News -> INDReporter THU, JAN 24 10:42AM by The Associated Press

Trial set in lawsuit against state retirement plan

BATON ROUGE, La. (AP) — A Baton Rouge judge is hearing arguments in a lawsuit challenging Gov. Bobby Jindal's 401(k)-style retirement plan for future rank-and-file state workers.

The Retired State Employees Association of Louisiana claims the law is unconstitutional because it didn't get a two-thirds vote in the state House of Representatives.

The trial before Judge William Morvant is Thursday. It's expected to last all day.

The bill created an investment account similar to a 401(k) plan for state employees hired after July 1, 2013, instead of a monthly retirement payment based on salary and years of employment. It's called a "cash balance" retirement plan.

Jindal's office said the governor is confident the measure was constitutionally passed during the last legislative session. House Speaker Chuck Kleckley ruled the bill didn't need a two-thirds vote.


Walter Pierce
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written by Dudley E. LaBauve, III , January 24, 2013 - 01:37 pm
Better get used to this type of government retirement plan! Pensions and guarantees based on years of service, etc. have become absolutely unaffordable due to life span these days. Government can increase salaries to help people put money away, but it cannot afford to pay people for 30 years of life in retirement. Many, many corporations have done away with pensions and emphasize 401(k) because pensions are flat out unaffordable.
Unions, Associations, and everyone else better come to realize this is inevitable.
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