Thursday, May 9, 2013

Legislative Session Update

The House Retirement Committee met yesterday and one bill impacting LASERS was on the agenda.

HB 35 (Barrow) failed to be reported favorably with a 3 to 6 vote. This measure would have added a 25 years at any age retirement eligibility for employees of the LSU Hospitals which are set for closure. If passed, HB 35 would have resulted in an additional $28 million in unfunded accrued liability to LASERS. The LASERS Board opposed this bill.

HB 68 (Pearson) was originally scheduled to be on the agenda, but was removed. This bill, which would re-enact the Cash Balance Plan with some changes, is still pending in the House Retirement Committee. The LASERS Board opposes this legislation because of the lack of retirement security offered to members who have no Social Security safety net. The bill also fails to address many of LASERS administrative concerns.

On Monday, the House and Senate each passed resolutions, without opposition, to suspend the provisions of the Cash Balance Plan until July 1, 2014 (HCR 2 and SCR 1).  These resolutions will now move to the opposite chamber. HCR 2 is scheduled to be heard by the Senate Retirement Committee on Monday. The LASERS Board supports both of these resolutions.

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