Governor Jindal Signs New State Employee Pension Law
Change is upon the state retirement system after Governor Jindal signed the newest reform for the workers of Louisiana. House Bill 68, written by Representative Kevin Pearson, was signed into law yesterday.
The bill entails that a cash-balance plan that truly defines the benefits and contributions which allows for a more sustainable retirement system.
After signing the bill, Governor Jindal said,
“This new law is a game-changer for Louisiana’s retirement systems. As the most important piece of our pension reform package, the cash-balance plan will help get our debt under control, protect taxpayers and provide new state employees with a portable retirement account that realizes investment earnings.”
Under this new system, the accounts that the employees obtain never depreciate in value and they also participate in investment gains, which happens during positive years in market finance.
On the other hand, if the market has a bad year, the participants that are with the new state plan are completely protected.
On top of that, the taxpayers are seeing less risk as well considering the plan is tied into market performance, not to mention the system is constantly taking 1% to act as insurance in case of loses.