Regular Session News #6: COLA bill moves through committee; ORP bill temporarily deferred
Aug 1, 2016The Senate retirement committee met on Monday, April 4 and voted to favorably report the following bills.
- Senate Bill 2 (Peacock) would provide up to a 1.5% permanent benefit increase (also known as a COLA) to eligible retirees of TRSL and LASERS and up to a 2.0% permanent benefit increase for eligible LSERS and State Police retirees. Amendments were adopted that tie its passage to other bills dealing with system funding (SB 5 and SB 18), which are under consideration this session.
- Senate Bill 18 (Peacock), also amended, would clarify provisions created in Act 399 of 2014 regarding excess investment earnings, employer contributions, and cost-of-living adjustments (COLAs). As amended, SB 18 would reduce the amortization period for actuarial gains and losses from 30 years to 20 years once the System is 70% funded (rather than 85% funded), and provides for the re-amortization of schedules of gains and losses for the 2019-2020 fiscal year and every fifth fiscal year thereafter.
- Senate Bill 372 (Peacock) would require actuarial notes for pre-filed bills to be filed at least five days prior to the beginning of the regular legislative session.
Another retirement bill on today’s agenda, SB 17, was deferred to a future meeting. Senate Bill 17, also sponsored by Sen. Peacock, would allow active optional retirement plan (ORP) members an open window to become members of the TRSL defined benefit retirement plan.
The Senate retirement committee will not meet next week. The next House retirement committee will be held on April 14 at 9:00 a.m.
A complete list of legislation impacting TRSL, including the position taken by the TRSL Board of Trustees on each bill, is available on the Legislation page of our website.