Requires any employer who exits the Parochial Employees' Retirement System of Louisiana to pay its portion of the liabilities. (7/1/10) (EN SEE ACTUARIAL NOTE APV)
The enactment of SB84 could have significant implications for local public sector employers, particularly those in parochial districts. It seeks to ensure that financial responsibilities are settled before termination of coverage, thus safeguarding the retirement benefits of employees. By instituting such a requirement, the bill aims to reduce the potential for underfunded retirement plans, which could jeopardize the financial security of public sector retirees and maintain the actuarial soundness of the retirement system overall.
Senate Bill 84 amends regulations concerning the Parochial Employees' Retirement System in Louisiana, specifically addressing the obligations of employers who terminate their participation in the system. It establishes that any employer that exits the retirement system is required to remit its share of liabilities related to unfunded actuarial accrued liabilities. This means that employers cannot simply exit without addressing the financial responsibilities that have accrued while they were part of the system, which is significant for the financial stability of the retirement fund and its beneficiaries.
The sentiment surrounding SB84 appears to support the necessity of maintaining financial accountability among public employers. Advocates argue that its passage would promote fiscal responsibility, ensuring that employers fulfill their obligations to employees even upon withdrawal from the retirement system. However, there may be concerns from some employers about increased financial burdens should they choose to exit the retirement system, raising questions about the balance between employer flexibility and employee security.
Notable points of contention regarding SB84 might arise from discussions on the implications of imposing such liabilities on employers, especially in terms of their operational costs and funding strategies for employee retirement benefits. Some stakeholders may argue that the bill could disincentivize participation in the retirement system or create financial complications for smaller parochial districts which may not have the resources to cover these liabilities upon withdrawal. Additionally, the requirement for prior approval from the board of trustees and the Joint Legislative Retirement Committee for re-entry into the system post-termination could limit flexibility for public entities wishing to manage their retirement coverage actively.