Session Information

2005 Regular Session Highlights

Retirement

Legislation affecting the benefits applicable to members of two (Teachers' Retirement System of Louisiana and Louisiana State Employees' Retirement System)of the four state retirement systems was the prevailing issue concerning retirement this session. Although the majority of the bills were deferred in committee House Bill 658 Representative Schneider (Act 9) successfully passed both houses. For persons hired on or after January 1, 2006, Act 9 by Representative Schneider modifies the defined benefit structure applicable to the majority of members of the Louisiana State Employees' Retirement System (LASERS). As a result of Act 9, the following changes apply to new hires of LASERS:

1) for persons whose first employment making them eligible for LASERS membership began on or after January 1, 2006, average compensation will be calculated using a 60 month period.

2) for any person applying to purchase service credit, the service credit purchased can only be used for calculation of benefits and not for eligibility purposes.

3) a member hired on or after January 1, 2006 is eligible to retire if has 10 or more years of service credit at age 60 or thereafter.

4) a member shall receive a benefit of 2.0% of his average compensation for each year of creditable service.

5) persons whose first employment making them eligible for LASERS membership began on or after January 1, 2006, receive a disability benefit equal to 1.8% of average compensation for every years of creditable service.

Senate Bill 135 by Senator Dardenne (Pending In Conference Committee) also proposed to change the retirement eligibility or new hires by requiring the member to have 10 or more years of service credit at age 60 or thereafter.

Senate Bills 7 and 305 by Senator Boasso (Subject To Call) likewise affected LASERS and TRSL. While Senate Bill 7 would have changed the average compensation, contribution rates, accrual rates and benefits of new hires, Senate Bill 305 would affect the administration of the two state retirement systems and proposed to create one board to govern the two systems.