Legislative Report #06-03

Report 06-03
May 19,2006

BUDGET ADOPTION ON FAST TRACK

The Senate is responsible for initiating the Budget Bill this year. Earlier this week, the Senate leadership announced a plan to have the Senate approve the amended state budget for 2006-07 by May 26. The bill then would be sent to the House for consideration. The Senate budget bill is expected to include COLA recommendations for both state and local government retired employees.

This also was a busy week in terms of bill introductions. All bills affecting pension and retirement benefits that are to be considered during this year were required to be sent to the Bill Drafting Division by May 17. These bills now must be formally introduced by May 24.

BILL INTRODUCTIONS

Several bills of interest to retirees were introduced this week. A summary of these bills is presented below.

House Bill 2064: Repay Retirement Systems
(primary sponsor-Rep. McGee)

This bill calls for full repayment of the remaining funds that were withheld from the Teachers and State Employees Retirement System in 2000. The bill authorizes an appropriation of $113.7 million to repay the remaining principal amount plus accrued interest. The bill was referred to the House Committee on Appropriations.

House Bill 1877: Purchase Military Service/Retirement
(primary sponsor-Rep. Glazier)

This bill would allow both active and retired state and local government employees to purchase prior U.S. Military service time. Individuals with 10 or more years of state of local government service could buy military time at a lower cost than full actuarial value. This bill has been referred to the House Pensions and Retirement Committee.

Senate Bill 1346: Increase Fire and Rescue Squad Pensions
(primary sponsor-Sen. Dalton)

This bill proposes an increase in the monthly pension benefit for qualified volunteer fire fighters and rescue squad workers from $163 to $165. SB1346 is identical to HB 1889 which was summarized in last week’s Legislative Report.

House Bill 2061: Legislative Retiree Repayment & Transfer
(primary sponsor-Rep. Bernard Allen)

This bill authorizes members of the Legislative Retirement System who also are members of the Teachers and State Employees Retirement System or the Consolidated Judicial Retirement System to transfer creditable service from the legislative system to the other systems by repaying all retirement allowances that had been received from the legislative system. The bill has been referred to the House Pensions and Retirement Committee.