2016 Regular Legislative Session
The Regular Session of the Louisiana Legislature came to an end on June 6, 2016. Senator Barrow Peacock, Senate Committee on Retirement Chairman, filed a package of bills including not only a COLA of up to 2% for our retirees but reforms relative to the payment of administrative expenses annually rather than the current practice of amortization of such expenses over 30 years and shortening other amortization schedules to 20 years upon the attainment of a funded rate of 72% for LSERS. The Board of Trustees supported this package of bills and is pleased to report that each of these bills passed.
Representative Sam Jones also filed a bill providing for a COLA of up to 2% for eligible retirees which was passed in the final days of session and became ACT 512. The passage of this bill will result in a COLA of 1.9% being paid to eligible retirees effective July 1, 2016.
The Board of Trustees requested, and Senator Barrow Peacock authored a few bills which also gained favorable passage. These 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. (ACT 319)
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. (ACT 320)
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. (ACT 321)
We began this session with a large “Pension Reform” package filed by Rep. Ivey including 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 not one of them made it out of the House Committee on Retirement.
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).