Louisiana Senate Bill SB29

Louisiana 2014 Regular Session

• Introduced: 3/10/14
• Refer: 3/10/14

Caption

Allows retired educational diagnosticians and reading specialists to avoid benefit suspension during reemployment. (2/3 - CA10s29(F)) (6/30/14) (OR +$312,500 APV)

Impact

The proposed legislation expands the list of educators eligible for less restrictive suspension of benefit rules, potentially leading to an increase in early retirements among TRSL members who are motivated to retire earlier due to the ability to supplement their income through reemployment. While this measure supports retirees' financial needs, it introduces actuarial costs that were previously mitigated under prior law aimed at retaining educators in the workforce.

Summary

Senate Bill 29 (SB29) facilitates a more flexible retirement structure for members of the Teachers’ Retirement System of Louisiana (TRSL) by allowing retired educational diagnosticians and reading specialists to return to work without facing the suspension of their pension benefits. This change aims to ease the financial pressure on educators considering retirement and encourages professional staff to re-engage in the educational environment while still benefiting from their retirement. Previously, retirees had significant restrictions on dual income, primarily through the 'Two Check Rule', which limited their ability to work while receiving pensions.

Sentiment

The overall sentiment regarding SB29 appears to be positive among educators and advocates who support the return of experienced professionals into the classroom. Many believe that adding educational diagnosticians and reading specialists to the list of eligible roles fosters a more robust educational environment. However, concerns exist about the potential negative financial implications for the TRSL system arising from possible increased strain on pension payouts due to earlier retirements.

Contention

While the bill seeks to benefit both educators and the educational system, the contention arises around its financial implications. Critics point out that allowing retirees to draw benefits without job restrictions may lead to increased costs for the TRSL system, particularly if a significant number decide to retire earlier than planned. There is also uncertainty regarding the actual number of members who may choose this path, raising questions about the sustainability of pension funds under these changes.