Louisiana House Bill HB570

Louisiana 2011 Regular Session

• Introduced: 4/25/11
• Refer: 4/25/11

Caption

Relative to the Harbor Police Retirement System for the port of New Orleans, makes comprehensive changes to the provisions of such system

Impact

The changes proposed by HB 570 will significantly impact the retirement protocols for members of the Harbor Police Department, altering how benefits are accrued, disbursed, and managed. The introduction of a self-directed Deferred Retirement Option Plan (DROP) provides members with greater control over their retirement income and planning. However, since the adjustments are prospective, existing retirees will not benefit from these new provisions, which could raise concerns about equity among current and former members of the retirement system.

Summary

House Bill 570 amends and reenacts various provisions related to the Harbor Police Retirement System for the Port of New Orleans. The bill includes comprehensive changes regarding transfers of service, contributions, service credit, membership, and the governance structure of the retirement system. It enhances the flexibility for members, allowing for better management of benefits and clearer reporting requirements for the board of trustees overseeing this retirement system. It also addresses disability benefits and the administration of the system's unfunded liabilities, aiming to create a more streamlined and effective retirement program for Harbor Police employees.

Sentiment

Sentiment surrounding HB 570 is generally positive from the perspective of current members, who appreciate the recognition of their service and the enhancements in benefit management. Supporters argue that the amendments will attract new recruits to the Harbor Police Department by demonstrating commitment to an effective retirement package. Conversely, there is a concern from some stakeholders regarding how these changes may unfavorably impact fiscal planning and the overall sustainability of the retirement fund in the long term.

Contention

One notable point of contention is the balancing act between ensuring adequate funding for current retirees while also offering enhanced benefits and flexibility to new and existing members of the Harbor Police system. Questions have been raised about the effectiveness of the funding strategies, particularly concerning the potential unfunded liabilities that might arise from expanded benefit offerings. The bill’s provisions to prevent retroactive benefits also mean that those who are currently retired see no immediate advantage, which has led to debates about fairness and the definition of earned benefits.