Retirement Board Seeks Delay In New Plan’s Start
BATON ROUGE, La. (AP) — The Louisiana State Employees Retirement System board wants the Legislature to delay the July 1 start of a 401(k)-type retirement plan for new state hires.
The board voted Friday to seek the delay, The Advocate reports (http://bit.ly/Q1iFsx ), because members fear the tax and Social Security status of the plan may not be resolved in time.
LASERS Deputy Director Maris LeBlanc says the IRS could subject employees' contributions and retirement earnings to taxes. Some employees could have to be enrolled in Social Security if the state benefit isn't equivalent to Social Security's — adding to employee and taxpayer costs. The costs would be levied retroactively from the plan's start.
Gov. Bobby Jindal's spokesman Michael DiResto says the administration is "confident" the plan meets IRS requirements and there's no reason for delay.