DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of
the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of
the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Jones HB No. 30
Abstract: Provides a permanent benefit increase of 1.5%, funded by the La. State Employees'
Retirement System (LASERS) experience account, to eligible retirees and beneficiaries of
LASERS.
Present law provides that the board of trustees of LASERS may recommend to the president of
the Senate and the speaker of the House of Representatives that the system be permitted to grant
a permanent benefit increase, sometimes called a cost-of-living adjustment or COLA, to retirees
and beneficiaries whenever the balance in the LASERS experience account is sufficient to fund
such benefit.
Present law provides the board of trustees shall not grant a permanent benefit increase unless
such increase has been approved by the legislature by concurrent resolution adopted by the
favorable vote of a majority of the elected members of each house.
Notwithstanding present statutory law providing for legislative approval by resolution, present
constitution provides that benefits from public retirement systems may only be altered by
legislative enactment. Present constitution further requires a 2/3 vote of the legislature to pass
any such change in benefits that has an actuarial cost.
Present law limits the amount of the increase to the lesser of 3% or the increase in a specified
consumer price index for the previous calendar year; for 2013 that increase was 1.5%.
Proposed law grants a permanent benefit increase of 1.5% to all qualified retirees and
beneficiaries of LASERS.
Pursuant to present constitution (Art. X, ยง29(F)), proposed law further provides that the cost of
such increase shall be paid by funds from the system's experience account.
Effective June 30, 2014.