Louisiana Senate Bill SB38

Louisiana 2012 Regular Session

• Introduced: 3/12/12
• Refer: 3/12/12
• Report Pass: 4/30/12
• Engrossed: 5/3/12
• Refer: 5/7/12
• Report Pass: 5/21/12
• Enrolled: 6/3/12
• Chaptered: 6/11/12
• Passed: 6/11/12

Caption

Provides for Tier 2 of benefits for persons employed on or after January 1, 2013. (6/30/12) (EN DECREASE APV)

Impact

This legislation significantly impacts state retirement laws by creating a more structured and potentially less generous retirement benefit system for newer employees within the retirement system. By instituting a second tier, the law aims to manage the growing costs associated with public sector pensions and to address fiscal sustainability concerns. As a result, eligible employees will have varying retirement benefits based on their employment start dates, which may influence future hiring practices and workforce planning within public election offices.

Summary

Senate Bill 38, introduced by Senator Guillory, establishes a second tier of retirement benefits for employees of the Registrars of Voters Employees' Retirement System, effective for those employed on or after January 1, 2013. This 'Tier 2' entails specific eligibility criteria and benefit calculations that differentiate it from the existing 'Tier 1' benefits under the state retirement provisions. Notably, the bill modifies the way disability retirement benefits are calculated and outlines procedures for members seeking such benefits, thereby providing an updated framework for retirement and disability entitlements.

Sentiment

General sentiment around SB 38 appears neutral to positive among proponents who see it as a necessary reform to ensure the long-term viability of the retirement system. However, there may be concerns amongst employees regarding reduced benefits under Tier 2 compared to those under Tier 1. The bill's supporters argue that creating two tiers will help manage liabilities, while critics may view it as diminishing future retirees' financial security.

Contention

A point of contention exists regarding the perceived fairness of creating a two-tier system, particularly among current public employees who may feel that their retirement benefits are being compromised for budgetary reasons. This legislative change marks a substantial shift in the state's approach to managing retirement benefits, calling into question the balance between fiscal responsibility and adequate compensation for public service workers.