Louisiana Senate Bill SB14

Louisiana 2012 Regular Session

• Introduced: 3/12/12
• Refer: 3/12/12
• Report Pass: 4/30/12
• Engrossed: 5/3/12
• Refer: 5/7/12
• Report Pass: 5/21/12
• Enrolled: 6/1/12
• Chaptered: 6/5/12
• Passed: 6/5/12

Caption

Provides relative to the calculation of benefits. (7/1/12) (EN NO IMPACT APV)

Impact

The bill's amendments are set to impact the financial provisions for state employees significantly, particularly those who have been actively contributing since before July 1, 1999, as well as new members joining the system thereafter. This update aims to create clearer guidelines for calculating retirement allowances and could enhance the financial sustainability of the retirement system. By ensuring that employees receive benefits proportional to their service and contributions, the legislation seeks to maintain the attractiveness of public service roles amidst challenges related to pension funding.

Summary

Senate Bill 14 focuses on the calculation of retirement benefits for employees under the Registrars of Voters Employees' Retirement System in Louisiana. This legislation amends provisions regarding how the annual retirement allowance is determined, particularly for members who retire before or after specific dates. It outlines the method for calculating annuities based on a member's accumulated contributions and average final compensation, which is crucial for ensuring financial stability in retirement for these public employees.

Sentiment

The sentiment towards SB 14 appears supportive, as it is likely seen as a necessary reform to align retirement benefits more closely with modern expectations and fiscal realities. Supporters could view the changes as a way to protect the interests of retired employees and those nearing retirement. However, there may also be concerns regarding the long-term viability of the pension system due to financial pressures, leading to some hesitancy about the potential need for further reforms in the future.

Contention

While the general support for SB 14 as a necessary update to the retirement calculations exists, some contention may arise regarding the adequacy of the provisions for disability benefits outlined in the bill. The calculations for disability retirement seem to limit benefits to a certain percentage of the member's earnable compensation, which could be viewed as insufficient by advocates for state employees. Hence, while legislation may enhance the framework for regular retirement benefits, the exact implications for disability benefits warrant further review and discussion.