Louisiana Senate Bill SB19

Louisiana 2014 Regular Session

• Introduced: 3/10/14
• Refer: 3/10/14
• Report Pass: 3/24/14
• Refer: 3/25/14
• Report Pass: 3/31/14
• Engrossed: 4/3/14
• Refer: 4/7/14
• Report Pass: 4/28/14
• Enrolled: 5/14/14
• Chaptered: 5/16/14
• Passed: 5/16/14

Caption

Grants a permanent benefit increase to eligible retirees in accordance with statutory procedure. (2/3 - CA10s29(F)) (6/30/14) (EN +$15,862,663 APV)

Impact

If enacted, SB 19 would have a direct impact on the financial well-being of retired school employees in Louisiana by enhancing their pension benefits. The bill's provisions indicate that eligible retirees who have been retired for at least one year and who have reached the age of sixty would benefit from this increase. Thus, the legislative intent behind this bill aligns with broader objectives of ensuring financial security for retired educators and their beneficiaries, reflecting a commitment to the public sector workforce.

Summary

Senate Bill 19 focuses on providing a permanent increase in retirement benefits for eligible retirees of the Louisiana School Employees' Retirement System (LSERS). The bill specifies conditions under which these increases are to be granted, stipulating eligibility criteria based on duration of retirement and age, as well as the necessary actuarial funding derived from the system's experience account. This account accumulates funds generated by investment gains to finance these permanent post-retirement benefit increases.

Sentiment

The general sentiment surrounding SB 19 appears to be supportive, particularly among lawmakers and stakeholders advocating for the well-being of retirees. A consensus has emerged that recognizes the importance of providing adequate benefits to individuals who have dedicated their careers to education. However, there might be underlying concerns regarding the sustainability of the pension system and its ability to consistently provide such increases without jeopardizing its long-term viability.

Contention

One potential point of contention is the reliance on the experience account to fund these increases. Questions may arise regarding the actuarial assumptions used to ensure that the benefits do not exceed the financial capabilities of the retirement system, especially in fluctuating economic conditions. Additionally, if other related bills, as mentioned within SB 19, fail to pass, this could lead to uncertainties regarding the implementation of the benefit increase stipulated by SB 19.