Louisiana House Bill HB13

Louisiana 2016 Regular Session

• Introduced: 1/14/16
• Refer: 1/14/16
• Refer: 3/14/16
• Report Pass: 4/14/16

Caption

Authorizes a member of the Teachers' Retirement System of Louisiana to purchase credit for service as a teacher at an out-of-state nonpublic school (EG INCREASE APV)

Impact

The implementation of HB 13 will likely increase the actuarial cost associated with retirement benefits for TRSL. Members purchasing additional service credits under this bill would receive greater benefits upon retirement compared to existing laws. The bill is expected to lead to an increase in employer contributions due to what is termed 'anti-selection,' where only members who would benefit the most from this provision are likely to take advantage of it.

Summary

House Bill 13 aims to expand the ability of active members of the Teachers' Retirement System of Louisiana (TRSL) to purchase service credits. Current law limits the purchase of service credits to teaching service rendered in certain local institutions. HB 13 proposes to include teaching service in nonpublic elementary or secondary schools located in other states if those schools are approved by the appropriate educational agency. This legislative change aims to benefit members who may have taught out-of-state and wish to enhance their retirement benefits through additional service credits.

Sentiment

The sentiment surrounding HB 13 appears to be cautiously supportive among proponents who believe it allows for fairness and equity for teachers with diverse career paths that include out-of-state service. However, some concerns have been raised regarding potential increased costs for the system and the impact on employer contributions, highlighting a need for careful consideration of the financial implications.

Contention

Notable points of contention regarding HB 13 include potential fiscal implications, especially the increased expenditures anticipated due to members opting to retire earlier and buy service credits from TRSL. Legislative discussions emphasize the analysis of fiscal impacts over a five-year measurement period, indicating that while there are short-term costs, the long-term benefits of recruiting and retaining high-quality educators through enhanced retirement options could prove advantageous.