Louisiana House Bill HB29

Louisiana 2012 Regular Session

• Introduced: 3/12/12
• Refer: 3/12/12
• Report Pass: 4/2/12

Caption

Provides relative to the payment of disability benefits for members of the Municipal Police Employees' Retirement System (EG DECREASE APV)

Impact

The introduction of HB 29 is poised to affect how disability payments are calculated for members of MPERS, particularly those who become disabled after the bill's effective date of July 1, 2012. By implementing a formula where various benefits are weighed against one another, the bill promotes a fairer allocation of resources within the retirement system. Furthermore, it stipulates that the reductions in benefits will be shared between MPERS and the Louisiana Workforce Commission (LWC) in proportion to their respective obligations, thereby reinforcing financial accountability within the system.

Summary

House Bill 29 aims to amend existing regulations regarding disability benefits provided to members of the Municipal Police Employees' Retirement System (MPERS). Specifically, the bill enables the reduction of disability benefits under certain circumstances, particularly when the total of disability and workers' compensation benefits exceeds the retiree's average final compensation. This legislative measure seeks to ensure that the combined benefits for affected retirees do not surpass their average earnings prior to retirement, thereby establishing a balance and preventing excessive payouts that may burden the retirement system.

Sentiment

General sentiment regarding HB 29 has been focused on its necessity for sustaining the viability of the retirement system and protecting its integrity. Supporters argue that by capping total benefits, the bill prioritizes fiscal responsibility and ensures that resources are appropriately managed for the long-term benefit of all retirees. However, there are concerns raised by critics who argue that reductions in disability benefits could undermine the financial security of retirees who might already be facing significant challenges due to their disabilities.

Contention

Notably, one point of contention surrounding HB 29 relates to the balancing of benefits. The bill states that disability benefits will not be reduced when retirees are also receiving social security disability benefits, which has been a contested topic. This provision raises questions about fairness and potential discrepancies in how disability benefits are administered, particularly for those who might rely heavily on these payments for their livelihood. Critics assert that while the intent is to promote equality in payouts, the implementation may inadvertently disadvantage other groups of retirees.