Provides that a minimum of 10% of nonrecurring revenue be applied toward reducing the balance of the unfunded accrued liability of the state retirement systems (EN SEE FISC NOTE SD RV See Note)
Impact
The law expects to create a more sustainable framework for managing the state's financial obligations to public employees after retirement. By mandating the allocation of nonrecurring revenues to the unfunded accrued liability, the state aims to mitigate longstanding financial pressures on its retirement systems. This could result in improved pension security for public sector employees in Louisiana, potentially leading to higher confidence among those planning for retirement.
Summary
House Bill 435 aims to amend the spending regulations related to nonrecurring revenue in Louisiana. Specifically, it dictates that a minimum of 10% of this revenue should be allocated to reducing the unfunded accrued liabilities of state retirement systems, which could enhance the long-term financial health of these systems. The bill reflects a strategic decision to prioritize fiscal responsibility by ensuring that certain funds are applied towards eliminating deficits in public pension obligations rather than funding immediate cost-of-living adjustments for retirees.
Sentiment
While the sentiment around HB 435 appears generally positive, particularly among fiscal conservatives who advocate for stronger financial management of state resources, there are concerns among some stakeholders about the implications of restricted funding use. Critics fear that prioritizing debt repayment over direct benefits to retirees could lead to dissatisfaction and unrest among public employees and retirees who rely on these benefits for their standard of living.
Contention
Notably, contention around the bill arises mainly due to the provision that prevents the use of these appropriations for cost-of-living increases. This aspect has raised alarms among advocates for retired public sector employees who argue that without regular adjustments to their benefits, they may struggle with inflation and rising living costs. As a result, the law aims to balance immediate needs against long-term fiscal sustainability, a trade-off that not all legislators and constituents agree on.
(Constitutional Amendment) Provides for a minimum of 10% of nonrecurring revenue be applied toward reducing the balance of the unfunded accrued liability of the state retirement systems (EN SEE FISC NOTE SD RV See Note)
(Constitutional Amendment) Requires that a portion of nonrecurring revenue be applied toward reducing the balance of the unfunded accrued liability of certain state retirement systems
(Constitutional Amendment) Requires the legislature to appropriate no less than twenty-five percent of nonrecurring state revenues for application to certain state retirement system unfunded accrued liability (EN SEE FISC NOTE GF EX See Note)
(Constitutional Amendment) To require the legislature to appropriate no less than fifty percent of nonrecurring state revenues for application to certain state retirement system unfunded accrued liability (RR SEE FISC NOTE GF EX See Note)
Dedicates certain revenue to fund the unfunded accrued liabilities of and post-retirement benefit increases for the four state systems. (6/30/14) (OR SEE FISC NOTE SD RV)
(Constitutional Amendment) Provides relative to the application of state monies to the unfunded accrued liability of the Teachers' Retirement System of La. (EN DECREASE SD RV See Note)
Requires allocation of certain amounts of minimum foundation program formula funds to the unfunded accrued liability of the Teachers' Retirement System. (gov sig) (OR SEE FISC NOTE GF EX)
Requires application of minimum foundation program formula funds to the unfunded accrued liability of the Teachers' Retirement System of Louisiana (OR -$756,394,593 FC LF EX)
Requires application of certain amounts of minimum foundation program formula funds to the unfunded accrued liability of the Teachers' Retirement System of Louisiana
Requests that the Bd. of Regents and the State Bd. of Elementary and Secondary Education, with the Taylor Foundation, La. Office of Student Financial Assistance, public postsecondary education management boards, and certain others, study certain issues relative to TOPS
Requests the Louisiana Workforce Commission and the Louisiana Department of Veterans Affairs to study employment practices and professional licensing requirements to benefit veterans in the workforce
Creates a task force to study meaningful oversight of the professional healthcare licensing boards statutorily created within the Department of Health and Hospitals.