2009 Legislative Session-Bills Affecting LASERS-Final Action

In an environment of shrinking state revenues where legislators were debating ways to downsize government, LASERS was challenged on many fronts to show that the System is serving Louisiana in a cost effective manner, serving members efficiently, and managing its investments prudently in the face of a national economic downturn.  Bills to consolidate the state’s four largest retirement systems (including LASERS), to suspend its Deferred Retirement Option Plan (DROP), and to direct more investment transactions to Louisiana broker/dealers were introduced, then set aside for future study.  Final action was taken on a series of other measures that affect LASERS, but the larger issues mentioned above remain alive for future legislative review and debate.

ACT 270 of 2009 (House Bill 96)

Allows a member to self fund a guaranteed 2.5% cost of living adjustment (COLA) for members of state and statewide retirement systems through an actuarial reduction of benefits.

House Bill 513 of 2009—vetoed by the Governor

Intended as a vehicle to reduce the state workforce, this measure revives an early retirement option for members of LASERS, allowing a member to retire at age 50 with 10 years of service credit with an actuarial reduction in benefits.  Those choosing the option would not be eligible for reemployment for two years and their position would be abolished pending further review.

ACT 144 of 2009   (House Bill 586)

This bill reaches out to certain retirees, beneficiaries, and survivors with a benefit below $1,200 a month. It grants a minimum benefit increase with several requirements including; having 30 or more years of service credit, being at least 60 years of age, and having been retired for at least 15 years. 

ACT 301 of 2009 (House Bill 673)

With anticipated cost cutting at the state’s public colleges and universities, this bill provides a mechanism for those higher learning institutions, as well as their management boards, to continue employer and employee contributions for a worker who has been furloughed for no more than 30 days a year. 

ACT 497 of 2009 (Senate Bill 296)

This Act addresses the retirement system debt.  It changes the payment schedule for the state in an effort to make the payments on the debt more affordable, and therefore less of a financial burden on the state.  The bill also raised the bar for granting cost-of-living adjustments (COLAs) for LASERS retirees.  However, both Senator Butch Gautreaux, Chairman of the Senate Committee on Retirement and Representative Joel Robideaux, Chairman of the House Committee on Retirement have committed to work with the System over the upcoming year to develop a more dependable method for approving COLAs. 

The following two resolutions direct lawmakers to conduct further reviews of retirement issues which could be the subject of future legislative proposals: 

House Concurrent Study Resolution 1 of 2009

Requests that the House and Senate committees on retirement study the issue of converting state retirement plans for new hires from a defined benefit plan to a defined contribution plan.

House Resolution 82 of 2009

Requests that the House Committees on Retirement and Commerce jointly study issues regarding the possible requirement that every state public retirement or pension system, plan, or fund direct a certain percentage of its equity and fixed income trades to Louisiana broker/dealers.