LAFAYETTE MAYOR-PRESIDENT JOSH GUILLORY AND LCG ARE PRAISING THE RECENT PASSING OF BILL THAT WILL CHANGE THE RETIREMENT SYSTEM FOR NEW LAFAYETTE CONSOLIDATED GOVERNMENT EMPLOYEES. — Lafayette Mayor-President Josh Guillory and LCG are praising the recent passing of bill that will change the retirement system for new Lafayette Consolidated Government employees.
That bill, which Guillory says will help him keep his commitment to save money on Lafayette Consolidated Government’s retirement cost, was signed into law by Governor John Bel Edwards.
House Bill 15 (ACT 298), was drafted by Lafayette State Rep. Jean-Paul Coussan. It enrolls future LCG non-fire and police employees in the Parochial Employees’ Retirement System (PERS) instead of the Municipal Employees’ Retirement System (MERS), generating financial benefits for LCG.
According to LCG, PERS gives LCG a lower contribution rate of 12.25 percent, compared to the MERS current employer share of 29.5 percent effective July 1, 2020.
“In the first year alone, we anticipate saving more than $500,000 in employer contributions. In the coming years, as non-fire and police employees currently enrolled in the Municipal Employees’ Retirement System leave or are replaced with employees who will enroll in the Parochial Employees’ Retirement System, savings will substantially grow,” Mayor-President Josh Guillory said.
Guillory expressed his appreciation for Representative Coussan and the Acadiana Delegation supporting and passing the legislation.
“This is a good fiscal move because it will save Lafayette Consolidated Government millions of dollars in years to come, and it puts future employees on firm footing with their retirement system.," Coussan said.
ACT 298 takes effect November 1, 2020, and all new non-fire and police employees hired after that date will enroll in PERS.
MERS/PERS BACKGROUND
- Before the City of Lafayette and Parish consolidated in 1996, parish employees were enrolled in PERS; city employees were enrolled in MERS.
- After voters approved the LCG Home Rule Charter and after consolidation occurred in June of 1996, non-fire and police new hires were enrolled in PERS.
- A bill was filed on behalf of LCG in 2010; when it became law, it placed new non-fire and police employees into MERS instead of PERS. The MERS employer rate has more than doubled, necessitating the need for this new legislation.
------------------------------------------------------------
Stay in touch with us anytime, anywhere.
To reach the newsroom or report a typo/correction, click HERE.
Download our free app for Apple,Android, Roku and Amazon devices.
Sign up for newsletters emailed to your inbox. Select from these options: Breaking News, Evening News Headlines, Latest COVID-19 Headlines, Morning News Headlines, Special Offers
