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Archive for the ‘Retirement’ Category

State Rep. John Bel Edwards (D-Amite) Saturday told LouisianaVoice he will ask House Speaker Chuck Kleckley (R-Lake Charles) on Monday for a full investigation of the 11th hour amendment to an obscure Senate bill that resulted in an additional $30,000 per year income for State Police Superintendent Mike Edmonson upon his retirement.

The amendment, which was quickly signed into law by Gov. Bobby Jindal, allows Edmonson to revoke his decision made years ago to enter into the state’s Deferred Retirement Option Plan (DROP) when he was a captain. That decision, which is considered irrevocable, locked in his retirement at a rate based on his captain’s pay while netting him a higher salary but now he will be allowed to compute his retirement based upon his rank as colonel.

At the same time, blogger C.B. Forgotston revealed that the probable source of the amendment may not have been one of the six members of the Legislative Conference Committee, but a Senate staff attorney.

“I am embarrassed by this entire thing,” Edwards said in an interview with LouisianaVoice. “I voted for the bill without reading it with the amendment attached.

So did 89 other House members and 37 senators.

“I know this is not an excuse, and I would never rationalize my vote this way but the truth is in the final hours most members, including myself, probably were not even at their desks. We were all running around trying to take care of conference committee action on our own bills.”

Edwards, who is an announced candidate for governor in 2015, said he will ask Kleckley to initiate an investigation to determine the origin of the amendment. “Somebody asked for this amendment,” he said. “It didn’t just happen.”

His observation echoed State Treasurer John Kennedy who on Wednesday said at a board meeting of the Louisiana State Police Retirement System, “This amendment didn’t just fall from heaven.”

Edwards said the real irony of the overwhelming vote in favor of the amendment is that similar requests have all been rejected in the past. “I know that in my seven years in the legislature, I’ve had at least 20 constituents ask me to help them revoke their DROP decisions and I had to tell every single one of them that there was nothing we could do for them. And now I end up voting for just such a provision because it was hidden away in an obscure bill that we were told had nothing to do with retirement. I’m embarrassed.”

The bill, Senate Bill 294 by Sen. Jean Paul Morrell (D-New Orleans), dealt specifically with disciplinary procedures for law enforcement officers who are under investigation and had nothing to do with retirement in its original form. And conference committee member Rep. Jeff Arnold (D-New Orleans) did little to shed any light on the true intent of the amendment.

Jindal must share blame

And while much has been said about legislators’ failure to closely examine the last-minute glut of amendments and Conference Committee reports, little has been said about Jindal’s willingness to sign such a fiscally irresponsible bill.

Though legislators may have been pressed for time in the closing hours of the session, Jindal most certainly was not. He and his staff had ample time to examine all bills passed by the legislature and to consider their fiscal impact.

Bottom line is the governor simply does not get a pass on this. He is the same governor who attempted unsuccessfully to gut the retirements of tens of thousands of state rank and file civil service employees two years ago and now he signs a bill sneaked in on the last day of the session to give a raise that exceeds the total annual retirement income for thousands of individual state employees.

Moreover, it was a bill his staff should have informed him, as Pearson, Forgotston and a state attorney told us, is unconstitutional on several levels.

The reality is that Jindal checked out as governor long ago in favor of chasing the presidential brass ring that will never be his—and that makes his signing this bill even more unforgiveable.

It also raises the question of what his role in this debacle may have been.

Senate legal counsel culpable?

Reports surfaced on Saturday that Senate Revenue and Fiscal Affairs Committee legal counsel Laura Gail Sullivan was the person who tacked on the amendment without bothering to inform either of the six members of the Legislative Conference Committee—if they are to be believed.

The Conference Committee report that includes the amendment, dated June 2, the final day of the 2014 legislative session, contains the name “Sullivan” in the upper left corner of the report’s first page. http://www.legis.la.gov/legis/ViewDocument.aspx?d=911551&n

The Conference Committee is made up of three members of the Senate and three from the House. For a bill to be reported out of Conference Committee, two senators and two representatives must vote in favor.

Conference Committee members included Sens. Morrell (the bill’s author), Neil Riser (R-Columbia) and Mike Walsworth (R-West Monroe), and Rep. Jeff Arnold (D-New Orleans), Walt Leger, III (D-New Orleans) and Bryan Adams (R-Gretna).

Riser is Sullivan’s Senate committee boss

Riser, besides serving on the Conference Committee to consider the bill, also is chairman of the Senate Revenue and Fiscal Affairs Committee for whom Sullivan works as legal counsel. As such, she takes her marching orders from him. That being the case, what are the odds that Riser was carrying the water for Jindal? If so, did Edmonson request the favor from the governor? As both Edwards and Kennedy pointed out, the amendment didn’t drop from the sky.

A lot of questions that someone should answer—and soon.

Perhaps we will get some clarification from Edmonson (wink, wink) when he appears on Louisiana Public Radio’s Jim Engster show Monday at 9 a.m. http://wrkf.org/

LouisianaVoice sent separate emails to Riser, Rep. Kevin Pearson (R-Slidell), chairman of the House Retirement Committee; Sen. Elbert Guillory (R/D/R-Opelousas), chairman of the Senate Retirement Committee, and Senate President John Alario (R-Westwego). Our email posed three questions:

  • Do you plan to conduct/request an investigation into how the amendment giving the $30,000 a year raise to Col. Edmonson got added to SB 294—particularly now that our sources are saying it was done by a Senate counsel for the Revenue and Fiscal Affairs Committee?
  • Do you believe, if true, she was acting on instructions from someone further up the food chain and if so, who?
  • Were you aware the amendment was being added?

Pearson was the only one who responded

“I’m planning to look into this next week, as I have already done somewhat,” he said. “As you know the Senate staff is a different body than the House staff, different bosses that I am not as familiar with. But yes, I plan to find what actually happened.”

To the second question on whether or not he thought the Senate counsel was acting on instructions from higher up, he said he was unable to answer. “I really do not know,” he said. “I guess it is possible. I’ve never seen them go directly to my (retirement) staff without my being aware.”

As to whether or not he was aware of the contents of the amendment, Pearson said, “I had no clue the amendment was being added. I’m also fairly confident my (House) retirement attorney was unaware, especially since it was not a retirement bill. I did not vote (on) the Conference Committee report (he was one of 14 who did not vote) and I didn’t even know this happened until your article came out. I wasn’t avoiding the vote since I was unaware of these actions. I can’t even say where I was, possibly working on another Conference Committee report. I just don’t recall.

“I do appreciate you bringing this to our attention,” he said. “Hopefully the board can—or someone will—challenge the constitutionality of the rogue amendment.”

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“The amendment impedes an existing contract. Col. Edmonson entered into a binding contract when he entered DROP and that is irrevocable. We have had a constant parade of state employees who wanted out of DROP and every single one has been denied.”

—State official, commenting on the 11th hour amendment to SB 294 which would give State Police Commander Mike Edmonson a $30,000 per year increase.

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State Treasurer John Kennedy told fellow members of the State Police Retirement System (LSPRS) Wednesday that he wants answers to a laundry list of questions pertaining to legislative passage of an amendment to an otherwise minor senate bill that increased State Police Commander Mike Edmonson’s retirement benefits by $30,000 per year.

http://www.auctioneer-la.org/Kennedy_LSP.htm

In asking for a thorough investigation of the amendment that was slipped on Senate Bill 294 on the final day of the legislative session, Kennedy said his main concern was with New York bond rating agencies, though he also questioned the fairness of the amendment’s applying only to Edmonson and one other Master Trooper from Houma.

“I was in New York when this story first broke (LouisianaVoice ran the first story about the amendment last Friday) and we had discussions about the $19 billion unfunded accrued liability (UAL) of the state’s four retirement systems,” he said. “These rating agencies read our newspapers and our blogs and they know more about Louisiana than we do.”

As State Treasurer, Kennedy sits on some 30 different state boards, including the State Police Retirement System Board but he said his interest in attending Wednesday’s meeting was in protecting the state’s bond rating. “If our rating goes down, our interest rates go up,” he said. “I spent 12 or 13 hours with them and they are worried about our Medicaid situation, our use of non-recurring revenue and our retirement systems’ UAL.”

Another state official, an attorney, told LouisianaVoice that he had another constitutional violation to add to C.B. Forgotston’s list of five constitutional violations of the amendment: “The amendment impedes an existing contract,” he said. Col. Edmonson entered into a binding contract when he entered DROP and that is irrevocable. We have had a constant parade of state employees who wanted out of DROP and every single one has been denied.”

Kennedy said there are two sides to every story. “I’d like to talk to Charles Hall (of Hall Actuaries, which did a study for the legislature earlier this year). I’d like Sen. Jean-Paul Morrell (D-New Orleans) who authored the original bill to come speak to us.”

Kennedy said the two men benefitting from the amendment also have a right to address the board. “They have every right to due process,” he said.

Other answers he said he would like include:

  • How many people are impacted by this amendment?
  • Who are they? (The identities of the beneficiaries of the amendment);
  • Who sponsored the amendment in committee? (so they might come before the board and explain their motives);
  • What is the total cost of the amendment? (so he can report back to the rating agencies);
  • What are the remedies, litigation or legislative relief, allege the bill is illegal or simply refuse to comply?
  • What are the legalities of the bill? (Can an amendment be done dealing with retirement issues that is supposed to be advertised?);
  • Has special treatment been given?

“Years ago, we had anywhere from 10 to 15 bills introduced each year to give special treatment to one, two or three individuals without appropriating any money,” he said. It was wrong then and it’s wrong now.

“Gov. (Mike) Foster finally said ‘Enough, we will do this no more.’ And now here we are again. The rating agencies are appalled at that.”

Kennedy, in a private interview after the meeting, said he was concerned with everyone being treated equally. “I don’t believe in special treatment for those who have the political power or (who) know the right people. I think it’s stupid economically and it is what has contributed to the UAL. This amendment has implications far beyond the two men affected. I want to see how much it would cost to give everyone the same treatment.

“We have the sixth worst-funded retirement systems in America and the rating agencies have told us over the past two years to get our business straight or they will downgrade us. If that happens, we’ll be paying higher interest on our bonded indebtedness.”

Kennedy saved his harshest criticism for the legislature when he said, “Someone didn’t read this bill or they’re not being candid. They should be doing these amendments in a more transparent way. These last minute amendments are done and no one know what they’re adding and suddenly, it’s an up or down vote.

Kennedy asked LSPRS Executive Director Irwin Felps, Jr. if the board could meet before the next scheduled meeting on the third Wednesday of September. “It’s important that we address this issue,” he said.

“There’s no excuse for this. This amendment didn’t just fall from heaven. Somebody has a lot of explaining to do and if I find preferential treatment, I will vote to rescind the amendment.”

Kennedy’s claim of a lack of transparency and the sudden “up or down vote” was illustrated when Rep. Jeff Arnold (D-New Orleans) explained the amendment on the floor of the House during the final hectic hours when lawmakers were hurrying to wrap up business:

“The new language to the bill applies to those paying more into the system since 2009 for benefits they cannot use,” he said. “It makes people whole but does not give them a larger benefit.”

Don’t believe us? Watch and listen for yourself as Arnold explains the new legislation in all of 15 seconds.

Then you can decide for yourself if the amendment’s sponsors were being completely up front with their colleagues—and with Louisiana taxpayers.

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“The legislative process is often compared to watching sausage being made. That is meant to convey the idea that the process is ugly, but the end product is worth it. In this case, even the end product is horrible.”

—King of the Subversive Bloggers C.B. Forgotston, commenting on an amendment to a Senate bill on the final day of the recent legislative session that sneaked in a provision awarding State Police Superintendent Mike Edmonson with an additional $30,000 per year on top of his already 100 percent retirement. 

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Apparently our story about the furtive amendment that boosted State Police Superintendent Mike Edmonson’s retirement by a whopping $30,000 a year (note: that’s a $30,000 increase; most state retirees don’t even make $30,000) got the attention of the Louisiana State Police Retirement System (LSPRS).

Our friend over in Hammond, C.B. Forgotston, the “King of the Subversive Bloggers,” according to Baton Rouge Advocate columnist James Gill (a pretty fair political observer and writer in his own right), sent us a memorandum that went out to LSPRS staff members by Assistant Director Kimberly Gann.

Forgotston also forwarded information listing additional perks enjoyed by Edmonson as well as calculations of what his retirement income will be, thanks to the amendment tacked onto SB 294 on the last day of the recent legislative session.

Forgotston (don’t let the name fool you; he rarely forgets anything), an attorney who previously worked for the Legislature, also said the amendment by the Legislative Conference Committee to the bill that became Act 859 when it was signed into law by Gov. Bobby Jindal “violates at least five provisions of the State Constitution.”

“We were notified yesterday than an article was written about a piece of retirement legislation that passed the legislature,” Gann said in her e-mail. “Irwin (LSPRS Executive Director Irwin L. Felps, Jr.) wanted you to know about the article and have an opportunity read it. Please let us know if you have any questions. We will discuss this at the meeting on Wednesday (July 16).”

While the copy of Gann’s e-mail provided by Forgotston did not contain the names of the addressees, the message is presumed to have been sent to retirement system staff members. They include Retirement Benefits Analyst Tausha E. Facundus, Administrative Assistant Shelley S. CPA Stephen M. Griffin, accountant Kristin Leto.

Edmonson, upon his appointment, sold his home and he and his family moved into the “Colonel’s Home” on the Department of Public Safety campus which is also equipped to be the governor’s “Safe House” and command center for disaster relief.

That means he is residing in a four-bedroom, four-bath home completely furnished by the state. And because he has worked more than 30 years at retirement calculated at 3.3 percent per year based on his highest three years of earnings, he would already be eligible for retirement income of 100 percent of his salary. By adding the additional years above 30 (he has worked 34 years) and the three Deferred Retirement Option Plan (DROP) years, he will not only receive the full $134,000 (100 per cent of his salary), but an additional $30,000 per year when he retires.

The amendment allowed Edmonson to revoke an otherwise irrevocable decision to enter DROP, which allows his retirement to be calculated on his higher salary and to add years of service and longevity pay.

Forgotston, in listing the constitutional violations of the bill amendment giving Edmonson the $30,000 retirement increase, cited each section of the State Constitution he said the amendment violated. They are:

  • It was not introduced 45 days prior to the opening day of the 2014 Regular Session. (La. Const. Article III, Section 2, Paragraph (2)(c));
  • It was not advertised prior to being introduced. (La. Const. Article X, Section 29C);
  • It does not contain a recitation that it was advertised. (La. Const. Article X, Section 29C);
  • As amended contains two objects. (La. Const. Article III, Section 15, Paragraph A);
  • Language to provide the extra benefits is not germane to bill as introduced. (La. Const. Article III, Section 15, Paragraph C).

“The legislative process is often compared to watching sausage being made,” Forgotston said. “That is meant to convey the idea that the process is ugly, but the end product is worth it. In this case, even the end product is horrible. This is the type of legislation that is referred to by insiders as ‘snakes’ that crawl out in the last days of a session. For most, snake is much less appetizing than sausage.”

Forgotston said there “are only two ways to prevent these unconstitutional benefits from being paid and (to restore) integrity to the legislative process:

“The head of the State Police (Edmonson) can refuse the benefits or by someone filing a lawsuit,” he said, adding that the six members of the Conference Committee should initiate such litigation.

Forgotston can be quite cantankerous—and clever—when he wants to be, which is most of the time, and this action is no different.

He suggests that if readers who know an active or retired member of the Louisiana State Police, “Please pass this (information) onto them.”

He also listed the names and e-mail addresses of the six members of the Legislative Conference Committee who approved the action which has been denied to many others making similar requests in recent years:

Rep. Bryan Adams: badams@legis.la.gov

Rep. Jeff Arnold: larep102@legis.la.gov

Rep. Walt Leger: wleger@legis.la.gov

Sen. J.P. Morrell: jpmorrell@legis.la.gov

Sen. Neil Riser: nriser@legis.la.gov

Sen. Mike Walsworth: mwalsworth@legis.la.gov

 

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