Certain retired Louisiana state employees were given a cost-of-living adjustment (COLA) increase to their retirement benefits but the bill granting the increase was so restrictive that out of several hundred thousand retirees, only about 800 or so qualified, according to Frank Jobert, Legislative and Governmental Affairs Director for the Retired State Employees Association of Louisiana.
Otherwise, state retirees will have to wait until at least Sept. 30 to learn whether or not they will qualify for similar increases.
“The bill (SB24, signed by Gov. John Bel Edwards as Act 37) that was passed was for the benefit of those living below the poverty line,” Jobert said. “It (the bill) put so many restrictions in place that only a few qualified. For example, there was a maximum income a retiree could be making ($1450 per month). Plus, he had to have 30 years of service, be retired at least 15 years and could not have participated in DROP (Deferred Retirement Option Plan) or IBO (Initial Benefit Option, whereby the retiree takes a partial lump-sum settlement and a reduced pension).”
He said the way SB24 was structured only served to make some retirees angry. “But it was written to help those in the greatest need,” he said.
“State retirees haven’t received an increase since the Robideaux Bill of 2016 (HB1225 by then State Rep. Joel Robideaux, actually passed in 2014 and implemented in 2016),” Jobert said.
Under provisions of that bill, the percentage of COLA adjustments is tied to the return on investment of retirement funds and the percentage of funding of the retirement system. If a system, for example is funded by 55 to 65 percent, retirees would receive adjustments limited to 1.5 percent. Once the system is funded by 65 percent (or the unfunded liability reduced to 35 percent), the increase would be 2 percent, gradually increasing to 3 percent with 85 percent funding of the system.
Jobert said COLA increases also are reliant on the rate of return based on a five-year average of at least 8 percent. “The investment had a great year in 2020,” he said. “We had a return of 30 percent.” But the bottom line, he said, is that the five-year average wasn’t that robust. “The bottom line is there hasn’t been enough return on investment to justify increases,” he said.
We’ll be taking another look in September at our annual meeting,” he said. If there is no permanent increase then, we will push for an annual 13th monthly check.”
Mississippi currently offers state retirees an annual increase or a 13th check.
Louisiana Voice 
Well Gov, how about cleaning up Department of Public Safety first; Jimmy LeBlanc, head of department, retired years ago, draws 100% retirement and also draws full salary at same time around $150,000 salary – (most people cannot make over 50%). How many others are abusing state retirement thanks to Governor ? And this department has been in news constantly for mismanagement.
Zoe, I did some vetting of your comment and found a significant error: LeBlanc never “retired” from any position that I could discern through State Civil Service records. He was named warden in 2002 and served in that capacity from 2002 until Jan. 14, 2008, when Jindal named him secretary of corrections, where he has remained.
If you have evidence otherwise, I’d love for you to make it available.
State employees under the old plan can retire at 100% (2.5%/year x 40 years service). It is true that many LSP retirees collect their retirement and then get a Civil Service job. They can do that because they are retired from a different retirement system (State Police have their own system) than Civil Service – which I agree doesn’t really make sense. Regular Civil Service retirees are limited as to what they can earn if they go back to work for the state (usually about 1/2 their retirement). If they exceed that amount they lose their retirement (until the situation is corrected)
That’s correct. And the same applies to Teachers’ Retirement. I worked with a retired teacher who had re-entered under state civil service while continuing to draw her full teacher’s retirement
Stephen, help me here. State retiree, I think you are right. You can come back to work under contract and the contract salary cannot exceed 1/2 of your retirement pay. As a contract employee you are not considered a state employee.
It used to be fairly clear-cut. Frankly, I’m not sure I understand the rules anymore. One thing I believe was true – you could retire under one state retirement system and go to work under another without penalty. Laws have been passed since I was there that enable other cases where one can draw full retirement while working full-time for the state, but I don’t know the details.
Isn’t that DROP, Stephen? If so, and if I am not mistaken, your monthly retirement check is placed into an account that you cannot touch.
Meanwhile the lawsuit by LSU faculty against TRSL and LSU continues in discovery, represented by lawyer Jill Craft. Faculty on the Optional Retirement Plan contend a big chuck of their monthly contributions has been siphoned off to pay for the TRSL unfunded accrued liability. Apparently this is worth 100s of millions. Lots of info about this lawsuit on the LSU Faculty Senate website.
“How many others are abusing state retirement thanks to Governor?” Zoe, what do you mean by that? Louisiana governors have no control over the various retirement systems.
And zoe, unless I miss my guess, I believe if you do a little checking before posting, you’d see it was little booby jindal who first appointed LeBlanc over corrections after he ‘retired’ as warden.
When I retired from the state I entered drop(now old drop) I was informed that I would receive the interest minus .05%. after the collapse of the financial markets and the loss of funds in the retirement system the state went to smoothing out for three years (now five years). I was told because the other systems were at five years. This is a financial hardship on retirees that are in their late seventies and eighties. I personally would prefer to take a chance on the market not collapsing again since my account can not be lowered according to a Supreme Court decision.
why did you remove my post?
No one “removed” anything. It’s just that whenever you post a comment for the first time, it cannot go up until I go into the system and approve it. I approve ALL comments unless they are vulgar or racist in tone – whether you agree or disagree with my stated position. It’s called Freedom of Expression and I support that concept 100%.