State Retirement Plan Ruled Unconstitutional By Baton Rouge Judge
As Gov. Bobby Jindal continues to make national headlines, his 401(k)-style retirement plan for future rank-and-file employees has been rejected by a judge.
The law was passed during the legislative session. It was done so after La. House Speaker Chuck Kleckley ruled the bill 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 agreed. But Jindal's office believed the measure was passed constitutionally during the session.
The bill that was passed in the 2012 session 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.