Senate Retirement Committee Monday favorably sent to the full Senate a bill by Sen. Barrow Peacock, R-Bossier, that would incorporate the Louisiana School Employees’ Retirement System into the Teachers’ Retirement System of Louisiana. Senate Bill 11 would merge LSERS and TRSL, but would keep the two organizations in separate retirement plans. Peacock said the administration would be combined, but the two systems would remain separate, each having its own trust and valuation.
“Teachers will remain as one plan and school employees will remain as another plan.”
Peacock said the proposal makes the overall retirement system more efficient without changes in benefits. “Nobody will have his benefits reduced or lose his retirement,” he insisted.
LSERS Executive Director Charles Bujol opposed the bill. His organization represents bus drivers, maintenance personnel, school workers and the like, while TRSL is oriented toward teachers and administrators.
“Consolidation does not guarantee greater investment returns,” he argued, adding that merging the systems could increase investment risk, create an additional bureaucratic layer, and diminish member presentation on the board.
Sen. Gerald Long, R- Winnfield, also expressed concern about membership representation. He commented that it would unfair to leave blue-collar workers without representation.
Peacock countered that everyone will be represented. “Their voice will be heard,” he commented.
TRSL thus far has been neutral. Director Maureen Westgard said the board will “continue tracking the bill” and act accordingly.
Mary Patricia Ray with School Bus Operators Association worried the bill is “a very big step” and could prove to be “a little risky.”
Sen. Beth Mizell, R-Franklinton, implied that change is not always bad. She said the potential savings from this bill, could provide the “greater benefits and sustainability [for the retirement system] in the future.” The committee also sent Senate Resolution 39, sponsored by Rep. John Milkovich, D-Shreveport, to the Senate. The bill would make state retirements systems provide the Senate Committee on Retirement with a quarterly report on their investments.
Malkovich said the bill “allows the public to know what fees are being paid to the individuals that are managing the retirement accounts.”