Louisiana Senate Bill SB5

Louisiana 2011 Regular Session

• Introduced: 4/25/11
• Refer: 4/25/11
• Report Pass: 6/6/11
• Engrossed: 6/9/11
• Refer: 6/13/11

Caption

Relative to the Louisiana State Employees' Retirement System (LASERS), allows for a change in beneficiary for purposes of joint and survivor annuities. (2/3 - CA10s29(F)) (7/1/11) (RE NO IMPACT APV)

Impact

The passage of SB5 could have significant implications for individuals receiving LASERS benefits. By allowing retirees to change their beneficiaries after reemployment, the law recognizes and addresses the realities of personal relationships. This change could potentially affect the financial arrangements of many retirees and their families, offering them opportunities to secure their current family situation more effectively. Furthermore, this adjustment is expected to streamline the process through which retirees manage their benefits by allowing changes that reflect contemporary familial dynamics.

Summary

Senate Bill 5, also known as SB5, is a legislative measure concerning the Louisiana State Employees' Retirement System (LASERS). The bill facilitates a change in the designated beneficiary for retirees who return to work within LASERS-covered positions, specifically permitting these retirees to designate a current spouse as the beneficiary for any supplemental benefits accrued following their reemployment. This adjustment allows for greater flexibility in the management of retirement benefits in light of changing personal circumstances, particularly in cases of divorce and remarriage.

Sentiment

Overall, the sentiment surrounding SB5 appears to be supportive among legislators, as evidenced by the unanimous Senate vote of 36 in favor and none opposed during its final passage. Stakeholders within the retirement community may express relief and approval, viewing the bill as a proactive update to existing law that acknowledges the complexities of life circumstances for retirees. However, there may be concerns about the potential financial implications for the retirement system itself, as any modifications to beneficiary designations could result in actuarial adjustments to the benefits paid.

Contention

Despite its favorable reception, SB5 may raise some points of contention regarding the financial accountability of the retirement system. Critics could argue that allowing these changes creates additional liability and complexity within the system, ultimately requiring careful monitoring and management to prevent any significant financial fallout. Furthermore, while the bill aims to address the needs of retirees, questions may linger regarding the efficiency and fairness in how such changes are implemented, ensuring that all retirees receive equitable treatment under the new provisions.