Provides relative to contributions of members out of service for five years. (6/30/16) (EN NO IMPACT APV)
Impact
The implications of SB 6 on state laws are significant, particularly in ensuring that members of the school retirement system are clearly informed about their rights concerning contributions after an extended absence. This aims to protect the interests of employees and ensure they do not lose potential benefits due to a lack of knowledge or response. By formalizing this notification process, the state seeks to improve communication with its school employees and enhance their understanding of retirement options.
Summary
Senate Bill 6, introduced by Senator Peacock, focuses on amendments to the Louisiana School Employees' Retirement System, specifically targeting the contributions of members who have been out of service for five years. The bill stipulates that if a member with under ten years of service credit has been absent for five years without applying for a refund, the retirement system is required to notify the member of their rights regarding their contributions. This includes information on refunds, leaving contributions in the system, and potential transfers of service credit to another system. Failure to respond within ninety days will result in their contributions being credited to the pension accumulation fund.
Sentiment
Overall sentiment surrounding SB 6 appears to be positive, particularly among educators and school employees who benefit directly from these provisions. The clarification of rights and benefits is viewed favorably as it ensures that individuals are aware of their options regarding their retirement contributions. However, there may be concerns among some members regarding how effectively the retirement system will implement and manage the notification process.
Contention
While SB 6 seems to enjoy general support, points of contention could arise around the efficiency and accuracy of communication from the retirement system, especially regarding the timely notification of rights and contributions to members who may be difficult to reach. Critics may also question whether the bill adequately addresses the needs of all members, particularly those who may have special circumstances or require additional support during the notification process.
Provides relative to the retirement contributions of members of the Louisiana School Employees' Retirement System who withdraw from service (EN NO IMPACT APV)
Removes certain members from eligibility for membership in the Teachers' Retirement System of Louisiana and provides for a refund of employee contributions to those members (OR -$1,100,000 APV)