Requires occasional supplemental payments to retirees and beneficiaries of the four state retirement systems from monies available from the Seniors' Supplement Fund (OR SEE BELOW FC GF EX)
Impact
HB 90 directly impacts state laws concerning retirement benefits by mandating the creation of the SSF, which acts separately from regular retirement benefits. As this fund is designed to provide funds that stem from specific withheld revenues and appropriations, its establishment reflects a commitment to enhance the financial support available to retirees without increasing the overall liabilities of the retirement systems. The potential financial implications could see expenditures from the General Fund increase if the fund reaches a sufficient balance to disburse payments, thereby affecting budget allocations.
Summary
House Bill 90 establishes the Seniors' Supplemental Fund (SSF), aimed at providing occasional supplemental payments to eligible retirees and beneficiaries of the four state retirement systems in Louisiana. The fund will be maintained as part of the General Fund and will receive revenue from specific sources, including 10% of non-recurring revenue, appropriations, and investment earnings. The bill requires state retirement systems to estimate the cost of providing these payments and imposes restrictions on how fund withdrawals can be made, ensuring that they are only for administrative expenses and supplemental payments.
Sentiment
The general sentiment surrounding HB 90 appears to be largely positive among stakeholders concerned with ensuring financial security for retirees. Proponents argue that the fund represents a crucial step in enhancing the support for individuals who have dedicated their careers to public service. Nevertheless, there may be concerns regarding the fund's adequacy and sustainability to sufficiently support those eligible, as well as the impact on the state's overall fiscal health if additional appropriations are necessary.
Contention
Notable points of contention include the mechanisms for estimating the costs associated with the supplemental payments and the fund's ability to maintain a balance sufficient for future disbursements. The requirement for the Public Retirement System's Actuarial Committee to notify the legislature if the fund can support payments is crucial for transparency and legislative oversight. Critics may question whether the fund can operate effectively without jeopardizing other financial commitments of the state, particularly as the demand for such supplemental payments could fluctuate based on the number of eligible retirees.
(Constitutional Amendment) Establishes the Seniors' Supplement Fund for the provision of occasional supplemental payments to certain retirees and beneficiaries of state retirement systems (OR SEE FISC NOTE SD EX)
Provides a supplemental benefit increase to certain qualifying retirees and beneficiaries of the La. School Employees' Retirement System (OR +$30,667,812 APV)
(Constitutional Amendment) Dedicates a certain amount of state nonrecurring revenue to state retirement systems for supplemental benefit payments (RR GF EX See Note)
Authorizes payment of a benefit increase, funded by state retirement system experience accounts, to certain retirees and beneficiaries of such systems (EN INCREASE APV)
(Constitutional Amendment) Establishes the Seniors' Supplement Fund for the provision of occasional supplemental payments to certain retirees and beneficiaries of state retirement systems (OR SEE FISC NOTE SD EX)