Louisiana Senate Bill SB9

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: 6/4/12
• Chaptered: 6/11/12
• Passed: 6/11/12

Caption

Provides relative to employee contributions. (7/1/12) (EN DECREASE FC LF EX)

Impact

The implementation of SB9 could have significant implications on both employees and the retirement system. By allowing variation in employee contributions, the bill seeks to balance the system's funding needs against the financial capabilities of municipal employees. The decision-making power given to the board can help adapt to economic changes, though it also raises questions regarding the predictability of retirement contributions for employees, which could affect their financial planning.

Summary

Senate Bill 9 focuses on modifying the employee contribution rates for the Municipal Employees' Retirement System in Louisiana. The bill delineates specific ranges for employee contributions, allowing the board of trustees to set those rates each fiscal year. Specifically, Plan A contributions are established between 9.25% and 10%, while Plan B contributions are set between 5% and 6%. This adjustment aims to provide flexibility based on the financial needs of the retirement system, ensuring its sustainability while also considering the earnings of municipal employees.

Sentiment

The sentiment surrounding SB9 appears to be largely supportive, particularly among lawmakers focused on the sustainability of retirement systems. Proponents argue that the flexibility in setting contribution rates is critical for maintaining the long-term viability of the pension system. However, there may also be concerns from employees about fluctuations in required contributions, which could lead to apprehension about future retirement benefits.

Contention

While there is general support for SB9 due to its potential benefits for the Municipal Employees' Retirement System, not all stakeholders may be entirely satisfied. Questions may arise regarding the regulatory oversight of the board's determination of contribution rates and whether employees will adequately be informed about changes. Opposition could stem from employees who fear that adjustments to contributions may not be in their best long-term interest, potentially leading to a gap in expected retirement benefits.