Louisiana House Bill HB32

Louisiana 2016 Regular Session

• Introduced: 1/26/16
• Refer: 1/26/16
• Refer: 3/14/16
• Report Pass: 4/14/16
• Engrossed: 4/26/16
• Refer: 4/27/16
• Report Pass: 5/23/16
• Refer: 5/24/16
• Report Pass: 5/26/16
• Enrolled: 6/5/16
• Chaptered: 6/17/16
• Passed: 6/17/16

Caption

Authorizes payment of a benefit increase, funded by state retirement system experience accounts, to certain retirees and beneficiaries of such systems (EN INCREASE APV)

Impact

The implementation of HB 32 is significant as it directly impacts the financial well-being of many retirees, providing them with additional income in their retirement years. By allowing for cost-of-living adjustments and permanent benefit increases, the bill seeks to ensure that the retirement benefits keep pace with inflation and other economic factors. The funding for these increases will be sourced from the retirement systems' experience accounts, providing a structured financial mechanism that supports the sustainability of these benefits, as long as the funds remain adequate as determined by actuaries.

Summary

House Bill 32 authorizes the payment of a benefit increase to retirees and beneficiaries of various Louisiana state retirement systems, funded through the experience accounts of these systems. This act allows the board of trustees of the Louisiana State Employees' Retirement System, the Louisiana School Employees' Retirement System, and the State Police Retirement System to approve these increases under specified conditions. The permanent benefit increase is aimed at individuals who have retired at age sixty or above, or those who are beneficiaries of such retirees and have received benefits for at least one year.

Sentiment

The general sentiment surrounding HB 32 appears to be positive among the legislators and public advocates who see it as an important step in supporting the needs of retirees. There is a consensus that the adjustments are necessary to provide retirees with security in their golden years. However, some concerns might exist regarding the actuarial evaluations and the stipulations around the funding sources for these benefits, which could raise questions about the long-term viability of such increases if not adequately managed.

Contention

Despite its overall support, there are potential points of contention related to the parameters defined for receiving these increased benefits, specifically the age and tenure requirements. Additionally, if the actuarial assessments do not support the funding for these increases, there may be limitations in granting these adjustments. Legislators and stakeholders will need to monitor the health of the experience accounts to ensure that the intent of the bill is fulfilled without compromising the financial stability of the retirement systems.