Louisiana House Bill HB910

Louisiana 2016 Regular Session

• Introduced: 3/16/16
• Refer: 3/17/16

Caption

Provides relative to membership in the Louisiana State Employees' Retirement System and the Teachers' Retirement System of Louisiana (OR INCREASE APV)

Impact

The passage of HB 910 will alter the demographic of membership in Louisiana's retirement systems by preventing new hires from joining LASERS and TRSL. This transition is expected to lead to a decrease in future benefit payments and costs associated with administering these retirement benefits. While the existing employees will continue to participate, the exclusion of future employees may affect the overall actuarial present value of benefits associated with these retirement systems, potentially minimizing future liabilities.

Summary

House Bill 910 proposes changes to the eligibility criteria for members of the Louisiana State Employees' Retirement System (LASERS) and the Teachers' Retirement System of Louisiana (TRSL). Specifically, the bill states that employees of primary health centers established under the Public Service Act who are hired after September 1, 2016, shall not be eligible to participate in LASERS or TRSL. This restriction also applies to various educational associations and centers, thereby impacting future staff hiring and their retirement benefits under these systems.

Sentiment

The sentiment surrounding HB 910 appears to be mixed. Proponents argue that the bill is a necessary step to manage liabilities and streamline retirement benefit obligations as the financial environment for public retirements evolves. However, critics express concerns that this bill may hinder recruitment efforts at educational institutions and health centers, as future employees will lack retirement benefits that might attract qualified candidates. The division of opinions highlights the balancing act between managing public funds responsibly and ensuring competitive employment conditions for public servants.

Contention

Notable points of contention in the discourse surrounding HB 910 include the implications for teachers and health workers who may face disadvantages in the job market due to the lack of retirement benefits. Advocacy groups may argue that this exclusion undermines the value of public service careers and could lead to a deterioration in service quality as a result of reduced incentives for professionals to join these sectors.