Louisiana House Bill HB22

Louisiana 2021 Regular Session

• Introduced: 2/22/21
• Refer: 2/22/21
• Refer: 4/12/21
• Report Pass: 4/29/21
• Engrossed: 5/6/21
• Refer: 5/10/21
• Report Pass: 5/17/21
• Enrolled: 6/3/21
• Chaptered: 6/11/21
• Passed: 6/11/21

Caption

Provides relative to Louisiana School Boards Association employees' membership in retirement systems (EN INCREASE APV)

Impact

The bill's implementation directly impacts Louisiana's retirement architecture by potentially increasing the number of members within the Teachers' Retirement System. It enacts a clearer distinction regarding who is eligible for certain retirement benefits, especially concerning employees of the LSBA who may have been misplaced in the previous retirement framework. Additionally, it addresses financial aspects related to the unfunded actuarial accrued liability, requiring the LSBA to timely contribute to cover any financial obligations accrued by their employees during their service period.

Summary

House Bill 22 primarily focuses on adjusting the retirement system membership for employees of the Louisiana School Boards Association (LSBA). The bill proposes that employees of the LSBA, both current and future hires, will have their membership shifted from the Parochial Employees' Retirement System to the Teachers' Retirement System of Louisiana. This change aims to clarify the retirement benefits applicable to these employees, ensuring they are covered under a system that more aligns with their roles and future pension contributions. By doing so, the bill addresses the complexities surrounding public service employment and the entitlements linked to it.

Sentiment

The overall sentiment regarding HB 22 appears to be supportive within legislative discussions. Representatives expressed confidence that the changes proposed by the bill would enhance the retirement security for LSBA employees while simplifying administrative processes for the retirement systems involved. Legislators recognized the need to adjust the retirement system to reflect the evolving nature of public service employment in Louisiana, without significant dissent during voting, as indicated by the unanimous 93-0 approval in the House.

Contention

While the bill has garnered wide support, some subtle points of contention emerged concerning the transition of existing employees' retirement benefits and the impact on funding for the Teachers' Retirement System. Concerns were raised about ensuring that new funding mechanisms are adequately established to cover the potential influx of members from the LSBA. However, these issues were largely mitigated through discussions that clarified the financial responsibilities of the LSBA regarding any accrued liabilities. The passage of the bill reflects a consensus that prioritizes the welfare of public employees' retirement benefits in Louisiana.