House Retirement Committee to Meet

The House Retirement Committee is scheduled to meet Thursday, May 5, 2016 at 9:00 a.m. There are currently five bills on the agenda, sponsored by Rep. Ivey, which would impact LASERS if passed.

• HB 48, would add five members to the LASERS Board of Trustees.  The members and their immediate families shall not be active or retired members of the System.  Two members shall be appointed by Speaker of the House, two by the President of the Senate and one by the Legislative Auditor. The only qualification for the new members is that they shall have filed state income tax returns for the previous five consecutive years.
  
  The LASERS Board opposes this bill since it would interfere with the composition of the Board without corresponding benefit. In addition to active and retired LASERS members, there are currently four ex-officio members of the Board; the Chairs of the Senate and House Retirement Committees, the State Treasurer, and the Commissioner of Administration. Additionally, all members of the Board are tasked with fiduciary duty that requires them to act solely in the best interest of the members.

• HB 52 would add four members to the Public Retirement Systems Actuarial Committee (PRSAC) - the Chairman of the House Committee on Retirement, or his designee; and an additional member appointed by that Chairman; and the Chairman of the Senate Committee on Retirement, or his designee; and an additional member appointed by that Chairman.
  
  The LASERS Board opposes this bill because it would change the nature of PRSAC from an actuarial committee to a policy committee.

• HB 62 would set a minimum employer contribution rate of 20 percent if the System is less than 100 percent funded or if the System reaches 100 percent funded status and the funded ratio later drops below 90 percent, and creates a funding deposit account. The LASERS Board is neutral on this bill.

• HB 917 would remove the authority of the Board of Trustees to invest system assets, establish asset allocations, and set actuarial assumed rates of return. It would create the Consolidated State Investment Committee to make investment decisions for all state retirement systems. The LASERS Board is opposed to this bill due to constitutional reasons.

• HB 1092 would require state retirement systems to use a uniform inflation assumption adopted by PRSAC in their annual actuarial valuations. The LASERS Board is opposed to this bill due to constitutional reasons.

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