Regular Session News #16: Find out what happened to legislation affecting TRSL
May 21, 2018The 2018 regular session ended Friday. Here's where bills affecting TRSL stand:
LEGISLATION THAT PASSED:
Return to work
- HB 13 (Rep. Miller) was signed by the Speaker and will be sent to the governor. If enacted, it would add presenter of professional development and tutor for any student in PreK through twelfth grade to the list of "re-employment eligible positions" allowing retirees to return to work and continue to receive a benefit check (after the required waiting period), subject to a 25% of annual benefit earnings limit. HB 13 would also change references of "K-12 teachers" to "PreK-12 teachers" in the critical shortage category. The tutor provision in HB 13 was originally set forth in HB 696.
- HB 14 (Rep. Smith) was sent to the governor. If enacted, it would add full-time interpreter, educational transliterator, or educator of the deaf or hard of hearing and full- or part-time PreK teachers to the list of “re-employment eligible critical shortage positions” allowing retirees to return to work without a reduction of benefits (after the required waiting period and certification of shortage).
- SB 4 (Sen. Peacock) was sent to the governor for final approval. If enacted, it would restrict the duties of Board-appointed actuaries to actuarial matters and would reaffirm the ability of state and statewide retirement systems to appoint independent actuaries.
- SB 6 (Sen. Peacock) also awaits the governor's signture for final approval. If enacted, it would prohibit a TRSL member with at least five years of TRSL service credit from retaining membership in TRSL if they move to a position covered by the Clerks' of Court Retirement and Relief Fund.
- SB 13 (Sen. Peacock) was sent to the governor for final approval. If enacted, it would remove the Public Retirement Systems' Actuarial Committee (PRSAC) from the state Department of Treasury and would restrict chair and vice-chair duties on PRSAC to the Senate President and House Speaker or their designees.
- HB 34 (Rep. Pearson) was signed into law as Act 45. It allows state and statewide retirement systems to allocate a portion of their investments to a terror-free fund rather than a terror-free index fund as previously required by law.
- SB 17 (Sen. Peacock) has been sent to the governor for final approval. If enacted, it would create consistency among state and statewide retirement systems in the application of state and federal law related to military service credit purchases.
LEGISLATION THAT DID NOT PASS:
Public Retirement Systems' Actuarial Committee (PRSAC)
- HB 11 (Rep. Ivey) would have imposed fiduciary duties on members or designees of PRSAC when exercising discretionary authority over the management of retirement systems' funds or assets.
- HB 12 (Rep. Ivey) would have required PRSAC to report all system valuations and a report of disparities to the legislature and House and Senate retirement committees.
- HB 21 (Rep. Ivey) would have increased the number of members on PRSAC from seven to nine by adding one member from the House of Representatives appointed by the House Speaker and one member from the Senate appointed by the Senate President.
- HB 24 (Rep. Ivey) would have required actuaries for state and statewide retirement systems and for the legislative auditor to use uniform reporting standards to present discount rate and assumed rate of return information to PRSAC.
- HB 696 (Rep. Pearson) would add tutor for any student in Pre-K through twelfth grade to the list of "re-employment eligible positions" allowing retirees to return to work and continue to receive a benefit check. The provisions of this bill were added to HB 13, which passed and will be sent to the governor.
- HCR 82 (Rep. Bagley) would have created a task force to study issues related to the employment of retired teachers to meet teacher shortages in public schools.
- HB 22 (Rep. Ivey) would have set 20% minimum employer contribution rate and provided for funding deposit accounts for each state retirement system.
- HB 25 (Rep. Pearson) would have required mandatory charter school participation in TRSL and would have retained opt-in charter school participation in LSERS.
- HB 39 (Rep. Ivey) would have established a hybrid retirement benefit structure for members of the state retirement systems first hired on or after July 1, 2020.
- HB 23 (Rep. Ivey) would have provided for a limitation on investment portfolio allocation to no more than 25% in alternative investments.
- SB 530 (Sen. Milkovich) would have provided for the reduction of investment fees by one-half by June 30, 2025, and provided for the allocation of the savings from such reduction.
Second special session begins tomorrow
A second special session focusing on the budget shortfall will convene tomorrow at 4 p.m., and adjourn no later than Monday, June 4. Click here to view the Governor's call for the 2018 Second Extraordinary Session.
A complete list of legislation monitored by TRSL, along with the positions taken by the TRSL Board of Trustees, is available on the legislation page of our website, www.TRSL.org.