Louisiana House Bill HB18

Louisiana 2018 Regular Session

• Introduced: 1/25/18
• Refer: 1/25/18
• Refer: 3/12/18
• Report Pass: 4/18/18
• Engrossed: 4/30/18
• Refer: 5/1/18

Caption

Provides relative to the calculation of final average compensation for members of the Registrars of Voters Employees' Retirement System (EG NO IMPACT APV)

Impact

If passed, HB 18 would result in increased benefits for long-serving members of ROVERS by permitting them to potentially receive higher retirement payouts. By eliminating the restriction on how much earnings can be included when determining average final compensation, the bill aims to enhance the financial security of these employees upon retirement. However, there are concerns regarding the sustainability of retirement funds, as raising payouts may lead to greater financial strain on the ROVERS system, which could affect its long-term viability.

Summary

House Bill 18 aims to amend the calculation of final average compensation for members of the Registrars of Voters Employees' Retirement System (ROVERS). The bill specifically seeks to remove existing limitations, referred to as antispiking limitations, on the calculation of average compensation. This allows members who joined on or before June 30, 2006, to have their compensation calculated based on a more favorable structure that does not cap earnings increases over specific periods. The intention behind this change is to ensure fair compensation based on service length and contributions without punitive ceilings on earnings during certain months.

Sentiment

The general sentiment surrounding HB 18 appears to be supportive among many legislators and stakeholders who advocate for improved retirement benefits for public employees. Supporters argue that the bill is a necessary adjustment to ensure that those who have dedicated significant years to public service are adequately compensated in their retirement years. Critics may express concerns over the financial implications, particularly regarding the retirement fund’s solvency and the potential for increased financial burdens on the state's budget.

Contention

Notable points of contention may arise from the potential impact on the state's budget and the long-term health of the ROVERS system. While the bill's supporters emphasize the need for fair compensation, opponents could argue that lifting these caps might result in unsustainable increases in retirement liabilities. This debate pits the immediate needs of employees against broader fiscal responsibility, making it a contentious issue in the legislature.