Regular Session News #7: 2016 Legislative Session - Week in review

Apr 1, 2016

This week, the Senate retirement committee reported favorably three bills sponsored by Sen. Barrow Peacock.

• Senate Bill 2 would grant a 1.5% permanent benefit increase (also known as a COLA) to eligible TRSL retirees and beneficiaries;

• Senate Bill 18 would clarify provisions created in Act 399 of 2014 regarding excess investment earnings, employer contributions, and cost-of-living adjustments (COLAs); and

• Senate Bill 372 would require actuarial notes for pre-filed bills to be filed at least five days prior to the beginning of the regular legislative session.

SB 18 passed the full Senate and is pending a referral to the House retirement committee. SB 372 also passed the full Senate, and has been referred to the House and governmental affairs committee. SB 2 will go the Senate finance committee for a vote.

In other action, Senate Bill 17 (Peacock) was deferred to a future Senate retirement committee meeting. SB 17 would allow active optional retirement plan (ORP) members an open window to become members of the TRSL defined benefit retirement plan.


UPCOMING MEETINGS

Next week, legislation and issues impacting retirement will be discussed in the following committees:

Senate finance: 1:30 p.m., Monday, April 11. Agenda

• SB 2 (Peacock): Grants a 1.5% cost-of-living adjustment (COLA) to eligible retirees and beneficiaries, payable July 1, 2016.

Senate revenue and fiscal affairs: 1:30 p.m., Monday, April 11. Agenda

• Discussion of tax exemptions related to retirement benefits of state employees and teachers.

House retirement: 9 a.m., Thursday, April 14. Agenda

• HB 13 (Pearson): Authorizes a TRSL member to purchase credit for service as a teacher at an out-of-state nonpublic school.

• HB 14 (Pearson): Replaces the chairmen of the House and Senate retirement committees with the House speaker and the Senate president (or their designees) as trustees on each state and statewide retirement system board.

• HB 32 (Jones): Authorizes payment of a benefit increase payable July 1, 2016, funded by state retirement system experience accounts, to certain retirees and beneficiaries of such systems, and proposes other changes to the experience account law.

• HB 33 (Jones): Removes the requirement of legislative approval for each permanent benefit increase prior to payment, and authorizes the boards of state retirement systems to pay the increase when requirements in law are met.

• HB 60 (Miguez): Adds “school nurse” to the list of retirees who can return to work and continue to receive a benefit check, subject to a 25% of benefit earnings limitation.

• HB 61 (Hoffmann): Adds “school psychologist” to the list of critical shortage positions in which a retiree can return to work without a reduction of benefits.

• HB 907 (LeBas): Increases the earnings limit from 25% to 50%, with the 50% limit not beginning until the first fiscal year after the 12-month waiting period plus one full fiscal year.

• HB 910 (Talbot): Prohibits membership in TRSL for new employees of LFT, LAE, APEL, and LRCE hired on or after Sept. 1, 2016.

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.