Louisiana Senate Bill SB3

Louisiana 2014 Regular Session

• Introduced: 3/10/14
• Refer: 3/10/14

Caption

Dedicates certain revenue to fund the existing liabilities of and retiree benefit enhancements for the four state retirement systems. (6/30/14)

Impact

If enacted, SB3 would establish a mechanism for generating additional revenue through a three-cent assessment on each game played for money or value. The proceeds will be allocated to the State Retirement Fund and subsequently distributed among the four primary state retirement systems: the Louisiana State Employees' Retirement System, the Teachers' Retirement System of Louisiana, the Louisiana School Employees' Retirement System, and the Louisiana State Police Retirement System. The bill specifies a structured disbursement plan for the funds, with a focus on paying down unfunded liabilities before applying funds to benefit increases.

Summary

Senate Bill 3 (SB3), introduced by Senator Guillory, aims to address the funding of state retirement systems by creating a transaction assessment on games authorized under the Louisiana Gaming Control Law. The main objective of the bill is to dedicate these revenues to liquidating the existing liabilities of the four state retirement systems and enhancing the benefits for retirees. This initiative reflects a growing concern to ensure that state retirement systems remain funded and sustainable for current and future retirees.

Sentiment

The sentiment around SB3 appears to be cautiously optimistic among supporters, who underscore the importance of securing the financial health of public retirement systems. Advocates argue that this legislation is a proactive approach to ensure that retirees receive their due benefits and that the systems are adequately funded. However, opponents may express concerns regarding the potential implications of the new assessment on businesses and the gambling industry, suggesting that it might lead to decreased participation in these activities.

Contention

Critics of SB3 may raise issues regarding the fairness of levying a transaction assessment, questioning whether this approach could unfairly burden certain sectors or individuals. Additionally, there may be discussions focusing on transparency in how the funds are managed and allocated within the retirement systems, as well as the potential long-term effectiveness of the proposed funding solution. The debate is likely to reflect broader tensions around state financial management and the priorities assigned to public employee benefits versus other budgetary concerns.