Louisiana House Bill HB38

Louisiana 2012 Regular Session

• Introduced: 3/12/12
• Refer: 3/12/12
• Report Pass: 4/23/12
• Engrossed: 5/2/12
• Refer: 5/3/12
• Report Pass: 5/21/12
• Enrolled: 5/24/12
• Vetoed: 6/4/12
• Vetoed: 6/8/12

Caption

Provides relative to certain rehired retirees (EN DECREASE APV)

Impact

The bill contains provisions that relieve certain retirees from the requirement to refund erroneously received retirement benefits if they were reemployed after having received such benefits. This specifically applies to retirees of the Municipal Employees' Retirement System who have also contributed to the Louisiana State Employees' Retirement System and who retired under a reciprocal retirement agreement before the bill's enactment. This change indicates an effort to prevent undue financial burdens on employees who may not have been aware of their benefits status during employment.

Summary

House Bill 38 addresses the payment of retirement benefits for public employees in Louisiana. The bill mandates that if a retired member covered by Louisiana's public retirement systems returns to active service, the system employing that retiree must notify the respective retirement systems about the reemployment status. This provision is aimed at ensuring that retirement benefits are appropriately managed and terminated when a retired individual returns to work within the state, municipal, or parochial systems.

Sentiment

Overall, the sentiment surrounding HB 38 appears to be supportive, particularly among legislators who believe that the measure will help streamline retirement benefit processes and protect both employees and retirement systems from potential errors. The bipartisan support demonstrated during the bill's passage suggests that there is a general consensus on the importance of clear communication between different retirement systems and employers regarding the employment status of retirees.

Contention

Despite its broad support, there may be concerns among some stakeholders regarding the implications of allowing retirees to avoid paying back benefits that were erroneously issued. The provision that safeguards retirees from refunding such amounts could raise questions about the fiduciary responsibilities of retirement systems and the potential for systemic issues related to improper benefit disbursement. However, the bill assures that the application of these provisions will not be considered a violation of fiduciary duty, addressing some of the potential concerns.