Louisiana Senate Bill SB6

Louisiana 2022 Regular Session

• Introduced: 1/26/22
• Refer: 1/26/22
• Refer: 3/14/22
• Report Pass: 3/28/22
• Refer: 3/29/22
• Report Pass: 4/4/22
• Engrossed: 4/6/22
• Refer: 4/7/22
• Refer: 5/5/22
• Refer: 5/9/22
• Report Pass: 5/16/22
• Enrolled: 6/2/22
• Chaptered: 6/18/22
• Passed: 6/18/22

Caption

Grants a permanent benefit increase to eligible system retirees and beneficiaries. (2/3 - CA10s29(F)) (6/30/22) (EN INCREASE APV)

Impact

If enacted, the bill will amend existing state laws regarding retirement benefits for educators, ensuring that those eligible receive a more stable financial support system after retirement. The actuarial implications suggest that the system's ability to fund the increase hinges on its earnings exceeding predetermined thresholds, thus invoking a system of accountability in terms of fiscal health. The effect of this bill would lead to greater financial security among retirees, particularly those who have long served in the education sector.

Summary

Senate Bill 6 aims to provide a permanent benefit increase for retirees and beneficiaries of the Teachers' Retirement System of Louisiana. This benefit increase is contingent upon the system meeting specific funding criteria and will be financed through the system's experience account. The legislation stipulates that eligible retirees who have been retired for at least one year and have reached a certain age, along with specific beneficiaries, will qualify for the increase. The increase cannot exceed the lesser of two percent or the increase in the Consumer Price Index, which, based on the latest data, is higher than two percent.

Sentiment

The legislative sentiment surrounding SB6 appears overwhelmingly positive. During discussions, there were no recorded objections to the bill, reflecting broad support across party lines, as indicated by the unanimous voting record. Legislators emphasized the importance of providing adequate support to retired educators, acknowledging the valuable contributions they have made to the state's educational system. This consensus demonstrates a commitment to safeguarding the well-being of teachers post-retirement.

Contention

Notably, the bill's passage involved discussions about the balance between actuarial sustainability and the urgency of providing immediate financial relief to retired educators. While the conditions required to fund the increase were viewed as necessary checks on fiscal responsibility, there remains a notable concern about whether these conditions might restrict future benefit increases once the system achieves greater funding levels. Despite this, the prevailing consensus in favor of the bill underscores a priority to enhance the retirement benefits of educators in Louisiana.