Excludes pay to school bus drivers for certain school-related extracurricular activities performed under private contracts from the definition of earnable compensation. (7/1/10) (RE DECREASE APV)
Impact
The proposed legislation is significant as it modifies existing definitions within the retirement system, potentially affecting the retirement benefits of school bus drivers who engage in extracurricular activities. By excluding certain payments from the earnable compensation calculation, the bill aims to prevent inflated retirement benefits that could result from including private contract earnings. This clarification is expected to lead to more standardized interpretations of compensation among school employees.
Summary
Senate Bill 307 addresses the definition of 'earnable compensation' within the Louisiana School Employees' Retirement System. The bill specifically provides that the earnings of school bus drivers for extracurricular activities under private contracts are excluded from this definition. This change aims to clarify the type of compensatory payments that should be considered when calculating retirement benefits for school employees, thereby simplifying the application of retirement laws.
Sentiment
Generally, the sentiment surrounding SB 307 appears to be neutral to positive among legislators who support it, viewing the bill as a necessary modification for clarity. However, there may be concerns from certain groups, such as school employees who might perceive this exclusion as a reduction in potential retirement benefits. Overall, there seems to be a consensus on the need for definitional clarity, even if there are underlying concerns about its implications for specific employees.
Contention
Notably, the bill may face contention due to its potential impact on school bus drivers who operate their own buses and rely on private contracts for extracurricular activities. Critics may argue that excluding these earnings from earnable compensation could unfairly disadvantage them compared to their peers. The discussion surrounding this bill may invoke concerns about equity in retirement benefits among school employees, particularly those who participate heavily in extracurricular activities.
Provides for activities of certain entities or organizations involved in extracurricular student athletic activities which receive more than fifty percent of funding from public schools. (8/1/20)
Excludes compensation earned by certain out-of-state employees and nonresident businesses for disaster or emergency-related work performed during disaster periods from state income tax (RE1 DECREASE GF RV See Note)