Louisiana House Bill HB749

Louisiana 2010 Regular Session

• Introduced: 3/29/10
• Refer: 3/29/10
• Report Pass: 4/22/10
• Engrossed: 5/10/10
• Refer: 5/11/10
• Report Pass: 5/17/10
• Enrolled: 6/9/10
• Chaptered: 6/17/10
• Passed: 6/17/10

Caption

Relative to the Clerks' of Court Retirement and Relief Fund, changes the definition of average final compensation for calculation of benefits of active members (EN -$25,000,000 APV)

Impact

If enacted, HB 749 will change the way retirement benefits are calculated, leading to potential changes in the financial planning of members within the Clerks' of Court system. This amendment could require adjustments in the expected benefits that retiring clerks receive, especially for those whose employment qualifies them for membership in the system founded before or after specific cutoff dates. Overall, the bill seeks to align benefits with a more transparent and structured methodology, which may help in equitable distribution as per service contributions.

Summary

House Bill 749 focuses on the Clerks' of Court Retirement and Relief Fund, specifically modifying the definitions associated with average final compensation for active members. The bill aims to provide clarity in the calculation of benefits that members receive upon retirement, particularly those who have participated in the Deferred Retirement Option Plan. Changes include the establishment of new calculation methods based on varying periods of service and salary averaging, ensuring members retiring post-implementation receive equitable benefits based on their service.

Sentiment

The general sentiment regarding HB 749 appears to be supportive among legislators who view the amendments as necessary for modernizing the retirement system for clerks. Stakeholders and advocates within the Clerks’ of Court system believe that the changes will yield fairer benefits distribution. However, there may be some contention as it relates to transitional provisions that could impact calculations differently for various member groups, leading to potential concerns among those nearing retirement.

Contention

One notable point of contention involves the transitional provisions set forth in the bill, which delineate different calculations based on when an employee first joined the retirement system. This differentiation has raised discussions about fairness and adequate notice for those affected by these changes. Critics may argue that the adjustments presented could lead to disparities in benefits for members of the workforce depending on their retirement timing relative to the effective date of this bill.