2016 Regular Legislative Session
The 2016 Regular Session of the Louisiana Legislature kicked off on Monday, March 14, 2016 and must come to a close no later than 6:00 pm on Monday, June 6, 2016. We are happy to report that two bills have been filed this session which will provide a COLA of up to 2% to eligible retirees of LSERS along with the other state retirement systems. These are SB2 by Senator Peacock and HB32 by Representative Jones. The Board of Trustees voted to Support both of these bills.
The Board of Trustees requested, and Senator Barrow Peacock, Chairman of the Senate Committee on Retirement, has authored several bills which are moving briskly through the process. These bills include:
SB6 removes the requirement to transfer certain ex-member’s balances to the Pension Accumulation Fund in the event the system does not receive a response from the notice of rights submitted to the member. Elimination of this practice will result in more accurate pricing of liabilities.
SB7 removes the requirement that a member shall be an “active, contributing” member in order to be eligible to purchase service credit. The bill also removes the requirement of purchasing a minimum of 90 days of service.
SB8 removes the word “systematic” relative to DROP disbursement requirements in order to allow the board to consider additional options to our retirees for withdrawing their funds.
The Board of Trustees also requested, and Representative Pearson, Chairman of the House Committee on Retirement, has authored HB16, which requires LSERS to fund its noninvestment administrative expenses by including them in the normal cost calculation of the system’s employer contribution rate rather than amortizing the cost over 30 years. However, Senator Peacock has also filed SB5 which applies to all four of the state retirement systems and requires payment of the system administrative expenses annually. SB5 was amended in committee to provide that the change shall not be implemented in a year when there will be an increase in employer contribution rates. The board voted to Support SB5.
There are many other bills which have been filed including a large “Pension Reform” package filed by Rep. Ivey. His package includes resolutions and companion bills which would remove the guarantee of certain retirement benefits as well as establish hybrid benefit plans and tiered plans for new hires. The board voted to Oppose these bills and LSERS staff is carefully tracking them.
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 firstname.lastname@example.org) or Carolyn N. Forbes, Assistant Director, at 225.925.6490 (email to email@example.com) or 1.800.256.3718 (if outside the Baton Rouge area).