Bills that would affect teacher retirement benefits have been proliferating in Baton Rouge like strings of beads during Mardi Gras. Well, maybe not quite that many. But there are a variety of them.
Phased Retirement Program for Teachers
HB 42 calls for the creation of a phased retirement program (PRP) within the Teachers’ Retirement System of Louisiana. Its provisions include that a member of the system who qualifies with the member’s respective institution would have to apply to the retirement system as provided in present law. During participation in the PRP, the participant’s benefit would be reduced, based on the full regular benefit amount the participant would have been eligible to receive at the beginning of the participation period reduced by the percentage of work performed by the participant. During an employee’s participation in the PRP, the participant and the employer do not make contributions if they are on the defined benefit plan.
Status: introduced by Rep. Tony Bacala (R- Prairieville). Now before the House Committee on Retirement.
Information about the bill: Available here.
Determination of Employer Contributions
SB13 would amend how the law addresses employer contributions to the Teachers’ Retirement System of Louisiana in the following ways:
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- Terminating the provision of present law that states that for the first valuation after the original amortization base is liquidated, the secondary priority amount includes the portion of the prior year’s primary priority amount, added to the prior year’s secondary priority amount, and adjusted for any increase in the system’s actuarial value of assets.
- Repealing these provisions of present law:
- for the second valuation and each year thereafter, the secondary priority amount is increased on growth in the system’s actuarial value of assets; and
- for the first valuation after the experience account amortization base is liquidated, the residual priority amount equals the prior year’s secondary priority amount adjusted for any increase in the system’s actuarial value of assets, and for the second valuation and each year thereafter, the residual priority amount is increased based on any growth in the system’s actuarial value of assets.
Status: Introduced by Sen. Ed Price (D-Gonzales). Now before the Senate Committee on Retirement.
Information about the bill: Available here.
SB20 would change the method for calculating the employer contribution rate for the Louisiana School Employees’ Retirement System (LSERS). It also would repeal the application of excess returns to the amortization base, as well as the “priority amount” and “priority allocation” mechanisms, eliminate the mechanism for crediting and debiting the account based on investment gains and losses, and remove the account funding contribution rate provisions of current law.
Status: Introduced by Sen. Ed Price (D-Gonzales). Now before the Senate Committee on Retirement.
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Information about the bill: Available here.
Reemployment of Retired Teachers
SB14 provides that any retiree who retired on or before June 30, 2010, and who returns to active service with an employer covered by the provisions of this measurer, may receive a benefit during the period of his reemployment. It also would set a variety of provisions concerning when retirees who return to work may receive benefits, contributions by retirees and employers, service credits, and refunds.
Status: Introduced by Sen. Ed Price (D-Gonzales). Now before the Senate Committee on Retirement.
Information about the bill: Available here.
Unfunded Accrued Liability
SB21 concerns unfunded accrued liability of the Louisiana State Employees’ Retirement System.
The bill would terminate the provision of present law that says that for the first valuation after the original amortization base is liquidated, the secondary priority amount includes the portion of the prior year’s primary priority amount, added to the prior year’s secondary priority amount, and adjusted for any increase in the system’s actuarial value of assets.
SB21 also would repeal these provisions of current law:
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- the stipulation that for the secondary valuation and each year thereafter, the secondary priority amount is increased on growth in the system’s actuarial value of assets; and
- the provision stating that for the first valuation after the experience account amortization base is liquidated, the residual priority amount equals the prior year’s secondary priority amount adjusted for any increase in the system’s actuarial value of assets, and for the second valuation and each year thereafter, the residual priority amount is increased based on any growth in the system’s actuarial value of assets.
Status: Introduced by Sen. Ed Price (D-Gonzales). Now before the Senate Committee on Retirement.
Information about the bill: Available here.
