Requires allocation of certain amounts of minimum foundation program formula funds to the unfunded accrued liability of the Teachers' Retirement System. (gov sig) (OR SEE FISC NOTE GF EX)
Impact
The bill's implementation means that a portion of the MFP funding, which is traditionally used to support public education, will be redirected to meet the financial obligations related to teachers' retirement benefits. This shift is expected to have lasting effects on education financing in the state, potentially influencing how funds are distributed among school districts and altering the balance between immediate educational needs and long-term retirement funding. The Department of Education is responsible for transferring the specified funds to TRSL in 12 equal monthly payments, ensuring that the system can meet its obligations to retired teachers.
Summary
Senate Bill 87, introduced by Senator Morrish, aims to address the unfunded accrued liability (UAL) of the Teachers' Retirement System of Louisiana (TRSL) through the allocation of funds from the Minimum Foundation Program (MFP). The bill mandates that the State Board of Elementary and Secondary Education (BESE) allocate adequate funds from the MFP to cover the UAL payments owed by elementary and secondary employers participating in the TRSL. This allocation will continue until the UAL is fully liquidated, ensuring that the retirement system is adequately funded over time.
Sentiment
The sentiment surrounding SB87 appears to be supportive among those valuing the financial health of teacher retirement systems, as it addresses pressing pension obligations that can affect retired educators. However, concerns have been raised regarding the implications of drawing funds from the MFP, which could lead to reduced resources available for current educational programs. Proponents argue that funding the TRSL is crucial for maintaining teacher morale and fulfilling commitments to retired teachers, while critics may worry about the potential impact on education quality due to tighter budgets.
Contention
A notable point of contention in discussions around SB87 is the trade-off between ensuring stable funding for teachers' retirement and maintaining adequate financial resources for active educational programs. Some legislators and stakeholders worry that prioritizing UAL payments may detract from necessary investments in classroom resources and support services. As the bill progresses, debates may focus on how to balance these competing priorities while ensuring both effective teacher retention and financial security for retired educators.
Requires application of certain amounts of minimum foundation program formula funds to the unfunded accrued liability of the Teachers' Retirement System of Louisiana
Requires application of certain amounts of minimum foundation program formula funds to the initial unfunded accrued liability of the Teachers' Retirement System of La.
Requires application of certain amounts of minimum foundation program formula funds to the initial unfunded accrued liability of the Teachers' Retirement System of Louisiana (OR -$174,800,568 FC LF EX)
Requires application of minimum foundation program formula funds to the unfunded accrued liability of the Teachers' Retirement System of Louisiana (OR -$756,394,593 FC LF EX)
Provides relative to the payment of unfunded accrued liabilities of the Teachers' Retirement System of La. from minimum foundation program funds allocated to charter schools (OR INCREASE SG RV See Note)
Provides relative to payment of initial unfunded accrued liabilities to the Teachers' Retirement System of Louisiana by the Legislature of Louisiana (OR NO IMPACT APV)
Requests the State Board of Elementary and Secondary Education to explain how the minimum foundation program is calculated to ensure funding of the unfunded accrued liability.
Requires school systems to provide a salary increase for teachers and other school employees using savings attributable to the state's payment of certain unfunded accrued liability of the Teachers' Retirement System of Louisiana (EN INCREASE GF EX See Note)