Louisiana House Bill HB42

Louisiana 2014 Regular Session

• Introduced: 3/10/14
• Refer: 3/10/14
• Report Pass: 3/24/14
• Engrossed: 4/2/14
• Refer: 4/3/14
• Report Pass: 4/28/14
• Refer: 4/29/14
• Enrolled: 5/12/14
• Chaptered: 5/16/14
• Passed: 5/16/14

Caption

Provides for application of remaining funds in the La. School Employees' Retirement System's experience account, after payment of a permanent benefit increase to eligible retirees and beneficiaries, to specified debt of the system (EN DECREASE APV)

Impact

The provisions of HB 42 signify a considerable shift in the treatment of unused funds within the LSERS experience account. By allowing these remaining funds to be credited to an amortization conversion account, the bill sets a precedent for how similar funds may be managed in the future. The effective implementation of this act is contingent upon the passage of a related Senate Bill (SB14) from the same legislative session, demonstrating the interconnected nature of these legislative measures in addressing public retirement system liabilities.

Summary

House Bill 42, introduced by Representative Pearson, addresses the liabilities of the Louisiana School Employees' Retirement System (LSERS) by amending existing regulations around employer contributions and the management of experience accounts. The bill emphasizes the establishment of accounts for the payment of such liabilities, allowing for contributions to be applied toward these debts. This legislative change is designed to enhance the fiscal management of retirement benefits for school employees in Louisiana.

Sentiment

The sentiment surrounding HB 42 appears to be generally positive among proponents who view it as a necessary adjustment to effectively address the LSERS's fiscal responsibilities. The bill's supporters advocate for its potential to provide a more stable financial footing for the system, which is critical for ensuring the continued disbursement of benefits to eligible retirees and their beneficiaries.

Contention

Notable points of contention may arise around how the management of retirement funds is orchestrated, particularly with regard to the permanent benefit increases for retirees that the legislation aims to facilitate. Critics might express concerns about the long-term impacts on the sustainability of the LSERS, particularly if the financial assumptions used for amortization periods and contributions do not materialize as projected. Additionally, the dependence on related legislative measures for the bill's effectiveness may lead to debates around the adequacy of these policy linkages in securing the necessary funding.