Authorizes payments funded by the system experience account to certain retirees and beneficiaries. (2/3 - CA 10s29(F)) (6/30/18) (EG $5,163,742 APV)
Impact
The implications of SB2 are significant for state laws related to pension benefits for law enforcement retirees. It secures a financial adjustment to monthly benefits that acknowledges inflation and the changing cost of living, effectively enhancing the fiscal reliability of the retirement system for its members. The bill targets ensuring that the enhancements to the benefits are sustainable and contingent on certain funding conditions being met, hence providing a framework for future benefit increases based on the fund's actuarial performance.
Summary
Senate Bill 2 (SB2) aims to authorize payments funded by the experience account to certain retirees and beneficiaries of the Louisiana State Police Retirement System. It proposes a permanent benefit increase for eligible retirees, specifically those who have been retired for a minimum of one year and are at least sixty years old, along with disability retirees and beneficiaries of deceased members. The bill stipulates that this increase aligns with the provisions of the statutory experience account, which is designed to gather funds sufficient for actuarial backing of the proposed permanent increases.
Sentiment
The sentiment around SB2 appears to be favorable, as it addresses a critical need for financial security among retired law enforcement officers. Supporters of the bill express the importance of recognizing the dedicated service of police officers by ensuring their financial wellness post-retirement. This measure is welcomed within the context of overall legislative efforts to boost public employee benefits, although the funding aspects and long-term viability of the benefit increases are often discussed in legislative circles.
Contention
Notable points of contention in the discussions around SB2 may revolve around the impact of financial increases on the state's budget and whether the projected actuarial valuations will hold true long-term. Concerns about the sustainability of the experience account when adjusted for economic changes are frequently highlighted, as retirees rely on steady and dependable sources of income. Some fiscal conservatives within the legislature may raise questions about the appropriateness of expanding benefits in light of the state’s overall fiscal health and economic conditions.
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 for application of remaining funds in the La. School Employees' Retirement System's experience account, after payment of a permanent benefit increase to eligible retirees and beneficiaries, to specified debt of the system (EN DECREASE 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 Teachers' Retirement System of Louisiana (OR +$185,065,866 APV)
Provides for application of remaining funds in the State Police Retirement System's experience account, after payment of a permanent benefit increase to eligible retirees and beneficiaries, to specified debt of the system (OR DECREASE APV)
A resolution to direct the Clerk of the House of Representatives to only present to the Governor enrolled House bills finally passed by both houses of the One Hundred Third Legislature.