Louisiana House Bill HB61

Louisiana 2016 Regular Session

• Introduced: 1/29/16
• Refer: 1/29/16
• Refer: 3/14/16
• Report Pass: 4/14/16
• Engrossed: 4/26/16
• Refer: 4/27/16
• Report Pass: 5/23/16
• Refer: 5/24/16
• Report Pass: 5/26/16

Caption

Provides relative to the reemployment of retired school psychologists in positions covered by the Teachers' Retirement System of La. (REF INCREASE APV)

Impact

The proposed changes in HB 61 are expected to have notable financial implications for the Teachers' Retirement System of Louisiana (TRSL). The actuarial estimates suggest potential increases in costs to the retirement system, with an expected annual financial impact projected at around $150,000 if multiple retirees are reemployed. Additionally, the bill extends the waiting period for retirees from 12 months to 16 months in certain categories, which could reduce early retirements in the future and stabilize costs.

Summary

House Bill 61 aims to modify the conditions under which retired school psychologists in Louisiana can return to work while receiving their pensions. Specifically, the bill allows retired school psychologists who have been out of service for at least one year to be reemployed and receive their full salary and pension benefits simultaneously, a significant change from existing laws which suspend pension benefits upon reemployment. This was enacted to address the critical shortage of qualified school psychologists in the state, thus ensuring schools can maintain necessary support for students.

Sentiment

Overall, the sentiment surrounding HB 61 appears to be supportive, particularly among those advocating for educational reform and adequate staffing in schools. Proponents argue that the bill facilitates the reemployment of experienced school psychologists who can immediately benefit the education system. Critics, however, may express concerns about the long-term sustainability of such pension arrangements and the implications for the overall budgeting within the TRSL.

Contention

Key points of contention regarding HB 61 include the financial sustainability of allowing retirees to collect benefits while employed, especially in light of the increasing number of reemployed retirees potentially impacting the pension fund adversely. Additionally, the change in waiting periods may also spark debate about the balance between encouraging reemployment and managing the fiscal health of the retirement system.