Committee approves re-amortization plan for State Police pension debt

The Senate Committee on Retirement on April 13 reported House Bill 13 favorable, a measure to re-amortize debt and gains for the Louisiana State Police Retirement System (LSPRS).

Margaret Michel, director of LSPRS, described the bill as a re-amortization or "smooshing" measure that consolidates multiple debt and gain amortization bases into a single payoff base that will be paid over 20 years. She said the bill also shortens the amortization schedule for future debts and gains from 20 years to 15 years and aligns how credits and debts are recognized; under current practice credits are amortized over five years while debts run over longer periods, which she said causes volatility in employer rates.

"This bill is a re-amortization bill," Michel said. "It will consolidate all the debt and the gains basis into one payoff base, which will be paid over 20 years," adding the change should make employer rates more predictable.

A committee member asked for clarification about the prior treatment of credits and debts; Michel confirmed credits were previously taken over five years and that the change will make recognition consistent.

Senator Henskin moved to report HB13 favorable and the committee approved the bill by unanimous consent. The bill now moves toward floor consideration, where further fiscal scrutiny and debate may occur.