Louisiana House Bill HB38

Louisiana 2018 Regular Session

• Introduced: 1/26/18
• Refer: 1/29/18
• Refer: 3/12/18
• Report Pass: 3/15/18
• Engrossed: 3/27/18
• Refer: 3/28/18
• Report Pass: 4/23/18
• Enrolled: 5/2/18
• Chaptered: 5/11/18
• Passed: 5/11/18

Caption

Provides for the formula for distribution of benefit increases (EN NO IMPACT APV)

Impact

The changes proposed by HB 38 are positioned to ensure that the distribution of benefit increases is tied to a formula that considers both the individual service years and the financial resources available within the retirement systems. This legislative move aims to enhance financial transparency and accountability for public retirement systems in Louisiana. Additionally, it may affect how future adjustments are made to retirement benefits, potentially providing a more stable and predictable financial outcome for retirees.

Summary

House Bill 38 amends the existing provisions of Louisiana state law concerning the distribution of benefit increases to members of state and statewide retirement systems. The key change is the introduction of a formula that calculates the monthly increase in benefits based on the total number of years of credited service accrued at retirement or upon the member's death, as well as the years since that event. This structured approach will determine the value of 'X', which represents the dollar amount set by the retirement system's fiscal year end preceding the distribution of the benefit increase.

Sentiment

The general sentiment around HB 38 appears to be supportive among legislators concerned with fiscal responsibility and ensuring that public retirement systems remain solvent. No votes against the bill were recorded, indicating a unified approach to addressing the issue of benefit distribution. Nonetheless, as with any legislation that modifies financial aspects of retirement systems, there is potential for contention among advocacy groups representing retirees who may have differing opinions on how such calculations could affect their benefits in practice.

Contention

One notable point of contention could arise from the introduction of a variable 'X' if sufficient funds are not available to maintain the benefit increase at the level proposed. This may lead to fluctuating benefits for retirees, depending on the fiscal health of the retirement systems at the time of distribution. Stakeholders may express concern over how these changes impact the quality of life for retirees, particularly in years where financial resources are constrained.