Louisiana House Bill HB727

Louisiana 2013 Regular Session

• Introduced: 5/10/13
• Engrossed: 5/20/13
• Refer: 5/21/13

Caption

Provides relative to membership in the Teachers' Retirement System of Louisiana (EG DECREASE APV)

Impact

The bill has significant implications on state laws concerning public education and teacher retirement benefits. By limiting the eligibility of new hires in specific educational organizations, the TRSL will experience decreased future actuarial costs since fewer individuals will be contributing to the retirement system. The impact on the overall fiscal health of the TRSL is also noteworthy, as it significantly changes how future benefit liabilities are calculated, potentially leading to reduced benefits for future hires in these organizations.

Summary

House Bill 727 modifies the eligibility criteria for membership in the Teachers’ Retirement System of Louisiana (TRSL). The bill specifically focuses on allowing only certain employees of education-related organizations to become members of the TRSL, specifically including the president and staff of the Louisiana Federation of Teachers, the Louisiana Association of Educators, the Associated Professional Educators of Louisiana, and the Louisiana Resource Center for Educators, as long as they were hired prior to September 1, 2013. This change excludes any new hires from these organizations from joining the TRSL, thereby impacting their future retirement benefits.

Sentiment

The general sentiment around HB 727 appears to reflect a division in opinions. Supporters argue that the bill streamlines the membership of the TRSL and protects the sustainability of retirement benefits for existing members. Meanwhile, critics express concern about the exclusion of new educators and the potential reduction in support for educational associations. This divide highlights concerns regarding both the funding of education and the retention of quality educators under the state’s pension system.

Contention

Notable points of contention include the implications for educational quality and workforce stability. Opponents of the bill caution that excluding new hires from the TRSL could deter individuals from pursuing careers in education within the state, leading to potential staffing shortages. Moreover, there are fears that the bill could create disparities in retirement benefits among educators based on the date of their employment, raising ethical questions about fairness and equity within the education profession.