Louisiana House Bill HB426

Louisiana 2011 Regular Session

• Introduced: 4/25/11
• Refer: 4/25/11
• Report Pass: 5/9/11
• Engrossed: 5/17/11
• Refer: 5/18/11

Caption

Provides relative to membership of the LASERS, TRSL, and LSERS boards of trustees (RE NO IMPACT APV)

Impact

If enacted, HB 426 would streamline the governance of the state retirement systems by clarifying the roles and appointment processes of board members. The modifications to the composition of the boards aim to make the governance of these retirement systems more efficient, possibly improving decision-making processes and representation. The ability for ex officio members to appoint designees could enhance flexibility in board operations, allowing for a more diverse set of perspectives within board discussions.

Summary

House Bill 426 addresses the membership composition of four state retirement systems in Louisiana, namely the La. State Employees' Retirement System (LASERS), Teachers' Retirement System of La. (TRSL), La. School Employees' Retirement System (LSERS), and the State Police Pension and Retirement System (STPOL). It proposes adding the Commissioner of Administration or their designee to the boards of LASERS, TRSL, and LSERS while simultaneously making technical modifications to the definitions of ex officio members to allow all such members to appoint designees to serve on the boards. Moreover, the bill removes the chairman of the Appropriations Committee from the LSERS board and replaces this position with the chairman of the House Committee on Retirement.

Sentiment

The sentiment surrounding HB 426 appears to be generally supportive among legislators who view the changes as practical improvements aimed at enhancing the governance of critical state retirement systems. However, there may also be concerns regarding the transparency and accountability of the processes, as appointing designees can lead to less direct accountability compared to directly elected members. The overall feeling towards the bill seems to lean towards a positive reception for its objectives, balanced by cautious consideration of procedural implications.

Contention

A point of contention within the discussion of HB 426 is the removal of the chairman of the Appropriations Committee from the LSERS board. Some stakeholders may worry that this change could diminish the financial oversight that is essential for ensuring the long-term sustainability of the retirement system. This removal could evoke debates on whether the proposed governance structure adequately checks financial decisions made within these systems, which are critical for public service employees' future retirement benefits.