On March 4, 2013, LSERS Board of Trustees met and took the following positions on bills which impact LSERS:
SCR 01 by Sen. Cortez is a suspensive resolution to suspend implementation of the cash balance plan until June 30, 2014. SUPPORT
HCR 02 by Rep. Harrison is a similar suspensive resolution which suspends implementation of the cash balance plan through the earlier of: 60 days after both: a) receipt by the DOA of a private letter ruling from the IRS that the cash balance plan meets the social security equivalency test, and b) receipt by LASERS that the plan does not affect tax qualification status, or July 1, 2014. SUPPORT
SB 07 by Sen. Peacock provides for a five-year final average compensation (FAC) period for all members who retire or enter DROP after January 1, 2014. The bill accomplishes this gradually over a two-year window (1/01/2014 – 12/31/15) incorporating transitional language to ensure that no member receives a lesser benefit than he would have prior to implementation. NO POSITION
SB 11 by Sen. Guillory provides post-retirement benefit increases (PBI) of the greater of either 1% or the lesser of: (a) 2% or, (b) a percent necessary to preserve 80% of purchasing power as of June, 30, 2013. The PBI is payable on an amount not to exceed $50,000 of a retirees benefit. SB 11 increases employee contributions by 3% of pay beginning on July 1, 2013 and incorporates a five-year FAC with transitional provisions. Generally, in order to receive the PBI a retiree must be retired at least five years and have attained 65 years of age. Employer funded PBIs are payable July 1 each odd-numbered year beginning July 1, 2013. Employee funded PBIs are payable July 1 each odd-numbered year beginning July 1, 2019. Those partially employee and partially employer funded are payable each July 1 beginning July 1, 2019. NO POSITION
SB 14 by Sen. Martiny allows transfers and reverse transfers of service credit between systems while in service as well as an opportunity for the member to purchase an upgrade to the higher accrual rate of the receiving system if applicable. NO POSITION
SB 17 by Sen. Guillory provides for 2% of revenue collections in excess of FY 2011-12 levels to be dedicated to liquidating unfunded accrued liabilities (80%) and to funding benefit increases (20%) for retirees of the state retirement systems. SUPPORT
HB 43 by Rep. Thibaut exempts local school boards from paying the unfunded accrued liability (UAL) associated with privatization. OPPOSE
HB 46 by Rep. Price provides a COLA of up to 3.75% to be paid from the Experience Account to LSERS retirees who retired or entered DROP before July 1, 2001. SUPPORT
HB 57 by Rep. Pearson provides a five-year FAC period. This bill also increases employee contributions by 1% on July 1, 2015 and an additional 1% on July 1, 2017 with the additional funding to be dedicated to the payment of post-1989 liabilities. Finally, HB57 implements a minimum employer contribution rate of 15% until the system is at least 90% funded. NO POSITION
HB 60 by Rep. Talbot requires a suspension of benefits during reemployment for anyone who returns to work on or after July 1, 2013. OPPOSE
HB 61 by Rep. Badon establishes a "divided benefit" for all members of state and statewide retirement systems whose salary increases by more than 30% comparing one month to the average over the previous twelve months. NO POSITION
HB 63 by Rep. Robideaux provides a 1% COLA that is payable on an amount not to exceed $20,000 of the retiree's benefit. This COLA shall be funded by statutorily dedicated funds which have yet to be identified. NO POSITION
HB 68 by Rep. Pearson is clean-up legislation relative to the cash balance plan. NO POSITION
You can sign up for updated information relative to the bills affecting LSERS and positions of the board by entering your email address in the Email Subscription Sign-up box located in the bottom right side of LSERS Website page.
The description of the affect of legislation on LSERS and its members is subject to the interpretation by the Attorney General's Office, as well as the courts. Members should contact their own attorney and seek advice before relying on legislation affecting their membership.
Questions? Contact Lauren Bailey, Executive Counsel, at 225.925.6560 (email to email@example.com) or Carolyn N. Forbes, LSERS Assistant Director, at 225.925.6490 (email at firstname.lastname@example.org) or 1.800.256.3718 (if outside the Baton Rouge area).