Louisiana Senate Bill SB672

Louisiana 2012 Regular Session

• Introduced: 4/2/12
• Refer: 4/3/12

Caption

Provides for employer share of retiree insurance premiums. (7/1/12) (OR INCREASE LF EX See Note)

Impact

This bill is expected to have a significant impact on retirement laws within the state, particularly concerning the financial obligations of the state towards its long-term employees in educational roles. By establishing a clear premium contribution structure, SB672 seeks to affirm the state's commitment to supporting its teachers, thus enhancing their financial security in retirement. This change aligns with efforts to attract and retain quality educators by ensuring that their post-employment benefits are sustainable and supportive.

Summary

Senate Bill 672 aims to amend existing laws regarding the employer share of insurance premiums for retirees, specifically targeting former elementary and secondary school teachers. The bill proposes that any teacher who has served for 23 years, with at least the last 19 years spent at the same school, will receive a state contribution of 75% towards their insurance premiums upon retirement. This amendment is intended to provide better support for long-serving educators as they transition into retirement and seek to manage health care costs.

Sentiment

The sentiment towards SB672 among stakeholders appears generally positive, especially among educators and those advocating for teacher benefits. Supporters argue that this bill recognizes the dedication of teachers and ensures they are not left to shoulder the burden of health insurance costs alone during retirement. Despite this, some concern may exist regarding the fiscal implications of this increased employer contribution and how it might affect the state budget in the long term.

Contention

While there is overarching support for the intentions of SB672, potential points of contention may arise from discussions about the funding mechanisms for the enhanced employer contribution. Some legislators might question whether the state can sustainably manage this financial commitment, given the existing pressures on the budget. The bill could also reportedly face opposition from groups advocating for broader reforms in public employee benefits, which may argue that targeted improvements like this should be part of a larger overhaul of the state's pension and insurance frameworks.