Regular Session News #8: COLA bill moves forward; tax-exempt status of TRSL benefits discussed
Apr 1, 2016
The Senate finance committee today reported favorably Senate Bill 2 (Peacock) as amended. The legislation would grant a 1.5% permanent benefit increase (also known as a COLA) on the first $60,000 of the retirement benefit to eligible TRSL retirees and beneficiaries. The amendment ties the legislation’s passage to other bills dealing with retirement system funding (Senate Bill 5 and Senate Bill 18), which are under consideration this session.COLA eligibility criteria for retirees and beneficiaries in Senate Bill 2 are consistent with current law. The COLA bill now heads to the full Senate for consideration.
In other news: Members of the Senate revenue and fiscal affairs committee discussed the fiscal impact of certain state income tax exemptions, including the retirement benefits of TRSL retirees, and retirees from other state and statewide retirement systems. While no bill on this issue was under consideration, the committee is reviewing all income and benefits exempt from state income tax to determine if any changes are needed.
UPCOMING MEETINGS
The House retirement committee is scheduled to meet at 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 committees on retirement with the speaker of the House of Representatives and the president of the Senate (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.