2021 LRTA Legislative Update #4

SB 24 Passes Senate and Other Bill Updates

On April 26, the Senate Finance Committee moved to report SB 24 by Senator Ed Price favorably to the full Senate. The Senate passed the bill on April 28. SB 24 will be introduced to the House and referred to the appropriate committee. LRTA SUPPORTS SB 24 by Senator Price.

SB 24 would grant a “hardship” minimum benefit increase to certain retirees, beneficiaries, and survivors of TRSL as well as the Louisiana State Employees’ Retirement System (LASERS), the Louisiana School Employees’ Retirement System (LSERS), and the Louisiana State Police Retirement System (LSPRS) who meet all criteria as listed in the bill.

As currently written, TRSL retirees who meet all of the following criteria on June 30, 2021, would be granted a monthly benefit increase equal to the lesser of $300 or the difference between their current benefit and $1,450:

• At least 30 of service credit
• Retired at least 15 years
• Currently receiving monthly retirement benefit of less than $1,450
• At least 60 years of age
• Never participated in DROP or ILSB/IBO
• Not receiving a benefit pursuant to a reciprocal agreement recognized by the system

In other Senate news, on April 27 the Senate considered SB 22 by Senator Barrow Peacock. LRTA OPPOSES SB 22 with proposed amendments and in its original form. Senator Peacock offered amendments to the bill. After discussion on the Senate floor, he asked that the bill be “returned to the calendar.” This bill could be reconsidered by the Senate on a later date.

As currently written, SB 22 would change retirement eligibility criteria for new hires in TRSL, LASERS, and LSERS whose first employment makes them eligible for membership in a state retirement system on or after July 1, 2021.

Members hired on/after July 1, 2021, could retire under the following eligibility criteria:

• five years of service at the higher of age 67 or the “age of retirement set by the Social Security Administration;”
• 40 years of service at age 62; or
• 20 years of service at any age (actuarially reduced).

For more information about the bill, click on this article.

Today, the House Retirement Committee met on two items LRTA is tracking. The committee voted to report HCR 7 by Rep. Mike Johnson (which memorializes Congress to repeal the GPO/WEP) favorably to the full House. LRTA SUPPORTS this resolution.

The committee also voted to report HB 22 by Rep. Jeremy Lacombe favorably to the full House. This bill would provide for the transfer of employees of the Louisana School Boards Associations from PERS to TRSL. LRTA is NEUTRAL on this bill.

Stay tuned for future updates on bills LRTA is monitoring and tracking as the session moves forward.

Regards,
Rodney R. Watson
LRTA Executive Director