Requests the Senate Committee on Retirement to study the effects of extending the participation period of deferred retirement option plans from three to five years.
Impact
If enacted, the resolution will catalyze a thorough examination of the effects that changing the DROP participation period could have on employer contributions and employee benefits. Currently, DROP is seen to potentially increase costs for employers or reduce benefits for employees, presenting a concern for legislators striving for effective retirement policies. A change in DROP could have ripple effects across the thirteen public retirement systems overseen by the legislature, requiring careful consideration of shared implications for all systems involved.
Summary
Senate Resolution No. 191, introduced by Senator Guillory, urges the Senate Committee on Retirement to conduct a study on the potential effects of extending the participation period of the Deferred Retirement Option Plan (DROP) from three to five years. The resolution reflects the legislature's commitment to ensuring the sustainability and health of Louisiana's public retirement systems, which are essential for public servants' retirement security. Through this study, the legislature seeks to gather comprehensive data on the implications of extending DROP participation, including both fiscal and operational impacts on various retirement systems in the state.
Sentiment
The sentiment surrounding SR191 appears to be cautious and focused on prudence. While there is a recognition of the need to ensure sustainable retirement options for public servants, there is also a keen awareness of the potential pitfalls associated with extending DROP. Lawmakers seem inclined to collect more information before endorsing any amendments to existing retirement options, reflecting a cautious approach to potential changes in retirement planning policies.
Contention
A notable point of contention likely arises from the uncertainty associated with potential costs from extending the DROP participation period. There are concerns among some legislators that such a change may not only alter the balance of benefits and contributions but could also trigger additional reforms across different retirement systems, leading to unforeseen financial burdens for the state and public subdivisions. The overall need for further study before making such significant changes highlights the complex nature of public retirement management.
Provides for the Deferred Retirement Option Plan participation period for a member of the Municipal Employees' Retirement System of Louisiana (EN NO IMPACT APV)
Provides relative to the administration and participation in the Deferred Retirement Option Plan for the Firefighters' Retirement System (EN SEE ACTUARIAL NOTE APV)
Relative to Louisiana State Employees' Retirement System, Teachers' Retirement System of Louisiana, and Louisiana School Employees' Retirement System, places restrictions on participation in the Deferred Retirement Option Plan. (7/1/10) (RE DECREASE APV)
Requests that the Bd. of Regents and the State Bd. of Elementary and Secondary Education, with the Taylor Foundation, La. Office of Student Financial Assistance, public postsecondary education management boards, and certain others, study certain issues relative to TOPS
Requests the Louisiana Workforce Commission and the Louisiana Department of Veterans Affairs to study employment practices and professional licensing requirements to benefit veterans in the workforce
Creates a task force to study meaningful oversight of the professional healthcare licensing boards statutorily created within the Department of Health and Hospitals.