Louisiana Senate Bill SB41

Louisiana 2012 Regular Session

• Introduced: 3/12/12
• Refer: 3/12/12
• Report Pass: 4/30/12
• Refer: 5/2/12

Caption

Provides for a one-time lump-sum supplement for certain retirees. (2/3 - CA 10s29(F) (6/30/12) (EG +$900,000 APV)

Impact

The enactment of SB 41 will result in a financial supplement for eligible retirees, specifically those aged 75 and above, with at least 30 years of service credit and who have been retired for no less than 20 years. This legislative move is anticipated to provide crucial financial relief to a vulnerable demographic in the state, recognizing their service. The bill specifies that the benefit paid will be the greater of $300 or 2% of the retiree's normal annual benefit, indicating a structured approach to benefit distribution without requiring further legislative action post-approval.

Summary

Senate Bill 41, proposed by Senator Guillory, introduces a one-time lump-sum supplemental benefit for certain retirees within the Louisiana State Employees' Retirement System. The legislation grants financial assistance to retirees who meet specific criteria, including age, years of service, and retirement duration. If approved, the payment will be made from the state’s experience account and aims to support long-serving retirees who may face financial challenges in their later years.

Sentiment

General sentiment around SB 41 is expected to be supportive among those advocating for retiree benefits, viewing the bill as a necessary acknowledgment of long-term service. However, there may be contention from fiscal conservatives concerned with the implications of adding financial obligations to the state budget. Overall, the intention behind the bill resonates positively with many stakeholders who emphasize the importance of supporting older retirees.

Contention

Despite the proposed benefits, discussions may arise around the sustainability of such supplemental payments, particularly how it affects the state’s financial framework. Critics may argue about the prioritization of funds in light of demanding budgetary considerations across other state needs, raising questions about the long-term viability of the experience account. Furthermore, there may be concerns regarding the criteria outlined in the bill, and whether it adequately addresses the needs of all retirees, bringing into play the debate on equitable financial support for various demographic groups within the retirement system.