Grants a permanent benefit increase to eligible retirees in accordance with statutory procedure. (2/3 - CA10s29(F)) (6/30/14) (EN +$15,862,663 APV)
Impact
If enacted, SB 19 would have a direct impact on the financial well-being of retired school employees in Louisiana by enhancing their pension benefits. The bill's provisions indicate that eligible retirees who have been retired for at least one year and who have reached the age of sixty would benefit from this increase. Thus, the legislative intent behind this bill aligns with broader objectives of ensuring financial security for retired educators and their beneficiaries, reflecting a commitment to the public sector workforce.
Summary
Senate Bill 19 focuses on providing a permanent increase in retirement benefits for eligible retirees of the Louisiana School Employees' Retirement System (LSERS). The bill specifies conditions under which these increases are to be granted, stipulating eligibility criteria based on duration of retirement and age, as well as the necessary actuarial funding derived from the system's experience account. This account accumulates funds generated by investment gains to finance these permanent post-retirement benefit increases.
Sentiment
The general sentiment surrounding SB 19 appears to be supportive, particularly among lawmakers and stakeholders advocating for the well-being of retirees. A consensus has emerged that recognizes the importance of providing adequate benefits to individuals who have dedicated their careers to education. However, there might be underlying concerns regarding the sustainability of the pension system and its ability to consistently provide such increases without jeopardizing its long-term viability.
Contention
One potential point of contention is the reliance on the experience account to fund these increases. Questions may arise regarding the actuarial assumptions used to ensure that the benefits do not exceed the financial capabilities of the retirement system, especially in fluctuating economic conditions. Additionally, if other related bills, as mentioned within SB 19, fail to pass, this could lead to uncertainties regarding the implementation of the benefit increase stipulated by SB 19.
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 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)
A resolution to direct the Clerk of the House of Representatives to only present to the Governor enrolled House bills finally passed by both houses of the One Hundred Third Legislature.