News -> INDReporter MON, JUN 14 8:52AM by Jeremy Alford

Retire-rehire bill scheduled for Senate debate

Legislation that would limit how and when public school system employees are allowed to retire and then be rehired is pending final passage in the Senate. The author of House Bill 519, Rep. Page Cortez, said Monday morning that his proposal could come up as soon as this afternoon — it’s going to have be sooner than later, the regular session must adjourn in one week, by 6 p.m. on June 21.

The Ind reviewed the retire-rehire policy in a cover story shortly after the session convened and found abuses in the Lafayette School System and anecdotal evidence of similar challenges in other parishes. From the beginning of the session back in late March, Cortez’s bill was viewed as a compromise fix by several players, from business and industry to one of the state’s main teachers’ lobbies.

Cortez, R-Lafayette, predicts swift passage of his bill in the Senate, although in what form wasn’t something he was sure about heading into the final week of session. “I think there will be a few people who try to find reasons to be against it,” he says, “but I’ve been told there won’t be many problems.

So far, there is only one substantive amendment pending on the Senate floor. Sponsored by Sen. Robert Adley, R-Benton, it would exempt certain retirees hired by the Louisiana High School Athletic Association.

According to an analysis of Cortez’s bill by the Legislative Fiscal Office, the resulting savings from the measure being enacted could potentially top $100 million annually. To take a look at the fiscal note, click here


Walter Pierce
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Comments (4)add
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written by I Noticed , June 14, 2010 - 08:02 pm
I noticed yesterday on Bloomberg that Louisiana is one of seven (7) states that will run out of money to pay retirees by the year 2020 (that's 10 years folks). It is also one of the seven (7) states that has increased hiring. Now that tells me one of two things. 1. Bobby Jindal is the same-old, same-old of the old school politicians. or 2. We have the dumbest people in the legislature and senate to put us in the hole we are now in. Why doesn't the ind. write an article about this. When the people of this state realize what is going on, maybe something will be done to correct the situation
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written by the real story , June 15, 2010 - 04:57 pm
For more information about TRSL, please visit our web site at: http://www.trsl.org
Date: May 20, 2010
Contact: Lisa Honore, Ph.D.
Public Information Director
225-925-6109
TRSL responds to report about pension liabilities
Baton Rouge— A report out of Northwestern University regarding the ability of Louisiana’s
public pensions to meet future benefit obligations is misleading and is based on erroneous
assumptions.
The report’s author admits his analysis assumes that states will only pay the actual cost of
funding retirement benefits, but make no payments on unfunded liabilities. In fact, Louisiana has
paid actuarially required contributions toward retirement benefits which includes payments on
unfunded liabilities every year since 1989, as required by state law. So the assumption that these
payments have not and will not be made is without merit.
TRSL has been providing retirement benefits since its creation 74 years ago, earning a
reputation as a reliable source of post-employment income to its more than 62,000 retired
members. Furthermore, Louisiana has taken significant steps in the last 20-plus years to ensure
retirement benefits remain secure for years to come, including the following:
1987: As mentioned above, Louisiana voters approved a constitutional amendment
requiring TRSL to be funded on an actuarially sound basis through calculations designed
to fully fund the cost of pension benefits and pay off the existing unfunded liability by
2029.
2007: Constitutional provisions were added to prohibit granting new benefits without
identifying a funding source that will pay off the cost within 10 years.
2006, 2008: In these two years, the Legislature appropriated a combined $66 million to
reduce TRSL’s unfunded accrued liability (UAL).
2009: The Legislature passed Act 497 which reamortized the unfunded liabilities, setting
up more level and affordable payments over the course of the UAL payment schedule. In
June 2010, $778 million will be applied to TRSL’s unfunded accrued liability to reduce this
debt.
As in the past, TRSL will continue to work with the Legislature and all stakeholders
to promote constructive actions that will benefit Louisiana and its retirees both now and in
the future.
###
8401 United Plaza Boulevard
Baton Rouge, LA 70809
225-925-6446
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written by I Noticed , June 15, 2010 - 09:38 pm
real story: is the Bloomberg article true or false? Cut to the chase and give me a one word answer. Not all this B.S. of a tap-dance answer. You smart folks think the longer the answer is the smarter you look. But we are starting to under stand ya'll BULL S***! That pupply don't hunt no mo my bro!
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written by Ariana Puffington , June 16, 2010 - 01:37 pm
RE: the real story "For more information about TRSL"
----------------------

I feel a lot better now, not. Math does not work when some one works for 20 to 30 years then gets paid for another 20 or 30. Government workers should fund their own retirement with IRAs, 401ks or other plans. Unfortunately, the laws of math and not fuzzy like laws of politicians.
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