Louisiana 2010 Regular Session

Louisiana Senate Bill SB594

Introduced
3/29/10  
Refer
3/29/10  
Report Pass
5/10/10  
Engrossed
5/12/10  
Refer
5/13/10  
Report Pass
5/27/10  
Enrolled
6/21/10  
Chaptered
7/8/10  

Caption

Relative to public retirement systems, provides relative to investments. (7/1/10) (EN SEE ACTUARIAL NOTE APV)

Impact

The passing of SB594 will significantly influence the financial operations of public retirement systems by introducing stricter regulations on investment practices and requiring quarterly reporting of investment returns and administrative expenses. This amendment is designed to enhance transparency and accountability within state retirement systems, ensuring that funds are managed prudently and responsibly. The bill also aims to solidify the prudent-man rule, which emphasizes careful investment strategy and risk management, ultimately impacting the financial benefits secured for state employees upon retirement.

Summary

Senate Bill 594 (SB594) is a legislative measure aimed at amending the existing laws governing public retirement systems in Louisiana. The bill focuses on various aspects concerning employee contribution rates, retirement benefit computations, and investment strategies. A key element of the bill is the introduction of new contribution rates for public employees, including judges and state officials, and a restructuring of how investment returns are reported and managed. The bill establishes specific employee contribution levels based on the date of eligibility for membership in the retirement system, particularly affecting judges and court officers by creating different rates for those hired before and after January 1, 2011.

Sentiment

The sentiment around SB594 appears to be mixed. Supporters argue that the bill's provisions will lead to more sustainable and transparent management of retirement funds, providing better long-term benefits for state employees. Conversely, some critics express concern that the new contribution structures could place additional financial burdens on public employees, particularly judges and court officers, who may have to navigate complex new rates. Overall, the discussions surrounding SB594 highlight a balancing act between ensuring state fiscal responsibility and protecting employees' retirement benefits.

Contention

There are points of contention regarding the bill, notably the differential contribution rates established for employees based on their employment dates. Some lawmakers argue that this creates inequities among employees and could lead to discontent among those who feel they are being treated unfairly in comparison to newer employees. Additionally, there is concern over the restrictions placed on investment practices that might limit the ability of retirement systems to optimize their returns. The debates around SB594 reveal significant divisions in opinions about how best to reform public retirement systems while safeguarding employee interests.

Companion Bills

No companion bills found.

Previously Filed As

LA HB80

Provides relative to investments by the state, statewide, and Harbor Police retirement systems

LA SB134

Provides relative to the Public Retirement Systems' Actuarial Committee. (7/1/10) (EN NO IMPACT FC)

LA SB5

Requires fiduciaries for public retirement systems to make investment decisions based solely on financial factors. (8/1/24) (OR SEE ACTUARIAL NOTE APV)

LA SB7

Requires fiduciaries of public retirement systems to make investment decisions based solely on financial factors. (6/30/25) (OR SEE ACTUARIAL NOTE APV)

LA SB119

Provides for funding of the Parochial Employees' Retirement System. (7/1/10) (EN ACTUARIAL SAVINGS APV)

LA HB1229

Creates the State Retirement System Investment Committee and consolidates investment duties of the four state retirement systems into such commission (OR SEE ACTUARIAL NOTE)

LA SB17

Provides relative to funding of retirement systems. (6/30/19) (OR SEE ACTUARIAL NOTE APV)

LA HB981

Provides relative to public retirement system proxy voting on shareholder sponsored proposals (RE SEE ACTUARIAL NOTE FC)

LA SB73

Provides relative to investments of domestic insurers. (1/1/22)

LA HB545

Provides relative to investments made by hospital service districts (EN SEE FISC NOTE LF RV See Note)

Similar Bills

No similar bills found.