Louisiana House Bill HB481

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
• Report Pass: 6/6/11
• Enrolled: 6/20/11
• Chaptered: 6/29/11
• Passed: 6/29/11

Caption

Relative to the La. Assessors' Retirement Fund, provides for compliance with applicable federal tax qualification requirements (EN NO IMPACT APV)

Impact

The bill modifies how member compensation and benefits are computed, particularly relating to limits on benefits that can be received based on federal guidelines. For instance, the annual benefit a member can receive is capped at $165,000, which can be subject to adjustments based on cost of living and other factors. The changes are expected to protect the fund from potential taxation issues that could arise from non-compliance with federal regulations, thereby ensuring continued security for its beneficiaries.

Summary

House Bill 481 aims to amend and reenact several provisions concerning the Louisiana Assessors' Retirement Fund, ensuring that the fund remains compliant with applicable federal tax qualification requirements. This initiative addresses the need for updates to definitions of compensation and benefit calculations under the retirement system, reflecting changes necessitated by federal law. Central to the bill is the emphasis on maintaining alignment with the Internal Revenue Code to protect the fund's status and to continue providing benefits to its members.

Sentiment

The sentiment around HB 481 appears to be largely favorable, as the bill addresses necessary compliance and clarity within the retirement system. Legislators generally support the initiative for maintaining the retirement system's viability, although there is an underlying concern among some members about the implications of restrictions on benefits. The legislative discussions underscore a commitment to ensuring that Louisiana’s retirement systems adhere to federal standards while attempting to safeguard member interests.

Contention

While the bill has garnered broad support, some points of contention focus on the limits imposed on benefits and the implications for members nearing retirement. There is concern that strict adherence to federal guidelines may lead to a reduction in retirement benefits for some individuals, particularly those whose earnings exceed the stipulated caps. Furthermore, as the board has the authority to define 'compensation' further for compliance purposes, there are calls for transparency about how these definitions might change and what that could mean for future retirees.