Louisiana House Bill HB662

Louisiana 2010 Regular Session

• Introduced: 3/29/10
• Refer: 3/29/10

Caption

Relative to the La. School Employees' Retirement System, allows for a reverse transfer of service credit from the Teachers' Retirement System of La.

Impact

The implementation of HB 662 is expected to have a significant effect on the personnel management within Louisiana's educational framework. By allowing reverse transfers, the bill could enhance the appeal of LSERS for current employees who might consider switching back after transitioning to other public employment. Furthermore, the financial implications include potential adjustments in employer contribution levels to fund any costs associated with these service credit upgrades.

Summary

House Bill 662 allows for members of the Louisiana School Employees' Retirement System (LSERS) who previously transferred to other state systems (like the Teachers' Retirement System of Louisiana or the Louisiana State Employees' Retirement System) to reverse that transfer and rejoin LSERS. This bill includes provisions for members to regain their membership status and continue earning benefits under LSERS. The proposed law aims to provide more flexibility for those members who may want to return to LSERS after having moved to other retirement systems.

Sentiment

General sentiment around the bill appears to be supportive, particularly among educators and members of the LSERS community who value the greater choice and flexibility this legislation provides. Proponents argue that it assists in retaining qualified professionals within the educational system, promoting a more stable workforce. However, there may be concerns from those interested in how this reversal affects the financial stability of the retirement systems, as it requires thorough funding measures to ensure sustainability.

Contention

The notable point of contention is primarily centered on the fiscal responsibilities that the state must undertake to adequately fund the potential increases in service credit upgrades and the reverse transfers. Opponents might argue that this creates an additional financial burden on the state’s retirement systems. Ensuring that the costs associated with these transfers do not lead to an imbalance in retirement funding is critical for the success and acceptance of HB 662.