Louisiana Senate Bill SB191

Louisiana 2010 Regular Session

• Introduced: 3/29/10
• Refer: 3/29/10
• Report Pass: 4/12/10
• Engrossed: 4/15/10
• Refer: 4/19/10
• Report Pass: 5/27/10
• Enrolled: 6/16/10
• Chaptered: 6/29/10
• Passed: 6/29/10

Caption

Provides relative to compliance with applicable federal tax qualification requirements for Teachers' Retirement System of Louisiana, Louisiana School Employees' Retirement System, and State Police Pension and Retirement System. (7/1/10) (EN NO IMPACT APV)

Impact

If enacted, SB191 will primarily impact the statutory provisions governing retired teachers, school employees, and state police officers by mandating changes that adhere to federal regulations. This bill seeks to ensure that various retirement plans maintain their qualified status under the Internal Revenue Code, thereby protecting the tax benefits associated with these retirement systems. As a result, it would likely influence how benefits are computed and could affect the maximum limits on compensation that can be factored into the retirement benefit calculations.

Summary

Senate Bill No. 191 proposes amendments and enactments related to the Teachers' Retirement System of Louisiana, Louisiana School Employees' Retirement System, and the State Police Pension and Retirement System. Its primary focus is on ensuring compliance with applicable federal tax qualification requirements, particularly in relation to the Internal Revenue Code. The aim is to align Louisiana state retirement systems with federal guidelines, which may include adjustments to how benefits are calculated and distributed for various public employees.

Sentiment

The general sentiment around SB191 appears to be pragmatic, focusing on regulatory compliance. Stakeholders are aware of the need to meet federal guidelines, which, if not adhered to, could jeopardize the tax-exempt status of retirement contributions and distributions. Thus, while the bill may not spark significant controversy, there is careful consideration among lawmakers and public employees about its implications on future retirement benefits and system viability.

Contention

Notably, there are points of contention regarding the potential implications for employees whose earnings exceed certain thresholds. The bill imposes limits on what constitutes 'average compensation' for the purpose of determining benefits. Some lawmakers and public employee advocates express concern that these changes might disproportionately affect higher-earning employees, resulting in lower-than-expected retirement benefits compared to what they might have anticipated based on previous calculations.