Senate OKs bill to give retirees pay boost
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The Senate on Thursday gave final legislative approval to a bill that would give some teacher and state employee retirees living at the poverty level a boost in their pension checks.
The retirees could receive up to a $300 a month increase beginning July 1 under House Bill 586. The bill now goes to the governor for signing into law.
The Senate voted 36-0 for the measure, sponsored by Rep. Jean Doerge, D-Minden.
“It allows them to keep the lights on and maybe buy some groceries,” said state Senate Retirement Committee chairman Butch Gautreaux, D-Morgan City.
The legislation would affect about 1,300 retirees, their beneficiaries and survivors who receive pensions through the Louisiana State Employee Retirement System and the Teachers’ Retirement System of Louisiana.
Many of the beneficiaries live in the Baton Rouge area.
The legislation affects those receiving pension checks of less than $1,200 a month.
In order to qualify for the minimum benefit, the retiree would have to have at least 30 years of service credit, be retired for at least 15 years, and be at least age 60.
According to a financial analysis, there are 644 LASERS retirees who would qualify and receive an average benefit increase of $176.59.
There are 729 teachers’ system retirees who would get an average $192.42 increase, the analysis said.
The increased benefit would come from retirement system special accounts. LASERS’ accounts would be reduced by $6.8 million and teachers’ $10.2 million to cover the benefits costs over time.
About 90,500 people benefit from the two biggest state retirement systems — state employees and teachers.
East Baton Rouge Parish is home to about 3,000 retired state employees and 5,700 retired school teachers, according to the state retirement systems.
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