LEGISLATIVE NEWS
LATEST NEWS:
MAY 19, 2012 -- RSEA UDPATE - SB 740 "THE COLA KILLER"
Retirees and State Employees - - Please contact your representative to help RSEA defeat SB 740. Click here for more details.
To Find Your Representative: click here.
For updates on other Retirement Legislative Bills for the week of May 15, click here.
Legislative Updates as of May 11:
1) COLA legislative bills, HB 1018, SB 41 and SB 740, please click here.
2) Senate Bill 47 (final average compensation); Senate Bill 52 (2% retirement increase in employee contributions) and
SB 749 (age 67 retirement eligibility), please click here.
Other Information:
1) Newest summary of Pension Proposals as prepared by LASERS. Click here for details.
2) Civil Service has issued an updated legal advisory opinion regarding the rights of classified employees. Click here for details.
3) To Find Your Legislator: click here.
JINDAL'S PENSION REFORM PROPOSALS AS ORIGINALLY FILED:
The final pieces of legislation for the Jindal Proposed Pension Plan changes have been filed. House Bill 1018, by Representative Pearson, requires that state retirement systems be at least 80% funded before investment earnings can be transferred to accounts used to fund cost-of-living adjustments (COLAs). HB 1132 by Representative Pearson and SB 740 by Senator Guillory require the division of the LASERS Experience Account in two sub accounts (Hazardous Duty and Rank & File) and further requires that rank and file members receive a COLA only if the system is 100% funded and hazardous duty members receive a COLA only if the system is 80% funded. What does this mean? -- these legislative bills eliminate COLAs for retirees!!
Governor Jindal introduced legislation that will provide for major changes in the retirement plan for rank and file state employees and impact cost-of-living adjustments for retirees. The legislative bills have been introduced both in the House and Senate. Some key elements in his proposal include the following:
1) Increases employee contributions by 3% (HB 56 & SB 52)
2) Raises the normal retirement age to 67 (HB 53 & SB 51)
3) Increases the Final Average Compensation used for calculating retirement benefits from 3 years to 5 years (HB 55 & SB 47)
4) Eliminates the defined benefit plan and establishes a cash balance plan for new hires as of January 1, 2013 (HB 61 & SB 53)
5) Requires each state retirement system to be at least 80% funded before investment earnings can be transferred to accounts used to fund COLAs (HB 1018). Divides the LASERS Experience Account into two sub accounts (Hazardous Duty and Rank & File) and allows COLAs for rank and file members only if the system is 100% funded and for hazardous duty members only if the system is 80% funded.
These proposed changes represent a serious threat to the retirement system, retirees and public employees! The Retired State Employees Association will actively oppose these changes during the upcoming legislative session. We hope that you will join us in expressing your opposition to members of the Louisiana Legislature. Please contact your legislators to express your opposition to Governor Jindal's pension plan changes.
1) RSEA Letter sent to House and Senate Retirement Committee Chairmen and Committee Members
2) Sample Letter to send to your Legislators ("Word" format)
3) Find your legislator, click here. House Retirement Committee members, click here. Senate Retirement Committee members click here
LASERS has prepared information to address questions and issues raised as a result of Governor Jindal's proposed changes to the state employees' retirement system plan. View all LASERS 2012 Legislative Issues Updates.
1) To view the complete three page response from LASERS regarding sustainability of the LASERS retirement system, keeping promises, and the redesign and modernization of the pension plan for new hires, click here.
2) To understand how increasing the retirement age to 67 could affect current members, based on the provisions as described in HB 53 and SB 51 of the 2012 Legislative Session, click here.
3) Member questions and responses from LASERS regarding legislation filed for the 2012 legislative session, click here.
LEGISLATIVE SESSION REPORTS