Two LASERS Opposed Bills Voluntarily Deferred

The House Retirement Committee met Thursday afternoon and considered two bills which would impact LASERS.

HB 57 and HB 68, sponsored by Rep. Pearson, were both voluntarily deferred.

HB 57 would increase the employee contribution rate for all members by two percent to pay toward the debt, owed to the system by the state. It also would provide for a 60-month final average compensation (FAC) and 15 percent anti-spiking for all LASERS members. The LASERS Board opposes this bill.

HB 68 was heard by the committee as a substitute bill that would amend and reenact the Cash Balance Plan. The substitute bill would provide a lesser benefit to the member than is currently contained in the Cash Balance Plan that was enacted last year.  That plan is currently under review by the state Supreme Court. Two motions failed with a tie vote of 6-6. One motion was to approve the measure with amendments and the other to involuntarily defer the bill. Rep. Pearson then voluntarily deferred the measure. LASERS Executive Director Cindy Rougeou and Deputy Director Maris LeBlanc provided testimony expressing LASERS concerns with the bill. In particular, Rougeou pointed out the lack of retirement security offered by the Cash Balance Plan for LASERS members who have no Social Security safety net. The Cash Balance Plan would create a new retirement plan for certain LASERS future members. The LASERS Board opposed the bill.

House Retirement Committee Meeting Scheduled for Thursday, May 2

The House Retirement Committee is scheduled to meet Thursday, May 2 upon adjournment. Two bills impacting LASERS are on the agenda.

HB 57 (Pearson) increases the employee contribution rate for all members by two percent to pay the system's unfunded accrued liability (UAL). The bill provides for a 60-month final average compensation (FAC) and 15 percent anti-spiking for all LASERS members. The LASERS Board opposes this bill.

HB 68 (Pearson) re-enacts the Cash Balance Plan and makes changes regarding membership, withdrawals, interest, transfers, reciprocals, disability and survivor benefits, reemployment, purchases and dual plan membership.  The LASERS Board opposed the bill in its original form. Though a substitute bill has been submitted, many of LASERS concerns remain. 

Please note that meeting schedules and agendas are subject to change. Check the LASERS website daily for updates and for detailed information about the proposed legislation which would impact LASERS.

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. 

Outcome from Monday, April 22 Legislative Meetings

The Senate Retirement Committee met Monday, April 22 and the following action was taken on three bills impacting LASERS.

  

SCR 1 (Cortez) was favorably reported. This bill suspends implementation of the Cash Balance Plan for a year to allow time to obtain the Social Security equivalence ruling. The LASERS Board of Trustees supports this bill.

  

SB 7 (Peacock) failed to advance by a vote of two to four. This bill would have applied a 60-month final average compensation (FAC) to current members of state and statewide retirement systems. Testimony on the bill was provided by LASERS Trustee Judge William Kleinpeter, LASERS Executive Director Cindy Rougeou, and Robert Klausner on behalf of LASERS. The LASERS Board of Trustees opposed this bill.

  

SB 17 (Guillory) was voluntarily deferred for two weeks to allow time for a committee to be constituted to find a mechanism of providing funds to assist in reducing the UAL. This bill creates the State Retirement Fund and allocates two percent of revenue collections in excess of Fiscal Year 2011-2012 levels to the Fund for payment of the UAL and COLAs. The LASERS Board of Trustees supports this bill.

To see a complete list of bills impacting LASERS and their progress, check our website daily. 

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.