Louisiana Senate Bill SR155

Louisiana 2010 Regular Session

• Introduced: 6/17/10
• Passed: 6/18/10

Caption

Relative to La. public retirement systems, urges and requests the Senate Committee on Retirement and on Senate Committee Judiciary A to study the issues related to redesignating beneficiaries by retirees of such systems.

Impact

If successful, the findings of the joint committee will have potential implications for amending existing laws surrounding retirement benefits, especially in the context of community property principles in Louisiana. The resolution seeks to address frequent legislative instances where retirees are unable to provide for their current spouses due to previously designated beneficiaries from earlier marriages. The joint committee's recommendations could lead to legislative changes that allow retirees greater flexibility in designating beneficiaries to better reflect their current marital status, thereby directly impacting the financial rights of surviving spouses.

Summary

Senate Resolution No. 155 (SR155) calls for a joint study by the Senate Committee on Retirement and the Senate Committee on Judiciary A regarding spousal survivorship benefits within Louisiana's public retirement systems. This resolution emerges from concerns that retirees often cannot change their designated beneficiaries due to various marital changes over time, leading to significant inequities in financial security posthumously for current spouses versus former ones. SR155 emphasizes the need for equitable apportioning of retirement benefits based on the principles of fairness and community property rights.

Sentiment

The sentiment surrounding SR155 appears to be supportive of fairness and equitable treatment in retirement benefits among stakeholders. Legislators recognize the inadequacies within the current system which often favor prior spouses over those with whom the retiree may have a more recent and committed relationship. This acknowledgment suggests a general consensus that reform is not only necessary but overdue, reflecting a desire to protect families and ensure that benefits go to the intended recipients.

Contention

Despite the resolution's intent to facilitate fair treatment in the distribution of retirement benefits, it may encounter opposition from those who argue that such changes could undermine the contractual nature of retirement benefit designations. Critics might assert that altering beneficiary provisions could lead to complexities or disputes in legal interpretations of retirement contracts. Additionally, concerns may arise about how changes to these provisions would impact the overall stability of public retirement systems.