Authorizes a cost-of-living adjustment for certain retirees of the La. School Employees' Retirement System and their beneficiaries (EN +$12,000,000 APV)
Impact
The passage of HB 46 is expected to impose a financial impact of approximately $12 million annually on the state's budget, as it will increase the benefits of retirees eligible under the stipulated criteria. The funding for the cost-of-living adjustment will originate from the Louisiana School Employees' Retirement System Employee Experience Account, ensuring that the program is financially viable and complies with existing constitutional requirements. The adjustment is capped at a maximum of 3.75% of the recipient's current benefit amount, which adds a layer of financial prudence to the legislative proposal.
Summary
House Bill 46 aims to provide a one-time cost-of-living adjustment (COLA) for certain retirees and their beneficiaries within the Louisiana School Employees' Retirement System. This adjustment is designed to enhance the financial well-being of retirees who have been receiving benefits for a significant amount of time. Specifically, the bill applies to those who retired before July 1, 2001, or entered the Deferred Retirement Option Plan before July 1, 2001, and retired before July 1, 2012, thereby targeting long-serving members of the educational workforce in Louisiana.
Sentiment
The sentiment surrounding HB 46 appears to be overwhelmingly positive, particularly among the educational community and lawmakers advocating for the welfare of retired school employees. During legislative discussions, it was remarked that the adjustment is a necessary step towards recognizing the challenges faced by retirees, especially in light of inflation and rising living costs. The unanimous vote of 97 in favor during the House vote indicates strong bipartisan support for the bill, reflecting a shared commitment to honor the contributions of educators after their retirement.
Contention
Despite the largely supportive sentiment, there are considerations around long-term funding sustainability for such cost-of-living adjustments. Critics may raise concerns regarding the fiscal impacts on the state's budget, particularly in tough economic times where funding for various state programs might be limited. The need for actuaries from both the retirement system and the legislative auditor to agree on funding determinations also highlights the bill's focus on maintaining fiscal accountability, balancing the need for retiree support with prudent financial oversight.
Provides for payment of cost-of-living adjustments (COLAs) to retirees and beneficiaries of state retirement systems without legislative approval in certain circumstances (OR INCREASE APV)
Authorizes payment of a benefit increase, funded by state retirement system experience accounts, to certain retirees and beneficiaries of such systems (EN INCREASE APV)
Provides a supplemental benefit increase to certain qualifying retirees and beneficiaries of the La. School Employees' Retirement System (OR +$30,667,812 APV)
Provides a permanent benefit increase paid from the experience account to certain retired members and beneficiaries of the La. School Employees' Retirement System (OR +15,862,663 APV)
Provides a minimum benefit increase for certain retirees, beneficiaries, and survivors of the Teachers' Retirement System of Louisiana, Louisiana State Employees' Retirement System, Louisiana School Employees' Retirement System, and State Police Retirement System. (6/30/21) (2/3 CA10s29(F)) (EN INCREASE APV)