbered years.  Active members would subsidize COLAs for current and future members.

HB 57 (Pearson) Increases employee contributions by two percent to pay the system's unfunded accrued liability (UAL) and provides for a 60-month FAC and 15 percent anti-spiking rate.

HB 61 (Badon) Provides for a "divided benefit" for members whose actual earnings in a calendar month are 30 percent or more above his average monthly earnings for the immediately preceding 12 months.

The LASERS Board of Trustees has gone on record as opposing each of these bills.  As the bills progress through the legislative process, future Member Connections will be sent. Also, check our website daily for updates on bills. 

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