The 2013 Regular Session of the Louisiana Legislature officially
closed at 6:00 p.m. on June 6. If you were following the proposed retirement
legislation, the LASERS Board of Trustees took positions on 10 bills. In the
final outcome, none of the bills impacted active or retired LASERS members.
The LASERS Board supported two resolutions, HCR 2 (Harrison) and SCR 1 (Cortez). HCR 2 unanimously
passed and will suspend implementation of the provisions of the Cash Balance
Plan to July 1, 2014. SCR
1 was a companion resolution and it did not complete the
legislative process.
The LASERS Board supported SB
4 (E. Guillory), but it was withdrawn by the author after
amendments adding contingencies to the funding method change were included.
This measure would have changed the LASERS actuarial funding method from
projected unit credit to entry age normal.
SB 17 (E. Guillory) was also supported by the
LASERS Board, but failed to advance. It would have created the State Retirement
Fund and allocated two percent of revenue collections in excess of Fiscal Year
2011-2012 levels to the Fund for payment of the UAL and COLAs.
Six bills were opposed by the LASERS Board and all of them failed
to move forward:
HB 35 (Barrow) would have
provided for a 25 years at any age retirement eligibility for employees of
hospitals operated as part of the LSU Health Sciences Center which were subject
to closures;
HB 57 (Pearson) would have
increased the employee contribution rate for all members by two percent to pay
the system's unfunded accrued liability (UAL). It provided for a 60-month
final average compensation (FAC) and 15 percent anti-spiking for all LASERS
members;
HB 61 (Badon) would have
provided 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;
HB 729 (Pearson), which was a
substitute for HB 68,
would have re-enacted the Cash Balance Plan and made changes regarding
membership, withdrawals, interest, transfers, reciprocals, disability and
survivor benefits, reemployment, purchases and dual plan membership;
SB 7 (Peacock) would have
provided for a 60-month FAC and 15 percent anti-spiking for all LASERS
members;
SB 11 (E. Guillory) would have
increased employee contributions by three percent beginning July 1, 2013,
provided for a 60-month FAC, and 15 percent anti-spiking for all LASERS Members.
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