Update from Monday's Legislative Meeting

The Senate Retirement Committee met Monday, April 29 and considered two bills with a potential impact to LASERS.

SB 7 (Peacock) was reintroduced as a substitute bill impacting only the Firefighters' Retirement System of Louisiana. The committee voted to move the bill favorably for consideration on the Senate floor. The bill originally provided for a 60-month final average compensation (FAC) and 15 percent anti-spiking for all LASERS members. The LASERS Board opposed the original bill since it would, in many cases, violate the constitutional protections provided to our members. LASERS will continue to monitor this substitute bill closely. 

SB 11 (E. Guillory) was voluntarily deferred. The bill provided for an increase in employee contributions by three percent beginning July 1, 2013, a 60-month final average compensation (FAC), a 15 percent anti-spiking rate, and provided a funding mechanism for COLAs with some active members partially subsidizing COLAs for current retirees. The LASERS Board opposed the bill since it would, in many cases, violate the constitutional protections provided to our members. Sen. Guillory urged the state retirement systems to find an acceptable solution to the issue of funding cost-of-living adjustments. His only constraint was that 100 percent of the funding must come from sources other than increased employer contributions.