Lawmakers Say ‘Yes’ to PBI Bill
October 1, 2023
Baton Rouge, La. – Legislation to create a new, more predictable model for funding future permanent benefit increases (PBIs) for retirees and beneficiaries of the four state retirement systems, including TRSL, won final legislative passage yesterday. Senate Bill 18, which was sponsored by state Sen. Ed Price and co-sponsored by Senate President Page Cortez, now goes to the governor’s desk for his consideration.
“Clearing the Legislature with such overwhelming support is a huge win for current and future retirees,” said TRSL Director Katherine Whitney. “Every legislator recognized that even a lifetime benefit loses value over time without regular benefit increases.”
Under the current funding model, PBIs have been infrequent and unpredictable because they are tied to market performance. With this legislation, the four state systems move to a straightforward, transparent and predictable funding model.
“As a TRSL board member who’s represented retirees since 2015, this is a proud moment for me,” said James A. Taylor Sr. “PBIs are vital to ensuring retirees can manage increasing prices at the grocery store and the pharmacy. And, with most of our retirees living in Louisiana, periodic benefit increases will mean these retirement dollars will go even further in every local economy.”
“Creating a more reliable PBI model has been a work in progress for several years because cost-of-living increases are such an important financial issue for retirees,” said Clyde F. Hamner, who also represents retired members on the TRSL Board. “A 2% PBI every few years will be a substantial investment in our retirees.”
For more information about SB 18, please read our Protecting Purchasing Power FAQ.