Louisiana House Bill HB35

Louisiana 2014 Regular Session

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

Caption

Provides a supplemental benefit increase to certain qualifying retirees and beneficiaries of the La. School Employees' Retirement System (OR +$30,667,812 APV)

Impact

The enactment of HB 35 is projected to increase the actuarial present value of future benefits paid by the retirement system by approximately $30.7 million. By allowing the allocation of funds from the Experience Account for permanent benefit increases, the state anticipates it will enhance the financial wellbeing of retirees. However, the bill ensures no changes to employer contributions take place, suggesting financial sustainment while facilitating increased benefits for retirees.

Summary

House Bill 35 aims to provide a supplemental benefit increase to qualifying retirees and beneficiaries of the Louisiana School Employees' Retirement System (LSERS). This increase would be possible by utilizing the entire balance of the Experience Account, and it estimates a 2.9% raise in benefits for eligible recipients, with a maximum increase of $2,735.08 per year. The bill is particularly targeted towards retirees aged 60 and over who have been receiving benefits for a minimum of one year, thus ensuring that a substantial number of long-term retirees benefit from this legislation.

Sentiment

The sentiment surrounding HB 35 appears to be generally favorable among those who support increased benefits for retirees, reflecting a commitment to providing for the aging workforce of educators. Lawmakers supporting the bill argue it directly addresses financial needs of retirees; however, there are potential concerns regarding the sustainability of these benefits amid rising economic pressures.

Contention

While HB 35 enjoys some support, questions have been raised regarding its implications on the overall financial health of retirement systems in Louisiana. Critics emphasize the need to balance pension obligations against broader budget considerations and the potential strain on the retirement systems' funding mechanisms. Overall, the challenge lies in ensuring retirees obtain meaningful benefits while maintaining fiscal responsibility within retirement systems.