Dedicates certain revenue to fund the unfunded accrued liabilities of and post-retirement benefit increases for the four state systems. (6/30/14) (OR SEE FISC NOTE SD RV)
Under this legislation, the appropriated funds would be divided among 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 stipulates that 80% of the allocated funds must be directed toward liquidating existing UAL, focusing on reducing the debt incurred by these systems. The remaining 20% would support post-retirement benefits, which can include cost-of-living adjustments, addressing the need for retirees to maintain their purchasing power amidst inflation and rising living costs.
Senate Bill 22 (SB22) is a legislative initiative aimed at addressing the funding needs of Louisiana's state retirement systems. The bill proposes to allocate 5% of revenues generated from taxes, fees, and assessments related to the legalization of marijuana directly to four specific state retirement systems. This measure is intended to enhance the fiscal stability of these systems by addressing unfunded accrued liabilities (UAL) while simultaneously allowing for post-retirement benefit increases. The bill's impact is significant as it aims to ensure that retirees receive their benefits and that the retirement systems remain solvent in the long term.
The sentiment surrounding SB22 appears to be cautiously optimistic yet mixed. Supporters view the bill as a proactive step towards providing much-needed financial relief for state retirement systems, which face significant funding challenges. There is a general understanding that the legalization of marijuana can provide a new revenue stream, which aligns with broader efforts to reform public finance in the state. However, there are concerns from skeptics about the sustainability of relying on potentially volatile revenue sources, such as marijuana taxes, for essential funding.
Notably, some contention exists regarding the method of funding and the implications of tying retirement funding to the revenues from marijuana legalization. Opponents may argue that this could lead to instability in retirement funding if marijuana revenues do not meet expectations or fluctuate significantly. Critics also express concern over whether focusing on marijuana as a funding source might detract from long-term financial planning for the retirement systems. Overall, the bill embodies ongoing discussions about state financial strategies, retirement security, and the future of marijuana legislation in Louisiana.