Provides for the investment and use of monies in the Bossier Parish Retired Employees Insurance Fund (EN +$150,000 LF RV See Note)
Impact
The adjustments proposed in HB 183 could significantly impact the management of the Bossier Parish Retired Employees Insurance Fund by altering the investment strategy. Specifically, this bill changes the minimum investment in equities from twenty-five percent to no less than fifty percent and specifies that up to fifty percent of fixed income investments can be in corporate bonds, provided their credit quality is rated A or higher. By reconsidering these investment parameters, the fund aims to achieve a more stable and beneficial growth trajectory for the retirees' insurance premiums, thereby potentially having a positive effect on their benefits.
Summary
House Bill 183 focuses on the Bossier Parish Retired Employees Insurance Fund (BREIF) and aims to amend the existing laws regarding the investment and management of this fund. The bill seeks to adjust how the fund's investments are made, specifically altering the percentages of equities and fixed income investments. The intention behind this legislation is to ensure the financial health of the fund, which is crucial for covering the insurance premiums of retired sheriffs and deputy sheriffs in Bossier Parish. This change is seen as an effort to better secure the futures of the retired employees depending on this fund.
Sentiment
The general sentiment around HB 183 appears to be cautious optimism. Supporters of the bill, likely including local government officials and retirees, view these changes as necessary for improving the sustainability and profitability of the BREIF. However, some concerns may also be present regarding the risks involved with higher equity investments in volatile markets. On the other hand, there may be opposing voices urging for a more conservative approach to investing the fund’s assets, highlighting the need for guarantees in retirees' benefits rather than taking speculative risks.
Contention
One notable point of contention in the discussions regarding HB 183 revolves around the balance between aggressive investment returns versus the safety of retired employees' insurance benefits. Critics may express concerns that increasing investment in equities could expose the fund to greater market volatility, thereby risking the ability to consistently cover insurance costs. Additionally, some may contest the chosen investment strategies, advocating for alternative approaches to ensure the long-term stability and adequacy of the fund in meeting its obligations.
Relative to the payment of group insurance premiums for retired sheriffs and employees of the Bossier Parish Sheriff's Office (EN NO IMPACT LF EX See Note)
Provides relative to the payment of group insurance premiums for retired sheriffs and employees of the Bossier Parish Sheriff's Office (EN SEE FISC NOTE LF EX See Note)
Provides relative to group insurance premiums of the Plaquemines Parish Sheriff's Office and distributions to the Plaquemines Parish Retired Employees' Insurance Fund (EN +$200,000 LF RV See Note)