Provides relative to certain purchases of service credit. (2/3 - CA10s29(F)) (6/30/16) (EN INCREASE APV)
Impact
The bill's adjustments potentially improve the financial security of school employees by granting them additional service credit that can lead to increased retirement benefits. The requirement for members to purchase credit for their service introduces a structured method for recording employment duration and strengthens the link between service time and retirement compensation. However, the amendments also stipulate that payments made under this section should be prior to retiring, ensuring fiscal responsibility within the retirement system.
Summary
Senate Bill 7 focuses on amendments to the Louisiana School Employees' Retirement System, particularly concerning the purchase of service credit for members. The bill allows active members who have been part of the system for at least ninety days to receive credit for service rendered as long as proper payments are made. This provision aims to enhance the ability of school employees to recognize their service in order to support their retirement benefits adequately.
Sentiment
Overall, the sentiment surrounding SB 7 seems to be positive, particularly among educators and those within the educational sector who aim for better retirement benefits. The support from legislative actions indicates that there is recognition of the importance of ensuring adequate retirement plans for public service employees. However, there may be concerns related to the financial implications of increased employer contributions to fund any actuarial costs incurred by the bill.
Contention
While SB 7 received unanimous support in a related Senate vote, it still raises questions about the financial accountability tied to employer contributions for funding any costs that exceed member payments. Critics might argue that the changes impose additional financial responsibilities on the school system that could affect budgets and funding for educational programs. The bill illustrates a balancing act between providing fair retirement compensation for educators while maintaining fiscal integrity within the Louisiana School Employees' Retirement System.