Legislative Update on Bills Impacting LASERS, Week of April 15

On Monday, April 15, the Senate Retirement Committee held its first meeting of the 2013 legislative session. LASERS Deputy Director Maris LeBlanc made a presentation about the impact of the LSU hospital closures on members and the System. The PowerPoint presentation can be viewed on the LASERS website here.

Two bills impacting LASERS were on the agenda for consideration.

SB 4, which is supported by the LASERS Board of Trustees, was reported favorably with significant amendments. If passed, this bill would change the LASERS actuarial funding method from projected unit credit to entry age normal. Senator Guillory, Chair of the Senate Retirement Committee, committed to holding the bill on the Senate floor until LASERS has had the opportunity to analyze the amendments and respond to them.

SB 14 was favorably reported and will advance to the Senate floor. This bill, if passed, would allow members to upgrade accrual rates on transferred service. The LASERS Board is neutral on this bill.

  

The House Retirement Committee meets tomorrow upon adjournment. HB 35 was originally scheduled for consideration, but was removed from the agenda. No other bills impacting LASERS are scheduled for discussion.

Layoffs Impact Pension System

The Advocate
Capitol News Bureau 

Maris LeBlanc, deputy director of the Louisiana State Employees Retirement System, gave legislators an overview Monday on the impact of employee layoffs from public-private hospital partnerships would potentially have on the pension system. LeBlanc said about 7,700 employees could be impacted of which about 2,000 “looks like are eligible to retire under our rules.”


To view the PowerPoint slides LeBlanc presented at the April 15 meeting, it is located here on the LASERS website. This PowerPoint addresses the employees at LSU Hospitals in potential layoff situations. 

Senate Retirement Committee Meeting Scheduled

The Senate Retirement Committee will meet Monday, April 15, at 2:00 p.m. Two bills impacting LASERS are on the agenda:

SB 4 changes the LASERS actuarial funding method from projected unit credit to entry age normal, and is supported by the LASERS Board of Trustees; 

SB 14 allows a member to upgrade their accrual rate on transferred service to the accrual rate of the receiving system by paying the actuarial cost of the upgrade; also allows for reverse transfers in certain instances. The LASERS Board is neutral on this bill. 

In addition to the bills being considered, LASERS Deputy Director Maris LeBlanc will make a presentation about the proposed privatization of the public hospitals and the retirement impact on the employees and the System.

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

Now Playing on YouTube: DROP and IBO

 If you are interested in learning about the Deferred Retirement Option Plan (DROP) and/or the Initial Benefit Option (IBO) Plan, please watch our latest videos in the educational outreach series highlighting these plans. In these videos, LASERS Deputy Director Maris LeBlanc explains the workings of DROP and IBO.

If you wish to be notified each time LASERS uploads a new video, we encourage you to subscribe to our channel by clicking the “subscribe” button located on the LASERS YouTube page here.

 

Education Outreach Series: Countdown to Retirement

The day a LASERS member chooses to retire is a very important date. Many people do not realize all the steps that need to be taken to prepare for retirement. The first order of business should actually be addressed as much as a year and a half before the actual date of retirement. 

Take a few minutes to watch our newest video, "Countdown to Retirement," to see all of the steps you should take to prepare for retirement. 

We at LASERS look forward to helping all of our members put the pieces in place that will help make the transition to retirement as seamless as possible.

LASERS investment returns up 11.1%

By Marsha Shuler

The Advocate

Capitol News Bureau

The Louisiana State Employees Retirement System registered 11.1 percent in retirement investment returns for the first nine months of 2012, pension system officials announced.

“Any time we get good numbers, we like to boast about it,” said Maris LeBlanc, deputy director of Louisiana State Employees Retirement System, or LASERS. “It’s good news in that we are posting positive investment returns. We are recognized as doing as well or better than our peers in comparison.”

LeBlanc said Tuesday LASERS started the year with $8.634 billion in investments. The system had assets of $9 billion.

As of the June 30, 2012, actuarial valuation, LASERS has 52,352 active state employee members and 42,722 retiree members.

In spite of a major market downturn during the decade’s “Great Recession,” the pension system earned a 9 percent annualized return for the 10-year period that ended Sept. 30, said Cindy Rougeou, LASERS executive director.

LASERS is ranked as one of the top public pensions systems in the U.S. that have a market value of more than $1 billion by Wilshire Trust Universe Comparison Service, which has the largest database of any peer-comparison service in the industry.

The pension system also has been recognized by Cliffwater LLC as one of the top 10 state pension plans in the U.S. based on an analysis of 10-year annualized investment returns. Cliffwater is an independent investment advisory firm.

“We are doing well in the market at the moment,” LeBlanc said.

The investment returns are going well across the board, whether handled in-house or by system money managers, LeBlanc said.

About 30 percent of the LASERS portfolio is handed in-house.

“It allows us to save money on fees that normally would be paid to money managers. We have the capability of handling some of those investments,” LeBlanc said.

Speakers Highlight Annual RSEA Conference

Former Governor Edwin W. Edwards was the keynote speaker at the fourth annual Retired State Employees’ Association (RSEA) conference in Baton Rouge on October 2. Edwards received two standing ovations from the crowd of nearly 200 retirees as he entertained them with jokes and extolled the value of state employees’ contributions as public servants. Many attendees lined up for autographs and photo opportunities at the end of Governor Edwards’ speech. 

LASERS Deputy Director Maris LeBlanc presented an update to RSEA members on the outcome of the 2012 Legislative Session and shared concerns over the newly passed Cash Balance Plan for new hires, which will become effective July 1, 2013. LeBlanc suggested that retirees visit the LASERS website to learn more about the newly released LASERS valuation report for the fiscal year ending June 30, 2012.

Other speakers included Rep. Sam Jones, Mayor-President Kip Holden, RSEA Executive Director Frank Jobert, and current RSEA President Benny Harris. The RSEA Conference concluded on October 3.

Former Louisiana Governor Edwin Edwards

RSEA President Benny Harris (Left) and Governor Edwards (Right)

LASERS Deputy Director Maris LeBlanc