Provides that certain employees of the Eastern La. Mental Health System are eligible for membership in the Hazardous Duty Services Plan in the La. State Employees' Retirement System (EG INCREASE APV)
Impact
The enactment of HB 64 is projected to increase the actuarial present value of future benefit payments due to the enhanced retirement benefits offered under the Hazardous Duty plan. As per the analysis, approximately 392 employees could be eligible for transfer to this sub plan, constituting a significant increase in the membership of the Hazardous Duty plan. This change could also affect related post-employment benefits, influencing retirement timing for some employees, as larger, more attractive benefits may encourage earlier retirement.
Summary
House Bill 64 aims to amend the retirement eligibility criteria for certain employees of the Eastern Louisiana Mental Health System by allowing them to join the Hazardous Duty Services Plan under the Louisiana State Employees’ Retirement System (LASERS). Specifically, the bill mandates that new hires in therapeutic corrections roles from July 1, 2015, onwards become members of this sub plan, granting them enhanced retirement benefits compared to the Rank and File sub plan. Existing employees have the option to transfer to this plan, albeit contingent upon their covering associated actuarial costs, to benefit from a higher accrual rate for retirement benefits.
Sentiment
The general sentiment surrounding HB 64 appears to lean towards supporting the enhancement of retirement benefits for employees working in hazardous conditions. Proponents argue that these changes are warranted given the demanding nature of the work in mental health facilities, which often includes risks not present in conventional roles. However, there may be concerns regarding the long-term sustainability of increased costs associated with these enhancements, particularly within state-funded retirement systems.
Contention
Notable points of contention primarily revolve around the fiscal implications of increased retirement benefits for these employees. Critics may voice concerns regarding the overall costs to the state and the potential impact on future funding for the retirement system given the already existing concerns about unfunded liabilities. Additionally, discussions may surface over the fairness of enhancing benefits for certain groups of state employees while others may remain under less favorable terms.
Provides for enrollment of new hires of the Harbor Police Department of the Port of New Orleans in the Hazardous Duty Services Plan in the La. State Employees' Retirement System and for merger of the existing Harbor Police Retirement System into the La. State Employees' Retirement System (EN INCREASE APV)
Provides for enrollment of new hires of the Harbor Police Department of the Port of New Orleans in the Hazardous Duty Services Plan in the La. State Employees' Retirement System and for administration of the Harbor Police Retirement System by the La. State Employees' Retirement System (OR INCREASE APV)
Provides relative to the payment of health insurance premiums for certain retirees of the Hazardous Duty Services Plan in the La. State Employees' Retirement System
Provides relative to the payment of health insurance premiums for certain retirees of the Hazardous Duty Services Plan in the Louisiana State Employees' Retirement System (EN INCREASE APV)
Provides relative to retirement eligibility for certain members of the La. State Employees' Retirement System and the Teachers' Retirement System of La. (6/30/12) (OR DECREASE APV)
Provides relative to the payment of insurance premiums for certain retirees of the Hazardous Duty Services Plan in the La. State Employees' Retirement System (EN +$10,000 FC GF EX)