[StBernard] State lawmakers can join retirement system through loophole

[Westley Annis]

State lawmakers can join retirement system through loophole

BATON ROUGE - While a constitutional amendment adopted in 1996 bans
Louisiana legislators from joining the Louisiana State Employees Retirement
System, there's a way around even the constitution.

Some state legislators remain in the system through a "grandfather clause,"
and some new lawmakers are taking advantage of a loophole in the ban.

Public outcry over legislators receiving retirement pay for what was
considered a part-time job and lawmakers accruing benefits at a faster rate
than regular state employees led to passage of the 1996 constitutional
amendment that prohibits future legislators from participating in the
retirement system.

However, a loophole allows any legislator who had been paying into another
government retirement system to transfer those years to LASERS. And even if
there was no retirement system, the years of service on any governmental
body - even a non-paid commission - could be applied by paying a lump sum to
LASERS that equals the amount of wages that would have been deducted toward
retirement during those years.

For example, former Gov. Mike Foster bought time in LASERS and boosted his
retirement benefit by paying for the years he served on the West St. Mary
Parish Port Commission, an unpaid position.

As written, the constitutional ban that became effective Jan. 1, 1997,
allows legislators who have previous governmental service to join LASERS.

That includes, according to Article 10, Section 29.1 of the constitution,
"Any legislator or any member of a school board, levee board, police jury,
or parish council "> Any member of a city council, city-parish council, or
town council or any alderman or any constable "> Any member of a board or
commission established by the state of Louisiana or any instrumentality or
political subdivision thereof unless authorized by law enacted by two-thirds
of the elected members of each house "> (and) Any person holding or serving
in any other elected or appointed position or office defined to be part-time
public service by law enacted by two-thirds of the elected members of each
house."

However, LASERS Assistant Director Maris LeBlanc points out, it doesn't
include mayors or parish government presidents unless they first served as a
council member and joined a local retirement system.

"If a member receives a higher salary during the last 36 months of their
service, the retirement benefit is increased," LeBlanc said. "The total
amount of increase will depend on the date of retirement."

Because of the way retirement systems calculate benefits, based on years of
service and the most recent salary, the only benefits of transferring
previous experience to LASERS are if the new salary is more than the prior
one and if a person needs more years of service to qualify for retirement.

LeBlanc said a legislator can qualify for retirement at any age after 16
years service (four terms) and at age 50 with 20 years total (legislative or
in combination with local government), as long as 12 years are in the
Legislature. If a legislator is 55 or older, all that's needed is 12 years
in the House or Senate.

Term limits restrict House and Senate members to three terms (12 years), but
they can run for office in the other body.

LeBlanc said most legislators who claim retirement receive "less than the
average rank and file benefit."

Several legislators who are LASERS members have gone on to higher paying
government jobs, so their retirement benefits are higher.

Some who leave office before becoming eligible for retirement benefits can
claim a lump-sum refund of what they paid into the system, LeBlanc said, but
others leave their money in the system until they become old enough to claim
full benefits.

The legislators who joined LASERS in 2008 after their initial election all
have previous service in local government.

Rep. Richard Burford, R-Stonewall, was a DeSoto Parish police juror and Rep.
Herbert Dixon, D-Alexandria, was a longtime teacher and Rapides Parish
School Board member and Rep. Rickey Hardy, D-Lafayette, was a Lafayette
School Board member.

Rep. Elton Aubert, D-Vacherie, was a member of the St. James Parish Council,
and Rep. A.B. Franklin, D-Lake Charles, was a City Council member. Rep. Nita
Hutter, R-Chalmette, who is not seeking re-election, joined LASERS using
prior local government service.

Legislators who were already participating in LASERS when the constitutional
amendment was adopted were Rep. Wayne Waddell, R-Shreveport (now the
director of the Louisiana State Museum in Shreveport), Rep. Noble Ellington,
D-Winnsboro (who is not seeking re-election), Sen. Troy Hebert, D-Jeanerette
(currently the commissioner of motor vehicles), Sen. John Smith,
D-Leesville, Senate President Pro-tem Sharon Weston Broome, D-Baton Rouge,
Sen. Yvonne Dorsey, D-Baton Rouge, Sen. Danny Martiny, R-Metairie, and Sen.
Ed Murray, D-New Orleans.

Others in LASERS, Sen. Rob Marionneaux, D-Livonia, Sen. Butch Gautreaux,
D-Morgan City, Senate President Joel Chaisson, D-Destrehan, can't seek
re-election because of term limits.

A number of other current legislators who were in office in 1996 chose not
to participate in state retirement system, including Sens. Mike Michot,
R-Lafayette, Robert Adley, R-Benton, and Joe McPherson, D-Woodworth, who
were in the state House of Representatives at that time. They were among
those who believed legislators should not qualify for state retirement.

Michot and McPherson cannot seek re-election this year because of term
limits.

At least one lawmaker - longtime legislator Sen. John Alario - already is
collecting benefits. His 2010 financial statement shows he made $36,873.08
in Senate salary and more than $68,000 in state retirement benefits -
$30,837.62 from LASERS and $37,230.72 from the Teachers Retirement System.
An online profile says he was a school teacher from 1965 to 1966.