Louisiana Senate Bill SB8

Louisiana 2016 Regular Session

• Introduced: 1/25/16
• Refer: 1/25/16
• Refer: 3/14/16
• Report Pass: 3/28/16
• Engrossed: 3/30/16
• Refer: 3/31/16
• Report Pass: 5/5/16
• Enrolled: 5/24/16
• Chaptered: 6/2/16
• Passed: 6/2/16

Caption

Provides relative to deferred retirement option plan subaccount disbursements. (6/30/16) (EN NO IMPACT APV)

Impact

With the passage of SB 8, the law concerning disbursements from deferred retirement option plan subaccounts will be modified to include systematic disbursement options, which can potentially benefit participants financially. By offering these options, the bill seeks to address varying participant needs and behaviors regarding their retirement funds. The effective date of the implementation is set for June 30, 2016, ensuring a swift transition to this new structure.

Summary

Senate Bill 8, proposed by Senator Peacock, amends the Louisiana School Employees' Retirement System by providing updated regulations regarding disbursements from subaccounts associated with the Deferred Retirement Option Plan (DROP). The primary change entails giving participants the option to receive either a lump sum payment or systematic disbursements from their individual subaccounts upon termination of their participation in the plan. This adjustment aims to provide members with more flexibility in how they manage their retirement funds upon exiting the system.

Sentiment

The sentiment surrounding SB 8 appears to be largely positive, given that it was passed unanimously in the House with a vote of 88-0. Proponents of the bill laud the increased flexibility it provides to retirees, suggesting that this could make the retirement system more attractive to current and future employees of Louisiana's schools. Generally, the amendment reflects a responsive approach to the needs of educators and school employees facing retirement.

Contention

While there seems to be supportive sentiment regarding this bill, discussions around retirement plans can often evoke concerns about the sustainability and management of public pension funds. Although there were no noted opponents to this bill in the recorded voting history or available discussions, the broader implications of any changes to retirement plans frequently prompt scrutiny over fiscal responsibility and the long-term impact on the retirement system's viability.