Regular Session News #9: Status update on legislation affecting TRSL

• SB 11 (Sen. Peacock) seeks to rename LSERS the Louisiana School Employees’ Retirement Plan (LSERP) and place governance of that plan under the TRSL Board. The bill would also dissolve the LSERS Board effective July 1, 2017. Senate floor amendments to SB 11 included the creation of a TRSL Board position representing active LSERP members, and an LSERP advisory board to assist in the transfer of governance. SB 11 is pending consideration by the full Senate.

• HB 33 (Rep. Pearson) clarifies legislative staff’s rights and duties in attending executive sessions of the TRSL Board, particularly with respect to lawyer-client privilege. The bill was amended to remove language that would have replaced the House Speaker-appointed TRSL Board member with the House retirement committee chair beginning in 2020. HB 33 is pending House concurrence on the amendment.

• SB 87 (Sen. Morrish) failed to pass. This bill would have required an annual direct transfer of minimum foundation program (MFP) funds from the Department of Education to TRSL for a portion of that year’s unfunded accrued liability payment attributable to K-12 employers, beginning in FY 2017-18.

• SB 8 (Sen. Peacock) would correct enrollment errors for persons enrolled in an incorrect public retirement system. SB 8 was unanimously passed by the House retirement committee this week, and will now go to the full House for consideration.

• HB 4 (Rep. Miguez) adds school nurses to the list of retirees who can return to work and continue to receive a benefit check, subject to a 25% of annual benefit earnings limitation. The legislation becomes effective July 1, if signed by the governor.

• HB 31 (Rep. Hoffmann) adds school psychologists to the list of critical shortage positions in which a retiree can return to work without a reduction of benefits. The bill was amended to provide that if a retiree’s benefit was calculated at an accrual rate lower than 2.5% or their benefit was actuarially reduced, they will be subject to a 36-month waiting period (rather than the 12-month waiting period in current law) before returning to work under the provisions of TRSL’s return-to-work law.  The amendments do not apply to the current law’s grandfathered group or retirees with advanced degrees in speech therapy, speech pathology, or audiology. HB 31 awaits concurrence from the House on the amendment.

• HB 546 (Rep. Havard) would add teacher and school employee retirement to list of laws, rules, and regulations applicable to charter schools. This bill was voluntarily deferred by the author in the House education committee.

• HB 456 (Rep. Abramson) proposes to hold a constitutional convention to make changes to fiscal provisions in the state constitution, but was amended to remove the consideration of any changes to state and statewide retirement provisions during the convention. The amended HB 456 was returned to the calendar for final consideration from the full House at a later date.

• SCR 22 (Sen. Mizell) was signed by the House speaker. It asks Congress to consider eliminating the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) Social Security benefit reductions. 

• SR 39 (Sen. Milkovich), which requests the state retirement systems to provide additional information in quarterly comprehensive investment reports to the Senate retirement committee, is pending Senate final passage.
   
• SR 123 (Sen. Milkovich), which requests the state systems to post certain investment reports to their official websites, was sent to the Secretary of State.

TUNE IN & WATCH LIVE: You can watch live retirement committee meetings online at www.legis.la.gov. Click on the TV icon for any meeting in progress that you’d like to view. Archived broadcasts are available here.