Provides a supplemental benefit to qualifying retirees and beneficiaries of the La. State Employees' Retirement System (OR +$181,964,968 APV)
Impact
The enactment of HB 84 is estimated to result in an increase of $181,964,968 in the actuarial present value of future benefits for LASERS. This significant financial impact stems from the larger benefit distributions that will begin in the fiscal year following enactment. Importantly, current law requires that any benefit changes having an actuarial cost be legislatively approved, which aligns with the provisions of this bill. However, the adjustments in the LASERS Experience Account will be managed without modifying employer contributions, which could mitigate concerns regarding funding.
Summary
House Bill 84 aims to provide a supplemental benefit to qualifying retirees and beneficiaries of the Louisiana State Employees' Retirement System (LASERS). The bill proposes that the full balance of the Experience Account on July 1, 2014, be utilized for these supplemental benefits, potentially resulting in a permanent benefit increase estimated at 2.8% of current benefits. This increase would specifically apply to benefits payable on the first $96,931, allowing eligible retirees to receive an additional annual benefit that could reach up to $2,714.08.
Sentiment
The overall sentiment regarding HB 84 appears to be cautious yet supportive among many lawmakers, particularly those advocating for retiree benefits. Proponents argue that the bill addresses the need for sustained benefit increases amid rising living costs for retirees. However, concerns may be raised by legislators who prioritize fiscal responsibility and the long-term sustainability of state retirement funds, thus indicating a division in perspectives, though no major opposition has been explicitly noted.
Contention
One notable point of contention surrounding HB 84 relates to the implications of withdrawing substantial funds from the Experience Account for the proposed benefit increases. Critics may argue that while immediate benefits to retirees are essential, ensuring the long-term viability of the retirement system is equally critical. Additionally, the requirement for legislative approval for any benefit alterations adds a layer of complexity to future amendments and funding changes, raising questions about balance between retrospective benefits and ongoing fiscal responsibility.
Provides a supplemental benefit increase to certain qualifying retirees and beneficiaries of the La. School Employees' Retirement System (OR +$30,667,812 APV)
Provides a permanent benefit increase paid from the experience account to certain retired members and beneficiaries of the Louisiana State Employees' Retirement System (OR +$97,481,233 APV)
Provides a permanent benefit increase paid from the experience account to certain retired members and beneficiaries of the La. School Employees' Retirement System (OR +15,862,663 APV)
Authorizes a cost-of-living adjustment for certain retirees of the La. School Employees' Retirement System and their beneficiaries (EN +$12,000,000 APV)
Provides a permanent benefit increase paid from the experience account to certain retired members and beneficiaries of the State Police Retirement System (OR +$9,474,040 APV)
Authorizes payment of a benefit increase, funded by state retirement system experience accounts, to certain retirees and beneficiaries of such systems (EN INCREASE APV)
Provides a permanent benefit increase paid from the experience account to certain retired members and beneficiaries of the Louisiana State Employees' Retirement System (OR +$97,481,233 APV)
Provides for payment of cost-of-living adjustments (COLAs) to retirees and beneficiaries of state retirement systems without legislative approval in certain circumstances (OR INCREASE APV)