Committee advances bill to let LAMP participate in municipal retirement system

The Senate Committee on Retirement on March 10 voted to report Senate Bill 8 favorably, a measure that would let the Louisiana Asset Management Pool (LAMP), a nonprofit that helps local governments manage cash balances, participate in the Municipal Employees' Retirement System (MERS).

Theo Sanders, chief executive officer of LAMP, told the committee he and two other staff members currently participate in a separate retirement arrangement and asked for permission to move future service into MERS. "I'm the CEO of LAMP. I've been working at LAMP now almost 24 years," Sanders said in opening remarks, noting the change would involve only going-forward service.

Committee members asked about an actuarial note. Greg Curran, introduced to the committee as the actuary, said LAMP currently contributes approximately 12% of salary into an individual retirement account and that the switch to MERS would apply only to future service and therefore carry no historical cost to the plan or employers. "It's only going to be based on service going forward, so it has no historical cost to the plan or to the employer," Curran said. He added that employer contributions for the MERS plan in question are about 13–13.5%, meaning employers would see a slight increase in contribution rates for any positions moved into the system.

Representatives for MERS said the board had reviewed the request at the staff level and treated acceptance as a legislative policy decision. The committee accepted informational cards from MERS and other supporters and then moved the bill favorably with no recorded objection.

The committee did not record a roll-call vote; sponsors said the bill will be reported to the full Senate for consideration.

What happens next: SB 8 will be listed on the committee report and proceed to the Senate calendar for floor consideration.