HLS 14RS-899 ORIGINAL
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Regular Session, 2014
HOUSE STUDY REQUEST NO. 2
BY REPRESENTATIVE PEARSON
RETIREMENT BENEFITS: Requests the House Committee on Retirement to study
pension buyouts for certain state retirement system members
A STUDY REQUEST1
To request the House Committee on Retirement to study the feasibility and advisability of2
offering optional lump-sum pension buyouts to certain state retirement system3
members and to report its findings to the House of Representatives prior to the4
convening of the 2015 Regular Session of the Legislature of Louisiana.5
WHEREAS, the Constitution of Louisiana holds the state responsible for payment6
of benefits to retirees and beneficiaries of state retirement systems; and7
WHEREAS, the benefits earned by state employees are primarily financed through8
three sources: employee contributions, employer contributions, and the interest that is earned9
on the investment of each system's assets; and10
WHEREAS, when market conditions inhibit the ability of retirement systems to11
achieve the interest rates needed to finance accrued benefits, the employer contributions paid12
by the state increase while the benefit obligation remains the same; and13
WHEREAS, the state may be able to reduce its ongoing defined benefit liability by14
offering an optional lump-sum pension buyout to certain members; and15
WHEREAS, the borrowing costs to finance such buyouts would be less than the16
interest rate on the unfunded accrued liability associated with such benefits; and17
WHEREAS, various options exist for financing such pension buyouts, and these18
opportunities should be thoroughly explored by the legislature as possible mechanisms for19
saving money and reducing the unfunded accrued liability associated with such benefits.20 HLS 14RS-899 ORIGINAL
HSR NO. 2
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THEREFORE, the House of Representatives of the Legislature of Louisiana requests1
the House Committee on Retirement to study the feasibility and advisability of offering2
optional lump-sum pension buyouts to certain state retirement system members and to report3
its findings to the House of Representatives prior to the convening of the 2015 Regular4
Session of the Legislature of Louisiana.5
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)]
Pearson HSR No. 2
Requests the House Committee on Retirement to study the feasibility and advisability of
offering optional lump-sum pension buyouts to certain state retirement system members and
to report its findings prior to the 2015 R.S.