Louisiana House Bill HB24

Louisiana 2021 Regular Session

• Introduced: 2/24/21
• Refer: 2/24/21
• Refer: 4/12/21
• Report Pass: 5/6/21
• Engrossed: 5/17/21
• Refer: 5/18/21
• Report Pass: 5/24/21
• Enrolled: 6/8/21
• Chaptered: 6/14/21
• Passed: 6/14/21

Caption

Authorizes members of the Louisiana State Police Retirement System to purchase additional service credits at the time of retirement (EN INCREASE APV)

Impact

The enactment of HB 24 is likely to have significant implications for the pension system, particularly in terms of financial planning for both the members and the retirement system itself. By enabling the purchase of additional service credits, members may enhance their retirement benefits, potentially increasing their monthly pensions. This could make the retirement system more attractive for current and prospective members while also placing an increased financial responsibility on the system if many members opt to purchase additional credits upon retirement.

Summary

House Bill 24, proposed by Representative Adams, aims to enhance the retirement benefits for members of the Louisiana State Police Pension and Retirement System by allowing them to purchase additional service credits. The legislation stipulates that members with a minimum of twelve years of creditable service can buy up to five years of service credit in one-year increments at the time of their retirement. This purchase would require a lump-sum payment prior to retirement and must be initiated with a letter of intent submitted at least thirty days before retirement. If the member postpones retirement beyond this period after payment, the funds will be refunded without credit applied to their service record.

Sentiment

The sentiment surrounding HB 24 is generally positive among law enforcement communities, especially those aligned with the State Police. Supporters argue the bill provides a valuable opportunity for police officers to ensure their pensions reflect their years of service more accurately. However, concerns could arise around the financial sustainability of the pension system in light of increased payouts resulting from additional service credit purchases, leading to dissent among budget-conscious stakeholders and policymakers.

Contention

Possible points of contention include the economic impact this bill may have on the State Police Pension and Retirement System's funding and long-term viability. Critics may voice concerns about the adequacy of employer contributions to support the increased financial commitments this legislation would entail. The balance between enhancing benefits and maintaining a sustainable pension system will likely be a focal point of debate as the bill is discussed and implemented.