BATON ROUGE, La. (AP) — Louisiana Gov. Bobby Jindal has signed into law a retirement change that will create a new pension plan for rank-and-file state employees hired starting in 2013.
The measure was the only significant retirement proposal sought by the Republican governor to win passage from lawmakers in the just-ended legislative session.
Employees hired after July 1, 2013, will receive an investment account similar to a 401(k) plan, instead of a monthly retirement payment based on their salaries and years of employment. The new pension plan is called a "cash balance" plan.
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Jindal said Tuesday the change will help shrink the growth of a multibillion dollar state retirement debt. He described it as setting the stage for a more sustainable pension system.
Retirement analysts disagreed widely, however, on the financial implications of the change.
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