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Governor's signature clears way for COLAs

May 19, 2016

Today, Gov. John Bel Edwards signed three bills into law that, taken together, allow TRSL to pay a 1.5% permanent benefit increase (also called COLA) to eligible TRSL retirees and beneficiaries on July 1.

Senate Bill 2, sponsored by Sen. Barrow Peacock, authorizes the 1.5% COLA calculated on the first $60,000 of the retirement benefit. Granting of the COLA was contingent upon passage of Senate Bill 5 and Senate Bill 18, also sponsored by Sen. Peacock, and summarized below.
  • Senate Bill 5 requires nonā€investment related administrative expenses to be funded directly through employer contributions beginning the first fiscal year in which this change will not increase the projected employer contribution rate.
  • Senate Bill 18 clarifies provisions created in Act 399 of 2014 regarding excess investment earnings, employer contributions, and cost-of-living adjustments (COLAs). SB 18 also addresses the System’s amortization period for changes, gains, losses and allocations to the experience account, and authorizes re-amortization at certain times.
Who is eligible to receive the COLA?
To be eligible for the COLA, the following requirements must be met on or before July 1, 2016.
  • Regular retiree: Must have received a benefit for at least one year and be 60 years of age
  • Disability retiree: Must have been retired at least one year regardless of age
  • Beneficiary of retiree: Retiree or beneficiary (or both combined) must have received a benefit for at least one year, and the deceased retiree would have been 60 years of age at the time the PBI is payable
  • Survivor (non-retiree beneficiary): Must have received a benefit for at least one year and the benefits must have originated from the service of a deceased member who would have been 60 years of age at the time the PBI is payable
When will the COLA be paid?
The benefit increase will be reflected on retirement payments starting July 1.
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