Louisiana Senate Bill SB1

Louisiana 2012 Regular Session

• Introduced: 3/12/12
• Refer: 3/12/12
• Report Pass: 4/30/12
• Refer: 5/2/12

Caption

Provides for a one-time lump-sum supplement for certain retirees. (2/3 - CA 10s29)(F)) (6/30/12) (EG +$2.1 MILLION APV)

Impact

The bill specifically targets retirees who are at least 75 years old, have at least 30 years of service credit, have been retired for a minimum of 20 years, and who haven't participated in certain retirement options. It aims to provide financial relief to long-serving educators, acknowledging their contributions and the challenges of living on a fixed income after retirement. The legislation is expected to enhance the financial stability of eligible retirees and their beneficiaries while promoting transparency in the allocation of retirement funds.

Summary

Senate Bill 1 (SB1) establishes a one-time lump-sum supplemental benefit for certain retirees from the Teachers' Retirement System of Louisiana. This bill allows for a supplementary benefit that is either $300 or 2% of the normal annual benefit, whichever is greater. This lump-sum payment is funded from the experience account and is to be issued in the first year where the account balance sufficiently supports such funding. The enactment of the bill eliminates the need for further legislative action to authorize the payment, thus streamlining the process for delivery to the eligible parties.

Sentiment

The sentiment surrounding SB1 appears to be generally positive among the legislative supporters who argue that it is a fair compensation for long-serving retirees. However, some concerns have been raised about the sustainability of such benefits as they rely on the experience account's balance. Supporters advocate for further benefits in the future, while skeptics express cautious optimism about the fiscal health of the retirement system and the implications for future funding.

Contention

There’s an underlying contention regarding the funding sources for the supplemental benefits and the long-term impacts on the retirement system's financial stability. While it aims to benefit a specific group of retirees, opponents may argue that additional long-term funding challenges could arise from this and similar measures. Stakeholders are encouraged to consider the implications of new benefit structures on the overall health of the retirement system and its ability to meet both current and future obligations.