During the final weeks of the second session of 100th General Assembly, LAGERS’ Expansion of Employee Contribution Bill, House Bill 1467, was truly agreed to and finally passed.
House Bill 1467 will enhance the options available for employer election under the employee contribution option. Currently under law, a LAGERS employer can elect to require all eligible employees to contribute 4% of their gross wage to help fund the retirement benefit (also called Contributory), or the employer may elect to cover the full cost of the benefit with no employee contribution (also called Non-Contributory). House Bill 1467 will expand these available options from 0% and 4% to 0%, 2%, 4%, and 6%. Identical language was also truly agreed and finally passed in Senate Bill 599.
LAGERS is pleased that the legislature passed the language in its original form as filed in House Bill 1467 and believes that this important legislation will enhance every employers flexibility in the future to fine tune retirement benefits for their workforce that helps attract and retain the highest quality public servants into local government service and ultimately helps prepare each employee for a secure and dignified retirement.
The bill was the result of many years of conversation between LAGERS employers, members, and affiliate organizations. LAGERS recognizes that no two employers in the system are the same and the flexibility of LAGERS’ plan design is one of the greatest assets for the system and the members we serve. We have greatly appreciated all of the input and support that we have received over the past several years as we prepared to bring this proposal to the legislature
The bill now heads to the Governor’s desk to await his signature, and, if signed, will go into effect on August 28, 2020. If signed, LAGERS will be able to begin accepting requests for actuarial valuations for the new options in September 2020.
As with all of LAGERS legislative initiatives, the passage of HB 1467 will not automatically change any election at your employer, but rather provide additional options for future election.
You can view the TAFP Bill by clicking here.