Provides that the contributions to the state retirement systems for the unfunded accrued liability shall be contained in the executive budget and as an exhibit to the general appropriation bill. (7/1/20) (EN NO IMPACT See Note)
Impact
The enactment of SB 111 influences how the state manages its financial commitments to public retirement systems. By requiring detailed reporting of contributions to the unfunded accrued liability, the bill signals a move towards greater fiscal responsibility and oversight. This change is intended to provide clearer insights into the financial health of state retirement systems and demonstrate a commitment to addressing long-standing liabilities. The bill's effective date of July 1, 2020, shows a push for prompt implementation of these transparency measures.
Summary
Senate Bill 111 is aimed at enhancing financial transparency within the state's budgetary process by mandating that contributions made by various state agencies to the state retirement systems for the unfunded accrued liability, specifically that which has existed since June 30, 1988, be included within the executive budget and explicitly detailed in the general appropriation bill. By doing so, the bill seeks to ensure that these critical financial obligations are clearly communicated in the state budgeting process, meeting a key need for accountability.
Sentiment
Feedback from legislators regarding SB 111 has generally been supportive, with a unanimous vote in its favor reflecting a positive sentiment towards the bill's intention. Proponents argue that the oversight and clarity introduced by the bill are essential for maintaining the integrity of state finances and re-establishing trust with public employees relying on these retirement systems. This collaborative support underscores the recognition of the importance of public funds management, particularly in the context of retirement liabilities.
Contention
While SB 111 has generally met with approval, discussions may arise about the administrative implications of imposing such reporting requirements on state agencies. Some stakeholders might express concerns about the workload associated with accurately reporting these contributions and whether existing resources can accommodate this new requirement. Nevertheless, the overarching goals of transparency and accountability are likely to outweigh these logistical considerations in the assessment of the bill's merits.
Provides that a minimum of 10% of nonrecurring revenue be applied toward reducing the balance of the unfunded accrued liability of the state retirement systems (EN SEE FISC NOTE SD RV See Note)
Provides relative to payment of initial unfunded accrued liabilities to the Teachers' Retirement System of Louisiana by the Legislature of Louisiana (OR NO IMPACT APV)
(Constitutional Amendment) Provides relative to the application of state monies to the unfunded accrued liability of the Teachers' Retirement System of La. (EN DECREASE SD RV See Note)
Provides for payment of unfunded accrued liability by an employer participating in the Municipal Police Employees' Retirement System (EN NO IMPACT APV)
(Constitutional Amendment) Provides for a minimum of 10% of nonrecurring revenue be applied toward reducing the balance of the unfunded accrued liability of the state retirement systems (EN SEE FISC NOTE SD RV See Note)