La. Gov. Bobby Jindal’s State Retirement Plan Ruled Unconstitutional By Louisiana Supreme Court
Earlier this year, it was a Baton Rouge judge that ruled the 401(k)-style retirement plan for future rank-and-file employees was unconstitutional. Now, the Louisiana Supreme Court is telling La. Gov. Bobby Jindal the same thing.
In both rulings, the law was ruled unconstitutional because it didn’t receive a two-thirds majority from lawmakers during the 2012 La. Legislative Session. The legislation got out of the session after La. House Speaker Chuck Kleckley ruled it didn’t need a two-thirds vote. But the Retired State Employees Association of Louisiana disagreed, claiming that as their basis for why the law was unconstitutional, and State District Judge William Morvant and the High Court agreed.
The bill would have paved the way for a “cash balance” retirement plan. Basically, an investment account similar to a 401(k) plan for state employees was created for state employees that would have been hired after July 1, 2013. This would happen instead of a monthly retirement payment based on salary and years of employment.
In a written statement, the Governor says he’ll “work with lawmakers on the best way to proceed.”